OUR SERVICESREAL ESTATE

Refinancing generally refers to the refinancing of existing loans for various reasons or needs. Sometimes it is to extend the loan repayment term (rescheduling), to consolidate 2 loans into one, to obtain more favourable conditions through refinancing (a lower interest rate) and the like. In addition to loans, other financial instruments can be used for refinancing depending on the needs

In practice, there are usually 2 types of situations when investors refinance loans or projects:

1. real estate under construction by professional investors , which due to lack of working capital (as a result of overinvestment, inadequate financial planning, changed market conditions, etc.) cannot be completed without refinancing or additional investment/recapitalization of the project or the development company or
2. real estate under construction by speculative investors who are engaged in some other business activities (trade, industrial production, etc.) and who has entered real estate development for speculative reasons, expecting higher earnings in real estate development than in their main business activity, and who due to the changed market conditions cannot complete the started project without refinancing the loan or the project.

To successfully refinance a real estate project, it is important to determine which financial instruments are most adequate for refinancing in order to successfully close the financial structure until the completion of the project and its commercialisation (sale, rental, etc.). This is achieved by a comprehensive analysis of the project, forecasting cash flows until its commercialisation, determination of its optimal capital structure and then selection of financial instruments that should be applied such as:

• debt rescheduling,
• refinancing with and without increasing the amount of the principal loan,
• recapitalization,
• issuing bonds,
• sell&leaseback
• mezzanine financing
• financing by real estate distressed funds
• and other measures.

Most often, debt rescheduling may not be a sufficient measure since it may put off bankruptcy for some time, until the next crisis situation. The formula for success is most often a combination of measures that lead to creating the financial structure of the project which will enable its successful completion.

Our assistance

We offer a wide range of services in real estate refinancing with equity, debt or hybrid capital. Our consulting service includes the preparation of the necessary analyses for refinancing of the project, preparation of the restructuring program, the preparation of the financial model, forecasting repayment of financial obligations after the refinancing, the identification and contacting of adequate sources of financing, presentations and negotiations with lenders and/or investors and other necessary support to the client until the successful completion of refinancing of the project .