What is the business of Weil Realty Group?
Weil Realty Group ("WRG") is a private real estate investment banking and advisory firm which specializes in sourcing and structuring private equity capital for real estate companies desiring to expand their business. We enable our clients to meet their growth objectives by assisting them in accessing funds from the institutional market, thereby enabling them to minimize the amount of their time devoted to capital sourcing. This allows our clients to focus on what they do best - create value.
What type of capital does Weil Realty Group raise on behalf of its real estate clients and what are the basic transaction structures?
WRG raises equity capital which can be structured in a variety of different ways. The most common structures are as follows:
- equity for a single transaction;
- formation of a strategic alliance between the investor and client which provides the client with capital to fund a number of transactions, all with similar investment criteria;
- funding of an entity which provides not only capital for transactions but also for working capital; and
- re-capitalization of properties and portfolios which monetizes created value
What are the typical institutions that Weil Realty Group approaches for equity capital?
WRG has relationships with a wide variety of private institutional equity sources. Typical investors include endowment funds, pension funds, pension fund advisors, and Wall Street opportunity funds.
What type of clients retain Weil Realty Group?
WRG'S clients are real estate companies. They span the spectrum in terms of geographic focus, investment strategy and product type - multifamily, office, retail, and industrial. Some develop properties and others acquire and reposition under-performing assets. No matter what their specialization, our clients have a focused business strategy, strong origination skills and a proven ability to create value.
What do institutional investors seek when investing with our clients?
Institutional investors typically seek several common elements when investing with our clients:
- a well-conceived and focused business plan and project proposal;
- a proven track record;
- an ability to source and close deals;
- a value-creating investment strategy;
- co-investment in the range of 10% to 20% of the total equity, typically equating to 3% to 8% of total costs;
- an investment return commensurate with risk; and
- an alignment of interests between the investor and its partner.
How does a capital-raising and advisory assignment work?
In a typical assignment, WRG, acting as an agent, is retained by a real estate company to raise the capital necessary to fulfill that client's particular equity needs. From the beginning of a relationship, WRG maintains close communication with its client. The more we learn about a client's business and priorities, and the more the client learns about investor requirements, the better we can serve our client and assist them in accomplishing their goals. Relationships work best when we are viewed as an extension of our client's management team.
The first stage of an assignment is the preparation of an investment proposal and business plan. This package includes proposed investment terms, a summary of the asset and investment strategy, pro-forma financials, a description of the client's business strategy and management, and documentation of its track record. WRG does its own preliminary underwriting of the investment prior to making a presentation to prospective investors.
The second stage of an assignment is identification of appropriate capital sources. WRG presents the investment proposal to a select group of prescreened investors whose investment criteria and return parameters are consistent with the specific investment opportunity and needs of our client. Since these investors understand that WRG has been retained by its clients and has done its own due diligence, our investor packages are seriously reviewed by capital providers. WRG then arranges meetings between the interested investors and our clients.
The third stage of an assignment, following the marketing effort, is to monitor the interest of the potential investors, to negotiate the best possible terms, and to review and analyze the economics of each proposal received so that our client is in a position to choose the capital partner which best satisfies its needs.
In the final stage of an assignment, following investor selection, WRG assists in negotiating the final terms of an investment and participates actively in the documentation and closing of the transaction. Our role often continues after the closing. We stay involved and facilitate communication between the investor and our client and advise both parties on investment strategy, property operations and disposition alternatives.
How does Weil Realty Group add value and why should we retain them?
WRG adds value because we have access to a wide variety of capital sources, thus increasing the probability of finding the best source of capital available to meet our clients' needs. WRG takes the time to understand a client's history and objectives so that we can assist our clients in understanding and prioritizing their investment alternatives.
We relieve our clients of the costly managerial time devoted to capital sourcing, particularly by sparing them the time associated with creating an investment memorandum and contacting an array of potential investors. In addition, because of WRG'S credibility with investors, our proposals receive a prompt response. Finally, we create a competitive environment among investors by soliciting a number of proposals and a variety of transaction structures.
WRG maintains existing relationships because of the credibility we have established with both clients and investors and our ability to link client capital needs with the appropriate source of private equity. We develop new relationships because of our track record and our knowledge of both the real estate and capital markets.
What is the business of Weil Realty Group?
