REAL ESTATE AND CORPORATE FINANCE | real estate | settlement | legacy | finance
The sourcing of required and properly structured financing is the key to the success and sustainability of all aspects of real estate and corporate assets. LRA has an established and successful track record in securing the required capital funding to implement and sustain their clients' strategic objectives.
Proactivity: In this very challenging market, the providers of capital (the few who are lending and investing) are looking at the financial resources behind the covenant they are considering to fund. Borrowers need to demonstrate that they have taken, and are taking, the necessary steps to preserve value, liquidity, and longevity:
Up-to-date valuations on core assets and feasibility studies on present and anticipated future projects, which creates confidence in projected cash flows for the company;
A clear present-day marketing strategy geared to individual projects in the portfolio;
A third-party review and strategic planning exercise can make the difference between securing funding and being turned down for funding.
LRA has been instrumental in successfully securing capital for its clients, especially during the downturn markets of the last 25 years.
Positioning: LRA believes strongly in the need for a company's stakeholders to take a more proactive position with their real estate holdings, tenancy, and space requirements. A building that has served the company well in the past may now be a ticking time bomb regarding its worth to the company due to any number of factors:
Environmental, non-conforming use, changes in building and fire codes, municipal official-plan amendments;
Changes in the company's core business structure (for example, going from a manufacturing base to a distribution model, which requires radically different space and equipment).
A portfolio of buildings can face similar challenges as above with potentially disastrous consequences. Therefore, ongoing asset management of both the property plant and equipment, and constant vigilance for present and future usefulness, value, and liquidity, is a critical responsibility of ownership.