Asian Property Financing: Structuring and Cash Flow Analysis

2 days 24-25 Aug 2017, Hong Kong Hong Kong $3,350.00 Download brochure Add to basket

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Overview

This course will focus on skill development on property economics and cash flow analysis for property financing. It aims to familiarize the participants with the regulatory aspects of property development, risk analysis of property financing, project economics of property financing, property financing loans and structure and credit writing for property financing. This will enable the learners to deal from origination to execution for any property financing requests.

Learning Objectives:

  • At the end of this course, participants will be able to:
  • To keep abreast of the property financing techniques
  • Assess a borrower’s strengths and a project’s feasibility
  • Learn how to make a better decision about the loan amount that can be supported by the value & serviced by cash flow
  • Learn how to develop a range of values for commercial real estate projects
  • Know how to structure the financing with the terms of the loan according to the risk and rewards
  • Decide what documents are necessary to support and manage the loan

Who should attend

Mid-level corporate bankers covering the Asian real estate borrowers, real estate fund managers investing in Asian real estates, credit analysts monitoring Asian real estate loan portfolios, finance professionals who have interested in Asian real estate debt

Instructors

We work with a series of expert instructors, please select the course location of interest to review the credentials of who will be delivering the programme.

Hong Kong
Stan Ho

The Course Director with 20-year investment banking and credit rating experience, is currently the Adjunct Professor of the Department of Real Estate and Construction at the University of Hong Kong, and the Adjunct Professor of the School of Accounting and Finance at The Hong Kong Polytechnic University.

He started his career at Credit Suisse in Equity Capital Markets. He was involved in structuring of equity and equity-linked offerings, generating marketing and pricing strategies, organizing roadshows and teach-in for salesforce, performing book building and stock allocation analysis. Products covered include straight equity (IPO and DR) and convertible bonds.

He then moved to Merrill Lynch Corporate Finance. At Merrill Lynch he was responsible in preparing financial models and company valuation, drafting rating agency presentations and roadshow materials, assisting in due diligence and business origination. Products covered include straight bond and MTN offerings. Subsequently he joined Bear Stearns and looked after overall transaction and project management for capital raising and merger and acquisition: Conducting business and financial due diligence, developing equity and credit stories for the issuing clients, preparing and reviewing financial models, drafting and reviewing deal correspondence and legal documentation, acting as the point person among the issuing clients, strategic investors, lawyers, accountants, rating agencies and the regulators during the transaction execution, and leading the negotiation with the counterparties and their advisors in merger and acquisition assignments.

In 2003, he decided to move to Fitch Ratings and became Head of Non-Japan Asia Structured Finance, Covered Bond and REIT Corporate Ratings. He was responsible for securitization, covered bond and REIT corporate ratings in Non-Japan Asia covering CMBS (real estate) in Singapore, ABS (credit card and auto) in Korea and ABS (auto NBFI) India. his analytical work scope includes leading management meeting and site visit, performing collateral and financial statement analysis, cash flow and scenario stress testing, reviewing legal documentation and opinion, liaising with issuers, bankers and lawyers on transaction structures, presenting rating recommendation for internal approval, writing research and answering enquiries by investors and regulators.

Since 2012, he becomes active in training and education. He has ample training experience for commercial banks, investment banks, insurance companies and industry associations in Asia including:

  • Credit Derivatives
  • Credit Rating and Corporate Credit Analysis
  • Risk Management (Credit and Market)
  • Equity Capital Markets/Initial Public Offering/Equity-Linked Securities
  • Debt Capital Markets
  • Merger & Acquisition
  • Private Equity & Venture Capital
  • Investment Analysis & Portfolio Management
  • Hedge Funds & Alternative Asset Classes
  • Fixed Income Securities
  • Structured Products
  • Real Estate Investment & Finance
  • Financial Statement Analysis
  • Accounting and Profit Manipulation
  • Basel and Bank Capital Adequacy

Venue

Hong Kong

4-5 Star Hotel in Hong Kong

All of our courses are held in 4 – 5 star hotels, chosen for their location, facilities and level of service. You can be assured of a comfortable, convenient learning environment throughout the duration of the course.

Due to the variation in delegate numbers, we will send confirmation of the venue to you approximately 2 weeks before the start of the course. 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.

Related Courses

Inhouse


 

Do you have five or more people interested in attending this course? Do you want to tailor it to meet your company's exact requirements? If you'd like to do either of these, we can bring this course to your company's office. You could even save up to 50% on the cost of sending delegates to a public course.

To find out more about running this course in-house:





Our Tailored Learning Offering

If you want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help.

We produce learning solutions that are completely unique to your business. We'll guide you through the whole process, from the initial consultancy to evaluating the success of the full learning experience. Our learning specialists ensure you get the maximum return on your training investment.

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We can offer any of our public courses delivered at your office or we can devise completely tailored solutions:


Read more about our offering or complete a call back request to speak to a learning specialist.

 

Agenda

Day 1

Asian Property Markets:

  • Property Tenure/Ownership
  • Major Property Regulations
  • Taxes on Possession, Operation, Acquisition and Transfer of Real Estate
  • Real Estate Investment Trusts
  • Common Terms of Lease for Tenancy Agreements
  • Foreign Ownership

Property Development:

  • Real Estate Development Timeline: Planning/Pre-Construction, construction, post-construction, sale
  • Real Estate Development Expenses: Land acquisition costs, hard costs, soft costs
  • Major Development Risks: Cost overrun, construction delay, contractor bankruptcy
  • Real Estate Development Funding: Developer equity, third party investor equity, banks,

 

Property Investment:

  • Major Players: Real estate funds, property listed companies, sovereign wealth funds
  • Major Property Types: Retail, office, industrial, hotels
  • Property Investment Strategies: Core, core plus, value added, opportunistic
  • Property Due Diligence: Physical, legal, business
  • Property Valuation: Market approach (sales comparable), income approach (capitalization and DCF), cost approach (cost replacement)

Day 2

Structuring Property Financing Loans:

  • Yield
  • Tenor
  • Bullet vs. Amortising
  • Call and Put Options
  • Cash Reserve and Third Party Corporate Guarantee
  • Security

Credit Analysis for Property Financing Loans:

  • Qualitative Analysis: Market volatility, country regulations, management track record
  • Quantitative Analysis: Capital structure, interest coverage, leverage, financing flexibility

Cash Flow Modelling for Property Financing:

  • Top down and Bottom up Approaches
  • Forecasting Property Company Income Statements
  • Forecasting Property Company Balance Sheets
  • Forecasting Property Company Cash Flow Statements
  • Stress Testing for DSCR and LTV
  • Cash Flow Projection for Asset Enhancement

Credit Memorandum for Property Financing:

  • Setting Appropriate Loan Credit Terms
  • Appropriate Credit Report Writing Approach
  • Effective Credit Memorandum Tips and Presentation Format
  • Common Mistakes in Writing Credit Memorandum

Property Financing Documentation:

  • Security for Real Estate Lending
  • Representations and Warranties
  • Undertakings
  • Information
  • Events of Default

 

Why us


We have a combined experience of over 60 years providing learning solutions to the world’s major organisations and are privileged to have contributed to their success. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements.

We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve your goals and accelerate your career:

  • Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score awarded to us by our clients is nine out of ten.
  • Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over 250,000 professionals.
  • Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and commentators, ensuring our knowledge base is second to none.
  • Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online, using simultaneous translation to delegates from over 180 countries.
  • Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an independent review by Feefo we scored 96% on service and 95% on product