Restructuring and Refinancing Real Estate
Nov 19 - 22 Nov, 2012
Real Estate has historically been a cyclical market and debt has traditionally been used at different stages in the cycle to adjust investorsâ€™ risk return tolerance. The last decade witnessed an unprecedented increase in leverage driven by consistent and high capital growth of real estate assets. A combination of events led to increasing competition between banks to lend and consequently a relaxation of underwriting standards. The enthusiasm to maximise returns coincided with less emphasise on risk management. Inevitably there was a market correct but the speed and scale was far more dramatic than most had anticipated. Lenders and borrowers faced an exceptional and volatile market with much of the property debt legacy secured pre-2008 coming under severe pressure. Liquidity dried up and there was an urgent to source equity and pay down debt to avoid the consequences of default. Banks often preferred to extend loans and realign the terms between lender and borrower, rather than foreclose. Others put in place their preferred sponsors with participation in potential upside recovery. This course addresses these issues by first looking at the fundamentals of establishing the base value of the underlying assets in uncertain market conditions, managing and maintaining the cash flow and clarifying the exit strategy, before considering structuring alternatives by established and new lenders. It concludes by looking at workout options for distressed but income producing properties as well as existing development projects.
Venue: Central London Hotel