Maximizing Value in Commercial Real Estate Transactions

About us

Keystone Advisory Partners is an independent and entrepreneurial real estate advisory firm headquartered in Munich, Germany. As a professional service provider in commercial real estate transactions, we offer the entire range of services necessary to successfully execute these type of deals. In this respect, we act with absolute discretion for buyers and sellers and with the highest level of confidentiality. Our special focus lies on "Build-to-Rent"- & "Sale & Rent-back"-transactions in the sector of commercial real estate.

Our advisory approach is a customized and tailor-made strategy as naturally every asset or group of assets is unique. This enables us to generate the maximum benefit for all our clients. Decisions are based on the most current information on market conditions, local market intelligence and emerging trends.

Build-to-Rent.

01.

OPERATING PREMISES DESIGNED TO OPTIMAL USAGE

Despite only renting, operating premises can be planned, designed and build to optimal usage.

02.

ENHANCE CORPORATE FOCUS

The entire corporate focus can be set on the actual core business and corporate growth.

03.

NO FINANCIAL DEBTS

Given that there is no need for a long-term raising of building loan a financial debt won’t occur. This might come with advantages for several aspects.

04.

LOWER LEVEL OF CAPITAL LOCKUP

All capital which is not locked through operating real estate entirely can be invested in further business units or companys’ growth. Thus corporate action gains additional flexibility.

05.

REDUCED CAPITAL EXPENDITURE

As the end investor eventually will bear all costs for the property, planning and building, capital expenditure is considerably reduced and optimized. Solely common expenses such as rent, deposit, interior etc. will occur and be applied towards tax.

06.

MORE ATTRACTIVE SELECTION OF SITES

Due to considerably reduced overall expenses more attractive business locations can be selected which formerly might have been too expensive. A better location might generate several advantages for logistical aspects and day-to-day operations.

Sale & Rent-Back.

I.

REALLOCATION OF CAPITAL

Companies typically earn a higher return in their core business as compared to investing their capital in owned real estate. If a company is motivated to pursue this objective, a Sale & Rent-back transaction provides 100% of the value of the property compared to traditional mortgage financing, which is currently capped at an approximate 70% loan-to-value ratio in the current lending market.

II.

ALTERNATIVE LENDING

For many companies, a Sale & Rent-back transaction can be an alternative financing option, especially when commercial banks want to provide a limited amount of loans — similar to the period following the recent financial crisis.

III.

LIMITATION OF RISK

The seller can secure maximum value and occupancy rights based on a long-term lease, and at the same time transfer any residual value risk of actually owning the property to a third-party operator.

IV.

IMPROVEMENT OF THE BALANCE SHEET

The gain realized from a Sale & Rent-back transaction can be amortized on the corporation’s income statement, increasing reported earnings. Additionally, financial ratios (e.g. capitalization ratio) can be improved.

V.

REFINANCING

Unlocked liquidity allows shareholders to either distribute special dividends to redeem shareholder loans or repay debt / debt-like instruments.

VI.

GROWTH INVESTMENTS

Shareholders may use proceeds to eventually pursue bolt-on acquisitions, deploy capital in product research and development / machinery or improve working capital financing to further support organic or acquisitive growth of the business.

Advise and Support.

Throughout a transaction we coordinate the entire communication amongst all parties. We thereby cover the complete process steering and management alongside the relevant milestones. Hereby we are supported by a network of associated advisors and industry experts providing guidance on aspects such as legal documentation or transaction structuring.

All of our advisory services are offered on a success-oriented basis which is individually customized and aligned to our customer’s requirements.

Our Investment Partners.

We cultivate a global network of investment partners, who give us access to a broad base of multitude of investors ranging from local individuals to international institutional investors. This includes real estate funds, property companies, banks, private equity franchises, insurance companies, pension funds, corporates, property developers, foundations, family offices, debt funds, private investors and entrepreneurs.

Trust and Discretion.

We do not disclose any deal or client information - neither throughout the transaction nor after successful closing - unless we have been explicitly requested by the involved parties. It is our highest priority that confidential information will only be communicated to parties who are directly part of the transaction process.

Contact.

Keystone Advisory Partners GmbH
Auenstraße 100
80469 München


Should you have any questions or requests please send us an email to

info@keystone-advisory.com

or call us at the following number

+49 (0)89 21 54 54 880