The Covid-19 pandemic has created an extraordinary level of uncertainty in the Australian economy and the property market will be impacted across all sectors.

There have been positive initiatives implemented by all levels of government to mitigate the impact and these are being well supported by the Australian banks, providing a buffer to the massive slowdown in activity resulting from the economic hibernation.

Many are forecasting the impact on business will not be felt or truly understood until late 2020. Many of our clients and colleagues are already reporting a genuine lack of customer confidence and any commitment to forward orders are fast becoming a distant memory. Businesses should be proactively preparing for the deferred impact on the economy and their financial position now.

Banks and other providers of funds generally do not react well to surprises, getting on the front foot and discussing how risks arising from Covid-19 are being managed is critical to maintaining the support of these relationships.

With over 25 years’ experience in the property/construction industry the Sanguine Team have worked through the 2008 GFC including restructuring distressed portfolios and projects. Whilst GDP remained positive during the GFC, the downturn had a significant impact on many property businesses. With this experience we can assist you navigate the way through the Covid-19 economic crisis, which is forecast to see a 7.2%(1) drop in GDP, (compared to a drop of 1% in 1990, “the recession we had to have”).

Sanguine can provide highly experienced resources on an as needs contracting basis, so business cash flow capacity can be managed effectively now and into the future as we all work through the impact of the downturn over the next couple of years.

The Sanguine team can assist with the following to proactively identify and manage the risks associated with the Covid-19 crisis and the impact on the property and construction industry.

Strategic portfolio reviews including,
- Cashflow forecasts
- Valuations
- Lease reviews
- Funding facility reviews to identify any pressure on covenants
- Asset optimisation and re-positioning
Contract reviews and management
- Construction contracts
- Maintenance contracts
- Facility agreements
- Sales contracts
- Agreement for leases
Project Delivery
- Project Management & Strategic Planning
- Feasibility and Profit Optimisation
- Superintendent services
- Tenant co-ordination services
- Statutory approval and services/infrastructure agreements
- Land titling advice and establishment of building management statements
Develop strategic business plans to mitigate risks
Negotiations with financiers and other stakeholders
Introduction of capital/debt (3) to support the businesses strategic plans

For more details or to arrange a discussion please visit our website www.sanguineadvisory.com.au , contact Shane Bulloch at shane@sanguineadvisory.com.au or call 0412 925 227

(1) IMF forecast

(2) https://theconversation.com/how-will-the-coronavirus-recession-compare-with-the-worst-in-australias-history-136379

(3) Provision of capital or debt will be subject to full credit reviews, applications, and approvals

Managing the impact of Covid19