Strategic advisory

Strategic consulting

ERA CAPITAL experts help investors, owners and developers solve strategic planning problems in real estate. We offer a systematic approach to the management of commercial assets, investment sites, residential areas and land plots.

Real estate decisions affect a company’s capital for years to come. Buying or selling an asset, launching a development project, changing the concept, optimizing a portfolio or entering a new region require an assessment of the market, financial implications and risks.

ERA CAPITAL strategic consulting helps investors, owners and developers make such decisions based on data and scenario analysis. The task of consultants is to show possible options for action, their economy and the sequence of implementation.

When you need strategic consulting

A service is in demand when a decision involves a significant investment or several interdependent factors. For example, the owner needs to understand whether to keep the object in the current format, carry out reconstruction, change the function or exit the asset. The investor should compare several sites or determine the permissible level of investments. The developer should check the concept and prospects of the project before the capital-intensive stage.

What are the objectives of ERA CAPITAL

The composition of the work is determined by the initial task and stage of the project. The team combines market analysis, financial modeling and practical scenario development.

Within the framework of strategic consulting can be performed:

• Development of investment strategy and portfolio management model;
• analysis of the most effective use of land;
• selection and comparison of sites for development;
• development and optimization of the commercial concept of the object;
• master planning and development of large territories;
• analysis of the market feasibility of the development project;
• Preparation of a business plan and financial model;
• Development of technical specifications for architects.

The specific set of tools depends on the decision that the customer must make. For one project, the key will be market analysis, for another – a financial model, location assessment or scenario comparison.

What the customer gets

The result is a reasonable model of action. The customer gets an understanding of what decisions are possible, how much resources they will require and how they can affect the value of the asset or portfolio.

For each scenario, investment costs, revenues, timing, operational constraints and risks can be assessed. Financial modeling helps to compare options on cash flow, payback and sensitivity to changing assumptions.

Recommendations are formed taking into account the characteristics of the object, the competitive environment and the goals of the owner. The results can be used as a basis for an investment committee, further design or negotiations with partners and funding organizations.

How the work is built

First, the business task and the criteria for assessing the result are determined. The team collects data on the object or portfolio, analyzes the market, competitive environment and constraints.

Next, scenarios are formed, which may differ in the function of the object, the amount of investment, the timing of implementation, ownership structure or commercialization strategy. To compare options, financial indicators are calculated and risks are assessed.

After choosing a priority direction, ERA CAPITAL forms recommendations and a roadmap with the main actions, sequence of stages and control parameters.

Working with different segments of real estate

For office real estate, tenant demand, vacancy, location quality and competitive offer are important.

For retail facilities – traffic, audience and composition of tenants.

In the warehouse segment, logistics and technical parameters are critical.

Hotel projects take into account seasonality, loading and operating model.

Why Independent Analysis Is Important Before a Decision

The earlier the weaknesses of the project are identified, the more options for adjustment. Once a site is purchased, a design is launched or major contracts are signed, the manoeuvre space is reduced and the cost of error rises.

Strategic consulting allows you to compare hypotheses before making irreversible decisions and connect market assumptions with the financial model. For the investor, this means a more transparent understanding of risks, for the owner – the opportunity to improve the efficiency of the asset, for the developer – to check the parameters of the project before the implementation.

If you want to evaluate options for the development of an asset, portfolio or development project, ERA CAPITAL will prepare scenarios and recommendations for further management and investment decisions.

Types of services provided by the strategic consulting department of ERA CAPITAL:

Development of the concept of development of large-scale territories

A team of experts formed specifically for your project will build an economic model of the territory and develop a technical specification for a master plan of a complex or sectoral nature. Specialists will analyze the typology and morphology of various zones, determine project targets and the order of their achievement, and offer optimal options for the development of the territory.

Analysis of the most efficient use of land

The analysis reveals the most profitable and competitive type of site operation. The study includes assessing the characteristics of the site, determining the most popular market options compatible with the features of the site, calculating forecasts for each of the proposed activities. At the request of the customer, an analysis of the land market in the region is performed and promising plots are selected.

Development and optimization of the commercial concept of existing and future real estate

ERA CAPITAL specialists study market trends, assess the potential of the location and the object (project), identify risks and weaknesses, offer cost-effective solutions. Detailed concept includes analysis of competitors and target audience, definition of marketing niche, development of rental policy, forecast of income and expenses and other aspects.

Development of technical specifications for architects

Technical task for architects describes the wishes of the customer in the language of objective indicators: from storeys and total area to interiors and functionality of individual rooms. A professionally drafted document not only ensures the exact implementation of the project, but also protects the interests of the owner in case of disputes with contractors.

Analysis of international experience and implementation of best practices in the project

ERA CAPITAL experts are constantly studying the latest world trends, mastering the best practices of construction and reconstruction. We guarantee: the use of high-quality materials and innovative technologies; cost optimization and effective project management; compliance with international safety standards and the principles of sustainable development.

Analysis of market feasibility of development projects

The purpose of the analysis is an expert assessment of the project performed in the interests of the developer or investor. The conclusion clearly reflects the prospects for the development of the project, compliance with the goals, the level of risks. Comprehensive research can take into account financial, technical, legal, social and other factors depending on the objectives of the customer.

Development of a business plan for real estate projects in order to attract bank financing

To successfully attract funding, it is important to prove the economic efficiency of the project, correctly justify costs, provide guarantees of timely return of funds. Having extensive specialized experience and understanding of the requirements of banks, ERA CAPITAL specialists will draw up an individual business plan for you and provide subsequent advisory support.

Support of the work of architects for the purpose of effective subsequent commercialization of the object

Expert support of the work of architects and designers is a guarantee of impeccable characteristics and high liquidity of the project. ERA CAPITAL specialists control the development of technical tasks, sketches and drawings; develop recommendations for eliminating shortcomings, participate in the coordination of project documentation, and also perform other types of supervision work.

Development of a portfolio management model

Strategy development begins with an in-depth analysis of individual objects and the portfolio as a whole. Then experts propose a set of measures aimed at reducing risks and increasing efficiency. The result: a unified asset management strategy plus a convenient system for monitoring key indicators tailored to business needs.

Market analysis

The basis of strategic consulting and one of the key specializations of ERA CAPITAL. We carry out research of any scale, perform comparative analysis of indicators and locations, prepare forecasts, develop recommendations. We work with all segments of the real estate market, including investment. Geography: Moscow and regions.