Course Content
Capital structure, sources of debt funds & lending criteria
- Capital structures: debt & equity
- Explanation of different debt & equity structures
- Sources of debt fund & lending criteria
Debt covenants & calculations
- Operational Covenants: asset maintenance, disclosure requirements, insurance and credit line
- Financial Covenants: interest cover ratio, debt service coverage, loan to value, debt yield
Senior debt repayment modelling
- Interest Only
- Constant Amortisation
- Fully-Amortising Constant Payment
- Partially-Amortising Constant Payment
- Rolled-Up (Capitalised) Interest
Pro-Forma Development Cash Flow Modelling
- Site Purchase
- Gross Development Value (GDV) versus Net Development Value (NDV)
Development Timeline Modelling: Phases and Duration
Development Costs Modelling: Hard Costs and Soft Costs
- S-Curve
- Straight-Line
- Known Costs
- Mezzanine finance
- Modelling mezzanine structures
- Mezzanine interest and fees
Debt prioritisation
- Modelling cash flow waterfall
- Coupon and capital repayment schedule
Analysis
- Maximum loan amount based on financial covenants
- Credit Analysis
- Stress test
- Capital adequacy calculations
Case study
- Office development lending
Real Estate Risk
Sensitivity Analysis
- Data tables
Scenario Analysis
- Automatic scenario modelling
Stimulation Analysis
- Monte Carlo analysis
Case Study
Learn how to add a real life tenancy schedule and debt facilities into the models. Analyse investment - grade commercial property transactions in the European markets.
