Construct a robust real estate financial model from scratch and use it to assess the financial risk and return profile of a geared investment project with debt finance techniques.
This course is aimed at financial analysts working for for banks, real estate consultancies and property consultancies seeking a best practice approach to building robust real estate debt models.
Delegates will learn to construct a discounted cash flow model for senior debt and mezzanine finance for the investment and lending decisions. Delegates will also learn credit fundamentals which will enhance their property lending analysis and underwriting processes.
Who should attend this course:
The Real Estate Debt Structures and Financial Modelling courses are suitable for those willing to develop their debt origination modelling skills. This is a course aimed at the more experienced professionals and modellers who would like to improve their debt finance understanding and modelling expertise to the next level and comply with credit underwriting criteria.
Details
Duration: 2 days
Location: London
CPD Hours: 12
Level: Intermediate / Advanced
Maximum number of delegates: 8
Next Dates: 19 & 20 September, 2018
Content
Day 1
Sources of Funds & Lending Criteria
Insurance companies and pension funds
Clearing banks
Merchant banks
Mezzanine finance houses
Debt Covenants & Calculations
Operational Covenants: asset maintenance, disclosure requirements, insurance and credit line
Financial Covenants: interest cover ratio, debt service coverage, loan to value
Senior Debt Financial Modelling
Debt Modelling
Interest Only
Constant Amortisation
Constant Repayment
Rolled-Up Interest
Cash Sweep
Cash Trap
Revolving Facilities
Case study: office building debt lending in the UK (I)
Day 2
Mezzanine finance
Modelling mezzanine structures
Overview of inter-creditor agreements
Mezzanine interest and fees
Debt Prioritasiation
Modelling cash flow waterfall
Coupon and capital repayment schedule and prioritisation
Maximum loan amount
Credit Analysis
Stress test
Capital adequacy calculations