With certain routes dependent on the asset owners wider plan, there can be lots of box ticking and documentation required. At the basic level the asset owner will need to 100% ownership with no restrictions and must have the asset valued and examined by an experienced and well known valuation organisation, which may be a well know auditing institution. With just the bare minimum in place a line of credit may be made available or alternatively an investor may be interested in offering a loan against the asset in conjunction with being a part of the program the line of credit will fund.
If full asset valuation has been executed and company audits are in place (and possibly insurance), along with in-depth analysis of the program which the line of credit is funding, it could be possible for a trade program to monetise the asset and use the line of credit to enter a trade program. This option can generate vastly higher returns than all other options but full transparency is required and as detailed there can be a substantial amount of of box ticking and required paperwork.
It’s important to understand that there are numerus routes available to monetise in-ground assets, which most entities and asset owners are not aware of. It’s also important to understand that if you are looking to monetise your in ground assets that 100% transparency will be required every step of the way.