Real estate investment banking involves raising capital for the clients that are operational in the real estate industry. The major investment banks of the world offer a number of real estate investment banking services and products.
The concept of investment banking service has been introduced in the real estate business in order to give birth to the real estate investment banking. The focus of this segment of banking is to raise fund and money for the real estate companies through investment banking tools. The investment banks also offer advisory services to the commercial real estate, gaming and lodging industries. The banks generally offer full spectrum of real estate investment services that include initial public offerings, strategic advisory, investment grade and high yield debt, common stock, convertible securities, preferred stock, bank loans and private placements.
Over a period of time, the real estate industry has been developing faster than before. Investors are taking interest in investing in this industry and hence it has become easier to collect fund from the capital markets through securities like bonds, equities and derivatives. The top level real estate industries of the world seek for the advices and suggestions from the investment banks. The investment banks then offer some advisory services to them in return of fees. The banks then issue securities in the capital markets in order to collect funds for the real estate companies.
The major sectors that are covered in real estate investment banking are the following:
- Lodging
- Office
- Gaming
- Regional Mall
- Industrial Buildings
- Shopping Center
- Multifamily
- Self-Storage
- Manufactured Housing
- Diversified
Recently, it has been seen that the real estate industry is involved in more than $6 billion regarding real estate debt transactions and real estate equity. The investment banks offer significant fund raising and M&A experience in real estate investments.
The real estate investment banking services offered by the various investment banks are the following:
- Revolving Lines of Credit
- Private Debt and Equity
- Public Debt and Equity
- M&A Advisory Services
Some of the major real estate investment banking firms are the following:
- Lehman Brothers
- Bank of America
- Key Bank
- Jones Lang LaSalle Capital Markets
- Marquette Financial Companies
- Deutsche Bank AG
- Wells Fargo Commercial