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Real Estate Banking

Real Estate Banking, also called Real Estate Investment Banking, is a division within the bank that has expertise in real estate investment and strategic financial transactions like real estate-related Mergers and Acquisitions. The main clients of Real Estate Banking have varied types of Real Estate companies and firms, including Home Builders, Hotels, and Real Estate Investment Trusts (REITs).

Real Estate Banking professionals advise client companies in the sectors of Homebuilding, Hotel/Lodging, REIT, and Real Estate Services, on raising debt and equity, completing mergers and acquisitions, and sale of assets.

Real Estate Banking, or Real Estate Investment Banking, is a broad term that covers raising capital and providing advisory services for strategic transactions for real estate companies or clients. They do not invest in properties themselves but provide advisory services to client companies for a consultancy fee.

In other words, real estate investment banking involves connecting capital seekers with capital providers.

Real Estate Investment Banking’s clients are broadly categorized into four groups - Real Estate Investment Trusts (REITs), Home Builders, Lodging Companies, and Gaming Centers.

  1. REITs: REITs focus on properties and invest in a wide range of real estate property types, including Offices, Apartment buildings, Retail Centers, Warehouses, Medical infrastructures, Data Centers, Mobile Cell towers, Infrastructure, and Hotels.

  2. Home Builders: These companies build, develop and sell residential homes and apartments. Their construction projects range from constructing residential homes and apartments and condominiums.

  3. Lodging: The sector comprises Hotels and Resorts related to tourism and hospitality. Real Estate Investment Banks are involved in providing financial services to the companies.

  4. Gaming Centres: Mostly located in affluent parts of the world, such as Las Vegas, Singapore, Macau, these centres have huge financing needs to operate and expand.