Real Estate Case Study: Debt Ratio

Real Estate Case Study: Debt Ratio
Our Client:
A public real estate company specializing in asset management in the hospitality sector.
Situation:
Our client had paid down a significant portion of their floating rate line of credit, leaving them with a fixed/floating rate debt ratio higher than they desired. With hotel assets essentially re-pricing daily,


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Foreign Currency Hedging

Foreign Currency Hedging, fx hedging, currency hedging

Managing the foreign currency rate changes that can impact returns
Investors who purchase foreign assets run the risk that movement in local currency rates can reduce the underlying value of their expected/projected return. Many investors seeking to reduce such risks are wary of making large upfront cash outlays as well as potential breakage


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Deal Contingent Hedging

PRIVATE EQUITY, hedging, Deal contingent hedging

Mitigating risk and avoiding dead deal costs
When a private equity investor agrees to purchase a company in a foreign currency rather than the currency in which the debt or equity is funded (e.g. investing equity from a US Dollar denominated fund in a JPY asset or raising debt in USD for a CAD investment),


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Impact on Equity REITs

Impact on Private Equity Funds