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News & Events

Fortis Groep names Fred Brill  as Senior Vice-President in charge of Operations and Finance

September 1, 2017 -Dusseldorf, DE

Fortis Groep NV has named Mr. Fred Brill asSenior Vice President of Operations and Finance worldwide. Mr. Brill will manage the operations and coordinate finances for the company worldwide operations effective immediately.

Fortis Groep names Roy Tanner as Managing Director

May 26, 2017 -Dusseldorf, DE

Fortis Groep NV has named Mr. Roy Tanner as Group Managing Director worldwide. Mr. Tanner will manage the finances for the company worldwide operations effective immediately

Fortis Groep Increases Structures Efficiency

June 15, 2016 -Wellington, Fl

Fortis Groep and Escue Energy signs strategic partnership agreement with Facility One Technologies, LED Industry, FIO Group and WII to maximize digital intelligence gathering while maximixe structure efficiency and lower maintenance management

Fortis Groep Strategic Partnership

February 1, 2016 - Pompano Beach, Fl

Fortis Groep signs strategic partnership agreement with Concept by US. The company will supply Fortis Groep power storage and smart power manangement systems for the projects that Fortis Groep will develop.

Fortis Groep Strategic Acquisition

As of January 15, 2016 Fortis Groep have managed to resolve a serious breaktrough in the development of sustainable high rises by acquiring high interest in American Energy Glass, a U.S. based company that manufactures electric energy producing glass.

Fortis Groep Strategic Partnership

December 1, 2015 - Miami

Fortis Groep signs strategic partnership agreement with Escue Energy (ESCU). Escue Energy will provide EPC services, among other servies, for all sustainable energy projects that Fortis Groep will develop.

Sustainable Structures and Fortis Groep

As of June 20, 2014 Fortis Groep of comapnies will ONLY develop structures  with the maximum level of sustainability 

Fortis Groep

New Offices Oppened 

 

As of February 26, 2014 we proudly announce the opening of our Dubai Office. Our Managing Director Mr. Ertan Bayar will manage the office and be in charge of all activities for the region. 

 

We proudly announce the opening of our Middle East and North Africa Headquarters in Istanbul. Our Managing Director Mr. Ertan Bayar will manage the office and be in charge of all activities for the region as well as Western Europe. 

New Strategic Partner Joins Fortis Groep

We proudly announce the Join Venture with Argas S.A. in Buenos Aires for the development of a 1,800 tons per day Municipal Solid Waste total processing plant. Construction is expected to begin in 2014.

WII Joins Fortis Groep

Fortis Groep concludes the joint venture agreement with WII, a BIM (Building Information Management) U.S. Based company. WII is a high power facility management system

 

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Infrastructure Development

Fortis Groep has extensive experience and knowledge in infra-structure development. With several world projects already completed to the highest satisfaction  Fortis Groep delivers turn key solutions to its clients.  

We design, build and finance all real estate and infrastructure assets such as educational institutions, hospitals, multi/single-unit residential, airport facilities, office buildings, hotels and resorts, essential to local, state and federal government agencies as well as corporations that operate healthcare or energy related facilities.

"Turn Key" solutions at a glance:

Source of capital is almost non-existent for new development and infrastructure projects government institutions are turning to our innovative solutions to meet their operational needs.

We provide turnkey solutions at costs comparable to traditional financing, but without the red tape and negative covenants associated with bond financing.

We designed the most efficient financial alternatives enabling projects to proceed on a timely and cost-effective basis while allowing the client the ability to retain control over the asset with little investor oversight.

 

Transaction Structure 

  • Fortis Groep NV or subsidiaries acquires land from a third party, or acquires or ground-leases land directly from Client, and builds a project to Client specifications under Client direct control and project oversight as desired.
  • The transaction is delivered as a complete turnkey development solution.
  • Client occupies and operates the asset under a long-term contract as if it were the owner; using our capital to develop, acquire or upgrade the infrastructure asset.
  • Client operates the property (or contracts out the operations) and retains all operating profits from the facility. Depending on the financial structure, infrastructure projects are typically operating at a profit while ownership risk and capital risk are transferred to us as a private sector investor.
  • The project is fully capitalized by Fortis Groep NV or subsidiaries as private sector investor, but it does not become an actual debt obligation of Client as Client assumes nor guarantees any debt obligation, but rather only enters into a standard real estate contract with investor and owner Fortis Groep NV or subsidiaries.
  • At the end of the contractual agreement the property/asset can revert back to the Client at little to no costs or Client can continue under the same structure under contract extension options.
  • Deal structuring is driven by the particular requirements of Client

 

Project Criteria

Transaction sizes ranging from as little as USD $10 million to USD $1 Billion and larger per transaction.

Either existing facilities or new construction projects can be executed, both revenue-generating and non-revenue generating:

  • Pipelines/Water Infrastructure
  • Office Buildings
  • Hospitals
  • Universities
  • Warehouses/Industrial
  • Equipment
  • Power plants
  • Water treatment facilities
  • Transportation
  • Waste to Energy Facilities

 

Benefits 

A lease-based private investment transaction offers multiple benefits to Client in meeting its growing corporate and infrastructure needs.

 Competitive cost of funds in line with bond financing.

  • Faster and easier than bond financing. We close as quickly as 90 days from execution of a letter of intent. Furthermore, our contracts contain NO financial covenants or special reporting requirements, resulting in a low-maintenance form of capital that will not constrict Client’s ability to raise future debt or allocate funds for other needs.
  • Finance 100% of asset value. We finance 100% of asset value, versus traditional  lending that may offer only 75% of value or bond financing that may have debt service reserve requirements that hold back up to 10% of the proceeds or require excessive underwriting income ratio’s (DSCR’s), which significantly increases the cost of capital.
  • No refinancing or interest rate risk. Our contracts never need to be prepaid or refinanced. When the initial contractual term expires, Client can exercise its extension options, vacate or repurchase the property, or receive ownership of the property free and clear, depending on how the transaction is structured. Furthermore, because the contractual payments are known in advance and have no typical debt covenants or restrictions, Client faces no risk of fluctuating interest rates over time.
  • Budgeting and balance sheet advantages. Our structures are designed to convert capital budget items into an operating budget items, eliminating the need for real estate capital budget expenditures for new construction. They can also convert debt liabilities to operating expenses for accounting treatment, thereby improving capital ratios.
  • Many bonds require designated revenue streams to support bond funding. Our structures are designed so that Client does not need to increase taxes or pledge additional revenue streams.
  • Our transaction structure does not impact bonding capacity. Client can use their bonding capacity for additional projects and needs.
  • Credit Enhancing. Total debt may be decreased by engaging in this program compared to bond financing, which may in turn increase their credit rating.
  • Operating Expense not Capital Budget Payments are made from the operating budget vs. a capital budget outlay.
  • Unlock Trapped Equity. A Sale-leaseback can unlock trapped equity in low yielding and illiquid real estate and infrastructure assets without losing control and use of the asset.

 

 Valuation

We fund  100% of construction cost. FF&E included .

Fair Market rate for existing assets

Pricing

Determined by credit profile, the characteristics of the real estate or asset, and the market conditions.

Very low and conservative hurdle rate for Return on Investment with a blended debt/equity return.

 Structuring

Contract term is typically 20 to 30 years.

Contracts can have flat rental payments or increases in rent over time, depending on Client’s structuring preferences.

Client retains complete operational control and responsibility for all building repairs, maintenance, operating expenses and real estate taxes, if applicable, through an absolute triple-net lease.

Lease payments can be custom tailored to meet budget demand

Land

Acquisition / Title

Client can ground lease land or sell land to us, or we can acquire land from a third party.

In a ground lease scenario, Client can retain title to property during the lease term.

 

 

Financial Risk

 We assume the financial liability of the project costs while the Client retains freedom and full control over the asset just as would occur in ownership. The only requirement and obligation of the Client is a lease for real estate assets or an annual contract payment for non-real estate assets. These payments can be considered part of the operating budget instead of long-term liability/debt in most cases, if properly structured.

  • This method allows us to build the project for Client without Client having to spend any of its money in advance.
  • Our proprietary process of deploying capital is more than just a cost-effective, it is a capital management tool that allows utilities, corporations and municipalities to use and control essential real estate and energy related assets without employing prohibitive amounts of debt and equity capital in an illiquid, asset class.
  • The combination of low cost equity, together with more efficient and streamlined leverage strategies, comprise the key components of cost effectively developing, acquiring and controlling energy assets. We are committed to combining those efficiencies with contractual structures that provide immediate lower opportunity costs.
  • We can design a transaction to meet both price and opportunity cost expectations including friendly renewal options and purchase options

 

Sale-Leaseback of Existing Asset 

Using our Investment model more and more multinational corporations and government agencies are monetizing assets in sale-leaseback transactions to raise critically needed capital while retaining control over core assets.

In a sale-leaseback, Client sells the asset to a private investor for a lump sum price and in most cases is equal to Fair Market Value. Then the agency leases the asset back from the investor for 25 to 30 years. At lease maturity the asset ownership may revert back to Client.

This is an effective way of raising substantial amounts of inexpensive capital without incurring additional debt or reducing services to the community.

 

Why Our Proposed Structure

We provide this program for real estate and infrastructure projects that seek to fast track essential projects using private investor capital with no cash investment as well as no liability associated with debt or project financing.

 

We provide turnkey projects with unparalleled  service: 

• Relationship Focus.

• Personal Attention.

• Experience.

• Quick Decisions.

 

Our Capital Resources 

  • We maintain long lasting relationships with life insurance companies, pension funds, international investment banks and sovereign funds.
  • Because we have diverse investment criteria, we can identify the optimal solution for a wide variety of opportunities.
  • Fortis Groep NV or subsidiaries and our investors have fully-discretional capital, we have been active developers throughout the credit crunch and recent recession. We have consistently been provided capital when other sources of liquidity have dried up or become unattractive.
  • Our investments are not comingled or cross collateralized with other transactions or assets providing additional confidence.