Investment banking real estate Interview question
I was interviewing for an internship within a IB RE team and they asked me how you can advise a public RE company trading at a discount on how to raise capital. I wasn't sure how to answer it. Any suggestions
Correct me if I'm wrong, but specifically to RE, one idea I can think of is that you can package the assets into a security which the firm can then sell (with the security being backed through the income of these assets). I can't immediately think of anything else RE-specific, but you could've also suggested the classic capital-raising options.
Hi, In this case I think he was talking about Real estate invest trusts since they can have a share price based on their income producing assets but then still be trading below this share price due to speculations.
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