Real Estate Cashflow & Financial Modelling

3 days 7-9 Feb 2018, London UK £3,395.00 + VAT* Download brochure Add to basket
3 days 10-12 Dec 2018, Dubai UAE £3,395.00 Download brochure Add to basket

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Overview

If you already have an understanding of real estate finance and investment techniques,  this course will enable you to develop your skills in analysing and structuring real estate deals. Skills and techniques will be demonstrated to assist in developing financial structures and evaluating the financial feasibility of investing in real estate. Case studies and worked examples will be used throughout the programme to enable you to apply these techniques to real-life. You will enhance your range of skills and techniques which will help you to make informed real estate financing decisions.

How will this course assist?

This 3-day course will assist you with structuring the finance and evaluating the financial feasibility of investing in complex real estate deals, you will cover:

  • Building valuation models for investment and development
  • Creating cashflow models for investment and finance
  • Identifying, evaluating and managing the risk of investing in property
  • Analysing the risks and returns of different financing structures
  • Selecting the most appropriate financing structure for your deal
  • Applying financial structuring techniques to existing investments
  • Understanding how to structure mezzanine and JV deals

 

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.

London
Bill Rodney

The course director is a Chartered Surveyor whose career has spanned both private and public sector work, including large-scale development schemes, urban regeneration projects, project finance and Private Finance Initiatives (PFI). He has undertaken research and consultancy projects in development, cash flow analysis and corporate real estate and business strategy and trends impacting the real estate industry.

He has advised on funding and development strategies in Europe, Africa, Asia and Australia as well as having extensive teaching experience in the UK, Hong Kong and Malaysia.

His teaching experience has covered specialist Real Estate Investment & Finance Masters and MBA programmes and he runs training courses globally for banks, investment managers, corporate advisory teams, legal firms and public sector clients. Topics covered combine spreadsheet modelling for debt / equity structuring, development appraisals and finance, investment analysis, risk, simulation and portfolio modelling, leases and option pricing, corporate finance models. He combines extensive practical experience with a strong academic background. This enables him to relate theory to practical applications.

He is a Registered CPD Presenter - verifying a proven track record in training, lecturing and enhancing skills and knowledge in specialist technical areas with an established practical experience background.

The instructor holds MSc in Real Estate Investment & Finance from City University, London where he subsequently became Head of Department. He retains a part-time position as Senior Lecturer in the Faulty of Finance, Cass Business School, teaching on specialist Masters courses and postgraduate programmes.

Dubai
Bill Rodney

The course director is a Chartered Surveyor whose career has spanned both private and public sector work, including large-scale development schemes, urban regeneration projects, project finance and Private Finance Initiatives (PFI). He has undertaken research and consultancy projects in development, cash flow analysis and corporate real estate and business strategy and trends impacting the real estate industry.

He has advised on funding and development strategies in Europe, Africa, Asia and Australia as well as having extensive teaching experience in the UK, Hong Kong and Malaysia.

His teaching experience has covered specialist Real Estate Investment & Finance Masters and MBA programmes and he runs training courses globally for banks, investment managers, corporate advisory teams, legal firms and public sector clients. Topics covered combine spreadsheet modelling for debt / equity structuring, development appraisals and finance, investment analysis, risk, simulation and portfolio modelling, leases and option pricing, corporate finance models. He combines extensive practical experience with a strong academic background. This enables him to relate theory to practical applications.

He is a Registered CPD Presenter - verifying a proven track record in training, lecturing and enhancing skills and knowledge in specialist technical areas with an established practical experience background.

The instructor holds MSc in Real Estate Investment & Finance from City University, London where he subsequently became Head of Department. He retains a part-time position as Senior Lecturer in the Faulty of Finance, Cass Business School, teaching on specialist Masters courses and postgraduate programmes.

Venue

London

Central London Hotel Venue

All courses are held at four or five star venues in Central London, Zone 1. We strive to provide you with a training environment of the highest quality, to ensure that the whole learning experience exceeds your expectations.

Your training venue will be confirmed by one of our course administrators approximately 3-4 weeks before the course start date.

Dubai

Dubai Hotel

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.

 
 

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.

inhouse-learn-more

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

Agendas are localised, please select your preferred location.

Day 1

Introduction 

  • Structure of the course
  •  Discussion of delegates’ objectives

Getting started: best practice and presentation
This session sets the scene for setting up the
spreadsheet and ensuring spreadsheet integrity

  • Standardisation
  •  Use of templates
  •  Modelling tips / best practice
  •  Audit and transparency issues
  •  Safeguarding intellectual capital
  •  Graphics and Presentation: Line, column and bar charts, creating dynamic charts, creating interactive models, building simple animation in spreadsheets including graphs and text boxes

Property valuation formats

  • Formulae and function for valuations and appraisals
  •  Valuing gross and net leases
  •  Calculating and comparing effective rents
  •  Applying different types of yield
  •  Understanding and analysing the components of yields
  •  Backing out market implied growth rates
  •  Global valuation techniques: income approach and cost approach
  •  Turnover rents

Structuring a cashflow model
 

  • Line by line build up of cashflows
  •  Typical cashflow issues
  •  Timing and frequency formats
  •  Growth and CPI indices
  •  Cap Ex and Op Ex
  •  Checking outputs for consistency
  •  Exit strategies and solving for transaction prices
  •  Graphing and presentation of outputs

Case study: creating a cashflow model

Day 2

Cost of capital techniques in real estate

  •  Use and calculation of discount rates
  •  Weighted average cost of capital
  •  Payback
  •  Using NPV and IRR and understanding limitations
  •  Buy or lease decisions
  •  Hold or leaseback structures

Putting it into practice: developing a model buy, lease or leaseback


Adding debt 

  • Applying typical banking covenants
  •  Using excel’s specialist financial functions
  •  Capital cover or income cover: techniques for sizing the loan
  •  Creating a geared cashflow
  •  Structuring for added value plays
  •  Reconciling borrower and lender objectives

Extending the debt model

  • The capital stack
  •  Mezzanine finance approaches
  •  Lookback IRR
  •  Mezzanine finance with profit-share

Putting it into practice: extending the model adding mezzanine finance

Day 3

Development appraisals 

  • Residual appraisals
  •  Identifying feasibility
  •  Presentation and use of graphs
  •  Development cashflows
  •  Revisiting risk issues

Putting it into practice: developing a model development appraisals

Development Finance

  • Options for financing pre-let and speculative deals
  •  Forward sale and full forward funding
  •  Mezzanine finance for developments

Putting it into practice: extending the model adding financing alternatives

JV and private equity models

  • Use of third party equity
  •  Ground rent and land lease calculations
  •  Using real options
  •  Priority of distributions
  •  Structuring the pref and promote
  •  Waterfall structures

Putting it into practice: JV and profit sharing structures

Course summary and close

Day 1

Introduction

  • Structure of the course
  • Discussion of delegates’ objectives

Getting started: best practice and presentation
This session sets the scene for setting up the spreadsheet and ensuring spreadsheet integrity

  • Standardisation
  • Use of templates
  • Modelling tips / best practice
  • Audit and transparency issues
  • Safeguarding intellectual capital
  • Graphics and Presentation: Line, column and bar charts, creating dynamic charts, creating interactive models, building simple animation in spreadsheets including graphs and text boxes

Property valuation formats

  • Formulae and function for valuations and appraisals
  • Valuing gross and net leases
  • Calculating and comparing effective rents
  • Applying different types of yield
  • Understanding and analysing the components of yields
  • Backing out market implied growth rates
  • Global valuation techniques: income approach and cost approach
  • Turnover rents

Structuring a cashflow model

  • Line by line build up of cashflows
  • Typical cashflow issues
  • Timing and frequency formats
  • Growth and CPI indices
  • Cap Ex and Op Ex
  • Checking outputs for consistency
  • Exit strategies and solving for transaction prices
  • Graphing and presentation of outputs

Case study: creating a cashflow model

Day 2

Cost of capital techniques in real estate

  • Use and calculation of discount rates
  • Weighted average cost of capital
  • Payback
  • Using NPV and IRR and understanding limitations
  • Buy or lease decisions
  • Hold or leaseback structures


Putting it into practice: developing a model buy, lease or leaseback

Adding debt

  • Applying typical banking covenants
  • Using excel’s specialist financial functions
  • Capital cover or income cover: techniques for sizing the loan
  • creating a geared cashflow
  • Structuring for added value plays
  • Reconciling borrower and lender objectives

Extending the debt model

  • The capital stack
  • Mezzanine finance approaches
  • Lookback IRR
  • Mezzanine finance with profitshare

Putting it into practice: extending the model adding mezzanine finance

Day 3

Development appraisals

  • Residual appraisals
  • Identifying feasibility
  • Presentation and use of graphs
  • Development cashflows
  • Revisiting risk issues

Putting it into practice: developing a model development appraisals

Development Finance

  • Options for financing pre-let and speculative deals
  • Forward sale and full forward funding
  • Mezzanine finance for developments

Putting it into practice: extending the model adding financing alternatives

JV and private equity models

  • Use of third party equity
  • Ground rent and land lease calculations
  • Using real options
  • Priority of distributions
  • Structuring the pref and promote
  • Waterfall structures

Putting it into practice: JV and profit sharing structures


Course summary and close

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