Briefings in Real Estate Finance最新文献

Structured finance, in this paper, refers to structures developed by banks, to finance real estate developments or investments, which separate the debt and equity components of real estate. The debt component or loan amount is the present value of the lease cash flow. The equity component is the value of the real estate at the end of the lease period. These complex structures incorporate significant tax benefits.

This paper examines the current position of structured finance in the South African real estate market. The focus is on up-market decentralised areas. The research aims to establish the benefits of structured finance for both lenders and borrowers. The research was initiated by a pilot study of a specific financing structure for a decentralised office development (Evans 2000). This pilot study raised the question of ‘who were the winners?’ in the deal.

The research has been conducted with the participation of selected banks and consultants who are the lenders and creators of the structures, as well as with the users who are the real estate investors or developers. A survey, in the form of structured, in-depth interviews was conducted with eight banks, two structured finance consultancy firms, eight developers and two investors, all of whom are active participants in the structured finance market.

As the criteria surrounding each deal vary, a ‘deal specific’ finance structure is created for each development or investment. This has led to the information collected being portrayed qualitatively. However, because of the confidential nature of each structure, research focuses on general rather than specific structures.

This paper examines first the aims of structured finance and the method of achieving these aims; secondly, the criteria for banks entering into these structures; and thirdly, the structure and tax risks which are invariably passed on to the borrower. Results of interviews reveal that banks and borrowers benefit from these finance structures by maximized loan amounts and fixed interest rates. The potential tax obligations, however, may have a significant financial impact on borrowers. Copyright © 2002 Henry Stewart Publications

This paper is adapted from a Fitch Ratings report, published in December 2002, entitled ‘Securitisation of corporate sale and leaseback’. The report describes the credit rating agency's approach to analysing such transactions and outlines some of the key issues which Fitch believes should be taken into account by debt investors when investing in property sale and leaseback securitisation. This paper provides an introduction to property securitisation and presents the fundamentals to understanding property sale and leaseback securitisation. Copyright © 2003 Henry Stewart Publications

How should a borrower respond to a draft set of commercial mortgage loan documents? This paper, consisting of four quarterly instalments appearing in the 2003/2004 volume of this publication, seeks to answer that question. The author discusses business and legal issues that mortgage loan documents typically raise for a borrower; some structural variations and the special concerns they might create; the closing process; and some issues that a borrower may want to raise on its own initiative. Copyright © 2003 Henry Stewart Publications

This paper assesses valuation methods of income producing real estate used by real estate appraisers from the perspective of commercial property lenders. Imbedded in any valuation are assumptions made about income growth and property price appreciation. These assumptions are evaluated highlighting models most frequently used by appraisers. When using appraisals, commercial lenders should be particularly aware of growth-related assumptions as they significantly impact the estimated value of any property. This paper provides a method of evaluating the sensitivity of a property's value to differing income growth scenarios using a perpetuity model. The comparative income growth (CIG) technique can improve lenders' risk analysis and loan decision making by building on information provided in property appraisal reports. Copyright © 2003 Henry Stewart Publications

The aim of this paper is to provide a review of the risk to a mortgage lender in lending on the security of a tenant's leasehold interest in real property and to outline the many ways in which such a risk may be reduced. The paper provides practical suggestions of how this risk reduction may be accomplished to the benefit of the lender, the landlord and the tenant through a combination of careful document review and a well thought out tri-party leasehold mortgage acknowledgment agreement. Copyright © 2004 Henry Stewart Publications

The aim of the Research Reviews is to focus on current academic research that contributes to and enhances professional practice. The objective is to provide the busy practitioner with a synopsis of leading edge research in the area and hopefully to stimulate a desire for greater understanding and application of knowledge and techniques that will enhance professional practice. Copyright © 2002 Henry Stewart Publications.

The mid-1990s saw the alignment of real estate and capital markets. The primary driver of this convergence was the emergence of securitisation for real estate debt and equity markets. The evolution of the innovative instruments introduced during this period and their resulting impact on financing the US lodging industry are discussed in this paper. Copyright © 2002 Henry Stewart Publications.

Technology is impacting on all companies at Internet speed, and an e-understanding of the future is required in order for real estate companies to determine their strategies and how they plan to fit into the New Economy. Real estate companies present some of the greatest challenges as well as the greatest opportunities, depending on the vision of the CEOs. Considering the inefficiencies and fragmentation in the industry, significant wealth may be created in those real estate companies willing to move to the edge of the frontier and explore opportunities to converge real estate and technology. This is entering into uncharted territory, and the importance of management and a clear strategy to steer through these changing times has never been greater. The author recently published a report, ‘Wired Real Estate: The Ultimate Portal’, which highlights the potential that exists in the real estate industry as real estate and technology converge. Based upon this analysis, a wired infrastructure is seen not only as a competitive advantage, but an opportunity to expand beyond bricks and mortar to offer tenants value-added services, or intangible assets, which should lead to high stock valuations. This paper gives a brief summary of the 164-page report. Copyright © 2001 Henry Stewart Publications