real estate investment consulting - cityscape global · approved real estate evaluating company 4...

Real Estate Investment Consulting

2

Frank WiesseDrees & Sommer Middle EastDirector Saudi Arabia

+966 50 47 23 [email protected]

➢ Introduction

➢ Project Management

➢ Finance Controlling

➢ Hotel-Hospital-Healthcare Project

▪ Real Estate Fund

▪ Program

Real Estate Investment Consulting

Real Estate Investment Consulting – Frank Wiesse, Director Saudi Arabia – 2017

3

Challenges of Project Development

Introduction

How the Clientexplained it

How the Projectwas understood

How the Designerdesigned it


4


Introduction

How the Contractorconstructed it

What was the resultfor testing

What was readyfor handover

How the Client wasbilled


5


Introduction

What the Clientreally needed


6

Project Life Cycle

Project Management

Initiation

Planning I

Planning II

Execution & Control

Closing

Operation

Basic & StrategicPlanning

ExecutionPlanning

DecisionGate

DecisionGate

DecisionGate

DecisionGate

DecisionGate

Phase -1 Phase 0 Phase 1 Phase 2 Phase 3 Phase 4

Project Development


7

Project Life Cycle

Project Management

Initiation

Planning I

Planning II

Execution & Control

Closing

Operation

Basic & StrategicPlanning

ExecutionPlanning

DecisionGate

DecisionGate

DecisionGate

DecisionGate

DecisionGate

Phase -1 Phase 0 Phase 1 Phase 2 Phase 3 Phase 4

Project Development


Potential Investment Entry

62.50%

6.25%

9.38%

9.38%

3.13%

9.38%

Cost of building works

Main contractor's preliminaries

Main contractor's overhead & profit estimate

Project/ design team fees

Other developments cost

Imputed cost (risk & inflation)

* mid-size project assumed (SAR 200m < Base Cost < SAR 800m)

Finance ControllingBase Cost/ Budget Estimation*

8 Real Estate Investment Consulting – Frank Wiesse, Director Saudi Arabia – 2017

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Phase -1(Initiation) Phase 0

(Planning I) Phase 1(Planning II)

Phase 2(Execution &

Control)

Phase 3(Closing)

Finance ControllingCash Flow Forecast


Jeddah - Obhur

Hotel-Hospital-Healthcare Project



Jeddah - Obhur


12

5Land deeds

6Governmental

Approvals

1Developer

8All requiremnts

fullfilled

2Approved real estateevaluating company

4Financial Model &CashFlow Charts

7Charted

Accountant3

Feasibility Studies


Real Estate Fund - Requirements before Setup


13

5Compliance Board

Members Nominees

6InvestmentStructure

1Fund Manager8

All fees paid to CMA

2Information

Memorandum

4Board Members

Nominees

7One/ two

Investment Banks3

Custodian


Real Estate Fund - Requirements for Setup


14

Design

Authority

Operator Assignment / Agreement

Tendering

Q4/16 Q2/17Q1/17 Q4/17Q3/17 Q1/18 Q2/18 Q3/18

Funding


Today

Overall Program until Construction


15

Design

Authority

Q4/16 Q2/17Q1/17 Q4/17Q3/17 Q1/18 Q2/18 Q3/18

Today

Revision& optimization design

Approval letters other authorities

Application Final Building Permit

Final Building Permit

Completion Detailed Design


Milestone Program - Design


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Operator Assignment / Agreement

Q4/16 Q2/17Q1/17 Q4/17Q3/17 Q1/18 Q2/18 Q3/18

Signing MOU

Comments on actual design

Award Technical Consultancy by Operator

Signing Agreements


Milestone Program - Operator

Today


17

Q4/16 Q2/17Q1/17 Q4/17Q3/17 Q1/18 Q2/18 Q3/18

Funding

Private placement memorandum

Investment banks

Investment documents

Structure & Initial Fund

Closing joined stock company


Milestone Program - Funding

Today


18

Tendering

Q4/16 Q2/17Q1/17 Q4/17Q3/17 Q1/18 Q2/18 Q3/18

Award Enabling Package

Tender Enabling Package

Tender Documentation – Enabling Package

Tender Strategy & Structure

Foundation stone ceremony


Milestone Program - Tendering

Today


Many thanks for your attention!

real estate investment consulting - cityscape global · approved real estate evaluating company 4...

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