“At Risk” Real Estate Case Study–Guaranteed Trade Credits

May 15, 2017 by sherwood 0 comments

Situation

Fortune 50 Pharma company’s real estate portfolio included numerous “at risk” and non-performing real estate assets, but the Pharma company could not accept unsecured trade credits as a form of payment. The Pharma company required all trade credits to be guaranteed via contract, with explicit analytics, goals and KPIs attached to the agreement.

Solution

Sherwood agreed to attach media, costs, and other specs to act as a guarantee whereby all unused trade credits could be cashed out of Sherwood received agreed upon the opportunity. Sherwood, after due diligence, agreed to take immediate title to the property, effectively removing the property from the client’s real estate portfolio.

 Result

Sherwood worked with Cushman & Wakefield to remediate and re-sell the property. The property was later sold for a profit. Pharma company was able to remove “risky” properties from portfolio while guaranteeing the form of payment received.