Use Case 01 · AI Agent Demonstration

CRE New Business Origination

Watch the SmartAgent process a new Commercial Real Estate loan application from prospect intake through credit memo generation — autonomously.
Borrower: Vertex Properties GmbH
Asset: Munich Office Tower, Maxvorstadt
Request: €32m Senior Term Loan, 7-year tenor
Purpose: Acquisition + Light Refurb
Agent Workflow
1
Prospect Intake
2
Customer & Group Check
3
Document Analysis
4
Policy Compliance
5
Financial Modelling
6
Credit Memo Output
Step 1 of 6 · Prospect Intake

New Loan Request Received

The SmartAgent has received a new CRE loan request and begins structured information gathering.
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SmartAgent · Reasoning
New loan request received from Vertex Properties GmbH. Request involves acquisition of a commercial office property in Munich. I will now query Database 01 to check existing customer status, then cross-reference Database 03 for any prospect documents on file. Let me begin structured intake...
📋 Loan Request Summary
BorrowerVertex Properties GmbH
Customer IDSAB-0247
Transaction TypeCRE Acquisition + Refurbishment Loan
PropertyOffice Tower "Maxvorstadt One", Munich
Purchase Price€52.4m
Loan Amount Requested€32.0m
Equity Contribution€20.4m (39% of purchase price)
Tenor7 years
StructureSenior Secured Term Loan, interest-only year 1–2
Relationship ManagerM. Weber
✅
Existing Customer — Full KYC on File
Vertex Properties GmbH is an existing SmartAgentBank customer (since 2018). KYC is current (refreshed Q3 2025). AML screening: No adverse findings. LEI verified.
Step 2 of 6 · Customer & Group Analysis

Existing Exposure & Group Check

Agent queries Database 01 and Database 02 to assess current exposure and group-level concentration.
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SmartAgent · Querying DB01 + DB02
Querying Database 01 for SAB-0247 current exposure... Found. Now pulling Database 02 group structure. Vertex Properties GmbH belongs to GRP-023 (Vertex Gruppe) with 4 connected entities. Aggregating group-level exposure for concentration check...
DB01 · SAB-0247 Record DB02 · GRP-023 Group Structure DB02 · Collateral Registry DB04 · Concentration Limits
👤 Borrower Current Profile
Internal RatingBBB (Grade 6)
PD (1-year)0.42%
Current Drawn Exposure€14.2m (2 existing facilities)
Current Committed€18.5m
Relationship Since2018 (7 years)
ClassificationPerforming — No Watch Flags
🏢 Group Exposure — GRP-023 (Vertex Gruppe)
Group Members4 entities
Current Group Exposure (drawn)€34.1m
Post-new-loan Group Exposure€66.1m
Single Borrower Limit (10% Tier 1)€48.0m
Headroom After New LoanEXCEEDS SINGLE BORROWER LIMIT by €18.1m
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Group Concentration: Credit Committee Approval Required
Post-closing group exposure of €66.1m exceeds the €48m single-borrower limit. This will require Credit Committee approval and a formal policy exception under Section 4.0 of the Credit Policy. The SmartAgent will flag this in the Credit Memo and route for Credit Committee review.
Step 3 of 6 · Document Analysis

AI-Powered Document Review

Agent retrieves and analyses prospect documents, appraisal report, and financial statements from Database 03.
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SmartAgent · Reading DB03 Documents
Located 4 documents in Database 03 for SAB-0247: (1) Investment Prospectus Q4 2025, (2) CBRE Property Appraisal Nov 2025, (3) Audited Financial Statements 2023/2024, (4) Tenancy Schedule. Running parallel extraction on all documents... Key metrics identified and structured for analysis.
DB03 · Vertex Prospectus Q4 2025.pdf DB03 · CBRE Appraisal Nov25.pdf DB03 · Financial Statements 2024.pdf DB03 · Tenancy Schedule.xlsx
🏗️ Property Assessment (CBRE Appraisal)
PropertyMaxvorstadt One, Munich
Total NLA8,240 m²
Market Value (Nov 2025)€53.2m
Gross Initial Yield4.85%
Net Initial Yield4.42%
WAULT (to break)5.4 years
Occupancy94.2%
GradeGrade A (refurbished 2022)
📊 Financial Highlights (Borrower)
Total Assets€124.8m
Equity€47.3m
Rental Income (2024)€8.4m
EBITDA (2024)€6.2m
Net Interest Cover3.1x
LTV (existing portfolio)58.4%
AuditorKPMG — Unqualified Opinion
📑 Tenancy Analysis
No. of Tenants7
Largest TenantAllianz SE (38% of income)
Lease Expiry: 1–3yr12% of income
Lease Expiry: 3–5yr28% of income
Lease Expiry: 5yr+60% of income
Passing Rent€2,480/m²/year
ERV (CBRE estimate)€2,650/m²/year
🤖 AI Key Flags from Documents
Allianz break option2027 (18 months post-close)
Refurb reserve needed€1.8m (agent-estimated)
Forward purchase clauseNone detected
Environmental riskPhase 1 ESA — Clear
Listed building statusNo restrictions
Step 4 of 6 · Policy Compliance

Automated Policy Validation

Agent checks all Credit Policy constraints from Database 04 against the proposed transaction parameters.
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SmartAgent · Checking DB04 Constraints
Loading Credit Policy v3.2 and CRE Financing Guidelines Section 3.0 from Database 04. Running transaction parameters against all applicable rules. Checking LTV, DSCR, WAULT, property grade, and approval authority requirements...
DB04 · Credit Policy Section 3.0 DB04 · Concentration Limits DB04 · Approval Authority Matrix DB04 · Covenant Framework
✅ Policy Compliance Check Results
✅ LTV ≤ 70% (Office — Prime): Actual LTV = 60.2% PASS
✅ DSCR ≥ 1.30x: Estimated DSCR = 1.48x PASS
✅ Min. WAULT ≥ 3 years: Actual WAULT = 5.4 years PASS
✅ Max Vacancy at Close ≤ 15%: Actual Vacancy = 5.8% PASS
✅ Min. Equity Contribution ≥ 25%: Actual = 39.0% PASS
✅ Max Tenor ≤ 10 years: Requested = 7 years PASS
⚠️ Single Borrower Limit (10% Tier 1 = €48m): Post-close group = €66.1m EXCEPTION NEEDED
⚠️ CRE Sector Concentration: Current 34.2%, Post-close ~35.5% vs. 40% limit MONITOR
✅ Approval Authority: €32m requires Credit Committee ROUTED
⚠️
Recommendation: Proceed with Formal Policy Exception
The transaction is commercially sound (DSCR 1.48x, LTV 60.2%, strong tenant mix). The single-borrower group limit breach requires a Policy Exception approved by the Credit Committee. SmartAgent recommends proceeding to Credit Committee with exception documentation. Suggested mitigation: require Allianz lease renewal confirmation before drawdown.
Step 5 of 6 · Financial Modelling

RWA & Return Calculation

Agent computes risk-weighted assets, expected loss, and risk-adjusted return using Basel IV standard approach parameters from Database 04.
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SmartAgent · Computing Risk Metrics
Applying CRR3 Art. 126a risk weights for IPRE (Income-Producing Real Estate) at LTV 60.2%. Calculating EAD, PD, LGD for expected loss computation. Running three-scenario DSCR stress test. Computing RAROC for pricing recommendation...
📐 RWA Calculation (Standard Approach)
EAD (Exposure at Default)€32.0m
LTV60.2%
Applicable Risk Weight (CRR3)70% (IPRE, LTV ≤ 60% cliff)
Risk-Weighted Assets€22.4m
CET1 Capital Consumed (14%)€3.14m
💸 Expected Loss & Pricing
PD (internal, BBB)0.42%
LGD (secured CRE, senior)35%
Expected Loss (annual)€47k (0.15% of EAD)
Funding Cost (estimate)3.10% p.a.
Min. Margin for RAROC 12%1.45%
Recommended PricingEURIBOR + 1.65%
📉 DSCR Stress Test
Base Case DSCR1.48x ✓
Downside (–20% rent)1.18x ✓
Severe (–35% rent)0.97x ⚠ (below 1.0x)
Allianz breaks optionDSCR → 1.12x (manageable)
Policy Minimum DSCR1.30x
📈 Return Summary
Net Interest Income (p.a.)€528k
Fee Income (arrangement)€96k (0.30%)
Cost of Risk–€47k
Allocated Capital Cost–€377k
RAROC (Risk-Adjusted Return)12.8% ✓ above hurdle
Step 6 of 6 · Output

Credit Memorandum — AI Generated

The SmartAgent has generated a complete Credit Memo ready for Credit Committee review. Full cycle completed in under 4 minutes.
CREDIT MEMORANDUM
Prepared by SmartAgent AI · 03 April 2026 · CONFIDENTIAL · For Credit Committee

Transaction Summary

Vertex Properties GmbH (SAB-0247)
Senior Secured Term Loan
€32,000,000
7 years (IO Years 1–2)
Maxvorstadt One Office Tower, Munich
Acquisition + Light Refurbishment
3M EURIBOR + 165bps
Credit Committee (Policy Exception)

Key Risk Parameters

BBB (Grade 6)
60.2%
1.48x
€22.4m (70% RW)
€47k p.a.
12.8% (above 12% hurdle)

AI Risk Assessment Summary

Vertex Properties GmbH is a well-established CRE borrower with a 7-year relationship with SmartAgentBank. The proposed acquisition of Maxvorstadt One represents a sound investment in a Grade A Munich office asset with strong tenancy (94.2% occupied, WAULT 5.4 years). The asset is well-positioned in a prime Munich submarket with limited new supply. Key risk is the Allianz break option in 2027 (38% of income); mitigant is the strong leasing market in the location. The transaction is credit-positive, subject to the policy exception for group concentration limit.

🤖 SmartAgent Recommendation: APPROVE — Subject to Conditions
The SmartAgent recommends Credit Committee approval of the €32m facility, subject to: (1) formal policy exception for group exposure limit; (2) pre-drawdown confirmation of Allianz lease renewal or alternative letting evidence; (3) upfront commitment fee of 0.30%; (4) standard CRE covenant package (DSCR 1.25x, LTV 70%, ICR 2.0x, occupancy 80%); (5) first-ranking mortgage over Maxvorstadt One.
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Full Cycle Completed in 3 minutes 47 seconds
Traditional process: 3–5 business days · SmartAgent reduction: ~98% faster · Human review still required for final decision