Monday, May 18, 2020
Investmens Issue of Westchester Free Essay Example, 2750 words
The investment committee for the mezzanine loan debt fund is with a small return of a percentage of ten. There is a need to come up with a strategic plan to analyze the best decision required to make a potential move in as far as taking the loan matters. The analysis is to come up with an excel sheet showing the cash flow of the three-storied building. The loan is $17,230,802 from Danske with interests of $2,864,678 per year. The maximum value paid for the building will have incorporated risk management ideas. The concept is the loan taken should be burdening the investors who would otherwise scare them away. The company s minimum investment requirement is $ 20,000,000. The difference is what the investors should have in order to meet with the required value. The difference is $ 20,000,000 - $ 17,230,802 = $2,769,198. That clearly means the investors do not have enough money to get this loan. The only remaining way will probably be to go the bank and so the investors have to evaluat e if they are in a position to take on the loan. We will write a custom essay sample on Investmens Issue of Westchester or any topic specifically for you Only $17.96 $11.86/pageorder now The truth is that the investors have to calculate the risks involved in the acquisition of a loan as much as $5,230,802. There is to be a strategy on how to get the loan. The strategy is to put collateral security, which can allow the investors to get the loan. NB: Check attachment for the excel sheet for the cash flow of the Mezzanine loan. In order to get tenants in the three-storied building, there has to be a proper marketing strategy that will allow residents to realize and see the building in order to come and occupy it. In order to occupy the building, tenants have to see an attraction in it. There are many strategies in the marketing of the building. These include running media shows showing how the building looks. In knowing how the building looks like, there is a possibility of getting as many tenants as possible as people can see the functions and properties of the building. If these can fit their needs, then they go ahead to want and bec ome tenants.
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