592 research outputs found
LIPIcs, Volume 251, ITCS 2023, Complete Volume
LIPIcs, Volume 251, ITCS 2023, Complete Volum
Northeastern Illinois University, Academic Catalog 2023-2024
https://neiudc.neiu.edu/catalogs/1064/thumbnail.jp
A strategic turnaround model for distressed properties
The importance of commercial real estate is clearly shown by the role it plays, worldwide, in the sustainability of economic activities, with a substantial global impact when measured in monetary terms. This study responds to an important gap in the built environment and turnaround literature relating to the likelihood of a successful distressed commercial property financial recovery. The present research effort addressed the absence of empirical evidence by identifying a number of important factors that influence the likelihood of a successful distressed, commercial property financial recovery. Once the important factors that increase the likelihood of recovery have been determined, the results can be used as a basis for turnaround strategies concerning property investors who invest in distressed opportunities. A theoretical turnaround model concerning properties in distress, would be of interest to âopportunistic investingâ yield-hungry investors targeting real estate transactions involving âturnaroundâ potential. Against this background, the main research problem investigated in the present research effort was as follows: Determine the important factors that would increase the likelihood of a successful distressed commercial property financial recovery. A proposed theoretical model was constructed and empirically tested through a questionnaire distributed physically and electronically to a sample of real estate practitioners from across the globe, and who had all been involved, directly or indirectly, with reviving distressed properties. An explanation was provided to respondents of how the questionnaire was developed and how it would be administered. The demographic information pertaining to the 391 respondents was analysed and summarised. The statistical analysis performed to ensure the validity and reliability of the results, was explained to respondents, together with a detailed description of the covariance structural equation modelling method used to verify the proposed theoretical conceptual model. vi The independent variables of the present research effort comprised; Obsolescence Identification, Capital Improvements Feasibility, Tenant Mix, Triple Net Leases, Concessions, Property Management, Contracts, Business Analysis, Debt Renegotiation, Cost-Cutting, Market Analysis, Strategic Planning and Demography, while the dependent variable was The Perceived Likelihood of a Distressed Commercial Property Financial Recovery. After analysis of the findings, a revised model was then proposed and assessed. Both validity and reliability were assessed and resulted in the following factors that potentially influence the dependent variables; Strategy, Concessions, Tenant Mix, Debt Restructuring, Demography, Analyse Alternatives, Capital Improvements Feasibility, Property Management and Net Leases while, after analysis, the dependent variable was replaced by two dependent variables; The Likelihood of a Distressed Property Turnaround and The Likelihood of a Distressed Property Financial Recovery. The results showed that Strategy (comprising of items from Strategic Planning, Business Analysis, Obsolescence Identification and Property Management) and Concessions (comprising of items from Concessions and Triple Net Leases) had a positive influence on both the dependent variables. Property Management (comprising of items from Business Analysis, Property Management, Capital Improvements Feasibility and Tenant Mix) had a positive influence on Financial Turnaround variable while Capital Improvements Feasibility (comprising of items from Capital Improvements Feasibility, Obsolescence Identification and Property Management) had a negative influence on both. Demography (comprising of items only from Demography) had a negative influence on the Financial Recovery variable. The balance of the relationships were depicted as non-significant. The present research effort presents important actions that can be used to influence the turnaround and recovery of distressed real estate. The literature had indicated reasons to recover distressed properties as having wide-ranging economic consequences for the broader communities and the countries in which they reside. The turnaround of distressed properties will not only present financial rewards for opportunistic investors but will have positive effects on the greater community and economy and, thus, social and economic stability. Vii With the emergence of the COVID-19 pandemic crisis, issues with climate change and sustainability, global demographic shifts, changing user requirements, shifts in technology, the threat of obsolescence, urbanisation, globalisation, geo-political tensions, shifting global order, new trends and different generational expectations, it is becoming more apparent that the threat of distressed, abandoned and derelict properties is here to stay, and which will present future opportunities for turnaround, distressed property owners, as well as future worries for urban authorities and municipalities dealing with urban decay. The study concluded with an examination of the perceived limitations of the study as well as presenting a comprehensive range of suggestions for further research.Thesis (PhD) -- Faculty of Engineering, Built Environment and Information Technology, School of the built Environment, 202
LIPIcs, Volume 261, ICALP 2023, Complete Volume
LIPIcs, Volume 261, ICALP 2023, Complete Volum
A Benefit-Cost Analysis of Benefit-Cost Analysis
Benefit/Cost Analysis (BCA) has a long history of being used as the primary tool aiding public decision-making.
Two primary questions motivate this dissertation:
1. Do the results output by BCA add value and impact decision-making? and
2. Is BCA trustworthy enough that decision-makers should use it?
Grounded on more than 100 transport projects completed in Asian developing countries, the US, and Australia, this dissertation aims to understand and examine the benefits (if any) created by using BCA via five dimensions: accuracy, appropriateness & consistency, fiscal sustainability, transparency & replicability, and comprehensive.
Nemours practical issues related to BCA are observed and corroborated in this dissertation. These issues are classified into three categories: deficiencies in the inputs to BCA, the technique and empirical basis of BCA itself, as well as the limited role of BCA in decision-making.
The research and findings in this thesis are not challenging the theoretical basis for BCA.
Rather, this thesis proves that there are gaps between the theory and the practice.
In theory, theory should have precisely captured the truly additional benefits ascribed to transport investment.
However in practice, as demonstrated by numerous findings presented in this thesis, the empirical implementation of the theoretical practices, alongside the idealized assumptions, confronted many challenges.
In a nutshell, as the quote says, ``In theory, theory and practice are the same. But in practice, they are different"
Financialisation, regulation and the âsocial and moral missionâ of English housing associations
In recent years English housing associations have faced criticism on two principal fronts. Firstly, for placing greater emphasis on commercial development as opposed to social rented housing. Secondly, for numerous cases of disrepair, damp and mould. This thesis explores the role of financialisation in explaining the purported mission creep of housing associations, with sectoral governance transformed by the increased importance of financial actors, markets and practices post-2010. The thesis adopts a mixed-methods approach, combining longitudinal clustering of balance sheet data, analysis of a natural experiment, qualitative document analysis, and semi-structured interviews. The findings suggest that several forms of financialisation exist across the sector, but organisations share a common strategic principle of accessing capital by leveraging housing and land as an asset. This asset strategy has been a key driver of commercial activity and declining social rented supply among some associations. Moreover, a regulatory framework that prioritised financial viability over consumer standards has underpinned the increased importance of private finance. These findings challenge the notion that financialisation is consigned to large landlords, or is in retreat. Rather, financialisation is variegated and dynamic. The period of low-interest rates and low landlord expenditure that characterised the early 2010s has given way to a period of constrained borrowing capacity and significant investment in existing homes. Difficulties in accessing sufficient private and public funding are contributing to delays in remediating building safety issues and decarbonising social housing, as well as placing some associations at risk of financial collapse. Furthermore, the restrictions placed upon some landlords by their loan covenants are one of the contributing factors to disrepair. Nonetheless, housing associations are responsive to changes in their funding environment, and recent increases in government capital grant in areas of âhigh affordability pressureâ have led to a nascent increase in new social rent supply
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