Developers

The trough of a property cycle is probably one of the worst times for developers. Limited demand from tenants and investors, overheads biting into profitability and potentially a project overhang from the boom days. Bankers have never been so uninterested in funding new developments. Now is the time to regroup, focus on your core skills, redefine your strategy and minimise the consequences of slump.





During the good times, price inflation goes a long way to wiping out mistakes caused by inexperience, foraying into unknown markets and lack of a unique selling proposition.

We can help you:
  • Re-evaluate your industry positioning and strategy: your industry role, sector and geographical specialisation
  • Reposition your company for growth: identify suitable risk-capital and service income activities
  • Device a business plan to achieve your goals, taking into account the cycle and your risk and capital constraints
  • Identify potential synergies with other players in the sector and take advantage of the unique buying opportunities that the downturn provides


Deficient or inefficient procedures can mean unnecessary risk exposure, reduced returns and disgruntled investors or shareholders. In these difficult times, the impact can be more pronounced - especially if you are a listed entity.


When you are under stress, the demands on top management to resolve the problems while juggling the day-to-day operations can be overwhelming. This pressure may lead to the wrong decisions. Our team can provide the additional boost of experience, commitment and hard work that will help you improve the performance of your assets by tackling:
  • Design & concept
  • Tenant mix
  • Lease structures and tenant relations
  • Management
  • Non-recoverable expenditure and service charge inefficiencies
  • Capital and tax structure
We will eliminate all the inefficiencies and reposition the asset to weather the storm and be positioned for recovery.

Crucially, if you need to restructure your debt facility, a business plan covering all the aspects above will be invaluable in communicating and demonstrating to your lenders that you are in control of the situation. A deep working knowledge of your asset and a robust plan for turning it around will allow you to achieve better terms in your negotiations.


You are a cash-rich entity that decides to take advantage of the various opportunities available in property markets today. Remember - acquiring an asset, portfolio or operational entity at a ’distressed’ price is one of the most effective ways of generating value. This however is not a straight forward process. You need to know the exact origin of this distress. There will be obvious reasons as well as others, not so obvious ones that lie in the depth of the asset or the operation. And although the buyers are dictating their own tempo, there will be times when a really good opportunity will come with its own compressed timeframe We can assist you in making the right decisions with confidence by:
  • Devising a detailed business plan to identify the risk and return profile of the potential transaction, with particular emphasis on potential value-add initiatives
  • Orchestrating legal, technical, property and market due diligence, with the appropriate focus on the relevant risk factors
  • Providing crucial input in the negotiation of the relevant documentation to mitigate risks


Successful property investment and development requires the confluence of a number of factors: good assets, local experience, competent management as well as an adequate and efficient capital structure. The owner of a prime asset, for instance, is not necessarily the best operator and may lack the necessary capital to put the asset in its optimum use. With first-hand experience as principals, the team is adept at advising on all matters relating to joint ventures: sourcing of partners, negotiation of relevant agreements and post-closing management and monitoring.

Typical situations include :
  • An investor and a series of developers (each specialising in a particular geography) to develop and co-own a particular type of property asset across several regions
  • A site owner teaming up with a Developer for the development and joint ownership of the completed asset
  • A Developer and an Investor, for the co-ownership and co-management of a completed asset
Each JV agreement is bespoke and depends on the contribution and the risk appetite of each partner.


Our team has extensive contacts and working relations with debt and equity providers across Europe and beyond. We can help you with your capital structure using innovative and flexible structures:
  • Debt financing
  • Equity and Hybrid instruments: profit participating, preferred equity, mezzanine etc
We will help you model your asset or portfolio, test it for various sensitivities or ‘what ifs’, design a capital structure that will balance flexibility with cost and help, identify potential providers and help you with the structuring and closing of the facility
.


Where the best strategy the disposition of all or part of your portfolio, 8GCP is uniquely placed to extract the maximum value. This we achieve by knowing the audience that will value the target the most as well as the way to structure the sale to maximise value.

The team has extensive capital markets and marketing experience. Coupled with first - class contacts in the investment community, this enables 8GCP to conduct the process effectively. Our approach revolves around:
  • Developing a ‘story’ for each asset, backed by rigorous underwriting
  • Implementing short-term performance ‘fixes’
  • Market portfolios as individual assets, in sub-portfolios or in their entirety, as to maximise investment value
  • Keeping surprises at bay by performing comprehensive vendor's due diligence (in collaboration with other tax, accounting, building and other consultants)
Having been investors ourselves, we spot the synergy potential and the investment rational for every potential investor we identify.

Each transaction is managed personally and we maintain an active role, from pre-marketing all the way through negotiations, documentation and closing .

 
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