Real Estate School: Module 2 - Real Estate Development and Finance
This course represents module 2 of the School of Real Estate Finance, Investment and Development course (5 days)
The other, Real Estate Investment & Finance (3 days), as well as the whole school can be booked
- Interactive case studies based on actual projects with spreadsheet analysis
- Development analysis and appraisal
- Setting up and modelling a development project
- Cash flow appraisal techniques in development
- Structuring the development finance
- Structuring mezzanine, JV and private equity deals
- Modelling sample waterfall structures
Upcoming start dates
13 December, 2023
Who should attend?
Who Should Attend?
- Lending and Finance Bankers
Whilst its focus is primarily on mature markets, the techniques and trends studied will also be relevant to participants investing in property markets in other regions.
Session 1 Development concepts overview
- Overview – it is not just about the numbers
- Eight stages of property development
- Market demand
Session 2 Public and private sources of project funding
- Sources of money
- Capital (financial) structure of project
- Funding process
- Review of common analytical techniques and terminology
- Creating budget and proforma spreadsheets
Session 3 Due diligence considerations
- The developer and the team
- Market acceptance – lettings/pre-sales?
- Public approvals
- Fundamental construction contract types
- Budgeting, scheduling and associated common pitfalls.
Structuring and monitoring a construction loan
- Pre-let or speculative?
- Construction loan mechanics
- Main underwriting criteria
- Project monitoring: what do investors & lenders want to know?
Funds and joint ventures
- Overview: Capital flows and fund structure definitions
- Investment through intermediaries
- Capital partners Handout/Discussion
- Landowner ventures Handout/Discussion
- What are they?
- Risk and return
- Can they be used as a financing vehicle? Exercise/Discussion
Session 1 Understanding the financiers’ perspective – private equity structure and return waterfalls
- Legal and organizational structure / structuring considerations
- Fee structures
- Cash flow waterfalls Handout/Discussion
Session 2 International investment considerations
- Cross-border investment strategies and considerations
Session 3 Putting it All Together: YOU determine the answer!
Participants will be divided up in groups to solve a case problem. Each group will prepare a scheme on how to resolve problems identified in the case. Groups will presentation their analysis and recommendations. Groups will be evaluated based on reasonableness of their and creativity in finalizing the deal.
Session 4 Real estate economics: understand future trends in the property development industry
- Pandemic lock down consequences
- Demographic change
- Will there be a boom or a crash?
- What about developments in Europe, such as Brexit, Asia and the Middle East?
- Ethics and social responsibilities / green development
Session 5 Real estate economics – looking local
- What’s happening?
- Open discussion: what’s happening in your region?
Session 6 Summary and conclusions
Course fee: £2645+VAT
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