Summary

Learn how to construct a robust real estate geared cashflow model from scratch.
Understand senior debt and mezzanine finance for investment and lending decisions.
Master credit fundamentals which will enhance your property lending analysis and underwriting processes.

Who should attend this course

Financial analysts working at banks, private equity firms and real estate consultancies.

Details

Duration: 3 Days / 9am-5pm
Location: Virtual Live/ Hard Rock Hotel, London
CPD Hours: 18
Level: Intermediate to Advanced

Early Bird
plus VAT
Book Early & Save
Book & Pay min. 30 days before course start date
3 day Virtual Live £1,950
3 day In-Person £2,380.50
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Regular Price
plus VAT
Quality Training
Book & Pay less than 30 days before course start date
3 day Virtual Live £2,145
3 day In-Person £2,620
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(Payment Plan available)

The course fee includes training, course materials and post course support.

Dates

  • 5-7 July 2023
  • 11-13 October 2023

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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

Day 2

 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

Day 3

Real Estate Risk

Sensitivity Analysis 

Data Tables

Scenario Analysis

Automatic scenario modelling

Simulation 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.

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