Hard economic climate still has silver lining
Categories:
Deal-making,
Financial,
Investment
Tags:
banks,
relationship lending
Patrick Sanville: “First of all, in business market is a deal finance now, you know. There’s sufficient cash flow to cover the debt. Is the equity that is required to make the deal finance available? Is there a story to deliver? Is there an upside? Even if there’s no upside, is the yield sufficient to cover the debt payments? These are the kind of things that we will be looking at. Of course, you know, we have to think first, the banks, the kind of deal that can be achieved, because they’re all looking for gateway cities, branded … the good buildings, branded hotels. Everyone is looking for the same type of advance and of a certain size that can, you know, support all the due diligent cost. The banks are lending, if the deal is good the banks are lending. The issue is that there aren’t so many good deals around. The picture is not so rosy. But there’s always a silver lining. I think that, you know, of course it’s going to take time to do the leverage. But there’s always niches and there’s a play, in downmarket, probably even more so. But there will be some … some decent asset to be picked up. And there is plenty of money around. So there will be deals to be done. We’re in that period of recovery and rebuilding the economies.”