Giacomo Morri, Antonio Mazza

Property Finance

An International Approach

• Gebundenes Buch

Produktbeschreibung

A holistic guide to financial and legal issues of real estate financing

Property financing pertains to the various sources of capital invested in real estate assets. Built on a solid theoretical background, Property Finance features relevant case studies that cover the most common issues in property lending and financing. You will learn the policies surrounding debt and equity resources, preferred equity, mezzanine debt, and other hybrid forms in both general and country-specific terms. The first, general section of the book addresses real estate lending at an international level, financial cash flows, and the main clauses of financing agreements. The second, country-specific section discusses the more relevant element of European markets with a focus on the United Kingdom, France, Germany, Spain, and Italy.
The book uniquely focuses on real estate financing exclusively, instead of on investment, valuation, or REITS
A mix of theoretical and practical examples provides useful explanations followed by immediate practical cases
A frequently updated website complete with errata corrige, updates, new spreadsheets, useful data, and other features accompanies the information in the book

Featuring practical case studies and a holistic approach to real estate financing topics, Property Financing is the ideal handbook to applicable financial and legal issues for financial students and managers.

Produktdetails

• Wiley Finance Series
• Verlag: Wiley & Sons
• 1. Auflage
• Seitenzahl: 272
• Erscheinungstermin: 7. Januar 2015
• Englisch
• Abmessung: 250mm x 175mm x 19mm
• Gewicht: 656g
• ISBN-13: 9781118764404
• ISBN-10: 1118764404
• Artikelnr.: 39177874

Autorenporträt

GIACOMO MORRI, Ph.D., MRICS, is Senior Professor in the Accounting, Control, Corporate Finance and Real Estate Department at SDA Bocconi School of Management and Lecturer in Real Estate Finance at Bocconi University. He is Past-president and Board Member of the European Real Estate Society. He also sits on the board of several real estate companies and works as freelance advisor. www.giacomomorri.info ANTONIO MAZZA is Teaching Fellow at SDA Bocconi School of Management. He has been working for almost 25 years in the real estate market for both Italian and foreign banks and he is currently General Manager of "Aareal Bank AG" Italy and board member of several Italian companies within the "Aareal Group". He is Professional Member of the Royal Institution of Chartered Surveyors and a member of several Italian Banking Association. www.morri-mazza.com

Inhaltsangabe

Foreword by Prof. Dr. Junhai Liu xi Foreword by Prof. Dr. Matthias Thomas
xiii Preface xv Preface to Part Two xvii Acknowledgements xix List of
Figures xxi Reader's Manual xxiii Part One Chapter 1 Introduction to
Property Financing 3 1.1 Forms of financing: debt and equity 3 1.1.1 Debt 4
1.1.2 Equity 6 1.2 A different approach to property financing 6 1.3
Corporate finance and project finance 7 1.4 Bank financing 8 1.4.1 Property
Loans to Private Individuals 9 1.4.2 Property Financing to Cover Financial
Requirements 9 1.4.3 Structured Real Estate Financing 10 1.5 Fund raising,
securitization, and syndication 10 1.5.1 Traditional Funding and
Securitization 11 1.5.2 Funding for Real Estate Loans and Syndication 12
1.5.3 Syndication of Real Estate Loans 13 Chapter 2 Structured Real Estate
Financing 15 2.1 Bank roles 17 2.2 Bank loan contractual forms 17 2.3 Loans
for development projects 18 2.4 Parts and stages of a structured loan 18
2.4.1 Analysis of the Transaction and Term Sheet 19 2.4.2 Real Estate
Valuation 21 2.4.3 Basics of Property Appraisal 23 2.4.4 Due Diligence
Process 32 2.4.5 Legal Due Diligence 32 Chapter 3 Loan Agreement 33 3.1
Object and purpose of the loan 34 3.2 Conditions precedent 34 3.3 Amount of
the loan 35 3.4 Interest rates 36 3.5 Interest rate risk hedging 38 3.5.1
Interest Rate Cap 38 3.5.2 Collar 38 3.5.3 Interest Rate Swap 38 3.6 Loan
allocation 41 3.7 Loan repayment schedule 43 3.8 Fees 43 3.9 Frequency of
drawdown and procedures 45 3.10 Events of default 46 3.11 Property
insurance 48 3.12 Representations and warranties 49 3.13 Duty to provide
information 53 3.14 Costs, taxes, and ancillary charges 56 3.15 Contractual
covenants 56 3.15.1 Balance Sheet Covenants 57 3.15.2 Financial Covenants
57 Chapter 4 Loan Repayment, Interest, and Renegotiation 63 4.1 Bullet
payments 63 4.2 Pre-amortizing (semi-bullet) 63 4.3 Balloon payment 64 4.4
Fully amortizing repayment plans 65 4.4.1 Fixed-Capital Loan Repayment Plan
66 4.4.2 Floating-Rate Loan Repayment Plan 68 4.4.3 Loan with Interest Rate
Caps 71 4.5 Other repayment schedules 73 4.5.1 Negative Amortizing Constant
Payment Loan 73 4.5.2 Declining Payment Loan with Constant Amortizing 74
4.6 Restructuring and renegotiation of real estate loans 75 4.6.1 Grant of
a New Loan 76 4.6.2 Deferral of Payment Deadlines 76 4.6.3 Restructuring
Arrangement 77 Chapter 5 Effects of Financial Leverage on Real Estate
Investments 79 5.1 An illustration of financial leverage 80 5.2 The effects
of an increase in volatility 81 5.3 The effect of financial leverage on
returns 82 5.4 The effect of financial leverage on risk 82 5.5 "No Free
Lunch" 84 5.6 The mechanics of financial leverage 84 5.7 The effect of the
spread 85 5.8 A brief summary of when to use financial leverage 86 Chapter
6 Structured Real Estate Financing Case Studies 89 6.1 Structured financing
for an income producing property 90 6.1.1 Description of the Transaction 90
6.1.2 Term Sheet for an Income Producing Property 90 6.2 Structured
financing for a real estate portfolio acquisition 100 6.2.1 Description of
the Portfolio Acquisition 100 6.2.2 Term Sheet for the Financing of a Real
Estate Portfolio 101 6.3 Financing of a real estate development project 113
6.3.1 Description of the Residential Development Project 113 6.3.2 Term
Sheet for the Development Project Loan 113 6.4 Financing a shopping centre:
credit application 121 6.4.1 Players Involved 121 6.4.2 Financial Analysis
and Key Figures 126 6.4.3 Risk Appraisal 128 6.4.4 Risk Rating and
Risk-Reward 131 6.4.5 Conclusion and Recommendation 131 Chapter 7 Hybrid
Forms of Financing 133 7.1 Description 133 7.2 Procedures for establishing
mezzanine finance and cost 137 7.2.1 The Debt Component 137 7.2.2 Equity
Kicker 139 7.3 Covenants in a mezzanine financing 140 7.4 Economic
mechanics of hybrid financing 141 7.4.1 Mezzanine Financing for an Income
Producing Property 142 7.4.2 Preferred Equity for Development Projects 144
7.5 Waterfall payout agreement 148 7.6 Intercreditor agreement 154 Chapter
8 Basel Accords and Effects on Real Estate Financing 159 8.1 Basel II 160
8.2 Basel III 160 8.3 The Basel Accords and real estate financing 161 8.4
Standardized Approach 162 8.5 IRB Foundation and Advanced methods 163 Part
two Outline of the most relevant legal issues in selected jurisdictions
Chapter 9 China 171 Chapter 10 England and Wales 177 Chapter 11 France 185
Chapter 12 Germany 201 Chapter 13 India 207 Chapter 14 Italy 215 Chapter 15
Spain 229 Authors 235 Giacomo Morri 235 Antonio Mazza 235 Alessandro P.
Scarso 236 References 237 Index 241