Real Estate Development
Real Estate Financial Due Diligence (FDD)
After the recent it is crucial for developers, lenders, shareholders and end users to have a thorough understanding of development projects, the risks involved and the financial payoffs.
Isthmus Partners can provide expertise honed from assessing new developments and completed assets in the Middle East, USA, UK and Europe with experience in residential, office and retail asset classes. We work closely with a developer’s management to provide both structuring and restructuring advice.
Of particular interest to developers is last mile financing, where projects require financing for completion. We can help developers organise and present the required information for promising projects.
Isthmus Partners provides a complete service in assessing a single asset including:
- Developing financial models multiple scenarios to estimate project cash flows, assess financial risk and evaluate returns;
- Evaluating financial feasibility of sales and marketing plans;
- Consulting on preparing information summaries on projects;
- Performing due diligence on project status, of the property,administration and finances; and
- Identifying financial risk issues and advice on how to mitigate those risks
Isthmus Partners consultants have carried out financial feasibility studies of real estate development plans both at their inception and once the development is under way. Through this experience, we can provide advice on a number of strategic decisions and help model the feasibility of new and existing projects. These services include:
- Developing user-friendly detailed financial models to help understand cash flow requirements, returns, key drivers and sensitivities;
- Identifying financial risks and how to mitigate those risks;
- Consulting on the preparation of information summaries of projects;
- Advising on how to set up financial controls and reporting for a new project; and
- Developing a business plan with various exit strategies
Real Estate Operations Due Diligence (ODD)
A number of real estate developers and investment firms have found that the lack of controls and management information make it difficult to understand the true nature of their development projects, and this lack of understanding is an obstacle to raising external financing, additional shareholder equity or getting end users comfortable on project completion. Only real estate developers who have the right internal processes, operating discipline, good treasury management and forecasting, and credible access to development financiers and investors will survive.
Isthmus Partners has provided advice to Middle East based entities, identifying potential and actual trouble spots within an organization. Married with our knowledge on process improvement, we are distinctively placed to help clients develop a Target Operating Model and which puts in place controls for which individuals have clear responsibilities.