We strongly recommend treating them as a bundle as this brings the biggest leverage of learning your business, project & development to de-risk & commercialise it by our teams.
Nevertheless, we offer an option to go for a single type of solution e.g. only a specific type of Marketing solution like 3D Visualisation or Virtual Reality, without the need to procure the other solutions.
We have direct representation & a track record in multiple markets.
We tend to focus on the developing markets where bank interest rates are relatively high which means that we can bring more competitive money (mostly) from the West.
Whether you go for 1) FINANCING, 2) MARKETING 3) or SALES or all of them – we always start with a professional project discovery for the specific area/s of interest.
We believe that our project discovery makes the biggest difference to delivering successful projects as we check over 100 points in each of Property Development areas to ensure a solid plan for the successful delivery.
Our MARKETING & SALES are then advised against this customer journey (which is reflected in the quotations) while FINANCING is a completely bespoke solution suited to individual project needs.
The most common type is a Senior Debt (which is a loan with specific repayment conditions: rate, duration, interest, etc.)
In the specific cases, we can also offer Equity investment (which is taking up a share in the business/project and then sharing the profit as well as project risk).
There are also options for a Mezzanine loan (which is similar to Senior Debt but Senior Debt loan is repaid first and a Mezzanine loan – second which means that there is a higher risk on this type of loan and it is usually more expensive – topping up previous Senior Debt financing for a more favourable LTC (LoanToCost) ratio for the Property Developer).
Plus a combination of these options where the main considerations are:
- LTC (Loan To Cost- a %age of total cost of the Development)
- And a first vs following charges (which type of financing is repaid first, second, etc.)
Which build a risk profile of your Property Development project.
This is then reflected in the rate, duration & other conditions of the financing repayment which are provided during a quotation stage.
We strongly recommend treating them as a bundle as this brings the biggest leverage of learning your business, project & development to de-risk & commercialise it by our teams.
Nevertheless, we offer an option to go for a single type of solution e.g. only a specific type of Marketing solution like 3D Visualisation or Virtual Reality, without the need to procure the other solutions.
We have direct representation & a track record in multiple markets.
We tend to focus on the developing markets where bank interest rates are relatively high which means that we can bring more competitive money (mostly) from the West.
Whether you go for 1) FINANCING, 2) MARKETING 3) or SALES or all of them – we always start with a professional project discovery for the specific area/s of interest.
We believe that our project discovery makes the biggest difference to delivering successful projects as we check over 100 points in each of Property Development areas to ensure a solid plan for the successful delivery.
Our MARKETING & SALES are then advised against this customer journey (which is reflected in the quotations) while FINANCING is a completely bespoke solution suited to individual project needs.
The most common type is a Senior Debt (which is a loan with specific repayment conditions: rate, duration, interest, etc.)
In the specific cases, we can also offer Equity investment (which is taking up a share in the business/project and then sharing the profit as well as project risk).
There are also options for a Mezzanine loan (which is similar to Senior Debt but Senior Debt loan is repaid first and a Mezzanine loan – second which means that there is a higher risk on this type of loan and it is usually more expensive – topping up previous Senior Debt financing for a more favourable LTC (LoanToCost) ratio for the Property Developer).
Plus a combination of these options where the main considerations are:
- LTC (Loan To Cost- a %age of total cost of the Development)
- And a first vs following charges (which type of financing is repaid first, second, etc.)
Which build a risk profile of your Property Development project.
This is then reflected in the rate, duration & other conditions of the financing repayment which are provided during a quotation stage.
THE MAJORITY of the projects we deliver are OUTSIDE of our Direct Mandate territories: in Europe, Africa, Middle East, South America & Asia.
In such projects, we act in a capacity of an Advisory & Brokerage doing the elements listed in the table from the top of the email.
We have over $5 Billion under Advisory internationally.
- We provide your team with a concise Due Diligence (DD) checklist.
- We need your team to populate the DD checklist into a digital Data Room (DR).
- We normally provide within 6 weeks from DR a report on the state of DD/DR to clarify any outstanding points.
- And we normally provide within 8 weeks a draft of an Investment Memorandum.
- Project dependant: between 2 and 6 people look after your deal.
- In the meantime – we have regular catchups, usually on a weekly to fortnightly basis, to communicate & close any gaps we might find and make your case bankable.
=== AMEND ===
We can be compared to investment banks like Goldman Sachs, HSBC or JP Morgan but without paying for the brand and the overheads of 100,000+ people organisation.
We are also more effective on certain types of projects.
We work to make your case bankable, find the right investor mandates with specific interest and align your deal with their mandates by presenting it in a specific way.
The final decision is with the investor and that’s why
Before we undertake any work and issue legally binding Letter of Engagement – we find initial investor mandates aligned with the structure you have and looking for. This includes presentation to the investors with a caveat “that the case is early stages”.
If there is true liquidity and interest – we issue LoE and build your case to the stage where it is fully presentable to these investors.
- We have a fund of $200 Million with this mandate from $100,000 up to $12,000,000 as Direct Lender for UK, Ireland & USA only: https://bit.ly/ItomaMandatePropertyDevelopmentFund
- In Europe & North America – we work as Advisory & Brokerage with projects from $10 Million+.
- Rest of the world – we work as Advisory & Brokerage with projects from $20 Million+.
FOR DIRECT LENDING: We can take projects from $100,000 to ~$12,000,000. See our mandate section of this FAQ.
FOR ADVISORY SIDE: We specialise in projects from $20 Million to $200 Million where we are more focused & specialised than the giants of Investment Banking like Goldman, HSBC or JPMorgan but without a price tag coming from 100,000+ workforce overheads.
Saying that – the biggest project we have under Advisory is $2.5 Billion and a total portfolio of $5+ Billion.
If anyone tells you that it will “raise capital for free” – it really means that this person is a broker and will not deliver anything but an introduction & communication channel.
Then you will be charged anyway by the Lender.
For example – this is one of the Lenders we work with: EBRD (European Bank for Research and Development) and if you engage with them
– they also charge you for their services as per this visual:
The difference with us is: we charge you for our Services and get your case Pareto 80/20 ready for MULTIPLE LENDERS (rather than a single one you will be introduced to).
Secondly, compared to a Broker Introduction – our success fees are very competitive (2-3%) VS broker’s fees of (3-10%).
Contribution Fee (basically – a retainer to assign 2 to 6 people to your case to make it bankable and deliver what we put in the Scope). Pre-funding.
Completion Fee – a success fee. Post-funding.
Then Lender/Investor & Deal dependent:
(i) in consideration of an application for Funding which we tend to reduce while preparing your case;
(ii) their legal fees;
(iii) a Valuation fee.
(iv) any travel fees.
- Usually range between $20 up to $200 million, although this can be smaller or larger in some cases.
- Fixed or floating rate.
- Senior, subordinated, mezzanine or convertible debt.
- Denominated in major foreign or local currencies.
- Short to long-term maturities up to 15 years
- Project-specific grace periods may be incorporated.
- Option to service or retain interest.
Debt / Loans are based on current market rates and are priced competitively. Following a successful enquiry and once a project has been initially presented to the Lender, financial terms can be discussed in detail.
We do not subsidise projects, nor offer soft loans.
We can organise both fixed and floating interest rates (such as LIBOR).
As the type rate directly affects profitability, a project’s financial structure may include both floating and fixed rate loans. The mix is evaluated with respect to client and project sensitivities to interest rate movements.
Project / B2B / non-recourse financing is NOT black on white where you have readily accessible databases to check credit score & offer fix rates for Debt / Equity / Mixes (as it is often in case of Consumer / B2C lending) – it is all on a case-by-case basis.
Nevertheless, there are 2 main co-efficients for each deal:
- Project itself and it’s current structure
- The country where it is located.
FOR PROJECT: As for project please see these High-Level factors but basically – the more experience, the higher “skin in a game” and collaterals – the better rate you will get.
FOR COUNTRY: Rough rate guidance is actually a bond rate in a specific country. Say your project in your country is looking for Debt of 5 years:
OPTION 1: If the investor we bring was to invest in your country and do nothing for 5 years – he could invest into 5 years bond and get X% ROI with NO RISK AT ALL
This can be treaded as a guideline: http://www.worldgovernmentbonds.com/
Or OPTION 2: He could invest into your project for the same period with extra risk (coming from project specifics) which adds extra Y% to the rate he’d get back on bonds for the same period (plus bonds are liquid while Loan/Debt, unless specifically structured as Bond rather than Project Finance is NOT Liquid – can’t be easily traded from an investor to the investor).
To accommodate for project risk – there is, usually, between 2 to 10% added for Debt on top of Bond rate but this can be higher.
IRR stands for Internal Rate of Return which is roughly a rate Equity Investors expect on your project specifying their Mandate.
Equity Investment are completely project-dependent.
In UK with low interest rates & lower risk than the majority of the countries in the world – Equity investor usually expect 15% minimum IRR though UK average IRR is in 20-25% mark and maximum we’ve seen was around 50% mark.
In higher-risk countries – this will be higher.
This will be estimated based on the financial model built and please note – higher Equity IRR might mean higher project profit share but also higher Investor interest.
We look at the two main factors regarding the general economy rating and the general country risk.
We look at rating by the major credit agencies:
https://countryeconomy.com/ratings
And the general country risk considering multiple factors and especially: legal system & corruption:
https://www.knowyourcountry.com/
Please note that we usually apply the law of “England and Wales” for the contractual elements.
Everyone needs to start somewhere:
We recommend this 120 minutes course to get the basics of Project Finance on a useful example of a real project:
https://www.wallstreetprep.com/knowledge/demystifying-project-finance/