Controlled risk participation in large real-estate (development) projects in strategic geographies represents a key component of future growth for Lips Capital Group. Investments in real estate underlying franchise operations, such as petroleum stations, are another area of growth for Lips. Lips Structured Finance manages and supports these distinct and expanding activities.
The Group’s real-estate knowledge and experience, combined with the ability to structure timely and customised private-equity financing (mezzanine and senior debt) offers partners exceptional opportunities and value. Joint ventures with leading developers are the preferred structure, wherein Lips offers project financing where risks are then shared with one or more partners.
Our real-estate venture specialists ensure our early identification and participation in opportunities. Lips takes a key role in ensuring effective financing structures, employment of innovative real-estate financial products and risk management. Lips’ approach is to facilitate value-added development projects through structuring innovative, sound financing based on convincing capital.
An example of our Structured Finance business is the real-estate transaction covering a major petroleum distributor’s petrol stations and related retail activities in the Netherlands, which comprise a separate strategic portfolio. This sale-and-leaseback activity brings value to Lips and also to the distributors in freed-up cash. Lips’ participation in such joint ventures keys on our ability to build financial products and strategies that offer balance-sheet solutions for large commercial operators.
