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Real Estate Finance - Coggle Diagram
Real Estate Finance
1. Types of loan
[2. Unsecured loan]
1. Secured loan
Investment Facility
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?]
Development Facility
[1. Property issues]
[2. Legal issues]
[3. Construction issues]
[4. Transactional issues]