Pereview is the only single integrated commercial real estate asset management platform that manages data throughout the entire Life of the Asset® – from the fund to the lease. What exactly do we mean by that statement – and how does Pereview impact each stage of the real estate asset lifecycle? We’ve examined the acquisition and underwriting stages. This week, we will focus on financing.
The financing stage of the asset lifecycle can be complicated. Raise your hand if you had an enjoyable experience obtaining your last home loan? It is a very tedious and long process with no shortage of numbers, terms, and paperwork.
Similarly for most real estate firms, critical financing data is often buried and/or siloed in old filing cabinets, desk drawers, S drives, and other hard-to-reach places. Maybe all of that data was put into an Excel spreadsheet that once was only a few columns and rows but has now turned into a huge worksheet (not counting the deals the junior analysts forgot to add). We call that Excel Hell.
How does Pereview simplify this process?
One, we aggregate all of your financing and loan data into one place.
Two, we allow you to fully track the status of a transaction, including the financing associated with that transaction. Pereview supports acquisitions financing, refinancing, fund-level debt, and all other important debt instruments. This allows for the quick understanding of important debt related KPI’s (debt maturity schedules, exposure by lender, covenant tracking, LTV, DSCR, etc.).
I recently spoke with a client’s COO/CFO about this very topic. He remembers the constant fire drills associated with tracking and reporting maturity dates, number of loans (floating rates vs. fixed), indexes, lenders, and current balances on all outstanding loans to the Investment Committee. He recalled the nightmares around trying to keep straight the multitude of covenants and ownership shares.
Then his asset management team implemented Pereview.
Data was aggregated into a single source of truth. Reporting capabilities expanded to include historical, point-in-time and forward-looking analysis. Managing commitments across both equity and debt became much easier. The fire drills and nightmares ceased.
He told me he never imagined there could be one dashboard showing all his financing and loan and lending data. Or that he’d be able to quickly run a Debt Summary or a Financing by Portfolio report ranked by debt yield – with extension, prepayment, and defeasance details. “I get these reports in literally seconds,” he said. “Now I know more about the loans than the lenders do.”
Adios Excel Hell.
Pereview’s financing functionality helped his firm grow during the pandemic. They were able to take some very strategic and calculated risks – acquiring almost $1B in new AUM – because they were confident and trusted that they had a full accurate understanding of their existing commitments. “Even our JVs are sort of embarrassed by their reporting in comparison to ours,” he said.
That’s how Pereview drives value during the financing stage and beyond.
Over the next few weeks, we continue our deep dive into how Pereview impacts all stages of the Life of the Asset® – the next topic will be Pereview’s impact on the closing stage.