What is Real Estate advisory?

In the domain of real estate advisory, we specialize in aiding companies through the acquisition or sale of real estate assets. Our services extend beyond conventional transactions to include innovative solutions such as sale leaseback arrangements. Particularly advantageous for family-owned businesses, these creative approaches help in separating business operations from real estate holdings. With a focus on strategic and tailored solutions, our real estate advisory is designed to meet the diverse needs of businesses and families, navigating the complexities of the real estate market.

What types of Real Estate does teamOn advise on?

We specialize in providing advisory services for a diverse range of real estate transactions. This includes expert advice in the sale or acquisition of hotels, commercial real estate, and other property types. Whether you are navigating the hospitality sector, commercial properties, or other segments of the real estate market, our advisory services are tailored to guide you through the intricacies of these specific property transactions.

What kind of investors do we advise to?

We primarily focus on providing services to family offices and companies seeking to acquire new offices or invest in real estate development projects. Whether you represent a family office looking for tailored investment strategies or a company exploring opportunities in office acquisitions and real estate development, our expertise is uniquely positioned to address the specific requirements of your strategic objectives.

How is the acquisition of Real Estate financed?

Real estate acquisition is typically financed through a combination of various mechanisms. Common approaches include securing traditional mortgage loans from financial institutions, utilizing commercial loans, engaging in seller financing arrangements, and tapping into private equity or investment partnerships. Additionally, alternative financing methods may also be explored depending on the specific circumstances and objectives of the acquisition. The choice of financing method often depends on factors such as the size of the acquisition, the financial health of the buyer, and the overall investment strategy. We always develop a tailor-made strategy to meet the specified objectives.

What are the different profiles in Real Estate investment?

In the context of real estate investments, investors can be broadly categorized into four types based on their risk appetite, leverage preference, and contribution.

1. Core Profile: This type of investor prefers the least risk. They generally seek stable, operational assets like hotels or apartments. Their investment approach is conservative with low leverage, focusing on predictable cash flows and asset quality.

2. Core+ Profile: These investors are a step above Core in terms of risk. They accept slightly higher risk for better returns, still focusing on operational assets but with potential for improvement. Their leverage is moderate, balancing risk with the potential for increased returns.

3. Value Added Profile: These investors are more risk-tolerant, targeting higher returns. They are willing to invest in assets that require significant development or transformation, such as underutilized land or buildings needing major renovations. This involves higher leverage and a focus on value creation through asset enhancement.

4. Opportunity Profile: This group seeks the highest returns and is willing to take on the highest risk. They typically engage in niche investments, involving complex situations like asset liquidation or legal complexities. Their strategy involves the highest level of leverage, aiming to significantly multiply their invested capital. They are often involved in transforming or creating assets from the ground up.

The strategies utilized in our advice are based on the strategic objectives of our clients. Our practical approach allows us to tailor specific approaches based on your needs.

How are Properties valued?

In real estate, several valuation methods can be utilized. The following methods are commonly used in real estate:

Discounted Cash Flow (DCF) Method:

Utilizes projected future cash flows to determine the present value of a property. Particularly effective for valuating income-generating properties with variable cash flows over time.

Benchmarking:

Compares the subject property to similar properties in the market that have recently been transacted. Involves analyzing key indicators and characteristics to determine a property’s relative value.

Cost Approach:

Evaluates a property’s value by estimating the cost of reproducing or replacing the structure. Considers factors such as depreciation to arrive at a comprehensive valuation.

Our valuation process integrates different methods, allowing for a comprehensive and nuanced understanding of a property’s worth. By combining the different methods, teamOn ensures a thorough and accurate assessment that aligns with the specific attributes and potential of each property.