Realty 8th Edition Financing Opportunity for Real Estate a developer perspective S' Albarosa Ceo Cef

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Realty8th EditionFinancing Opportunity for
Real Estate(a developer perspective)S. Albarosa
Ceo Cefin Group
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Agenda- Financing Model- Land- Development-
Sales Financing- Related issues- Presentation
of CreamFinancing Opportunity for Real
EstateS. Albarosa Ceo Cefin Group
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Financing RE in Romania

• - Availability has dramatically improved in the
  last 2 years
• Key Factor in RE growth
• Both for developers and end users
• Not just Banks

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Project Phases
Land
Develop- ment
Exit
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• Land
• Bank Financing (60/40)
• Private Equity Investor
• Future Contract with Institutional Investors
• JV Agreement with former owners

Project Phases
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Development Construction Financing Pledge on
Land Pledge on Constructor securities Pledge
on Revenue Finally within 200 basis point
Project Phases
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• Exit
• Mortgage Loan
• Pledge on Assetts
• Investment Fund on a discount to yield basis

Project Phases
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Look at different Players.
RE Financing
Funds
Fund Managers
Banks
Equity Partners
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Area to be improved

• Property Title
• Clear Legal Background for RE Leasing
• Permit lead time (PUZ, PUD, PAC)
• Tax incentive for end users

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Acquisition chart

• Market scan and land opportunities identification
• Land opportunities shortlist
• Preliminary Legal and Technical Due Diligence
• Pre-Sales Agreement and Down Payment (eventually
  in escrow account)
• In depth Legal and Technical Due Diligence in
  tandem with financing bank and insurance company
• Specific property valuation by major RE Valuator
• Upon positive results of the above Sale-Purchase
  agreement signed and balance paid
• Title insurance at market value

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Team

• Financing Bank
• Insurance Company
• Real Estate Agent
• Legal firm
• Valuator
• Technical advisor
• Project Manager

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Cefin Real Estate Asset Management
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Cefin Logistic Park Arad
Romanian Land Development
Cortina Residence
gt 600,000 sqm. built
Cefin Logistic Park
gt 2,500,000 sqm. land
Iveco Dealerships
gt 400,000,000
Louis Blanc
Millenium Bank
Barbu Vacarescu
A1 Industrial Park
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Cefin Logistics Park
Start up 2004 Completion 2009 Land 1,000,000
sqm. Built area 300,000 sqm. Investment value
150,000,000 Euro
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Cortina Residence

• Start up 2006
• Completion 2008
• Built area 51,000 sqm.
• Investment value 46,000,000 Euro

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A1 Industrial Park

• Start up 2006
• Completion 2009
• Land 350,000 sqm.
• Built area 75,000 sqm.
• Investment value 70,000,000 Euro

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Louis Blanc Offices

• Start up 2005
• Completion 2007
• Built area 2,500 sqm.
• Investment value 8,500,000 Euro

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Iveco Dealerships
Bucharest
Timisoara
Arad
Constanta
Pitesti
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Cefin Logistic ParkArad

• Start up 2007
• Completion 2008
• Land 98,000 sqm.
• Built area 45,000 sqm.
• Investment value 26,000,000 Euro

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Barbu Vacarescu
Start up 2005 Completion 2007 Built area 2,500
sqm. Investment value 8,500,000 Euro
Start up 2007 Completion 2009 Built area
85,000 sqm. Investment value 220,000,000 Euro