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About Brownfields Capital
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Brownfields Capital is the product of true innovation and entrepreneurial spirit. Drawing on principles of accounting, finance and law, it is a financial intermediary that connects the brownfields market with large-scale investment capital. Brownfields Capital plays a unique role as a specialty finance/investment management firm to bring these two groups together by:
- Financing all stages of remediation and re-development of brownfields through one instrument;
- Unlocking great value from brownfields through a patented business process and financial instrument called a Brownfields Value Contract (BVC);
- Aggregating investment capital and providing it to the market more efficiently;
- Using the investment process to transfer risks to parties best suited to shoulder them.
The Brownfields Capital investment process and patented financial instrument allow an innovative method for large-scale, efficient, institutional and private equity investment in the restoration of brownfield properties to productive use. This opportunity is possible because its financial product, the Brownfields Value Contract (“BVC”), shields investors from environmental liability and uses the financial process to redistribute risks to the parties that can best shoulder them. The efficiency of the process generates greater profits for all parties involved, including the existing owners of brownfields. It offers a way for investors to capitalize on a disequilibrium in pricing created by environmental law rather than on a temporary undersupply or oversupply in the real estate market.
Brownfields Capital's unique business model puts investors in the role of capital provider alone. It relies on developers with solid track records, remediation firms with the best expertise and real estate and insurance firms to provide expert services. These parties form a separate company, or partnership, to own and re-develop each site. Investors invest in the financial security, or instrument (BVC), which finances this entity. This debt instrument has very consistent, measurable performance characteristics.
This innovative financial product will provide capital to large-scale projects (minimum investment of $25 million in total project costs) while the investment process brings owners of brownfields, developers, remediators, and in some cases, insurers together with lower cost financing.
Brownfields Capital:
- Broadens the real estate market for investors, owners and developers of brownfields;
- Provides a desirable method for corporations, governments and private owners, who are currently holding contaminated properties idle on their balance sheets, a way to dispose of them and create value;
- Offers a corporate finance tool for owners of brownfields to realize value on their own balance sheet;
- Allows investors to enter an unexplored niche in the real estate market by generating opportunities to create value in prime locations at an advantageous price while shielding themselves from environmental risk;
- Offers a method of investing that unlocks previously unavailable, prime urban sites and vast profit potential;
- Creates economic opportunities through physical improvements, job creation, tax revenues, improved infrastructure and better urban planning.
Brownfields Capital’s proprietary investment product and process offer an exciting new solution to environmental issues in transactions and an opportunity for brownfields owners to create significant value from non-earning assets. In addition, it provides an excellent long-term investment platform for investors.
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