Kurum-İçi Eğitim Programları
A01. Real Estate Finance and Mortgage Products
This two-days interactive financial training course has been designed to offer all those who are interested in real estate as a development opportunity and as an investment a detailed insight into the mechanics of value creation in the real estate industry. The course will be taught through a combination of presentations, case studies and practical exercises. The financial aspects will be addressed through the use of a range of appropriate Excel models and delegates will work together in groups to analyze individual case studies.
Practical Case Studies:
- Comparing cash flow from US real estate and manufacturing investment projects
- Valuing offices and integrating market analysis in different US locations
- Comparing the performance of different property sectors in a range of international markets
- Structure and benefits of a range of mortgages compared
- Evaluation of legal issues in real estate investment transactions – case studies of US real estate transactions
- Comparison of buy-to-let and buy-to-sell real estate returns
- The US REIT market: development and prospects
- Real Estate in the global CDO market
- Evaluating cost of capital for real estate developers
- Property Swap Deals carried out
Comparison of international portfolios with real estate components
This course is designed to increase participants understanding of the increasingly complex and sophisticated process of real estate investment and finance. The need to be equipped with investment skills and essential financing techniques is a necessity in order to take advantage of profitable property finance opportunities. At the end of this course participants will have an understanding of the key drivers of real estate finance and how to select, assess and model appropriate financial alternatives in a risk / return context.
Course Background and Objectives
Real estate investment has long been a popular tool for private and institutional investors in Asia. Investment funds are readily including real estates in their portfolios.In the recent low interest rate environment, real estate investment offers attractive return, especially when the equity market was murky in the past few years. It has gained further popularity due to the availability of publicly
traded funds and REITs. In light of this, Euormoney has specially designed this
new Real Estate Investment and Ownership Vehicles course. It covers an all round discussion on the latest real estate investment products, management strategies and performance methodologies.
TOPICS COVERED ON THIS COURSE INCLUDE:-
- Measuring Real Estate Returns
- Property Finance Risk Management
- Financing Instruments and Techniques
- Financial Structures: Development
- Financial Feasibility: Developing the Business Plan
- Securitisation of Real Property Interest and Mortgages
Key issues to be discussed:
• Valuing property assets
• Measuring property performances
• Project financing and feasibility
• Financing alternatives – mortgages and bank finance
• Ownership vehicles including real estate debt securitisation and REITs in Asia
• Hedging real estate price risk
• Synthetic property investment
• Portfolio analysis of real estate assets
COURSE OBJECTIVES
The course will provide delegates with an understanding of:
- The component parts of a real estate cash flow model, and the macro and micro influences
- The characteristics of properties suitable for inclusion in public or private vehicles
- How to assess the financial feasibility of a real estate deal
- Financing structures, instruments and techniques
- Key negotiation points when structuring a real estate deal
- Analysing the risks involved in investing in property
TEACHING METHODS
The course is taught using a combination of theoretical lectures and practical "hands-on" sessions. Numerous case studies, exercises and computer based modelling sessions feature throughout the programme. Further material will also be available on a secure website dedicated to the programme.
Valuing Property Assets
?Site and building analysis
?The “Red Book” methodology and recent updates
?Changes and alternations in the Blue Book
?Leases and lease construction
?Own vs lease comparisons
Discounted Cash Flow Measurement for Real Estate
?Measuring real estate cash flow
?Forecasting
?Assessing net present value
?Cost of capital issues for real estate companies
?Costs, taxes and inflation
?Capital budgeting and real estate
?Tests of financial solvency (static analysis)
?Tests of profitability (dynamic analysis)
Valuing Property Assets
?Site and building analysis
?The “Red Book” methodology and recent updates
?Changes and alternations in the Blue Book
?Leases and lease construction
?Own vs lease comparisons
?Alternative methodologies
Measuring Property Performance
?Applicable concepts and methodologies
?Problems and issues with performance ev aluation
?Sources of data
?Evolution of data measurement
?International comparisons of performance
?Current issues in performance management
Mortgages and Bank Finance
?Concepts and applicability of the mortgage
?Global statistics
?Available types of mortgage
?The secondary mortgage market
?Lending practice and pitfalls
?Mezzanine and 2nd Lien financing for real estate
?Recent funding developments
Legal Issues in Property Investment
?Major legal concepts in the acquisition, use, management, and
transfer of real estate
?The question of title
?Title in secondary transactions
?Disclosure and governance in real estate acquisition and ownership
?Key case law internationally
?Current legal issues affecting the real estate industry
Risk and Real Estate
?Applicable risks in real estate investment
?Modelling and evaluating comparative risks
?Risk management strategies
?Available risk management instruments
?Costs and benefits of risk management
?Statistical evidence
Synthetic Property
?Replication of property performance
?Advantages and disadvantages of synthetic property investment
?The development of synthetic property (PINCs, SPOTs etc)
?Property futures: swaps, options and a futur es maket?
?Current available instruments in Asia
?Future developments
Portfolio Analysis
?Characteristics of an investment portfolio
?Measuring portfolio performance
?VaR as applied to multi-asset portfolios
?Real estate in a balanced portfolio
?Empirical evidence on real estate investment
?Changes in portfolio structure worldwide
Incorporating finance into a DCF appraisal
Types of debt used
• Senior
• Mezzanine debt
• Preferred equity
• Private Equity vehic
