Interim management of the commercial operations of a medium-sized real estate project developer during a critical phase of a project—from structuring the financing framework and developing an integrated cash flow model to drafting the investor memorandum and successfully raising equity and debt capital.
The scope of services included, in particular,
- Assumption of overall commercial responsibility (interim), including liquidity management, cost control, and ongoing reporting to shareholders and project stakeholders
- Development of an integrated, phase-based cash flow model for the development project: Modeling construction costs, sales proceeds, interest expenses, repayment structure, and return on equity under various scenarios
- Sensitivity and scenario analyses (increase in construction costs, marketing delays, changes in interest rates) to quantify project risks and determine capital requirements
- Preparation of an investment memorandum suitable for banks and investors, including a project description, market and location analysis, financing structure, risk assessment, and exit scenarios
- Design of the Financing Structure: Structuring the optimal mix of senior debt, mezzanine capital, and equity, taking into account project risk, profitability requirements, and banking regulatory frameworks
- Raising Equity Capital: Identifying and approaching suitable co-investors and family offices, coordinating investor meetings, and assisting with the structuring of investments
- Raising Debt Capital: Issuing a request for proposals for project financing in the banking market; managing the banking process, including term sheet negotiations, reviewing loan documentation, and coordinating internal bank approval processes
- Coordination and alignment of all parties involved in the financing process: banks, legal and tax advisors, notaries, appraisers, and insurance companies
- Supporting due diligence processes from the perspective of banks and investors, as well as providing structured responses to questions from the data room
- Development of a project-specific reporting format for shareholders and lenders to transparently present project status, liquidity, and milestones
As a result, the project’s financing structure was successfully finalized: The equity base was strengthened by bringing in a co-investor, and the project financing was secured through bank financing. The cash flow model and the investor memorandum served as the central basis for all discussions with capital providers and played a key role in building trust among banks and investors.
