Business/Options review
One80 experts were instructed to review a real estate portfolio and provide recommendations to inform the company’s business strategy.
The challenge
Our client is a well-known real estate group with a large portfolio of shopping centres in Germany and UK. The company had significant exposure to the group which had recently become impaired. They were eager to formulate a value preservation and maximisation strategy to which One80 were instructed to undertake an independent business and options review in order to support this.
The solution
We initiated our review by engaging in numerous conversations with the key decision makers to fully understand what their business goals and objectives were. In order to make worthwhile recommendations which maximised the optimum outcome in line with the businesses wider strategy, it was vital that we had a strong understanding of the desired future trajectory.
We endeavoured to include a broad review scope so that we were in the best possible position to make recommendations. Firstly we analysed the company’s historic performance to gain an understanding of company’s past financial position. Using this information we formulated medium-term projections which provided a clear view as to how the financials could look moving forward. Additionally, we provided an asset quality and location review and estimated the company’s financial outcomes using scenario modelling.
Following our analysis we were ultimately able to provide a summary of options and recommendations based on the findings of our review. Subsequently, we arranged regular update meetings and briefings with our client and its customers presenting our findings, options and recommendations. We also provided further support to help our client in managing queries which were to be addressed for internal credit committee requests.
One80 experts were instructed to review a real estate portfolio and provide recommendations to inform the company’s business strategy.
Following our analysis we were ultimately able to provide a summary of options and recommendations based on the findings of our review.
The outcome
Based on our recommendations, our client sold its exposure via a debt sale to a distressed investor at a discount. This enabled the company to achieve its objective of reducing its exposure to a sector that had become sub-optimal to its wider strategy. Our client was impressed by the thorough nature of our review and how much time was invested in collating our findings to provide optimal recommendations which were solely formed to benefit the company.