---
# System prepended metadata

title: 'Collateral Call Summary - Episode #38'

---

# Collateral Call Summary - Episode #38
September 29th, 2021

## Agenda

- [00:00](https://youtu.be/Cvuq7-MvrKc): Intro with Juan Guillén
- [00:30](https://youtu.be/Cvuq7-MvrKc?t=30): Collateral Onboarding Call #38: REIF DROP: Commercial Real Estate Assets
- [36:01](https://youtu.be/Cvuq7-MvrKc?t=2161): Q&A and Discussion about REIF DROP
- [58:21](https://youtu.be/Cvuq7-MvrKc?t=3501): Outro with Juan Guillén

## Video

<https://youtu.be/Cvuq7-MvrKc>

## Introduction

### Juan Guillén

#### Agenda and Preamble
[00:00](https://youtu.be/Cvuq7-MvrKc)

- Hello to everyone! Welcome to Collateral Onboarding Call #38 from MakerDAO. My name is Juan, and I am the facilitator for the SES CU.
- Today, we have REIF DROP: Commercial Real Estate Assets. The team is going to be presenting and telling us everything about this Token. 
- Discussions about collateral happen in the [Forum.](https://forum.makerdao.com/c/risk/collateral-meetings/23)

## Collateral X

- [REIF-DROP MIP6 Application - Forum Thread](https://forum.makerdao.com/t/reif-drop-mip6-application-reif-drop-commercial-real-estate-assets/10169)

### Ben Ames, Joe Accardi and Wenzel Hoberg

#### Presentation
[00:30](https://youtu.be/Cvuq7-MvrKc?t=30)

![REIF](https://i.imgur.com/kQb6wSc.png)

![REIF Financial Investments Inc.](https://i.imgur.com/8OEngh5.png)

![Centrifuge](https://i.imgur.com/RhcBYpO.png)

![Structure](https://i.imgur.com/6Xh1Gtv.png)

![REIF Pool](https://i.imgur.com/d8RpeZO.png)

![Product Overview](https://i.imgur.com/fpl0737.png)

![Collateral](https://i.imgur.com/a6xytIo.png)

![Co-Investment](https://i.imgur.com/90c5Fyp.png)

![Risk Mitigation](https://i.imgur.com/XRaPaDO.jpg)

![FORGE & FOSTER](https://i.imgur.com/Asww7Qs.jpg)

![Joe Accardi - CEO and Partner](https://i.imgur.com/dbOS7hQ.png)

![Track Record - Realized](https://i.imgur.com/JN8fWFF.jpg)

![Track Record - Existing](https://i.imgur.com/RHTEQhG.png)

![Target Assets](https://i.imgur.com/n4uhb76.jpg)

![Value Add - Flex Industrial](https://i.imgur.com/o9RCn0x.jpg)

![Tech/Medical Office](https://i.imgur.com/6W0kZye.jpg)

![Film](https://i.imgur.com/posL2O1.jpg)

![Resort/Cottage Land](https://i.imgur.com/pSIju6G.jpg)

![Tiny Home Manufacturing](https://i.imgur.com/HUeo62n.jpg)

![Forge & Foster Advantage](https://i.imgur.com/fRDh5Wv.png)

![Example Deal 1 Head Street, Dundas ON](https://i.imgur.com/aLqAwlL.jpg)

![Example Structure](https://i.imgur.com/hX9P9gb.jpg)

![Before](https://i.imgur.com/HWNXrxP.jpg)

![After](https://i.imgur.com/JoS8OnR.jpg)

![Sample Investment Distribution](https://i.imgur.com/NGLVhDk.png)

![Growth Plan](https://i.imgur.com/O8474vZ.png)

![Ontario(Hamilton)Market](https://i.imgur.com/px6e1HI.png)

![](https://i.imgur.com/NfuUCya.png)

![Toronto](https://i.imgur.com/u4M7e3J.png)

![An Increase in Immigration](https://i.imgur.com/BACO84V.png)

![Canadian Market Sentiment & Opportunity](https://i.imgur.com/JXCscMF.png)

![Prospects for Commercial/Multifamily Subsectors in 2021](https://i.imgur.com/KHofnDU.png)

![Canadian Industrial Rates](https://i.imgur.com/MTLNeeS.jpg)

![Questions](https://i.imgur.com/nf0KAe6.png)


#### Discussion

- [36:01 - Planet_X: What is the exact relationship between REIF and the Forge & Foster?](https://youtu.be/Cvuq7-MvrKc?t=2161)

- [36:38 - Planet_X: Does Forge & Foster provide capital and nothing more?](https://youtu.be/Cvuq7-MvrKc?t=2198)

- [37:34 - Planet_X: This question has to do with the time horizon for the lending. On your chart, it varied from two months to four years. What are you aiming at?](https://youtu.be/Cvuq7-MvrKc?t=2254)

- [38:42 - Eric: Is Coral involved in the transaction? I know that they are the owner of REIF. Is there any enough support being provided through Coral?](https://youtu.be/Cvuq7-MvrKc?t=2322)

- [39:15 - Eric: Are you CEO of REIF? And you also have a senior role with Forge & Foster? If there became financial distress in an investment, you could wind up in two different seats. One is an equity investor, the other is a debt investor. How would you manage to have two sets of interests that are not always aligned? ](https://youtu.be/Cvuq7-MvrKc?t=2355)

- [40:33 - Eric: It feels like you will wind up fighting against yourself if there is distress. Are you comfortable with that? You would have to wear two hats that will not be perfectly aligned in distress.](https://youtu.be/Cvuq7-MvrKc?t=2433)

- [43:06 - Eric: Are the tenants already lease-assigned when you do the deals? What is the occupancy when you close on a deal?](https://youtu.be/Cvuq7-MvrKc?t=2586)

- [43:52 - Eric: In terms of your product, did you say that banks do not typically want to do it or they do not want to be in the first lien?](https://youtu.be/Cvuq7-MvrKc?t=2632)

- [46:09 - Eric: In terms of portfolio diversification, how do you think about the different industries? I know there are not long exposures, but how much medical do you want versus another one, etc.?](https://youtu.be/Cvuq7-MvrKc?t=2769)

- [47:04 - Eric: For this deal, could it be a single transaction, or is it going to be a series of different projects together?](https://youtu.be/Cvuq7-MvrKc?t=2824)

- [47:54 - Eric: Is there going to be some concentration around industry exposure at the portfolio level? When you think about medical versus RV, etc.?](https://youtu.be/Cvuq7-MvrKc?t=2874)

- [48:54 - Planet_X: I have a question with regards to the AAA lenders. What size of deals do you need to have to approach them? ](https://youtu.be/Cvuq7-MvrKc?t=2934)

- [49:59 - Eric: This is probably a Forge & Forest question. What experience have you had since your beginning around workout financial distress? If you have had any of those situations, how do you manage them? How do you typically structure a deal with covenants and triggers to get yourselves at the table on time to try to work your way out if something goes sideways?](https://youtu.be/Cvuq7-MvrKc?t=2999)

- [50:51 - Eric: At the lease level, have you had tenants with who you have had to work beyond initial contractual terms? The underlying risk is the tenants. How do you deal with tenants in financial distress, and what is a typical approach in your experience? At the end of the day, these assets are only valuable if you have tenants that want the space and want to pay rent and can pay rent.](https://youtu.be/Cvuq7-MvrKc?t=3051)

- [54:07 - Eric: What percentage of your tenants have issues where they are not making their total payments, and you have to deal with that in some way?](https://youtu.be/Cvuq7-MvrKc?t=3247)

- [56:45 - Juan Guillén: Regarding the poll, there are four days left, and it was quite tight between the yes and the abstain. Unless you managed to really piss off well one of the delegates that are here tonight everything should go according to your plan.](https://youtu.be/Cvuq7-MvrKc?t=3405)

- [57:37 - Juan Guillén: Ben, Joe, and Wenzel, what is the best way of reaching you?](https://youtu.be/Cvuq7-MvrKc?t=3457)

## Closing Comment

### Juan Guillén

#### Outro
[58:21](https://youtu.be/Cvuq7-MvrKc?t=3501)

- Thank you to everyone for coming. It was great having you. Have a nice one!


## Credits

- @Gala produced this summary.
- Kunfu-po produced this summary. 
- Everyone who spoke and presented on the call, listed in the headers.