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 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.


Duration: 5 sessions (9am-1pm) Online/ 2.5 Days Face to Face
Location: Online/Face to Face London
CPD Hours: 18
Level: Intermediate to Advanced
Course fee: £1695 + VAT (Payment Plan available)/ (Face To Face £2070+ VAT)

Next Dates:

Virtual Classroom5 Half-Days14 & 17-20 May 20219am to 1pm
Virtual Classroom5 Half-Days9 & 12-15 July 20219am to 1pm
London - Face To Face2.5 Days8-10 September 20219.30am to 4.30pm
Virtual Classroom5 Half-Days8 & 11-14 October 20219am to 1pm
London - Face To Face2.5 Days17-19 November 2021
Virtual Classroom5 Half-Days10 & 13-16 December 20219am to 1pm


Sessions 1 – 2

Sources of Funds & Lending Criteria

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

Senior Debt Financial Modelling

Debt Modelling

Constant Amortisation
  • Constant Repayment
  • Rolled-Up Interest
  • Forward Curve
  • Debt Covenants & Calculations

    Operational Covenants: asset maintenance, disclosure requirements, insurance and credit line

    Financial Covenants:

    • Interest Coverage Ratio (ICR)
    • Debt Service Coverage Ratio (DSCR)
    • Loan to Value (LTV)
    • Debt Yield


    Session 3

    Development finance (I)

    Equity-first modelling

    Modelling mezzanine structures

    Mezzanine interest and fees

    Joint-venture agreements with promote structures

    Debt Prioritisation

    Modelling cash flow waterfall

    Coupon and capital repayment schedule and prioritisation

    Maximum loan amount

    Credit Analysis

    Stress test

    Capital adequacy calculations