A 5-day real estate finance training course with case studies and integrated cashflow modelling for analysts, investors, financiers, developers & advisors.
Featuring:
-
Property performance measurement & analysis
-
Evidence of cycles in European property markets
-
Developing cashflow models in a pan-European context
-
Investors' approach to different types of property vehicle
-
Core vs developing vs emerging markets
-
Sector analysis: office vs retail vs leisure
-
Calculating EVA and residual income
-
Corporate finance decisions & real estate
-
Lease / buy leaseback / structured leaseback decisions
-
Single asset returns in a portfolio context
-
Tactical & strategic asset allocation
-
Impact of gearing and debt finance
REAL ESTATE FINANCE BACKGROUND
Real Estate investing continues to attract the attention of institutional investors looking for diversification and liability matching. However, cross border investment and financing brings risks as well as opportunities.
This advanced European Real Estate Investment & Finance School programme is designed as an integrated series of modules which will increase participants' understanding of today's complex and sophisticated process of real estate investment and finance. In addition to expert course tuition, delegates will benefit from a collegial atmosphere, with networking and information-sharing a valuable part of the course. Eminent guest speakers from within the European real estate industry will present 'current experience' sessions during Modules 2 and 3 of the programme.
Created by course directors who have worked in one of London's top Business Schools, the programme main objective is to give insights to the latest thinking and innovation in analytical techniques in a changing and increasingly Pan-European capital markets context.
Participants will consider frameworks for decision rules on major capital expenditure commitments in public and private real estate markets, both at the asset and portfolio level.
The recognition and analysis of risk will be a component part of the programme. The programme covers many techniques and tools that can be applied to dealing with and resolving practical, everyday problems.
AN INTERMEDIATE LEVEL REAL ESTATE FINANCE TRAINING COURSE COVERING:
-
Investment Cash Flow Analysis
-
Public and Private Real Estate vehicles
-
Debt and Equity Securitisation and Investment Strategy
-
Corporate Real Estate Finance and Structured Leasebacks
-
Risk Analysis, Simulation and Real Options pricing
-
Putting Investment into a Portfolio context
-
Use of Debt in a Real Estate Investment context
WHO SHOULD ATTEND THIS FINANCIAL TRAINING COURSE
The European Real Estate Investment & Finance School training course will be of value to investors, analysts, lending & project finance bankers, financers, developers and advisors. Whilst its focus is primarily on European markets, the techniques and trends studied will also be of use to delegates investing in property markets in other regions.
TRAINING COURSE LEVEL
This real estate finance training course is aimed at people with several years' real estate development strategy or (real estate) finance/investment experience. The course puts participants on a steep learning curve, hence the fundamentals of each subject will be covered rapidly before moving onto more complex areas.
To gain maximum benefit from the course, participants should be familiar with the principles of discounted cash flow techniques and portfolio theory.
Delegates are required to bring their own laptops.
To find out more about accommodation, and places of interest within Paris please visit: http://en.parisinfo.com/
Day 1
Real Estate Economics and Analysis
Overview:
Structuring and developing flexible cashflow models for analysing real estate investments. At the end of this module participants will have an understanding of the component parts of a real estate cash flow model, the macro and micro influences and will have produced a working spreadsheet model.
AGENDA:
-
Structuring a real estate DCF analysis
-
Key variables and outputs
-
Target rate of return, Weighted Average Cost of Capital & capital budgeting
-
Forecasting rents & exit yields
-
Impact of obsolescence & depreciation.
SPREADSHEET EXERCISE
Creating flexible real estate investment cash flow models. Best practice tips, functions v formula, methods of analysis, different techniques for dealing with uncertainty, partitioning the IRR
-
Practical DCF analysis of an investment
-
Presentation and use of data tables & scenarios
-
Multi-tenanted property investments
-
Property performance measurement and analysis
-
Time weighted v money weighted rates of return
-
Characteristics of major investment players in local market
-
Relative ranking of investments & of cities/countries
-
European single market v real estate local markets
-
Evidence of cycles in European property markets
CASE STUDY: Developing the model in a pan-European context Participants will work in small groups to analyse a case study that considers the challenges and opportunities of a commercial real estate investment in a European context. A cash flow appraisal will be used as the basis for giving financial substance to the business plan.
RECEPTION AND NETWORKING OPPORTUNITY:
A social occasion and drinks reception for participants and faculty to appreciate the interests, experience and expertise of those involved in this topical, advanced programme.
Days 2 & 3
Property Investment Vehicles
Overview :
Different types of investment instrument and structures are examined together with the way in which they are valued and traded. The module includes an introductory study of indirect private and public property vehicles and their comparability to direct property investment. It also includes insights to the public equity markets, what you look for in a listed real estate vehicle and the type of property suited to such deals. At the end of this module participants will have developed an understanding of the characteristics of properties suitable for inclusion in public or private vehicles.
AGENDA:
-
Investors’ approach to indirect v direct investment property
- Tenant, investor the financier’s requirements
-
Direct v indirect property investment
- Types and structures of European property investment vehicles
- Public v private vehicles: size & activity in Europe
-
Equity v debt securitisation
- Appraisal of different types of property vehicle
- Understanding cashflow tranches
- Developing a NAV (Net Asset Value) model
EXERCISE
Participants will work in small groups to examine, analyse and adjust cashflow models appropriate for real estate securitisation and indirect vehicles.
-
Investment Strategies
- Core v developing v emerging markets
- The development and refurbishment processes
- Sector analysis: office v retail v leisure
-
New approaches, new tools
EXERCISE
Calculating Economic Value Added and residual income outputs in a real estate investment context
Days 4 & 5
Advanced Property Investment Analysis, Forecasting & Portfolio Management
Overview:
This module considers the ways that appraisal techniques may be adapted to meet changing market conditions for single projects and portfolios. Corporate real estate portfolio issues are also covered: eg the decision-making process that corporates use when dealing with their property portfolios. In particular, factors that influence lease / buy decisions, and the scope for sale & leasebacks. At the end of this module participants will be able to analyse single assets and portfolios, both from the investor and corporate’s point of view, as well as gaining insight to associated corporate finance and risk issues.
AGENDA:
-
Capital budgeting techniques
- Interpretation of payback, discounted payback,
- DCF modelling: IRR, MIRR and NPV; the choice of the target rate of return, income and exit ratios.
-
Corporate finance decisions & real estate
- Corporate owners’ and property’s role
- Lease v buy leaseback v structured leaseback decisions
EXERCISE
Participants will work in small groups to examine, analyse and adjust cash flow models dealing with corporate real estate finance decisions and options for releasing capital.
-
Risk analysis
- Sensitivity, scenario and simulation
- Variance analysis
- Real options application to real estate
-
Single asset returns in a portfolio context
- Tactical & strategic asset allocation
- Efficient markets and efficient portfolios
- Property performance measurement and analysis - including benchmarks and indices
- Historical analysis of the comparative risk/return between property and other investment media
-
Impact of debt finance on investment
- Gearing and riskier return profiles
- Using Solver to identify optimum lending subject to strict financial covenants.
CASE STUDY
Participants will work in small groups to analyse real data to consider techniques that can be used to optimise the risk return characteristics of a real estate portfolio strategy. Some of these techniques will also be applied to a debt structure to illustrate the implications of geared investment transactions.
Course Summary & Review
-
Bill Rodney
Bill Rodney
Senior Lecturer, Cass Business School (City University London).
Bill is a chartered surveyor whose career has spanned both private and public sector work. He has worked on large-scale commercial development schemes and major urban regeneration projects. He has also consulted on funding and development strategies for commercial property projects in Europe, Africa, Asia and Australia as well as having extensive teaching experience in the UK, Hong Kong and Malaysia. He has advised on Private Finance Initiatives (PFI) to Central and Local Government Authorities and undertaken research and consultancy projects in development, cash flow analysis and corporate real estate on a range of topics related to business strategy and trends impacting the real estate industry.
He has over 25 years of teaching and training experience, mainly in postgraduate courses such as specialist Real Estate Investment & Finance Masters and MBA programmes and senior manager workshops. During this time he has presented training throughout Europe, Africa and the Middle East for a range of investment managers, corporate advisory teams, legal firms and public sector institutions. His professional training includes being the founding Technical Director and contributor to the Investment Property Forum's Advanced Education Programme, and faculty member on Corporate Real Estate (CRE) Designation Programmes. In addition he served as the RICS delegate to FIG Commission 9 involving speaking at international workshops and conferences. Bill gained his MSc in Real Estate Investment & Finance at City University just before joining the facility and becoming head of department.
Courses run by this instructor
Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.
This course has now expired please email us to find out when the course will next be running.