Capital Markets

"The objective of the Capital Markets team at CB Richard Ellis is to create innovative and robust investment and funding solutions to facilitate the broader real estate objectives of both developers and investors".

CB Richard Ellis established a Capital Markets group in China in October 2008 to address the growing need to provide clients with advice regarding more sophisticated investment and funding solutions within the Chinese real estate market. In response to prevailing market conditions, there is an increasing demand for specialist services which generate viable and innovative investment and funding solutions which can add value both to developers seeking funding as well as investors looking to enter the China market. The provision of such services involves the combination of financial and investment structuring skills with an in-depth knowledge and understanding of local real estate market trends and characteristics.

The scope of the Capital Markets team spans across all sectors and business lines, combining the expertise from the various divisions within CB Richard Ellis and delivering our clients with an integrated capital structuring and advisory solution. 

The Capital Markets team has two primary areas of business focus:
1.Capital Structuring Advisory for Local Developers
2.Strategic Investment Advisory for Capital Investors.

Capital Structuring Advisory for Local Developers

The scope of services provided to domestic developers seeking to secure capital to fund development projects or other real estate initiatives includes the ability to:

• Understand the investment needs and/or targets of the developer

• Assist the developer in the formulation of business objectives in terms of capital funding, divestment,   attracting third party investors, and forming strategic partnerships with key market players

  Present the developer with a range of capital structuring options for both debt financing and/or equity   participation, including inter alia:

  - Joint ventures
  - Direct investments
  - Private equity placements
  - IPO's
  - Collective investment schemes
  - Bridge financing
  - Mezzanine debt
  - Refinancing via the capital markets     

• Provide expertise in preparing the underlying financial, property and real estate data to match the   investment strategy of the potential co-sponsors. This includes, inter alia:

  - Identifying projects with the highest investment potential
  - Assimilating market/sector specific information
  - Highlighting key strength and return opportunities

• Offer market leading financial modelling techniques to assess the economic viability of a project. This   will include applying a scenario based analysis to test the financial robustness of a transaction under   current as well as potential future market conditions.

• Identify and highlight potential market and investment risks (such as the impact of existing senior   ranking claims or future potential tax liabilities) and presenting the developer with viable financial   and/ or structural solutions.

• Liaise with the key market players from the capital investor side (property companies, private equity   funds, institutional investors) to identify compatible investment alliances

• Support a transaction from the very early stages of data preparation through to legal structuring and   finally to signing/closing with the objective of achieving the optimum investment solution associated   with any specific transaction..

Strategic Investment Advisory for Capital Investors

With regard to investors looking to access real estate investment opportunities in China, CB Richard Ellis can provide the following scope of services:

• Understand current investment needs and/or targets of the investors

• Introduce the local market fundamentals, providing strategic expertise regarding new markets, sectors   and/or products and help the investor identify and assess potential investment opportunities.

• Present investors with a range of market entry strategies (e.g. joint ventures, direct investments,   collective schemes) which are consistent with investment objectives.

• Identify and highlight potential market and investment risks (such as the impact of existing senior   ranking claims or future potential tax liabilities) and present the investor with viable financial and/   or structural solutions that match their investment strategy.

• Liaise with key local market players (operators and property developers) to find the optimum investment   alliance

• Support a transaction from inception to completion in order to ensure the optimum strategic outcome from   the perspective on an investor.

At CB Richard Ellis we build on four key strengths in order to ensure we deliver the most innovative and practical solutions to match the real estate strategies of clients.

• in-depth knowledge of the local market
• vast range of property expertise
• strong proven track record
• extensive international network