My source and its managed entities are a leading investment management company that provides long term, low costs sale-leaseback and build to suit leased based real estate and infrastructure solutions for municipalities and government agencies, healthcare and energy worldwide and manages a real estate and infrastructure investment portfolio. My sources and its managed investment vehicles are institutionally capitalized by world class institutional investors and leading investment banks. There team of investment managers, underwriters, and transaction professionals are experienced and dedicated to the highest level of integrity and ethical standards. My sources investments are long term in nature with an average life of 20 years per investment. What they do is design, build, finance and acquire various types of real estate and infrastructure assets that are essential to local, state and federal government agencies as well as corporations that operate healthcare or energy related facilities. For years, corporations have taken advantage of saleleaseback and other forms of credit-backed financing to free up their balance sheets, while the general concept has remained a novel idea for municipalities. In light of the current economic crisis, budget shortfalls due to ever-increasing pension and healthcare costs coupled with declining tax revenues have eroded the ability of governments to maintain services and pursue community development. Historically, municipalities and government agencies have utilized bond financing to construct government buildings and to fund infrastructure projects. Deteriorating economic conditions, voter discontent and other issues have often stalled proposed projects. They can provide flexible and efficient Public Private Partnership based financial alternatives enabling projects to proceed via credit-backed and lease structures on a timely and cost-effective basis
Basic Requirements for QualifyingThe three basic requirements a client must meet in order to qualify for the program are asfollows:
1) Physical Facility or Asset. The government entity must own an existing fixed physical facility that our group can purchase for US $10 million or more.
2) Lease. The government must intend to lease back the existing facility from our group for a period of approximately 20 to 30 years on a NNN lease basis.
3) Credit Rating. The entity leasing back the existing facility must obtain either an investment grade credit rating (Standard and Poor’s BBB- or Moody’s Baa3) for long-term foreign currency debt or credit enhancement from a source having an investment grade credit rating. We prefer S&P “A” or better.
The program involves four steps:
1) Purchase. Our financing group purchases an existing fixed physical facility (but not the business activity conducted in that facility) from the government for a single cash payment in U.S. dollars.
2) Leaseback. The government, or a locally controlled private company, leases back the existing facility from our group for approximately 20 years, makes periodic lease payments in U.S. dollars, owns and controls the business activity conducted in the facility, and retains all profits generated by the business activity.
3) Financing. The government uses the cash payment from the sale of the existing facility to our group to finance the construction of a new physical facility, for working/operating capital, or for any other purpose.
4) Option. At the end of the lease period, the entity leasing back the physical facility has the option to renew the lease on the existing facility, purchase the existing facility back, or move the terminate the relationship. Leases can also be structured in a manner whereas upon the maturity of the lease the asset will revert back to the government for a nominal fee of $1.00 creating providing for complete control over the asset.Properly executed transactions can:_ Unlock capital trapped in under-performing real estate that is otherwise illiquid_ Provide longer-term fixed cost capital (15-30 years) than is available from traditionaldebt sources_ Come at a cost comparable to debt financing and substantially less than the weightedaverage cost of capitalLease or Service Contract Terms: 20 to 30 yearsTypes of Real Estate Leases: NNN or Bonded, non-appropriation clauses acceptable (case bycase)Locations: NationwideSize: $10 MM to $300 MM – Larger Case By CaseMinimum Credit Needed: Standard & Poor’s or Moody’s: BBB-/Baa3 or betterPerfect for: Counties, Cities, Special Use Municipal Authorities such as School Authorities,State Government’s and Agencies and Federal Government, Colleges and Universities, Hospitalsand other Healthcare
Siva Pillarisetty-President&100% Owner-Project Finance Originator & Consultant (20yr)
Pillar Mortgage Corp.- Private Equity & Capital Boutique ( Established in 1995)
WEB SITE: http://pillarmortgagecorp.com
Skype ID: siva.pillarisetty