Innovative Real Estate Development Finance – Evidence from Europe

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Innovative Real Estate Development Finance – Evidence from Europe. / Squires, Graham; Hutchison, Norman; Adair, Alastair; Berry, Jim; Organ, Samantha; McGreal, Stanley.

In: Journal of Financial Management of Property and Construction, Vol. 21, No. 1, 2016.

Research output: Contribution to journalArticlepeer-review

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Squires, Graham ; Hutchison, Norman ; Adair, Alastair ; Berry, Jim ; Organ, Samantha ; McGreal, Stanley. / Innovative Real Estate Development Finance – Evidence from Europe. In: Journal of Financial Management of Property and Construction. 2016 ; Vol. 21, No. 1.

Bibtex

@article{155b1a0cea8c420d93c8f0b88a2c07b1,
title = "Innovative Real Estate Development Finance – Evidence from Europe",
abstract = "PurposeThis research provides insight into large-scale real estate projects in Europe and how they are using a more innovative blend of finance.Design/methodology/approachThe methodology involved a mix of desk-based study, interviews and case studies. Interviews were held with financiers, policy makers, developers, investors, fund managers and academics. The specific case projects were Battersea Power Station Development in London; Leipziger Platz site in Berlin; and the Lammenschans site in the city of Leiden, Netherlands.FindingsThe research found that there is growth in the blend of financial products used in real estate development within large-scale mixed-use projects. This new blend is set with greater equity financing, often from domestic and foreign consortiums generating institutional funds – alongside private debt financing that utilise a mix of large-scale multi-bank finance.Practical implicationsThe scale of the challenge in financing real estate development allied with capital budget constraints has meant that the appetite for innovative finance mechanisms has gained considerable momentum in practice and policy. This research investigates current examples in development finance and provides a discussion of the opinion of key multi-stakeholder participants in the individual cases, and trends more strategically at a broader level.Originality/valueThis detailed study of three major development sites and at a more broader strategic level is significant, in that it provides a better understanding of the differing blends of finance that are being used.",
author = "Graham Squires and Norman Hutchison and Alastair Adair and Jim Berry and Samantha Organ and Stanley McGreal",
year = "2016",
doi = "10.1108/JFMPC-09-2015-0036",
language = "English",
volume = "21",
journal = "Journal of Financial Management of Property and Construction",
issn = "1366-4387",
publisher = "Emerald",
number = "1",

}

RIS

TY - JOUR

T1 - Innovative Real Estate Development Finance – Evidence from Europe

AU - Squires, Graham

AU - Hutchison, Norman

AU - Adair, Alastair

AU - Berry, Jim

AU - Organ, Samantha

AU - McGreal, Stanley

PY - 2016

Y1 - 2016

N2 - PurposeThis research provides insight into large-scale real estate projects in Europe and how they are using a more innovative blend of finance.Design/methodology/approachThe methodology involved a mix of desk-based study, interviews and case studies. Interviews were held with financiers, policy makers, developers, investors, fund managers and academics. The specific case projects were Battersea Power Station Development in London; Leipziger Platz site in Berlin; and the Lammenschans site in the city of Leiden, Netherlands.FindingsThe research found that there is growth in the blend of financial products used in real estate development within large-scale mixed-use projects. This new blend is set with greater equity financing, often from domestic and foreign consortiums generating institutional funds – alongside private debt financing that utilise a mix of large-scale multi-bank finance.Practical implicationsThe scale of the challenge in financing real estate development allied with capital budget constraints has meant that the appetite for innovative finance mechanisms has gained considerable momentum in practice and policy. This research investigates current examples in development finance and provides a discussion of the opinion of key multi-stakeholder participants in the individual cases, and trends more strategically at a broader level.Originality/valueThis detailed study of three major development sites and at a more broader strategic level is significant, in that it provides a better understanding of the differing blends of finance that are being used.

AB - PurposeThis research provides insight into large-scale real estate projects in Europe and how they are using a more innovative blend of finance.Design/methodology/approachThe methodology involved a mix of desk-based study, interviews and case studies. Interviews were held with financiers, policy makers, developers, investors, fund managers and academics. The specific case projects were Battersea Power Station Development in London; Leipziger Platz site in Berlin; and the Lammenschans site in the city of Leiden, Netherlands.FindingsThe research found that there is growth in the blend of financial products used in real estate development within large-scale mixed-use projects. This new blend is set with greater equity financing, often from domestic and foreign consortiums generating institutional funds – alongside private debt financing that utilise a mix of large-scale multi-bank finance.Practical implicationsThe scale of the challenge in financing real estate development allied with capital budget constraints has meant that the appetite for innovative finance mechanisms has gained considerable momentum in practice and policy. This research investigates current examples in development finance and provides a discussion of the opinion of key multi-stakeholder participants in the individual cases, and trends more strategically at a broader level.Originality/valueThis detailed study of three major development sites and at a more broader strategic level is significant, in that it provides a better understanding of the differing blends of finance that are being used.

U2 - 10.1108/JFMPC-09-2015-0036

DO - 10.1108/JFMPC-09-2015-0036

M3 - Article

VL - 21

JO - Journal of Financial Management of Property and Construction

JF - Journal of Financial Management of Property and Construction

SN - 1366-4387

IS - 1

ER -