Construct a robust real estate geared cash model from scratch which incorporates debt structures, from senior loans to junior and mezzanine structures.

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: 16 & 17 October, 2018

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Content


Day 1


Sources of Funds & Lending Criteria

Insurance companies and pension funds
High street and corporate banks
Debt funds and public markets
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


Development finance

Mezzanine finance

Modelling mezzanine structures

Overview of inter-creditor agreements

Mezzanine interest and fees

Debt Prioritisation

Modelling cash flow waterfall

Coupon and capital repayment schedule and prioritisation

Maximum loan amount

Credit Analysis

Stress test

Capital adequacy calculations

Case study: office building debt lending in the UK (II)

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