KGI Drives Breakthroughs for Real Estate Clients
KGI has recently achieved extraordinary results for Real Estate clients who are confronted by difficult, complex, critical problems that defy conventional solutions.
Several of our clients were recently facing threshold decisions and major conflicts with significant financial risk and, when they ran out of options, they turned to KGI for ideas and solutions.
Our senior professionals worked closely with client decision makers and their management teams to achieve great results.
Family Conflicts Threaten $80 Million Portfolio
Avoided a potential $12 to $15 Million liquidation loss, trust was restored among the family, and litigation was settled.
Client: A 70-year-old family-owned commercial real estate company with $80 million of stabilized commercial and retail properties.
Challenge: Under siege from family lawsuits over distributions and succession issues, the portfolio faced liquidation and major value loss unless the conflicts could be resolved.
Breakthrough: KGI worked closely with the client CEO and independent trustees to develop a long-term vision and succession plan for the business that was adopted by all family members, helping to diffuse conflicts. Corporate governance, operations, internal controls and reporting were completely reorganized, creating transparency and accountability to the stakeholders.
Public Company Shareholder Disputes Resolved
Shareholder disputes settled mitigating potential dilution and created $15 to $20 Million of potential future value.
Client: Minority shareholder group of a $400 million public real estate operating company
Challenge: Shareholder groups were battling over control and valuation issues; minority shareholder group was facing potentially massive dilution if the disputes could not be resolved.
Breakthrough: KGI helped to align the divergent shareholder groups to a future vision and long-term growth plan, negotiated a restructuring of equity interests coupled with a $30 million capital infusion, and assisted in reorganizing corporate governance.
Succession Plan Created for $200 Million Real Estate Company
Comprehensive agreements among the stakeholders were put in place in advance of the passing of one of the partners, thereby avoiding a potential crisis situation.
Client: $200 million real estate investment company specializing in industrial properties
Challenge: Partners were retirement-age and did not have an ownership and management succession plan; needed to address divergent and potentially conflicting stakeholder interests.
Breakthrough: KGI worked closely with the partners to develop a future vision and succession plan. The team helped define future leadership needs, optimized the portfolio, and negotiated alignment among divergent family interests, outside lenders and investment partners.
Clients turn to KGI because:
- Our team of battle-tested senior Real Estate professionals brings a practical holistic business perspective to problems,
- We have deep connections and credibility with lenders and investors, and
- Our "Think Tank" comprised of distinguished industry leaders from a breadth of disciplines provides creative ideas and solutions.
KGI's professionals work side-by-side with Client management from day one through completion to formulate and implement the action plan. Our senior leaders don't leave our clients' side until their problems are in the rear view mirror.
Whether a Company is struggling financially or on the cusp of breakthrough growth, KGI can help. Our seasoned experts work alongside management to solve complex cash flow issues, operational challenges and other business crises. If liquidity or sale is needed, KGI provides a powerful combination of services and expertise to achieve outcomes that cannot be duplicated by other standalone consulting firms.