The Six-Monthly Henry Stewart Briefing
Raising and Structuring
Finance for Property Transactions
Chair:
Michael Lister
Relationship Director
Bank of Ireland
Speakers:
John Butler
UK Economist
HSBC Investment Bank
James
Dakin
Partner, Real Estate Banking
Nabarro Nathanson
Nigel
Das
Real Estate Investment Banking
Eurohypo AG
Frances
McLeman
Partner
Berwin Leighton Paisner
Martin
Muirhead
Partner, Property
Kingston Smith
Suzie
Orrell
Director, Property Finance
Bank of Ireland
Keith
Park
Managing Director
Capital Finance & Funding
Guy
Ratcliffe
Head of Property Derivatives
Abbey Financial Markets
Simon
Wainwright
Director
JPW Peiser Wainwright Ltd
Steve
Willingham
Director Debt Markets, Real Estate Finance,
Merrill Lynch
CURRENT
ECONOMIC BACKGROUND, INTEREST RATE TRENDS AND PREDICTIONS
-
UK is at an inflexion point: is the UK heading for boom or bust?
-
What issues are likely to determine growth, inflation and interest rates in the UK?
-
Will we see 6% interest rates before 3%?
-
What can policymakers do about the key global and domestic challenges?
-
Is this the time to take a $ or e loan?
John
Butler
UK Economist
HSBC Investment Bank
WHO
ARE THE PRINCIPAL SENIOR DEBT LENDERS? WHO IS FUNDING WHAT?
-
New players in the senior debt market: who is lending and what is available
-
Can borrowers secure price and relationship from their lenders?
-
Leverage vs cash on cash returns vs flexibility: maximising the mix
-
Using the bank and securitisation markets together as a financing strategy
-
Future directions of the market
Steve
Willingham
Director Debt Markets, Real Estate Finance
Merrill Lynch
WHAT’S
HAPPENING IN THE SECURITISATION MARKET
-
Bank loan vs securitisation - what are the advantages of each?
-
Hybrid structures - combining the best of capital markets and bank loans
-
Recent developments - new transaction structures, plus who is using securitisation
-
Market developments - trends in pricing and expectations for 2005
Nigel
Das
Real Estate Investment Banking Eurohypo AG
FINANCE
FOR COMMERCIAL DEVELOPMENT AND INVESTMENT
-
Why borrow at all
-
The main investment principles
-
A bank's evaluation process when considering financing a commercial investment
property
-
The principal terms together with a typical structure
-
A bank's evaluation process when considering financing a
commercial development
-
The principal terms together with a typical structure
Suzie
Orrell
Director, Property Finance
Bank of Ireland
FINANCE
FOR RESIDENTIAL DEVELOPMENT AND INVESTMENT
-
Residential investment or buy-to-let?
-
Who is lending on residential investment?
-
What are their criteria?
-
What is the market for residential development?
-
Senior debt/mezzanine/equity - what are the options?
Keith
Park
Managing Director
Capital Finance & Funding
TRENDS
AND CHANGES IN LOAN DOCUMENTATION
-
Comparison of conduit and traditional loans
-
Impact of IFRS on loan documentation
-
Basel II update
James
Dakin
Partner, Real Estate Banking
Nabarro Nathanson
HEDGING
STRATEGIES
-
What is property value hedging - a new concept?
-
Why hedge the values of properties?
-
What type of hedging strategy - swaps or options?
-
What business is being done - commercial vs residential
-
Likely pricing of hedges
-
Hedge issues to consider - which reference assets, how effective will the hedge be?
-
The future of the market for property value hedging
Guy
Ratcliffe
Head of Property Derivatives
Abbey Financial Markets
STRUCTURED
FINANCE BEYOND SENIOR DEBT: WHAT IS CURRENTLY POSSIBLE?
-
Pricing high risk debt - how much and at what cost?
-
The role of the sponsor and promoter
-
Waterfall returns - what levels are realistic?
-
When is equity debt, and debt equity?
-
Who are the providers and what fees and costs do they charge?
-
How should you present a business case
-
Timelines and the importance of exit strategies
Simon
Wainwright
Director
JPW Peiser Wainwright Ltd
CURRENT
THINKING IN TAX PLANNING AND MITIGATION INCLUDING OFFSHORE
FINANCING STRUCTURES
-
Maximising returns through efficient structuring
-
Structuring a purchase to maximise net sales proceeds
-
Taking advantage of tax reliefs for commercial property
-
Advantages and pitfalls of using SIPPs for property transactions
-
The advantages of using offshore structures
-
Finance – tax interaction
Martin
Muirhead
Partner, Property
Kingston Smith
JOINT
VENTURE FUNDING – CURRENT TRENDS AND LEGAL ISSUES
-
Joint venture "funds" for institutional property investment in UK and Europe
-
Joint ventures for structured finance transactions
-
Joint ventures with public sector parties
-
Impact of insolvency law developments
Frances
McLeman
Partner
Berwin Leighton Paisner