—— TRANSACTION STRUCTURE
Proposed Capital & Organisational Structure
The diagram shows the planned acquisition and delivery structure for the CYBERNETYKI. project – the SPV, its shareholders and the key agreements.
Shareholders
Your position in the structure
Investor (sought)
90% shares
K Fundacja Rodzinna sp. z o.o.
5% shares
ResiPLATFORM
5% shares
Indeks Cybernetyki sp. z o.o. (SPV)
SPV – owner of the property at Cybernetyki 19, Warsaw
Contractual counterparties
Dantex (Developer)
Seller of the property and general contractor – delivers the project under a lump-sum general contractor agreement (fixed price)
Yugo (Operator)
PBSA operator managing the asset under a management agreement
K Fundacja Rodzinna sp. z o.o. (Project Manager)
Oversight of project delivery, coordination of developer, operator and financing
Bank (debt financing)
Debt financing at 65% of project cost, against 35% equity
—— PARTIES
Roles of the parties
Investor
- 90% of equity, control over key SPV decisions
- Funds the equity for the acquisition and delivery of the project
- Preferred return ahead of K Fundacja Rodzinna's carry
K Fundacja Rodzinna sp. z o.o.
- 5% of shares in the SPV
- Project management – delivery oversight, 4% fee on project costs
- Carried interest above the investor IRR hurdles
ResiPLATFORM
- Project sponsor – origination and structuring of the transaction
- 5% of shares in the SPV
- Support in relations with the developer, operator and bank
Dantex
- Seller of the property at Cybernetyki 19
- General contractor under a fixed-price lump-sum agreement
- Responsible for technical acceptance and handover
Yugo
- PBSA operator under a management agreement
- Brand, leasing and day-to-day operations
- Input into the programme and specification of common areas
—— PAYMENTS
Payments to the developer
01
20%
at signing
02
80%
after technical acceptance and handover for use
* Preferred payment model. It may be changed or adjusted in the course of subsequent negotiations with the developer.
—— REMUNERATION
K Fundacja Rodzinna remuneration
Project management fee: 4%
of project delivery costs
Carried interest (carry)
The carry applies only to the profit above each hurdle – progressively and marginally, like a fund promote.
up to 10%
0%
10%–15%
10%
15%–20%
20%
above 20%
30%
| Investor IRR hurdle | K Fundacja Rodzinna carry | Notes |
|---|---|---|
| up to 10% | 0% | 100% of profit to shareholders pro rata (investor preferred return) |
| 10%–15% | 10% | 10% of the profit in this band to K Fundacja Rodzinna |
| 15%–20% | 20% | 20% of the profit in this band to K Fundacja Rodzinna |
| above 20% | 30% | 30% of the profit above the 20% hurdle to K Fundacja Rodzinna |
IRR hurdles and profit-share levels are a proposal and are subject to agreement in the investment agreement.
Interested in the structure? Get in touch
Andrzej Krauze
Business Development and Transactions, KRAM Development
a.krauze@kramdevelopment.com+48 663 000 018