A Henry Stewart Briefing

Funding Property in a Big Way - Even Now

Chair
Michael Lister
Principal
Michael Lister Private Equity
& Partner
Clydesdale Bank

Speakers
Nigel Birkett
Director, Debt Advisory
Deloitte

Stuart Cruickshank
Senior Director - Property Structured Finance
Royal Bank of Scotland

Anshul Jain
Director
DTZ International Investment

Mark Leonard
Senior Solicitor
Travers Smith

Alun Oliver
Managing Director
E3 Consulting

Ian Stockdale
Senior Partner, West End Property Finance Team
Clydesdale Bank

Greville Warwick
Director
MCS

Programme

Who’s funding? Who can go direct to the market now? The refinancing market
• Review of banks currently lending in the market
- UK clearers
- Investment banks
- European banks
- Specialist property banks
• What are banks looking to lend on
- Commercial and residential development funding
- Commercial and residential investment funding
• What are banks looking for – key credit attractions and risks
• Underwriting v club facilities – pros and cons and what factors influence which route to choose
• When to consider refinancing existing facilities
• Issues associated with refinancing
• What has changed over the last 6-12 months and what does that mean for the coming year
Nigel Birkett, Director, Debt Advisory, Deloitte

What’s being funded?
• Funding for commercial development and investment
• Funding residential development now
• Distressed funding deals – how do banks react when problems occur
Ian Stockdale, Senior Partner, West End Property Finance Team, Clydesdale Bank

What can’t be funded in the present market - so don’t bother to try
A review of the types of property, purposes, locations, levels of cover, lengths of loans and repayment terms that are no longer available.
Ian Stockdale

Accessing Grant Funding
• Grants
• Sources
• Capital expenditure
• Areas that qualify
• Evaluation
• Processes: The Business Plan – The Application – Briefing
• Funding – Contribution
• Timing
• UK-EC-Overseas
• Likelihood of success
Greville Warwick, Director, MCS

Sourcing Equity
• What equity is available
• What deals can it be available for?
• Where can it be found?
• What will it cost?
• Development vs. investment
• Project based vs. joint venture
Michael Lister, Principal, Michael Lister Private Equity and Partner, Clydesdale Bank

Funding Asian Opportunities
• Cross border investments – what is the score?
• How are the investments funded?
• Where is equity flowing from?
• Has the Credit Crunch hurt the Asian realty markets?
• Focus – Indian investment markets
Anshul Jain, Director, DTZ International Investment

Legal structures
• Ownership and funding structures
• Documentary issues including:
- Cash flow/cash sweep
- Financial covenants and covenant cure
- Transferability/syndication
- Relationship between loan and security documents; hedging
• Intercreditor issues
• Cross-border transactions – principal legal differences between UK and continental Europe
Mark Leonard, Senior Solicitor, Travers Smith

Property Taxation – Savings and Opportunities
• Capital Allowances
- Transaction Planning
- Acquisitions - Corporate & Asset
- Development Funding
- Green Buildings - 100% Enhanced Allowances
• Landfill Tax
• Land Remediation Tax Relief
Alun Oliver, Managing Director, E3 Consulting

What’s possible in OpCo/PropCo funding and Sale and leaseback Finance?
• Why structure in OpCo/PropCo?
• What are the risk considerations?
• Which sectors remain attractive?
• What does the short term future hold for investors?
Stuart Cruickshank, Senior Director - Property Structured Finance, Royal Bank of Scotland

What is the current and short term position in the After Loan and Syndicated Markets?
• Analysis of current appetite in the Loan distribution markets
• How is the liquidity crunch affecting structure and pricing?
• What are the implications for investors?
- Vendors
- Purchasers
Stuart Cruickshank