Global Debt Sales survey 2012 - Vastgoedjournaal

COMPLETING TRANSACTIONSBRIEFINGSTRUCTURING TRANSACTIONSIn the consumer debt sales market, with larger transaction sizes,innovative deal structuring mechanisms are becoming morecommon to help maximize transaction value.As portfolio sizes grow and investment sizes increase, the way dealsare structured becomes increasingly important. This can have asignificant positive impact on pricing even where these structuresare relatively short-term.Structured deals can take many forms from forward flows, jointventure/upside arrangements with assets transferred into specialpurpose vehicles, to price deferrals and post-deal price adjustmentagreements. Each of these structures can be mutually beneficial forseller and purchaser, which in turn can drive returns.Having said this, despite the keenness of some of the more advancedpurchasers to explore these deal structures with sellers, many of thedebt sales teams within the banks still have a preference to ‘keepdeals simple’ and focus on speed and ease of execution – perhapsleaving value on the table for both parties? The useful lessonsfrom CRE loans sales, such as RBS’s CRE loan portfolio sale toBlackstone (Project Isobel), could be transposed to other marketsand asset classes.© 2012 KPMG International Cooperative (“KPMG International”), a Swiss GLOBAL entity. DEBT SALES SURVEY 2012 21