FINANCIAL MODELLING & PRESENTATION FOR FINANCE RAISING
MIXED USE REAL ESTATE DEVELOPMENT PROJECT, sOUTH WEST LONDON
Working with an experienced residential developer, I built and ran a financial model to forecast the profitability and project finance costs. Using the model and my contacts in the real estate finance markets, I advised on the optimal funding structure for the client’s requirements. I compiled the funding presentation and sourced finance terms from various lenders, which were then fed back into the financial model to ensure the most appropriate finance structure.
project summary:
The client assembled 3 neighboring sites to maximize the planning potential for the project. I initially assisted with sourcing the acquisition funding for each site in the form of a bridging facility that could be scaled up as the additional sites were acquired.
The client’s planning consultants managed the planning process and obtained a favorable planning consent for 46 residential apartments and a large commercial unit, giving a total expected end value of approximately £24m.
I then pulled together all the information required for sourcing the finance for the construction costs, which included a financial model built in Excel and a full presentation of the key project and client information. I approached a number of potential lenders and raised approximately £16m of senior debt that part funded the refinance of the bridging loan and fully funded all the monthly build cost drawdowns. In addition, I sourced a junior debt facility of £2.5m which minimized the client’s own equity investment, improving their own IRR and meaning they have equity for other acquisitions.
THE FINANCIAL MODEL:
I built the financial model in Excel and it was designed to allow easy editing for the client and produce useful outputs for the presentation to potential funding partners.
THE FUND RAISING PRESENTATION:
Working closely with the client and their professional team, the information listed here was compiled into a presentation for the potential funders for the project. Much of the key information came from the client or their team and my job was to review and compile the information. All numbers, such as expected sales prices and costs, were checked against benchmarks before being inputted into the financial model.
The list of required information is based on my experience working with lenders and investors on fund raising for real estate development projects. Alongside the financial models I produced, this information ensures that all key areas were covered to allow a lender to fully sanction credit backed loan terms for the project finance.
Once credit backed terms are issued and agreed with the client, I then worked with the lender’s professional team to ensure the loan proceeded smoothly to completion.
