This lunchtime webinar covered the ins and outs of distressed Commercial Real Estate, specifically the challenges facing Economic Development Organizations, Municipalities and the Real Estate Brokers serving their areas. Our two speakers from Hilco, the company behind newsworthy corporate revamps and bankruptcies like Linens ‘n Things and Hostess, Lerry Knox and Navin Nagrani, discussed what distressed real estate is and how it can be monetized, whether in the public sector or private enterprise.

1. Hilco
Lunch + Learn Webinar
April 25, 2013
You’re Sitting On Distressed Real Estate….
Now what?
Hosted by:
Lerry Knox Navin Nagrani
CEO, Hilco Innovation SVP, Hilco Real Estate
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More Value Created More Ways®

2. Hilco
Asset Disposition Services Asset and Enterprise
Valuation Services
Asset Acquisitions and
Investments
♦ Tangible and Intangible Asset
Appraisals
– Inventory
– Machinery & Equipment
– Real Estate
– Accounts Receivable
– Intellectual Property
♦ Enterprise Valuations
♦ Valuations for
Tax, Reporting, Accounting
and Compliance Requirements
– FAS 157, 141, 142
– IFRS Compliant Valuations
♦ Insurance Valuations
♦ Ad Valorem
♦ Asset Verification and Tagging
♦ Estate Settlement Valuations
♦ Valuation Dispute Litigation
Support
♦ Monetization Services for All
Categories of Industrial Assets
– Webcast, Online and On-site
Auctions
– Sealed Bid Tenders
– Private Treaty Sales
♦ Real Estate Brokerage and
Lease Restructuring
♦ Industrial and Retail Asset
Disposition Services
– Inventory
– Machinery and Equipment
– Fixtures and Equipment
♦ Intangible Asset Disposition
– Trade Names, Service Marks
and Other Intellectual Property
♦ Company and Facility Wind
Downs
♦ Surplus and Redundant Asset
Disposition in M&A
Transactions
♦ Acquisitions of Surplus and
Underperforming Tangible and
Intangible Assets to Provide
Immediate Liquidity
– Cash, upfront
– Guarantees
– Corporate Trade Credits
♦ Real Estate Acquisitions
♦ Private Equity Investments
– Retail Companies
– Consumer Product
Manufacturers
– Iconic Consumer Brands
♦ Special Situation Debt
Financing
♦ Distressed Debt Acquisition
– Corporate Debt
– Real Estate Debt
More Value Created More Ways®

3. Hilco
Hilco Delivers Results:
♦ Conducted over 1,800 industrial asset disposition projects
♦ 400+ Fortune 2000 clients, across all industries
♦ Sold assets from 53 countries into more than 60 countries in 2012
♦ Asset sales will exceed $1 billion in 2012
♦ Disposition of over 200 million square feet of industrial, office and retail
properties
♦ Appraised and repositioned industrial, commercial and retail real estate
worth nearly $4.0 billion, and restructured over 35,000 leases
♦ Market leader in recovery through market making for IP, patents and other
intellectual property
♦ Delivered nearly 20,000 appraisals - values in excess of $200 Billion
♦ Converted over $150 billion of excess inventory to cash.
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More Value Created More Ways®

4. HilcoHilco
Clients Hilco Has Served Across the Globe:
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5. Hilco
Discussion Points
• What is Distressed Real Estate
• Distressed Real Estate vs. Distressed Situations
• Uniqueness with real estate vs. other assets
• Vehicles to Monetize Real Estate
• Traditional Brokerage
• Sealed Bid
• Private Treatise
• Open Out-Cry
• Online
• Understanding Where the action and deals are
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More Value Created More Ways®

6. Hilco
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More Value Created More Ways®
Opportunities And Challenges:
The Bankruptcy Arena
Opportunities
• Buy assets at discounted prices: as-is/where-is
• Public process but very few players usually
participate
• More municipalities to restructure?
Challenges
• Uncertainty of outcome (Reorganize? Liquidate?)
• Difficulties in getting hired as an consultant/broker
• Lots of players at the table – different
objectives/goals
• Lack of financing options

7. Hilco
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More Value Created More Ways®
Backdrop:
The Government Arena
Municipalities today face significant challenges reconciling
increased demands for services with declining revenue and tax
base, escalating labor and pension costs, and limited access to
capital.
No communities are immune; and, as state and local
governments strain to meet budgetary requirements, every
elected official and senior administrator should be vigilant in
searching for opportunities to assure their constituencies that
public service delivery is a priority, and will not be put at risk
because available operating revenues are insufficient to satisfy
the cost of those services.

8. Hilco
With mounting financial pressures, some municipalities are
already confronting the possibility that they will face
insolvency in the near term. Yet other municipalities are
concerned that their operating costs could someday soon
outpace their revenue sources. With this backdrop,
municipalities need to explore how best to manage their
most valuable asset: their real estate portfolio.
More Value Created More Ways®
Backdrop continued:
The Government Arena

9. Hilco
Municipalities have extensive real estate portfolios. These portfolios consist
of education, culture, sport, recreation, care, civil service offices and social
housing. Allow for opportunities to drive value from the following:
1. The need to professionalize real estate activities
Many municipalities allow departments and agencies manage their own RE
portfolios. Real estate is not a principal task for these departments, as a result of
which they are often not capable of undertaking real estate management
professionally. If the city is to exploit the advantages of scale and the potential of
the real estate optimally, the scope and complexity of the portfolios necessitate
meticulous harmonization with other portfolios in the city, as well as professional
management and portfolio management.
2. Real estate as a cost-cutting instrument
In the current economic environment, municipalities are looking carefully at their
expenditure and assets. Most municipalities have come to believe that selling off
municipal real estate would strengthen the municipality's financial position and are
actively looking for strategies to monetize this asset class.
More Value Created More Ways®
Opportunities:
The Government Arena

10. Hilco
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More Value Created More Ways®
Navin Nagrani Lerry Knox
Hilco Real Estate, LLC Hilco Innovation Solutions, LLC
847-504-3218 312-912-7601
nnagrani@hilcorealestate.com lknox@hilcotrading.com
Additional questions? Please contact: