“Phoenix will, once again, rise from the ashes.”
Author[1]
The project is ready for the taking. You have done your due-diligence, understand why the project has failed and have thoroughly audited all documentation and everyone’s status. You are comfortable you now know enough to take this opportunity forward. Your motivation is coined in the words of Sam Zell: “I was dancing on the skeletons of other people’s mistakes.”[2] Or you have no option anyway as you have been called in for the lenders (or whoever still has skin left in the game) to sort this one out! Either way, what has happened on this project in the past is history and now is the time to restart.
How you restart will depend on just how viable the project is in its current form. Do you continue with just a few tweaks or do you make some drastic modifications or take a completely different approach? Broadly your options include:
- Continue as-is
- Clean up and dump
- Renegotiate and continue
- Clean slate and continue
- Consolidate and segment
- Restructure existing
- Reposition
- Re-plan
The approach may include a combination or even mixing elements from within each option. I’ll describe each option and constituent elements and leave you to pick and choose what meets the specific circumstances of your project. For a multi-stage, multi-dimensional development project in an ever-evolving marketplace you might find yourself embracing all of the above!
This series continues…
[1] I spent the Global Financial Crisis in Phoenix, Arizona — ground zero for the subprime mortgage enabled housing boom and bust. This quote was a title of a contrarian investment proposal I presented — to prepare for the recovery. But boy did the recovery for the asset owners take a long time.
[2] Bruck, C. (2007, November). Rough rider: Where will Sam Zell take the struggling Tribune Company? Retrieved from https://www.newyorker.com/ magazine/2007/11/12/rough-rider
Restart #1: Intro
Restart #2: Continue As-Is
Restart #3: Clean Up and Dump
Restart #4 Renegotiate and Continue
Restart #5: Clean Slate and Continue
Restart #6: Consolidate and Segment
Restart #7: Restructure Existing
Restart #8: Reposition
Restart #9: Replan
Andrew Crosby
+64 21 982 444
andrew@xpectproperty.com
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