Business case

Financial advisory for the sale of a landmark US commercial property through the creation of a joint venture

Situation: Transactions
Transaction preparation & execution

Context

A leading global luxury retail group was considering the sale of a majority stake in one of its prime commercial properties through the creation a joint venture partnership with a private equity firm.

Key Takeaway

The execution of the transaction involved the complex operational implementation of the partnership agreement (creation of legal entities, cost sharing, new leasing, etc.) between our client and the investor, which had an immediate impact on the day-to-day property management operations and leasing of the property.

We modelled a detailed business plan based on (i) anticipated short‑ and medium‑term leasing and (ii) a thorough assessment of the property’s operating expense dynamics (rechargeable/non-rechargeable expenses, vacancy‑related effects, etc.). Our team worked closely with the client’s property management firm to ensure operational processes were aligned with the new joint‑venture structure and that all operational and financial adjustments required at closing were properly anticipated and executed.

Accuracy also supported the structuring of the transaction by preparing a detailed step plan outlining the accounting steps of the negotiated transaction leading to the closing structure, as well as a comprehensive, entity‑level funds‑flow analysis mapping all cash movements pre‑closing and at closing.

Accuracy Role

We supported our client through (i) structuring the transaction, including preparation of the step plan and detailed funds flow, (ii) the preparation of the business plan and (iii) supporting the operationalisation of the transaction.

Share