What is a typical structure for international real estate deals?

What is a typical structure for international real estate deals?

• A. Creating a BidCo under a Property Co to acquire shares
• B. Using direct purchases without any intermediate entities
• C. Forming a joint venture without a holding company
• D. Employing local partners to acquire properties directly

Answer: (A)

Creating a BidCo under a Property Co to acquire shares is a common structure used in international real estate deals due to its inherent advantages in terms of risk management and capital efficiency. This structure generally allows investors to establish a dedicated acquisition vehicle (the BidCo) that can simplify the process of financing, ownership, and potentially enhance tax efficiencies. By using a Property Co as a parent entity, investors can channel resources and oversee various acquisitions more effectively, facilitating a streamlined approach to managing multiple properties in diverse jurisdictions. This legal and organizational framework often minimizes exposure and helps with regulatory compliance while structuring deals that benefit from local tax laws. Furthermore, this dual-entity structure can provide flexibility in terms of partnerships and exit strategies. For example, investors may find it easier to bring in partners or sell portions of the BidCo in the future depending on strategic goals or market conditions. Overall, this method optimizes investment opportunities while aligning with international best practices in real estate transactions.

Creating a BidCo under a Property Co to acquire shares is a common structure used in international real estate deals due to its inherent advantages in terms of risk management and capital efficiency. This structure generally allows investors to establish a dedicated acquisition vehicle (the BidCo) that can simplify the process of financing, ownership, and potentially enhance tax efficiencies.

By using a Property Co as a parent entity, investors can channel resources and oversee various acquisitions more effectively, facilitating a streamlined approach to managing multiple properties in diverse jurisdictions. This legal and organizational framework often minimizes exposure and helps with regulatory compliance while structuring deals that benefit from local tax laws.

Furthermore, this dual-entity structure can provide flexibility in terms of partnerships and exit strategies. For example, investors may find it easier to bring in partners or sell portions of the BidCo in the future depending on strategic goals or market conditions. Overall, this method optimizes investment opportunities while aligning with international best practices in real estate transactions.