PreprintArticleVersion 1This version is not peer-reviewed
Exploring Alternative Models to Strengthen Capital Structures in Project Financing for Sustainability in Real Estate Development: A Developer’s Perspective
Version 1
: Received: 26 October 2024 / Approved: 28 October 2024 / Online: 28 October 2024 (17:28:38 CET)
How to cite:
Park, J. K.; Lee, J.; Ahn, Y. M.; Yoo, G. Exploring Alternative Models to Strengthen Capital Structures in Project Financing for Sustainability in Real Estate Development: A Developer’s Perspective. Preprints2024, 2024102209. https://doi.org/10.20944/preprints202410.2209.v1
Park, J. K.; Lee, J.; Ahn, Y. M.; Yoo, G. Exploring Alternative Models to Strengthen Capital Structures in Project Financing for Sustainability in Real Estate Development: A Developer’s Perspective. Preprints 2024, 2024102209. https://doi.org/10.20944/preprints202410.2209.v1
Park, J. K.; Lee, J.; Ahn, Y. M.; Yoo, G. Exploring Alternative Models to Strengthen Capital Structures in Project Financing for Sustainability in Real Estate Development: A Developer’s Perspective. Preprints2024, 2024102209. https://doi.org/10.20944/preprints202410.2209.v1
APA Style
Park, J. K., Lee, J., Ahn, Y. M., & Yoo, G. (2024). Exploring Alternative Models to Strengthen Capital Structures in Project Financing for Sustainability in Real Estate Development: A Developer’s Perspective. Preprints. https://doi.org/10.20944/preprints202410.2209.v1
Chicago/Turabian Style
Park, J. K., Young Mee Ahn and Gayoung Yoo. 2024 "Exploring Alternative Models to Strengthen Capital Structures in Project Financing for Sustainability in Real Estate Development: A Developer’s Perspective" Preprints. https://doi.org/10.20944/preprints202410.2209.v1
Abstract
This study explores the application of multi-real option valuation integrated with Security Token Offerings (STO) as an innovative approach to real estate project financing, using the Aspen Resort development as a case study. Traditional Discounted Cash Flow (DCF) methods often fall short in capturing the dynamic nature of long-term real estate projects, particularly in adapting to market uncertainties and changes. This research addresses these limitations by employing a multi-real option model, which allows for flexibility in decision-making by evaluating various investment phases through the binomial lattice framework. The analysis demonstrates that the STO-based project financing (STO-PF) model, when applied to the Aspen Resort, provides superior financial outcomes and strategic advantages compared to conventional DCF methods. Key findings reveal that the STO-PF model enhances liquidity, democratizes investment access, and offers improved risk management through digital platforms. The results showcase how integrating STOs with real option models quantifies the project’s expanded net present value (ENPV), thereby optimizing investment decisions under volatile market conditions. This study not only contributes theoretically to the literature on STO financing but also provides practical implications for developers seeking flexible and innovative financing solutions in real estate. Future research should explore the applicability of STOs across diverse market conditions and regulatory environments, including the integration of emerging technologies such as AI and blockchain for enhanced financial modeling.
Keywords
STO PF; Multi-Real Option; Blockchain Based Platform; AlternativeModel; DigitalConstruction; ComparativeValidation; IntegratedStructure; Integrated Project Management System; AI
Subject
Engineering, Other
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
