Manage real estate debt for third parties by juggling between Excel tables. This kind of method quickly reaches its limits! The group specializing in the management of real estate assets for third parties Perial acquired a dedicated solution and support very early on. The first real estate client of Fairways Debt, the group has been collaborating with Finance Active’s experts ever since.
“From an accounting and financial point of view, managing the real estate debt of our real estate investment companies (REITs) and OPCIs can quickly turn into a headache when relying on dispersed Excel spreadsheets”, explains Philippe IFERGANE, Financial Director for the Perial Group.
Acquiring a professional debt management solution is essential for this group who specializes in third-party asset management for more than 50 years.
And all the more so when the team needs to manage several hundred million euros (350 million euros in real estate financing in 2017) with twenty loans and a dozen rate derivatives.
A debt management solution integrated into the information system
After initial contact with the Finance Active experts, the Perial teams were quickly convinced: Fairways Debt is the solution they were looking for. “One thing immediately struck us: Beyond the functionality of Fairways Debt, we benefit from Finance Active’s market finance consultant’s expertise. They immediately understood our business issues and helped us to customize the tool so that it fits into our processes”, explains the financial director.
For example, the Fairways Debt struture is revised to separate debt management for third parties from that of the Perial group. Similarly, the solution is interfaced with the asset management software used by Perial’s teams to consolidate the data from both two tools.
Regain control with an integrated debt management solution
But the real gain of the platform is elsewhere, according to Philippe Ifergane: “Thanks to Fairways Debt, we access all market rate information. This allows us to compare these different rates, challenge the banks and ultimately gain real margin points. So, if we compare the cost of Fairways Debt to the gains generated, our return on investment is huge”, says the administrative and financial director.
A Long term Partnership
Perial has been exploiting all the features of the debt management solution for several years now. “We were the first client in the Fairways Debt real estate business and our collaboration with Finance Active’s experts has been more than satisfactory over the years. To take just one example, when the EMIR European regulation on interest rate derivatives appeared, the experts at Finance Active were not only reactive enough to inform us of this change but they also agreed to intervene in our professional association – French Association of real estate investment companies (SPAMI), to detail all the implications of this new regulation”, explains Philippe Ifergane.
- Real Estate
- Debt management
- Fairways Debt
- Comprehensive and sustainable support
- A consolidated view of the debt portfolio
- Time savings in accounting management
- Complete information to negotiate better terms