Real Estate Development & Finance

Part of the International School of Real Estate Finance & Development Training Week Part 1: Real Estate Investment & Finance Part 2: Real Estate Development & Finance Book both parts together to benefit from a 15% saving on the total course fee. For more information please contact enquiries@euromoneytraining.com A 2-day course which can be an add-on to Module 1 of the International School of Real Estate Finance and Development Training Week, or remain as a stand-alone workshop. Delegates entering the School just for the last two days are given a briefing overview of what has been covered on the 3-day module to provide context. This module gives a practical introduction to real estate development and finance, covering market analysis, appraisal techniques, risk management and concludes with structuring the debt and equity finance of a development using an interactive hands-on case study and spreadsheet models. As well as covering general commercial real estate, it will include features on hotels and residential assets. Who should attend? The course will be of interest to the following professionals and managers: Real Estate Investors Investment Bankers Financers Property Developers Financial Advisors Financial Consultants Property consultants Graduates & New Entrants to Real Estate Investment and Finance Fund Managers Investment Consultants Valuers Property Analysts Property Fund Management Staff
Day 1 Introduction Structure of course Delegates’ objectives Development Market Analysis Data Analysis Trends & Forecasts Development Appraisals & Viability Methods & Approaches: From residuals to cash flows Down to affordable land cost or profit Line by line items Ratio analysis: What indicates a viable project? How is profit being generated? Spreadsheet analysis: Development Appraisals 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. Cash Flow Appraisal Techniques: Moving from Residuals to Cash Flow Capital Budgeting Technique (NPV) Discounted cash flow, Accumulated cash flow and Draw-downs Structuring the Cash Flows Analysing the Outputs: IRR & NPV issues Special Topic: Hotel Development Hotel segments Feasibility Financial viability Implementation Marketing & Operations Day 2 Structuring the Development Finance Pre-let or speculative? Construction loan mechanics Main Underwriting Criteria Project Monitoring issues Exit strategies Forward sale and full forward commitment Matching the loan to the cash flows and the risks Case study: Residential Development Finance Participants will work in small groups to analyse a case study that considers the risk and return profile of a residential development and consider appropriate methods of finance. Spreadsheet analysis: Development Finance Spreadsheet models will be used to demonstrate the impact of finance on Pre-let and Speculative schemes. Debt and Equity issues will be considered and analysed. Joint Ventures & Private Equity Landowner & Developer JVs Traditional JVs and capital partners Different structures for different players Risk and return Priority of distributions Allocating risk & return Prefs, Promotes & waterfalls Showing the Exit and risk Spreadsheet analysis: JVs & Private Equity Spreadsheet models will be used to demonstrate the set-up of Joint Ventures, ground leases and private equity models. Delegates will test possible outcomes on the templates provided. Review of module and further reading & references Course summary and close