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 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 (10am – 4.30pm)Face to face/4 sessions (9am-1pm) Online
Location: London/Online
CPD Hours: 12/14
Level: Intermediate to Advanced
Maximum number of delegates: 7
Course fee: £1195 + VAT (Payment Plan available)
Next Dates:
Online
22 & 25-27 January 2021
19 & 22-24 March 2021
14 & 17-19 May 2021
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, debt yield
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
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