Capital transformation

In Real estate, hospitality, and construction

In today’s increasingly competitive global marketplace, the optimization of capital invested in real estate and how that real estate is used can be a significant factor in overall corporate performance.

What we can do for you

Real estate is becoming an attractive asset class for investors, including pension and sovereign wealth funds, driving increased capital allocations into the sector. In addition, the increase in public real estate vehicle structures around the globe is institutionalizing the commercial real estate market, attracting further cross-border capital and investment.

In today’s competitive global marketplace, the optimization of capital invested in real estate and how that real estate is used can be a significant factor in overall corporate performance. Significant consideration must be given to the manner in which it’s held, its operational efficiency and design functionality, technology or location requirements and risk factors.

Commercial real estate is a high-value, capital-intensive industry that lends itself to joint ventures (JV) and partnering. Over the past year, more US real estate investment trusts (REITs) and US C corporations have turned to JVs to raise capital for a variety of purposes.

Furthermore, as the US Congress has enacted tax-law changes that affect tax-free treatment of certain spin-off distributions, corporations with a large concentration of owned real estate previously considering a spin-off might turn to JVs as an alternative.

Our capital transformations solution prepares our clients for capital initiatives such as IPOs and unlocking value of corporate real estate with the following services:

IPO Readiness

IPO Readiness is focused on supporting the client in the effective preparation for an IPO, including a significant number of actions that need to be undertaken by the client and their advisors. The categories of services in which we can assist the client in their IPO process include:

  • Strategy enablement (including pre- and post-IPO services)
  • Financial statement close process
  • Transaction advisory services
  • Process and controls (including SOX for US registrants and other countries with similar regulatory requirements)
  • Tax and compensation structuring and processes
  • Business and IT structuring and process improvement
  • Project management to help manage the IPO process

Separation and monetization

This solution is targeted for large enterprises with significant corporate real estate on their balance sheet and a requirement or ambition to refinance their core business or assets, to finance expansion, to generate cash or to relocate from existing business premises.

We define objectives and identify opportunities and impacts of separating and monetizing strategic or nonstrategic corporate real estate. This includes services related to nontraditional real estate investment trust conversions, JVs and other structures, operational optimization and portfolio optimization.Real estate is becoming an attractive asset class for investors, including pension and sovereign wealth funds, driving increased capital allocations into the sector. In addition, the increase in public real estate vehicle structures around the globe is institutionalizing the commercial real estate market, attracting further cross-border capital and investment.