Cushman & Wakefield Capital Markets Capabilities

2013A Cushman & Wakefield Publication

EMEA CAPITAL MARKETS CAPABILITIES

GUIDE TO SERVICES

OUR CLIENTS ARE OUR COMMITMENTFounded in 1917, Cushman & Wakefield is the world’s largest privately-held commercial real estate services firm, with approximately 14,000 employees operating from 253 offices in 60 countries and six continents.

What makes Cushman & Wakefield the preferred choice?

It’s simple. Our success and longevity are built on a simple philosophy which guides everything we do and has made us the world’s preferred real estate services provider for the last 100 years.

Every aspect of our platform has been honed to achieve value on behalf of our clients. With a commitment to global collaboration, consistency and creativity, we provide customised services and solutions that see beyond the brick and mortar of each real estate transaction. Whether you are a tenant, landlord, investor, or developer, a global company or a small business, Cushman & Wakefield provides solutions that fit your strategic, operational, and financial goals.

OUR SERVICESWe provide services across the real estate continuum, advising, implementing, transacting, and managing on behalf of owners, occupiers, investors, and developers through every stage of the real estate process.

These services are consistent in every office around the world. Whether you are in Paris or Moscow, Cushman & Wakefield offers the same resources, same intelligence, uses the same processes, and the same platform.

OUR GLOBAL REACH Our professionals have in-depth expertise in more than 200 local marketplaces. But we understand that having offices around the world is only part of the story. Cushman & Wakefield takes the extra step – we have put standards and processes in place that ensure collaboration and sharing of intelligence across borders.

OUR PEOPLETo ensure creative thinking, we recruit talented professionals from all backgrounds – not just real estate – including management consulting, finance, engineering, tax, legal, and systems management. Our people come to the table with entrenched networks and relationships that enhance their ability to make the deal, optimize the engagement, and maximize results.

OUR RESULTSWe deliver on our promises.

Our partnership with our clients goes beyond the ‘deal’ to support your core objectives. We demonstrate how your real estate holdings can be harnessed to improve productivity and profitability, optimize asset value, strengthen branding, and sharpen your competitive edge.

EMEA CAPITAL MARKETS

CAPABILITIES

€13 bnOur team has transacted and advised on more than €13 billion across EMEA in 2012“ ”

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Services include:

Investment Sales & Acquisitions

Corporate Finance

Equity, Debt & Structured Finance


Whether you are seeking to dispose of an asset in London, financing the purchase of a hotel in Italy, or structuring a complex cross border portfolio deal, Cushman & Wakefield’s expertise in capital markets is the gold standard.

EMEA Capital Markets provides comprehensive advice and execution services to clients engaged in buying, selling, investing in, financing or developing real estate and real estate-related assets.

Our solutions are tailored to meet the objectives of private and institutional owners and investors. A dedicated specialist team provide tailored solutions for corporate owners and occupiers.

We transacted and advised on more than €13 billion in 2012 and have helped hundreds of clients maximise the value of their real estate.

EMEA Capital Markets liaise with colleagues across 56 fully owned and associate offices.

• Relationships with more than 1,500 capital sources

• 510 investment and corporate finance professionals globally

• Unsurpassed reach into global capital markets

• Reliable investor intelligence

• Real-time local market intelligence supported by a proprietary research platform

• Access to Cushman & Wakefield’s full global brokerage capabilities

• Creative financing/disposition solutions

• Professionals with expertise in various disciplines including ownership, development, finance, taxation, accounting, lending, legal, and consulting

5CUSHMAN & WAKEFIELD


CAPABILITIES

INVESTMENT SALES & ACQUISITIONS

€148 BillionWe have completed approximately €148 billion in transaction volumes over the past five years and have helped hundreds of clients maximize the value of their real estate.

For investors looking to sell or buy investment grade properties or portfolios, we offer comprehensive global transaction solutions.

Located in major markets around the world, our professionals execute customised acquisition and disposition strategies across all major property types including office, retail, industrial, multifamily, hospitality, senior housing, and healthcare.

Our Capital Markets team deliver on our promises. Unlike our competitors, C&W offers clients a holistic approach. In addition to our capital markets expertise, we draw on our related capabilities in research, leasing, asset management, operations, and valuation to deliver optimised and integrated solutions.

Additionally, C&W provides our clients with unique access to opportunities and capital sources worldwide. As a global leader in investment transactions, we have an unsurpassed network of buyers and sellers, access to international capital, and superior market data.

SINGLE ASSET & PORTFOLIO TRANSACTIONS

Acquisition

Whether you are seeking to acquire a property investment for short, medium or long-term gain, we identify the most suitable opportunities in the market across every sector.

Disposition

We can help you monetize your investment, dispose of a single asset or multiple assets, or divest from a particular market.

We support our clients at all stages of the sales cycle, including due diligence, underwriting, market research, financial analysis, marketing strategy and campaigns, placement strategy, transaction negotiations, and closings.

C&W will advise you on the best strategies available to help you achieve a maximum return on your property or portfolio and minimize your risk.

MARKET RESEARCH & FINANCIAL ANALYSIS

Our team of experts provide extensive due diligence and real-time market data, coupled with on-the-ground professionals who understand every aspect of real estate investment.

ADVISORY & CONSULTING SERVICES

We provide expert advice and consulting expertise to help clients maximize the value of their real estate holdings.

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DELIVERING ON OUR PROMISES

Breaking new ground. Setting new benchmarks.“ ”



CAPABILITIES

ACQUISITIONS

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UK

HERMES REAL ESTATE

Volume: €360m

C&W Involvement: 50% acquisition of three shopping centres from Westfield

Client: Hermes Real Estate Investment Management

CZECH REPUBLIC

FORUM NOVA KAROLINA , FORUM USTI NAD LABEM

Volume: €300m

C&W Involvement: Acquisition

Client: Meyer Bergman

CZECH REPUBLIC

VGP PORTFOLIO

Volume: €330m

C&W Involvement: Acquisition advice

Client: AEW

GERMANY

CENTRO, OBERHAUSEN

Volume: €720m

C&W Involvement: Acquisition of a 50% share in CentrO

Client: CPPIB



CAPABILITIES

SALES

10

FRANCE

RIVER OUEST

Volume: €360m

C&W Involvement: Disposal

Client: HRO

DENMARK

ROSENGÅRDCENTRET

Volume: Approx €400m


Client: Property Partners

UNITED KINGDOM

JUNCTION PORTFOLIO

Volume: €302m


Client: Junction LP

UNITED KINGDOM

EALING BROADWAY SHOPPING CENTRE

Volume: €290m


Client: Wereldhave



CAPABILITIES

CORPORATE FINANCE

Our Corporate Finance and Investment Banking team combines professionals with backgrounds in real estate, banking, accountancy, tax, and investment management.

Corporate Finance and Investment Banking provides transaction and advisory services to property investors, occupiers and fund managers.

We design and execute real estate finance strategies which maximize value, reduce costs, and optimize accounting and tax implications.

Whether your objectives are to release or raise capital, re-structure leases, or implement complex financial solutions, our global finance and banking teams bring a wealth of experience to help achieve both financial and strategic goals.

OCCUPIER SOLUTIONS

We advise occupiers on how best to align real estate interests to their corporate strategy. The team is a market leader in portfolio disposals having executed over €9bn in sale and leasebacks and €2bn in lease liability transfers.

When developing an optimal occupancy and control solution, we carefully assess each client’s circumstances, and the implications to their cost base; financial statements; tax efficiency; and financial covenant.

DEBT MARKET EXPERTISE

We provide our clients with debt origination, restructuring and re-financing solutions across the capital stack. Over the last 10 years, the team has originated debt in excess of €3bn across EMEA.

We maintain strong relationships with many UK and European lenders, and have the knowledge and capability to secure the most appropriate debt package.

LOAN SALES GROUP

Our team comprises both real estate and banking professionals, who have advised on over €18bn of loan portfolio transactions and loan portfolio sales worth in excess of €1.5bn.

EQUITY ADVISORY

Our private equity advisory team advises investors, fund and asset managers on the structuring and launch of funds or joint ventures. We have closed in excess of €3bn of commitments into real estate investment products.

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CAPABILITIES

UNITED KINGDOM

L&G PROPERTY INCOME FUND€370m

BACKGROUND

Cushman & Wakefield was appointed by Legal & General Property (LGP) as sole European Placement Agent for their new flagship UK Property Income Fund (UK PIF), a diversified core/core-plus strategy, and the first LGP product created specifically for non UK investors.

FUND STRATEGY

Core / Core-plus UK Fund diversified by sector and targeting assets of €45m+

C&W ROLE

Commercial advice throughout structuring and product development phase.

Drafting of PPM and marketing materials, development of fund model and preparation of online data room. Co-ordination of extensive marketing campaign across continental Europe.

Assistance throughout investor due diligence and closing process, including strategic advice during commercial negotiations with cornerstone investors.

THE RESULT

The Fund features an innovative structure enabling investors to customise their level of gearing by utilising both geared and un-geared partnerships. €370m was secured from 14 investors across Europe, Asia, the Middle East and North America. On the back of this success, C&W was shortlisted for the 2011 PERE European Placement Agent of the Year award.

CASE STUDIES

EUROPE/USTHE CHURCH OF ENGLAND€116m

BACKGROUND

Cushman & Wakefield was appointed by the Church Commissioners of England to provide advice on potential investments into the US and European real estate debt markets.

C&W ROLE

The team was commissioned to carry out a detailed review of these markets with the view to making a series of commitments to funds active in this space.

The report addressed the following:

Analysis of the real estate debt markets in the US and Europe: history, size of markets, key participants, debt instruments and characteristics (CMBS, senior, mezz, etc.), fund strategies (discounted pay-off, loan-to-own, new originations rescue capital).

A high level review of all of the funds operating in this space and open for investment.

Detailed review of a shortlist of funds in each market (management capability, track record, investment strategy, appraisal of deal pipeline/seed portfolio, review of key terms) and recommendation of preferred funds.

THE RESULT

The client made a commitment to the M&G European Debt Fund in 2009. In the US, the Commissioners opted to prioritise an investment into a unique distressed equity fund that C&W introduced and also provided commercial due diligence on. In addition, in 2012 an allocation was made to the PCCP Equity VI US distressed opportunity fund.

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UNITED KINGDOM

RESOLUTION PROPERTY

€100m

BACKGROUND

The UK Capital Markets team were aware that a loan secured against a £90m asset had been sold to a private equity investor (“PEI”). The client had a medium term hold strategy for the asset to execute their business plan but the existing loan was due to expire in 2014.

The loan was being serviced with an LTV of 85% to 90%. A breach of loan covenants was imminent. The PEI had acquired the loan at a discount, was IRR driven and therefore open to a potential realisation through a discounted pay-off (“DPO”).

C&W ROLE

The Corporate Finance Team was mandated to negotiate a DPO of the loan and arrange senior debt and mezzanine finance to re-finance the current debt. UK CMG was involved in DPO negotiations with reference to the asset value.

Our services included modelling the income stream, preparing and presenting a funding proposal to a select group of lenders, negotiating the best terms, managing the credit process and legal documentation to successful drawdown of the loan.

THE RESULT

The Corporate Finance Team arranged a loan equating to 80% of value. The senior debt piece equated to 60% of value and the mezzanine loan raising the LTV to 80%.

The client equity value had been significantly enhanced through the DPO and refinance and the loan was no longer breaching covenants.

UNITED KINGDOM

VIRGIN MEDIA€82m

BACKGROUND

Virgin Media’s property team was spending a disproportionately large amount of time and resources dealing with the surplus problem rather than adding value to the operational estate of over 650 properties. In addition, the quarterly re-assessment of the surplus property provision under FASB 146 (equivalent to IAS 37) was causing unwelcome P&L volatility.

C&W ROLE

C&W was instructed to dispose of the surplus leasehold portfolio in a single transaction. Following a two stage competitive marketing process, the portfolio was successfully transferred to Legacy Portfolio who assumed all the obligations arising from these leasehold liabilities.

The portfolio comprised 28 secondary office buildings spread across the UK with a total floor area of 530,000 sq ft. In addition, the portfolio also included 5 vacant assets and 2 flexible short-term sale & leasebacks.

THE RESULT

We were able to:

• Remove surplus property risk and P&L volatility;

• Remove the management burden of surplus property;

• Structure a ‘profit trap’ so that Legacy Portfolio are incentivised to remove the liabilities as quickly as possible; and

• Provide put options to transfer additional risk in the future at a pre-determined price.



CAPABILITIES

DRIVING VALUE FOR OUR CLIENTS AROUND THE WORLD

253

United States Alabama Birmingham* Arizona Phoenix Tempe Tucson* California Carlsbad Inland Empire Los Angeles L.A. South Bay L.A. West Marin/Sonoma County Oakland Orange County Sacramento San Diego Downtown San Diego Eastgate San Francisco Silicon Valley Walnut Creek Colorado Colorado Springs* Denver Connecticut Hartford Stamford Delaware Wilmington Dist. of Columbia Washington, DC Florida Ft. Lauderdale Ft. Myers* Jacksonville Miami Orlando Palm Beach Gardens Tampa Georgia Atlanta

Savannah* Hawaii Honolulu Illinois Chicago Chicago Suburban Indiana Bloomington* Indianapolis* Kentucky Louisville* Maine Portland Maryland Baltimore Bethesda Massachusetts Boston Michigan Detroit* Grand Rapids* Holland* Kalamazoo* Lansing* Muskegon* Minnesota Minneapolis** Minneapolis-Sub** Missouri Kansas City* St. Louis* Nevada Las Vegas* New Hampshire Manchester New Jersey East Rutherford Edison Morristown New York Albany* Binghamton*

Buffalo* Corning/Elmira* Hudson Valley* Islandia Ithaca* Melville N.Y. – Downtown N.Y. – Midtown Rochester* Syracuse Syracuse* Utica* Watertown* Westchester County North Carolina Charlotte* Raleigh/Cary Raleigh/Durham* Ohio Cincinnati* Cleveland* Columbus* Toledo* Oklahoma Oklahoma City* Tulsa* Oregon Portland Pennsylvania Philadelphia Philadelphia-Sub Pittsburgh* Puerto Rico San Juan* Rhode Island Providence* South Carolina Charleston* Greenville/Spartanburg* Tennessee Chattanooga* Knoxville*

Memphis* Nashville* Texas Austin* Dallas Houston San Antonio* Utah Clearfield/Ogden* Park City* Provo/Orem* Salt Lake City* St. George* Virginia Fredericksburg* Lynchburg* McLean Newport News* Norfolk/Virginia Beach* Richmond* Roanoke* Washington Bellevue* Seattle* Wisconsin Milwaukee* CanadaAlberta Calgary Edmonton* British Columbia Vancouver Manitoba Winnipeg* New Brunswick Fredericton* Moncton* Saint John* Newfoundland St. John’s* Nova Scotia

Halifax* Ontario London Newmarket Ottawa* Toronto-Central Toronto-Northeast Toronto-West Prince Edward Island Charlottetown* Quebec Montréal Central Montréal Suburban Mexico Ciudad Juárez Guadalajara* Mexico City Monterrey

Central America Costa Rica San Jose* South America Argentina Buenos Aires Brazil Manaus Porto Alegre Rio de Janeiro São Paulo São Paulo-Barueri Chile Santiago Colombia Bogotá Peru Lima Venezuela Caracas

AMERICAS

Austria Vienna*

Bahrain Manama Belgium Brussels Bulgaria Sofia* Channel Islands Jersey* Czech Republic Prague Denmark Copenhagen* England Birmingham London-City London-West End Manchester Thames Valley Finland Helsinki* France Paris Germany Berlin Dusseldorf Frankfurt Hamburg Munich

Greece Athens* Hungary Budapest Ireland Cork* Dublin* Israel Tel Aviv* Italy Milan Rome Kazakhstan Almaty* Kosovo Pristina* Luxembourg Macedonia Skopje* Netherlands (The)Amsterdam Rotterdam Northern Ireland Belfast* Norway Drammen* Oslo* Stavanger*

Poland Warsaw Portugal Lisbon Romania Bucharest Timisoara Russia Moscow Scotland Edinburgh Glasgow Slovakia Bratislava South Africa Cape Town* Durban* Johannesburg* Pretoria* Spain Barcelona Madrid Sweden Stockholm Switzerland Basel* Geneva* Zürich* Turkey Istanbul UAE Dubai

EUROPE, MIDDLE EAST & AFRICA

Offices in60 Countries

GLOBAL REACH

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DRIVING VALUE FOR OUR CLIENTS AROUND THE WORLD

Australia Melbourne* Sydney China Beijing Chengdu Guangzhou Hong Kong Shanghai Shenzhen Fiji* India Bangalore Chennai Gurgaon Hyderabad Kolkata

Mumbai Mumbai Sub New Delhi Pune Indonesia Jakarta Japan Tokyo Malaysia Kuala Lumpur* New Zealand Auckland* Wellington* Pakistan Karachi*

Philippines Manila* Singapore South Korea Busan Seoul Taiwan Taipei* Thailand Bangkok* Vietnam Hanoi Ho Chi Minh City

* = Alliance/ Associate Offices ** = Joint Ventures

ASIA-PACIFIC

GLOBAL CONTACTSGreg Vorwaller Global Head, Capital Markets [email protected] + 1 312 470 1800

Jan-Willem Bastijn Head of EMEA Capital Markets [email protected] +3120 800 2081

John Stinson Head of Asia Pacific Capital Markets [email protected] + 65 6232 0878



CAPABILITIES

EMEA CAPITAL MARKETS CONTACTS

BELGIUM

Maxime Xantippe

Partner, Head of Capital Markets

[email protected]

+32 2 514 4000

CZECH REPUBLIC

James Chapman


[email protected]

+420 234 603 210

FRANCE

Thierry Juteau


[email protected]

+33 1 53 76 95 51

GERMANY

FRANKFURT

Frank Nickel

Partner, CEO Germany

[email protected]

+49 69 506073 111

BERLIN

Hanns-Joachim Fredrich

Partner, Capital Markets

[email protected]

+49 30 20 21 4 46 20

HAMBURG

Dr. Michael Thiele

Partner

[email protected]

+49 40 300 88 11 10

MÜNCHEN/MUNICH

Thomas Müller


[email protected]

+49 89 242 14 33 33

HUNGARY

Charles Taylor


[email protected]

+36 1 268 1288

ITALY

MILAN

Stephen Screene


[email protected]

+39 02 63 7991

ROME

Carlo Vanini

Partner , Capital Markets

[email protected]

+39 06 4200791

THE NETHERLANDS

Mathijs Flierman

Partner, Director Capital Markets

[email protected]

+3120 800 2089

POLAND

Wojciech Pisz

Partner, Retail Capital Markets

[email protected]

+48 22 8202059

PORTUGAL

Luis Antunes


[email protected]

+351 21 322 4753

ROMANIA

Charles Henry


[email protected]

+40 744 333 094

RUSSI A

Tom Cashel


[email protected]

+7 495 799 9875

SLOVAKIA

James Chapman


[email protected]

+420 234 603 210

SPAIN

BARCELONA

Reno Cardiff


[email protected]

+34 93 488 18 81

MADRID

Rupert Lea

Partner, Retail Capital Markets

[email protected]

+34 91 781 38 37

SWEDEN

Magnus Lange

Managing Partner

[email protected]

+46 85 456 7714

TURKEY

Togrul Gonden

Managing Partner

[email protected]

+90 212 334 78 00

UNITED KINGDOM

David Erwin

CEO, Capital Markets UK

[email protected]

+44 20 7152 5016

Michael Rhydderch

Partner

[email protected]

+44 207 152 5060

Michael Lindsay

Partner, Head of EMEA Corporate Finance

[email protected]

+44 20 7152 5008

All other EMEA queries:

Jan-Willem Bastijn

Partner, EMEA Capital Markets

[email protected]

+3120 800 2081

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Cushman & Wakefield Capital Markets Capabilities

Real Estate

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emea capital

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capital markets

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