Corporate Real Estate Investment Banking

Corporate real estate is a very valuable asset to all corporations. Real estate includes land or area including all the fixtures attached to that piece of land. It also usually includes both the functional land or office buildings, and the non-operational land owned by the corporation. This segment alone contributes about 30% of the capital assets of any organization. Naturally, this aspect of management is a matter of high priority with all organizations across the globe.

Corporate real estate investment banking is another important aspect of corporate real estate management. It is one of the most refreshing approaches to real estate financing. Corporate real estate is often viewed as a safety pass in a financial crisis as it otherwise means mortgage security. Corporations spend heavily on managing real estate and acquiring the same is also considered to be a high priority for most corporations today. This segment of banking is a process by which the corporation’s projects in real estate are aligned with the tax obligation and mandatory legalities and the portfolios are restructured to meet requirements.

All through the development process, the operational management of a corporation’s projects is carried out. During corporate real estate investment banking, not only is there a constant focus on Syndication, without which the bigger transactions are not considered feasible but the bank investors also make suggestions to the company about stock placement and issue. The service providers for the corporation execute or structure preferred transactions and equity transactions, thus raising funds in terms of millions and billions.

The financing products must be designed in order to obtain added sustainable value to the corporation. The corporate real estate investment banking experts contacted by the company underwrite for the corporation issuing security. All the real estate services and products are structured to assist the corporation in future operational and acquisition strategies.

When a corporation approaches any corporate real estate investment banking firm, it expects a spectrum of services starting from in-depth research and analysis to implementation to results. The market is carefully analyzed to understand the economic ambience and sector-specific real estate trends. Construction (and letting) contract law, construction law, tax law and corporate law are all studied. The panel then comes up with the technical requirements for the scheme. This involves calculation and follow-up of various expenses, planning and procedures for awarding contract. Also while working up plans with respect to banking functions, flexibility must be ensured in order to allow for future proceedings by the corporation. In addition to the basic steps, user requirements must also be considered, together with the agreements drawn out.

Syndication is a vital necessity, with attributes like funding certainty, speedy execution, profound knowledge of capital markets, detailed and diligent analysis process. The execution power of the bank can be combined with the developer scheme of things, by working on the project development together. At all stages, transparency must be maintained in the real estate portfolio. Advisory service providers in the field of investment banking initiate and negotiate for joint ventures as well.

Richard B. Chai is a freelance writer. He generally writes content for websites, and is available for projects. Some of his latest projects have included articles on real estate advisory services, and facility operations and management.

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Corporate Real Estate Investment Banking



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