Real Estate and Construction

It has become a national obsession to follow the ebb and flow of the real estate and construction industry. It’s a market that has shown incredible strength by historical standards, yet in recent times has begun to reveal pockets of volatility. Taking advantage of this market requires meticulous planning, in-depth analysis and careful management. While some of the macroeconomic indicators remain positive by global standards – interest rates at historical lows and unemployment remaining at a comfortable level – business and consumer confidence is subdued, building approval figures remain soft and various property sectors are experiencing significant stress. Developers, investors and construction businesses are being forced to frequently review their objectives and adjust their business plans, strategies and capital structures in response to these changing conditions.

Issues

Key considerations for developers and investors include:

  • Product and market: built products – whether it is residential, commercial or industrial – must meet the needs of the market. As economic conditions change, so does demand for the different asset classes. Consequently, a development approval from five years ago may no longer be the best use in the current market.
  • Capital: securing sufficient debt and equity continues to be a challenging prospect. Development and transaction planning is crucial and execution requires time and careful consideration.
  • Capability: with scarce capital available for developers and investors, funders want to ensure that any project they support is backed by a capable development team to minimise risk.

Questions that should be asked

Questions that real estate investors and developers should ask themselves:

  • What should I be doing to protect and optimise my development and/or investment in light of uncertain economic conditions?
  • How do I identify and then secure an appropriate financier to provide the funding required to get my project off the ground?
  • How can I enhance the appeal of my real estate development in light of changed market conditions?

Questions that construction-related businesses should ask themselves:

  • How do I adjust my business in light of decreasing projects and shrinking margins?
  • Is there a more efficient use of my capital in this market?

Our expertise/approach

Our trans-Tasman team of more than 20 specialists has genuine industry and restructuring experience across a range of asset classes. Recognised for our positive, solution-orientated approach, we actively partner with our clients to understand their objectives and limitations, and help overcome a range of complex issues related to real estate and construction.
 
From conception through to completion, we are driven to facilitate positive outcomes by demonstrating coordinated deep industry expertise, restructuring experience and technical skills. We mitigate the uncertainty and risk that surrounds real estate assets. By providing clarity and comfort around anticipated areas of concern, and spotting opportunities others do not, we attract buyers, sell properties and realise value for our clients. We also know what is needed to secure the appropriate capital structures for a development or investment.

We have long-established and close relationships with a network of proven industry specialists, enabling us to combine the right mix of experts on any given matter, regardless of the issue.

Our experience can help construction businesses detect and quickly remediate any financial difficulties they may be experiencing. We have direct, hands-on experience managing and resolving the complex issues confronting construction companies, and are adept at providing practical construction management and project delivery solutions. Our team works closely with all key stakeholders, including subcontractors, employees, unions and financiers, to achieve the best possible results.

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