Winthrop Park Development Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Winthrop Park Development Case Solution

Cambridge Savings Bank, Peter went to the Cambridge Savings Bank, which was building its own building nearby, for a loan because he knew the bank was excited about underwriting a noticeable project in its own neighborhood, especially in a large and admiring local market.

Peter had approached the Massachusetts Carpenters' Pension Fund to cover the $5.8 million BaMc of Boston loan. Palandjian requested a $7.9 million boost to replace their previous loan.The 57.8 million will encourage Nth to fulfil Palandjian's promise to construct the Holy Cross Armenian Catholic Church, cover much of their redevelopment expenses, and return some money to their investors. The Palandjian hoped that by securing the Carpenters' pledge, the Carpenters' Fund would turn this loan into a building facility at a low cost of capital, which will overshadow the rumor that Intercontinental would be pressured to hire union carpenters. Peter's father's previous projects, though largely union, had been "free shop" inventions for decades, so this formal obligation was unprecedented.Unfortunately, the Carpenter's Pension Fund agreed on decreasing the total leverage allocation for its committed funds (for internal financial reasons) that summer & was unwilling to offer a fresh pledge to fund the building.

Indirect players

The indirect players of this projects are two regional banks from whom Peter has took the loan amounting to $5 million. These regional banks are: Pioneer and Wainwright bank

Analysis

The NPV of project is greater than the loan amount which the company is asking for, as it is greater than the permanent loan amount
This inner analysis and assessment of Winthrop Park Development decide the center skills based on the premium company’s resource based view (RBV).
Utilizing its core capabilities and capacities, Winthrop Park Development can maintain a competitive distinction and leadership over other local as well as international players operating in the industry.
In the VRIN analysis and assessment, Winthrop Park Development makes the use of its core capacities in order to strengthen its worth and to continue the delivery of the consistent quality and taste’s promise made to consumers – as well as to guarantee having futuristic and long term gains in the industry.

Decision

The net operating income projected in total is 6,429,132, which is higher than the projection made by Cambridge saving bank.Although their projections of cash flow from operations are fair enough, which shows the deal offered by Peter is favorable for the bank as the bank will get a fixed amount for the financing, alongside capital gain over the project, so the bank should avail this offer in order to get benefits from this deal. The project does not guarantee principal amount back and neither does it guarantee any also additional of interest amount. In addition, loan is also secured because of collateral as Brookline properties can be used as a collateral for the bank.........................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.