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Real Estate Finance - Coggle Diagram

- - - - 3. Transactional issues
        [6. Corporate structures]
        
        5. Revolving loan
        [Ability to re-draw monies]
        
        4. Term loan
        [Early pre-payment fees]
        
        1. Change of control
        [3. Ability to change asset manager]
        
        1. Change in ultimate owner
        [1. Complete prohibition]
        
        2. Flexibility to charge up to 50%
        [Can balance of ownership change between owners?]
        
        2. Ability to change intervening company structure
        [1. Non-prejudicial to the lender or security]
        [2. Tax issues for borrower]
        
        2. Loan to Value (LTV)
        
        1. Typically up to 65%
        
        Senior debt parables
        [1. Banks]
        [2. Debt funds]
        
        2. Typically 65% to 80%
        
        Mezzanine debt parables
        [1. Limited banks]
        [2. Debt funds]
        
        3. Typically 0-80%
        
        Whole loan providers
        [Debt funds]
        
        3. Loan length
        
        1. 5 years or less
        [1. Debt funds]
        [2. Banks]
        
        2. Over 5 years
        [Debt funds]
        
        7. CPs
        [1. Corporate authorisations]
        [4. Financial due diligence]
        [5. Insurance]
        [6. Corporate structure]
        [7. Tax]
        [8. Duty of care]
        
        2. Property due diligence
        [2. Valuation]
        [3. Other reports]
        
        1. Legal reports
        [1. Certificate of Title]
        
        2. Report on Title
        [1. Title]
        [2. Planning]
        [3. Construction]
        
        9. Release documents
        [1. DS1]
        [2. Deed of Release]
        
        3. Finance documents
        [1. Facility Agreement]
        [2. Security]
        
        10. Post-completion
        [1. Bible]
        [2. Registrations]
        
        8. Development covenants
        [1. Who certifies practical completion?]
        [2. Longstop Date for practical completion]
        [3. Milestones]
        [5. Construction CPs]
        
        4. Construction procurement
        
        1. Design and Build
        [1. Fixed price contract]
        [2. Collateral warranties or third party rights]
        [3. Approval of contractor and team]
        
        2. Construction management
        [1. Approval of team]
        [2. Collateral warranties or third party rights]
      - 2. Legal issues
        
        1. Change in lender
        [1. White list of transferees]
        [2. Consultation with borrower]
        [3. No restrictions]
        [4. Tax issues for borrower]
        
        2. Interest rate
        [1. Fixed rate]
        
        2. Floating rate
        [1. Break costs]
        [2. Hedging]
        
        3. Currency exposure
        [1. Floating]
        [2. Hedging]
        [3. Cap]
        
        4. Lender's decisions
        [1. Majority lender]
        [2. All lenders]
        
        5. Event of Default
        [1. Cross default]
        [4. Is there a "major tenant"]
        
        2. Cure periods
        [1. Financial covenants]
        [2. Payment default]
        [3. Other covenants]
        [4. Representatives (if capable of remedy)]
        
        3. Insolvency
        [1. Borrower]
        [2. Others]
        
        6. Increased costs
        [1. Regulations in force]
        [2. Future regulations]
        
        7. Tax
        [1. Type of lender]
        [2. Withholding tax]
        [3. VAT group]
      - 1. Property issues
        
        1. Ability to deal with property
        
        1. Lease events
        [1. Grant of leases]
        [2. Surrender of lease]
        [3. Variation of leases]
        
        2. Changing the property
        [1. Planning applications]
        [2. Planning implication]
        [3. Development prohibited]
        
        3. Spending on the property
        [1. Capex]
        [2. Maintenance]
        [3. Development prohibited]
        
        4. Ability to buy other property
        [1. New property]
        [2. Adjoining land]
        
        5. Sale of property
        [1. Sale of part]
        [2. Sale of whole]
        
        3. Property revenues
        [2. Approval to pay asset manager fees]
        [4. Consider "cash-trap" before a default triggered]
        
        1. What payments can be made before net rent paid to lender
        [1. Managing agent fee]
        [2. Headlease payments]
        [3. Service charge]
        
        3. Is surplus income released to the borrower
        [1. On lend]
        [2. Apply to property capex]
        [3. Repay sub-debt]
        [4. Use for other purposes]
        [5. Divdends]
        
        2. Multiple properties
        [3. Portfolio approach to covenants and defaults]
        [4. Came out for de-minimise dealings**
        
        1. Property substation
        [1. Release of security]
        [2. CPs for substitute property]
        [3. Conditions to substation?]
        
        2. Ability to dispose of property provided covenant compliant
        [1. ALA]
        [2. Conditions of sale?]