A first rate meeting of minds this morning at Pension PlayPen. Here is the video.
The slides are inside the presentation and feel free to clip if you need them.
We are grateful for Christos for giving us his help and look forward to hearing the CFO/Trustee in action again soon.
An interesting talk but did I get the arithmetic wrong? Would a 20% return more than halve by the time fees were taken? Is all the risk with the investor?
Plainly I have been undercharging for 30+ years. I have also been far too concerned about protecting the downside. I was surprised that taking a sale of the asset prior to the planned maturity when target return could be significantly improved. For example a project in Manchester Square had £10 m of equity and £28m of debt serviced from the rent from a U.K. top 20 company. After 4 years the asset was sold on to an insurance company for £62M My clients provided the equity.That was more than 20 years ago.
With experience of placing deals directly there might be a vacancy if I came out of retirement.
A sentance disapeared…. After
“I was surprised that taking a sale of the asset prior to the planned maturity when target return could be significantly improved” was not mentioed, if well constructed projects are always considering the posssibility of and early sale can enhance the returns. In the following example there was no need for a dividend or a coupon and that revenue was used to reduce debt.