We assist our clients in obtaining financing in order to support a new development, acquire an existing project or free up cash. Forton is a trusted partner of international and local banks and investors in providing real estate valuation and advisory services. This position allows us to directly target potential financial sources and determine complex financial structures which include senior loans, mezzanine facilities, bridge financing, acquisition financing, financial leasing positions, bond issues or capital increase.
How we can help
We are capable of devising tailor-made project financing packages that address the differing projects’ needs and risk-return criteria of potential sponsors – lenders or equity partners. Our team will provide sales and rental pricing assumptions based on our experience and knowledge of market conditions. On their basis we will develop forecasts for the project’s revenues and expenses as well as a full financial analysis in order to determine the range of return on investment for each type of investor involved in the project.
Forton can support the project with professional and engaging project presentations, memoranda and information materials. These materials will summarize the concept of the developer, revenue and expense projections and expected returns resulting from the financial analysis. Our involvement as project advisor will bring greater transparency and hence increase the level of trust of potential financial partners. In addition, it will provide a better understanding of the project and its financials from all stakeholders.
Introduction to potential sponsors
We will introduce the project and developer to a list of pre-agreed potential financial partners sourced from our proprietary databases or through a dedicated market research. Our clients benefit from our expertise and ability to prepare them for or directly address the first series of questions raised by lenders or co-investors. We will make sure to keep all communication channels open and to ensure a timely and constructive dialogue between the parties.
Administrative assistance and coordination
Real estate development and investment is a multi-disciplinary effort which requires timely coordination between many different stakeholders like planning authorities, landowners, lenders, occupiers, etc. Our team can assist in the negotiation process from the first indication of interest to execution of agreement. The closing of the financing package is an important milestone and precondition for a successful investment. We therefore pay great attention to the timeliness of planning and making decisions.
Assessment of offers and negotiations
We can help with the assessment and ranking of offers for the different financing tiers. We will investigate the position of potential partners and advise on the short-list. We will carefully review and negotiate on the proposed terms and conditions acting in the best interests of our clients. In the end of the process we will issue a recommendation for the winning offer.
Adding value – the advantages of our approach
Our involvement will help tune up both the business plan projections and the expected financing structure. As external service provider we can cover a wide range of sources and propose a solution tailored to a specific project. We are able to generate further ideas and devise a flexible deal structure.
Experience and resources
Our team works on a daily basis with a multitude of investors and lenders in the valuations, feasibility and market research areas. Our market and financial studies have backed a number of project finance exercises in the real estate market over the years. We possess a deep understanding of real estate finance and have been involved in high-level investment transactions including shopping centers, offices and development land in the recent years.