Corporate restructuring
The situation
A long-held site with development approval for nine homes, and an owner no longer positioned to fund or deliver construction. Holding costs were accruing, the approval had a finite life, and existing commitments narrowed the options available.
What we did
Kaizen mapped every obligation attached to the site and the entity that held it, then designed and negotiated a restructure that allowed the approved project to proceed and the owner to exit in an orderly way, with each party’s position protected at every step.
The result
An orderly exit, with the owner realising a margin 21% above the project’s original forecast.
The moving parts
No single fix would have worked. The restructure depended on resolving each of these in the right order:
- Existing finance and security over the site
- A development approval with a finite life
- Design and consultant agreements already in place
- The holding entity’s commitments and ongoing holding costs
- A party able to take the approved project into construction
- Consents, contracts and settlement sequenced to complete together
