Course dates
A three day practical introduction to structuring real estate finance using spreadsheet models and case studies.
Featuring:
- Real estate appraisals and analysis.
- Structuring a real estate DCF analysis.
- Incorporating finance into a DCF appraisal.
- Property investment analysis and vehicles.
- Property in a corporate context.
- Development and private equity vehicles.
- Comprehensive case studies, exercises and spreadsheet sessions.
Course Objective
This course aims to furnish participants with the necessary analytical skills required to maximise shareholder wealth. Participants will examine both quantitative and qualitative analysis techniques, taking an in-depth look at the components and benefits of a discounted cash flow analysis and putting property into a corporate context.
Who Should Attend
The course will be of value to professionals in the following areas:
- Real Estate Investors.
- Investment Bankers.
- Financers.
- Property Developers.
- Financial Advisors.
- Financial Consultants.
- Graduates & New Entrants to REI.
- Fund Managers.
- Investment Consultants.
- Valuers.
- Property Analysts.
- Property Fund Management Staff.
Day 1
Real estate appraisals and analysis
Introduction to valuations and appraisals terminology and economic and financial assumptions.
- Types of income.
- How do lease terms affect value?
- Slicing the income and converting to capital.
- Unbundling the all risk yield.
- Types of yield.
- Calculating total returns.
- What are the key drivers?
Spreadsheet exercise: setting up and adjusting an investment valuation & appraisal using formula & functions for flexibility. Auditing & best practice tips.
Structuring a real estate DCF analysis. Key variables and outputs in DCFs.
- Target rate of return & discount rates.
- Income growth & exit yields.
- Impact of obsolescence & depreciation.
- Outputs: IRRs and NPVs.
- Apportioning IRRs.
Spreadsheet exercise: Cash flow modelling case study I: Worked Example, setting up a dynamic investment cash flow appraisal. Shaping up the basic deal.
Day 2
Property finance
Incorporating finance into a DCF Appraisal
- Types of debt used:
- Senior.
- Mezzanine debt.
- Preferred equity.
- Private equity vehicles.
Case study: financing a hotel investment.
Risk Analysis in DCF appraisals
- Sensitivity analysis and data tables.
- Scenarios.
- Simulation.
- Risk identification and management.
Spreadsheet exercise: Adding the capital structure and incorporating risk analysis data tables and dynamic scenarios.
Day 3
Development & private equity vehicles
Development appraisals
- From residuals to cash flows.
- Line by line items down to profit.
- Ratio analysis.
- How is profit being generated?
Spreadsheet demonstration: a spreadsheet model will be used to demonstrate the set up of development proposal. Ratio analysis & risk analysis techniques will be used to show the implications of changing market conditions. Delegates will test possible outcomes on the template provided.
Case study: participants will work in small groups to analyse a case study that considers the risk and return profile of a development and consider appropriate methods of finance.
Private equity
- Structures & styles.
- Public –vprivate equity.
- Allocating risk & return.
- Promotes & waterfalls.
- Showing the exit and risk.
Spreadsheet exercise: using Crystal Ball Software. “Crystal Ball is a suite of Microsoft Excel-based applications that harnesses and extends the analytical power of spreadsheets. Crystal Ball is a flexible tool that can be applied to solve almost any problem where uncertainty and variability distort spreedsheets."
Course summary and close
Dubai Hotel, Dubai, United Arab Emirates
This programme takes place on a non-residential basis at a central Dubai hotel. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.
Dubai has an incredible number of hotels. Courses held here are mainly held at the J.W. Marriot hotel, Sheraton Dubai Creek and Le Meridien all in central Dubai.
J.W. Marriott Hotel – Abu Baker Al Siddique Road, PO Box 16590, Dubai, U.A.E
Phone +971 4 607 7811; Fax +971 4 607 7011
www.marriott.com
At the JW Marriott Dubai you will enjoy luxury on your terms; impeccable service and elegant surroundings allow you to relax and focus on your own agenda. With 344 luxuriously appointed rooms and suites the J.W. Marriott provides an oasis of calm in a busy city while the award-winning restaurants have the recipe for satisfying a taste for international flavour.
Sheraton Dubai Creek – Baniyas Street, PO Box 4250, Dubai, U.A.E
Phone +971 4 228 1111; Fax +971 4 221 3468
www.starwoodhotels.com
After undergoing a complete renovation, the Sheraton Dubai Creek Hotel& Towers reopened October 10th, 2002 with a fully refurbished interior and exterior. The 255 room hotel now offers more creek-view rooms, redesigned atrium lobby, outstanding food and beverage facilities, upgraded rooms with state-of-the-art data connectivity, and Dubai's newest conference facilities.
Le Meridien – PO Box 10001, Airport Road, Dubai, U.A.E
Phone +971 4 282 4040; Fax +971 4 282 5540
www.lemeridien-dubai.com
Le Meridien Dubai is a five star deluxe hotel built on two floors and surrounded by 38 acres of landscaped gardens. The hotel is elegantly furnished with a french accent that incorporates the individual character and flair of the local culture. The hotel is minutes away from the commercial districts and shopping centres and a short distance from Dubai International Airport. Facilities include a choice of 15 restaurants and bars, 24-hour room and laundry service, two fully equipped business centres and a state-of-the-art Spa and fitness club.
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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.
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.
Course dates