Real Estate Advisory
We help clients to address complex financial real estate challenges and manage costs in response to rapidly changing market dynamics.
Real estate commonly represents the second highest expense for businesses after people costs and is a critical component of the balance sheet for investment companies. While physical infrastructure can be slow and complicated to adapt and transact, occupational requirements across all real estate sectors are changing rapidly in response to the shift from physical to online retailing, the growth of agile and hybrid office working patterns accelerated by the Covid-19 pandemic and the explosion in demand for logistics space in response to these changes.
Businesses are under increasing pressure to ensure that they have the right physical infrastructure in the right locations, while addressing the substantial costs associated with operational real estate. Meanwhile, property investors and lenders are confronted with the impact of changing occupational patterns and pressures on rents on both their income and the capital values of their assets.
Teneo’s Real Estate Advisory team works closely with occupiers, investors and lenders to help them evaluate their options and develop strategies in response to specific operational or financial challenges, particularly financial distress. Our capabilities include:
Latest Financial Advisory Insights
Providing technical real estate input to commercial and legal reviews of a business’s financial position to establish a fallback plan for the company or one or more of its stakeholders.
Working seamlessly with Teneo’s restructuring specialists to evaluate options and develop strategies to support the real estate aspects of any restructuring process such as CVA, Restructuring Plan or administration and receivership. This extends to directing the real estate workstreams of major administrations and managing the disposal of valuable assets to maximise realisations for creditors.
Communicating effectively and credibly with key stakeholders, particularly landlords, internally and externally to communicate strategy and deliver consensual solutions wherever possible. This also includes managed exits where insolvency options are not available or appropriate.
Providing technical and commercial real estate due diligence in support of rapid, complex M&A transactions or sales of non-performing loans. Reviewing the costs and benefits of post-merger property portfolios or asset management and business plans. Identifying opportunities to rationalise and optimise a combined estate and advising on the size and structure of any combined real estate management function.
Developing operational real estate cost reduction and portfolio rationalisation strategies for business clients in support of distressed and turnaround situations.
Using our bespoke proprietary location planning software to help consumer businesses identify their optimal footprint.
How We Support You
We can support a business at any point of their lifecycle through our extensive service offerings:
We have developed a series of proprietary tools to accelerate the analysis of common real estate challenges, enabling clients to respond quickly and efficiently to complex situations and changes in circumstances.
Tenant and supplier strength analysis:
Led by restructuring experts, our Credit Risk service has a strong track record of helping management teams to identify and minimise the impact of financial credit risk in their third-party networks whether this applies to suppliers or tenants.
Our work is always structured to meet specific client needs. Assessment scopes cover financial health assessment for high risk parties, contingency / continuity planning and procurement support to assess credit and contract risks.
Where a third party is identified as being at risk of failure, we can deploy situational experts to quickly assess financial viability, identify a preferred action plan and support in effective engagement with stakeholders to minimise disruption.
CVA rent model:
We combine our real estate and restructuring capabilities within a bespoke methodology that helps businesses to model and understand the potential implications of the CVA process. This allows them to anticipate outcomes and seek to optimise the portfolio footprint of occupiers to ensure any “go forward” physical estate is future proofed.
We are regarded in the landlord community, including the BPF (the industry body and voice of the landlords) as best in practice. Our approach on New Look has been described as “unprecedented” by the BPF and landlords.
Teneo footfall model
Teneo has the capability to deploy multiple data sources including cell tower data and government open-source data to develop models to help clients understand footfall patterns. We can determine UK population movement, footfall and journeys, on an hour-by- hour, day-by-day basis, segmented by purpose and core demographics and use this to develop models to help consumer facing businesses optimise their location decisions and strategies.
As a result of the Covid-19 lockdown restrictions and gyms remaining closed, Virgin Active faced an imminent liquidity shortfall due to the ongoing rental charges it faced.
Lead advisor to Virgin Active in the implementation of its Restructuring Plans and provision of relevant alternative analysis. This involved designing and implementing a holistic restructuring solution using a Part 26A Restructuring Plan to bind secured and unsecured creditors through a single process.
The sanction of the Plans allowed the Group to secure concessions from its creditors and obtain the new money it required to address the liquidity shortfall and position it for recovery from the pandemic. This is the first financial and operational restructuring involving a leasehold estate to be delivered using a Part 26A restructuring plan.
Appointed Administrators over the holding company of a UK property group with over £800m of debt.
Revised property/asset management agreements with the incumbent asset manager to minimize the operational disruption. The Solvency of underlying Propcos was maintained to facilitate either share or asset sales. We carried out a detailed tax review to minimise liabilities and advised on the optimal realisation strategy for each asset, including immediate sales, holding strategies and joint ventures.
Asset properties were sold on an individual basis above market value.
We initially advised the Group regarding its options and were subsequently appointed as administrators, managing the UK operations during the Covid-19 pandemic.
We performed a complete restructuring of their lease portfolio and led all the initial negotiations with landlords to secure the survival of the business. This encompassed negotiating both short-term rent and long-term property strategies, as well as conducting sales processes.
This allowed for a fast-track M&A process, which led to a JV partner being identified to rescue the business.
When to Reach Out
Details of the entity providing services, legal and regulatory information in respect of the Teneo entity are also included in our engagement letters.
Teneo Financial Advisory (DIFC) Limited is authorised and regulated by the Dubai Financial Services Authority for the provision of Advising on Financial Products or Credit and Arranging Credit or Deals in Investment services
Specific information relating to our regulated entities which provide services to clients is detailed below:
|Registered Name||Legal Form||Registration Location and Reference||Registered Office||Data Protection||Regulator(s)||Professional Indemnity Insurance|
|Teneo Financial Advisory Limited||Limited Company||England & Wales, 13192958||5th Floor, 6 More London Place, London, SE1 2DA||UK - ZA920639||The Institute of Chartered Accountants in England and Wales (“ICAEW”) C008873136. All insolvency practitioners are licenced by the ICAEW. ICAEW Designated Professional Body licence for a range of investment business activities.||Details of the professional indemnity insurer can be provided on request.|
|Teneo Securities LLC||Limited Liability Company||USA - Delaware||280 Park Avenue, 4th Floor, New York, NY 10017||N/A||Financial Industry Regulatory Authority (FINRA) #151256. Securities and Exchange Commission (SEC).||Details of the professional indemnity insurer can be provided on request.|
Teneo Securities LLC’s Business Continuity Planning
Teneo Securities LLC has developed a Business Continuity Plan (“BCP”) on how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, we are providing you with this information on our BCP.
The Firm has developed and installed a BCP in the case of any business disruption that causes the Firm to have limited or no communications with its employees or customers. Our plan anticipates two types of business disruptions, internal disruptions which affect only our Firm’s ability to do business (such as a fire in our building) and external disruptions that prevent the operation of securities markets or other firms (such as natural disasters or acts of war).
The Firm intends to stay in business during both internal and external disruptions due to the fact that the Firm employees can conduct Firm related business from alternate off-site physical locations and the Firm maintains an alternate location for the maintenance of its books and records. We anticipate that the Firm will recover from internal business disruptions within 24-48 hours. An outage due to an external business disruption may be longer and is beyond the control of the Firm. However, the Firm will endeavor to resume business as soon as it is possible for the Firm to establish business operations from alternate off-site physical locations.
The Firm’s BCP specifically addresses the following areas related to Firm operations:
- Data back-up and recovery (hard copy and electronic);
- All mission critical systems;
- Procedures to test and determine the Firm’s ability to do business (i.e., financial and operational assessments);
- Alternate communications between customers and the Firm;
- Alternate communications between the Firm and its employees;
- Alternate physical location of employees;
- Critical business constituent, bank, and counter-party impact;
- Regulatory reporting; and
- Communications with regulators.
If you have questions about our business continuity planning, you can contact us (212) 886-1600.