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Advisory and Management Services
We have experience of raising equity for real estate investments in both the public and private markets.
Our broad industry knowledge and contacts allow us to target specific investors by matching the risk / return appetite of specific investors with each investment raise.
Investor relations are an increasingly important part of any equity raising and our knowledge, gained from the management of investor relations for REIT's, public companies, private and institutional investors and joint venture partners allows us to ensure that appropriate reporting structures are in place to give investors confidence.
We keep abreast of the latest trends in management, performance and other fees, to ensure that management and investor interests are closely aligned.
Loan Capital Markets
Having raised over £5 billion in the securitisation markets between 200 and 2007 we are experts in the structured finance markets.
As well as securitisations, we have utilised fixed rates debt markets in the UK (debentures) and in the US (through private placements).
Fixed rate loans have become more of a feature of the market since 2010 however it is very important for borrowers to understand issues such as repayment flexibility and redemption penalties, as these can often have a significant impact on overall returns.
The attached pdf reproduces an article from The Treasurer magazine about the debenture restructuring led by Peter Clarke which won the Investment Grade Bond Category of The Treasurers Deal of the Year 2007.
We have excellent contacts, built up over many years, with all of the major real estate lending banks in the UK.
If you are looking for finance for your investment or development properties then we should be able to help.
We advise our clients to ensure that you do not rely on a single source of finance but look to widen relationship whenever they can.
Our contacts and knowledge allow us to help clients to achieve that and get the best pricing available in the market.
We advise clients on interest rate, fixed rate debt and foreign exchange derivative strategies.
Knowing how much to hedge, for how long on with what instruments, requires an in depth understanding of both financing and real estate strategies and an ability to assess the balance between cost, length of term and flexibility.
Having developed and agreed a strategy, we then work closely with chosen partners to ensure that execution of any trades are achieved on best market terms.
Negotiation with borrowers or lenders requires a detailed understanding of asset specific issues strong property and asset management skills an intuitive grasp of the value drivers for real estate investors.
Syndicated loans bring increased difficulties the ability to ‘shape’ the opinions of a group of lenders is vital as the lowest common denominator result will not be optimal.
Recept has an excellent track record of managing these types of negotiation, and finding innovative solutions to extricate both borrowers and lenders from untenable legacy positions.
Lending behaviours have changed however many lenders still do not have a clearly defined real estate lending strategy.
That strategy should be a result of a detailed review of markets, income at risk and prospects for default. Different sectors and geographies have very different prospects.
We help lenders to develop strategies and to improve due diligence and reporting procedures. Formal management due diligence is often still missing, and is very important.
We have access to proprietary risk modelling tools and the latest generation software can accurately analyse portfolio risk.
Robust systems of risk management and review are vital to monitoring lending real estate led, for example arrears, defaults, renewal rates, vacancies able to be interrogated in real time
able to aggregate exposures across multiple connections.
Without such systems ‘early warning’ signals are often missed
they have been market standard in public bond markets for some time most lenders are looking to upgrade management information systems.
We are experts at designing risk management systems of this kind.