Search results
1 – 4 of 4
The purpose of this paper is to review the range of options available to corporates to raise capital from their real estate.
Abstract
Purpose
The purpose of this paper is to review the range of options available to corporates to raise capital from their real estate.
Design/methodology/approach
The paper provides a brief description of alternative capital raising capital options and their costs and benefits.
Findings
There are many options available to corporates to raise capital other than a sale and leaseback with different potential proceeds and costs of capital depending on the objectives of the corporate and the lease term they are prepared to sign.
Originality/value
This paper provides an introduction to alternative methods to raise capital from property including fixed and strip income investment models, raising debt against corporate property, the opco/propco model as well as the traditional sale and leaseback.
Details
Keywords
Adam Fahey, Hassan F. Gholipour, Sharon Yam and Muhammad Najib Razali
This study investigates the relationship between aged care accommodation pricing options (refundable accommodation deposits (RADs), daily accommodation payment (DAPs) and…
Abstract
Purpose
This study investigates the relationship between aged care accommodation pricing options (refundable accommodation deposits (RADs), daily accommodation payment (DAPs) and concessional) and the profitability of aged care facilities.
Design/methodology/approach
Data are obtained from 33 aged care facilities across New South Wales in Australia. This study uses multivariate regression for analyses.
Findings
The estimation results suggest that higher level of RADs has a negative and significant relationship with profitability of aged care facilities. The authors also find that concessional pricing option is positively associated with higher profitability.
Originality/value
These findings may benefit aged care operators by reviewing their strategies and portfolios to enhance their financial performance. The results are also useful to the Australian Government to further explore how the removal of RADs may transform the aged care sector's profitability.
Details
Keywords
Midway through construction, a hotel developer realised that costs had risen too much to be feasible for equity capital. They repositioned the asset as a ResiTel wherein each…
Abstract
Midway through construction, a hotel developer realised that costs had risen too much to be feasible for equity capital. They repositioned the asset as a ResiTel wherein each suite would be sold as a condominium unit to retail buyers. This called for setting up two separate entities: one (PropCo) for asset management and the other (LeaseCo) for operating the hotel. Unit owners would earn a regular share of hotel income. The lenders protected additional sale-risk by more conservative loan terms. The developer must analyse the feasibility of the repositioned asset.
Details