Construct a robust real estate geared cashflow model from scratch which incorporates debt structures, from senior loans to junior and mezzanine structures.
This course is aimed at financial analysts working 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 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: 5 sessions (9am-1pm) Virtual Live/ 2.5 Days In-Person (9am-5pm)
Location: Virtual Live – Online/In-Person – London
CPD Hours: 18
Level: Intermediate to Advanced
Course fee:
(Payment Plan available)
Next Dates:
- 1 & 4-7 October 2021 – Virtual Live
- 24-26 November 2021 – In-Person
Please note – Due to Covid regulations, delegates attending our In-Person courses need to bring their own laptop to the course.
Virtual Live – Sessions 1 – 2
In Person – Day 1
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
Virtual Live – Session 3 – 5
In-Person – Day 2 & 3
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