Complicated legacy structures that limit loan options and result in tax inefficiencies
Tight Deal Completion timeline over Christmas and New Year
Achievement:
Restructure existing legacy elements to enable non-recourse financing, optimise for tax efficiency and structured for ease of onshore as well as offshore disposal
Secured extremely favourable non-recourse financing offer terms from 11 local regional banks after restructuring the asset
Stabilise income and increase asset quality, significantly improving IRR and Cash on Cash returns while improving valuation of the property.
30%
Increased valuation above purchase price *
> 40%
Tax savings via restructuring *
> 65%
Loan to purchase price *
*indicative
Prime Tokyo Residential Portfolio
Key Challenges:
Significant vacancy rate
Unable to secure any kind of financing
Legacy structure not optimised for tax and disposal
Inefficient structure leading to international investors inadvertently becoming a tax resident of Japan, subjecting them to Japanese tax on all their global income.
Strategic Solution & Execution
Restructure existing legacy elements in stages to enable non-recourse financing, optimise for tax efficiency and structured for ease of onshore as well as offshore disposal
Reposition assets into optimised tax vehicles to remove investor tax resident status.
Stabilise income and increase asset quality, significantly improving IRR and Cash on Cash returns while improving valuation of the property.
3X
Amplified returns on an IRR basis *
2X
Increase in annual income *
30%
Tax savings via restructuring *
*indicative
Japan Hospitality
Acquisition & Development Advisory
Key Pain Points & Challenges Faced
Lack of an asset manager with development expertise
Market Screening: Identifying attractive properties aligned with agreed investment guidelines.
Integrated Advisory: Providing comprehensive investment and development advisory services.
Strategic partnership: Sourced and facilitated a partnership with a reputable developer possessing asset management capabilities in both residential and hospitality.
Improves risk mitigation and enhanced service quality with in-house expertise in design, construction and engineering
Development Project Management: Managing the entire development process from pre-construction (feasibility studies, design, entitlements) to construction and ongoing asset management.
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