Sample Transactions

Transaction for a banking consortium


Project­ name

Service centre DD

Client

Inter­na­tio­nal banking consor­tium

Dura­tion

8 months

Topic

Mode­ra­tion
Econo­mic effi­ci­ency calcu­la­tion
Adjust­ment to rental contracts
Search for risk inves­tor
Trans­ac­tion

Volume

EUR 93 million


Star­ting situa­tion: Threa­te­ned insol­vency of a SPV company as a subsi­di­ary of a bank. Banking consor­tium (five banks) with non-recourse finan­cing of € 100 million for project deve­lop­ment. Single tenant with very good credit­wort­hi­ness and contrac­tual purchasing right.

Cons­ide­ra­ble construc­tion defects to façade since second year of use. Lots of legal procee­dings and complaints over several years with construc­tion compa­nies and manu­fac­tu­rers, correc­tive measu­res accor­ding to expert report approx. € 8-10 million. Tenant redu­ced rent by approx. 20%/year, resul­ting in no liqui­dity to service the debt, high risk of insol­vency, subse­quent exten­sion agree­ment with banking consor­tium. Dispute between parties invol­ved.

Task: Deve­lop approach to resolve the situa­tion, persuade owner and banking consor­tium of solu­tion.

Solu­tion: Nego­tia­ti­ons with tenants on alte­red condi­ti­ons and revo­ca­tion of purchase right in return for compen­sa­tion payment.

Paral­lel search for inves­tor prepa­red to take risks for purchase of the property inclu­ding risk of reno­va­tion costs, banking consor­tium not willing to provide supp­le­men­tary finan­cing, tenant’s purchase right could have lever­a­ged econo­mic viabi­lity.

Mode­ra­tion and media­tion by Brüggemann GmbH brought about a solu­tion. Crea­tive approach with econo­mic compen­sa­tion for tenant, esta­blis­hed trust with the goal of stay­ing in the buil­ding and disch­ar­ging loans.

Search for and acqui­si­tion of inves­tor willing to accept the risks arising from inde­ter­mi­nate reno­va­tion expen­ses. Purchase agree­ment conclu­ded, tenant signed new rental contract.

Dura­tion of solu­tion process: 8 months


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Sample Transactions

Transaction for a banking consortium


Project­ name

Service centre DD

Client

Inter­na­tio­nal banking consor­tium

Dura­tion

8 months

Topic

Mode­ra­tion
Econo­mic effi­ci­ency calcu­la­tion
Adjust­ment to rental contracts
Search for risk inves­tor
Trans­ac­tion

Volume

EUR 93 million


Star­ting situa­tion: Threa­te­ned insol­vency of a SPV company as a subsi­di­ary of a bank. Banking consor­tium (five banks) with non-recourse finan­cing of € 100 million for project deve­lop­ment. Single tenant with very good credit­wort­hi­ness and contrac­tual purchasing right.

Cons­ide­ra­ble construc­tion defects to façade since second year of use. Lots of legal procee­dings and complaints over several years with construc­tion compa­nies and manu­fac­tu­rers, correc­tive measu­res accor­ding to expert report approx. € 8-10 million. Tenant redu­ced rent by approx. 20%/year, resul­ting in no liqui­dity to service the debt, high risk of insol­vency, subse­quent exten­sion agree­ment with banking consor­tium. Dispute between parties invol­ved.

Task: Deve­lop approach to resolve the situa­tion, persuade owner and banking consor­tium of solu­tion.

Solu­tion: Nego­tia­ti­ons with tenants on alte­red condi­ti­ons and revo­ca­tion of purchase right in return for compen­sa­tion payment.

Paral­lel search for inves­tor prepa­red to take risks for purchase of the property inclu­ding risk of reno­va­tion costs, banking consor­tium not willing to provide supp­le­men­tary finan­cing, tenant’s purchase right could have lever­a­ged econo­mic viabi­lity.

Mode­ra­tion and media­tion by Brüggemann GmbH brought about a solu­tion. Crea­tive approach with econo­mic compen­sa­tion for tenant, esta­blis­hed trust with the goal of stay­ing in the buil­ding and disch­ar­ging loans.

Search for and acqui­si­tion of inves­tor willing to accept the risks arising from inde­ter­mi­nate reno­va­tion expen­ses. Purchase agree­ment conclu­ded, tenant signed new rental contract.

Dura­tion of solu­tion process: 8 months



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