Construct a robust real estate financial model to assess the financial risk and return profile of development, re-development, refurbishment and value-add investments.

This course is aimed at investment surveyors,  real estate finance professionals and property consultants seeking to build robust real estate development models free of errors.

Delegates will learn to construct a financial model for viability analysis in development, re-development of commercial and residential properties. Delegates will also learn how to produce sensitivity analysis, which will enhance their real estate financial analysis,  error checking skills and improve their underwriting processes.

Who should attend this course:

The Real Estate Development and Financial Modelling in Excel courses are suitable for the beginner or intermediate financial modeller, who is seeking to develop their modelling skills and become an expert financial modelling for real estate development.


Details

Duration: Virtual Live – 4 sessions (9am to 1pm)/In-Person 2 days (9am to 5pm)
Location:  Virtual Live – Online/In-Person London
CPD Hours: 14/12
Level: Basic / Intermediate
Course fee:

Early Bird
plus VAT
Book Early & Save
Book & Pay min. 30 days before course start date
Virtual Live Course £1,195
In-Person Course £1,495
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Regular Price
plus VAT
Quality Training
Book and/or pay less than 30 days in advance
Live Virtual Course £1,315
In-Person Course £1,645
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Payment Plans available

Next Dates:

  • 20 & 21 October – Face to Face
  • 10 & 13-15 December 2021 – Online

Please note – Due to Covid regulations, delegates attending our In-Person courses need to bring their own laptop to the course.

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Content


Virtual Live – Sessions 1-2

In-Person – Day 1


Residual Valuation Appraisal

Property Yields

Land Value

Profit Appraisal

Gross and Net Development Values

Return on GDV, Cost and Equity

Pro-forma development cash flow 

Inputs:

  • Timings: purchase date, works start date, planning, lead in, construction and refurbishment, void period, lease start, sale date
  • Revenue: sales proceeds, estimated rental value per sqf, net internal areas, rental growth and target returns
  • Development Costs: construction and refurbishment, site purchase and vacant possession value, contingency, professional fees, statutory costs, allowances and rights
    • S-Curve vs. Straight Line

Outputs:

  • Internal Rate of Return (IRR)
  • Net Present Value (NPV)
  • Maximum Bidding Price
  • Total profit, profit on cost and equity multiple

 

Financial viability testing & risk analysis

Data tables & sensitivity analysis

Risk visualisation techniques

Case study: un-geared office redevelopment in the UK

 


Virtual Live – Sessions 3-4

In-Person – Day 2


Development finance

  • Debt & Equity Structures
  • Senior Debt
  • Mezzanine Loan

Geared cash flow

Debt Types

  • Rolled-up interest senior debt
  • Equity first capital deployment waterfall
  • Debt repayment structures for development finance

Joint-venture structures

  • Equity waterfall structure
  • Preferred returns
  • Promote Cash Flow

Capitalised interest & circularities

Case study: geared office redevelopment in the UK


What our customers say:

I participated in Cambridge Finance’s two-day, real estate development modelling course and benefited immensely from:

  • An extremely well-structured course;
  • An interactive class, taught at pace;
  • A highly knowledgeable and engaging instructor; and
  • Excellent course material.

Ultimately, I came away from the course more confident in my modeling and equipped with the tools (handy excel shortcuts included) to build a robust but organized development model.

I highly recommend the Cambridge Finance team and for any entry level or intermediate employees looking to refine their skills.”

Laura, Real Estate Finance professional.


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