Course Content
Introduction to Property Development and Investment
- Property development and investment as a business
- Market overview & where to find opportunities and the pipeline
- Development and investment strategies
- Financial return metrics
- Real estate economics & cycles - entry & exit planning
- Exit strategies
Identifying and evaluating investment opportunities
- Market analysis: The real estate cycle and investment opportunities
- Real estate investors: Height net worth individuals, pension and other institutional funds
- Valuation for commercial and residential properties
- Assessing Gross Development Values (GDV), key development costs, professional fees, interests costs and contingencies
- Financial analysis: Discounted Cash Flow (DCF), profit on cost calculation, IRP, NPV, equity multiple
- Maximum bid price for site
Obtaining planning permission and enhancing existing planning permission
- Planning permission explained
- Types of permits (no planning, outline, permitted development, full permission, enhancement potential)
- Pitfalls to watch for and managing expectations
Structuring the offer for the site
- Reducing capital requirements: Purchase options explained
- Delayed completion options
- Full cash offers
- Landowner joint-ventures
- Aligning capital in a bid to offer for the site
- Overage agreements
- Assessing the legal title and searches
Construction and Project Management
- Contracting, monitoring works and phase completions
- Cost control, overruns and how to deal with budgets
- Setting up the professional and advisory teams: from quantity surveyors, to architects, accountants, construction companies, financial modelling & control, joint-ventures partners, solicitors and lawyers, and tax advisors
- Sourcing, engaging and motivating the team
Case Study:
Value-add development in West London
Funding and Financing the Real Estate Project
- Sources and types of funding available: rates, sample terms and investment structure
- Principle of corporate finance: picking the right capital structure to fund the property development project
- Forward funding
- Typical senior debt terms and structures
- Typical mezzanine debt terms and structures
- Sourcing additional equity
- Inter-creditor and shareholders agreement
- Basics of development loan structures
- Lending criteria and typical capital structures
- Lending fees
Introduction to UK Taxation of Real Estate
- Principles of taxation for real estate
- Property taxes and financial returns
- Taxes on acquisition, development, accupancy and disposal
- Pff-shore versus on-shore companies' taxation
Exit options, sales, marketing strategy and tactics in practice
- Marketing and client segmentation
- International investors and marketing overseas
- Marketing strategy and tactics for your project
- Estate agents: structures, hiring an firing
- Structuring offers for buyers
- Controling sales and marketing budget
Sustainability in Real Estate
- The value of green buildings
- Sustainability certifications
- Environmental, social and governance for development and investing
- Well-being in real estate
Property Management
- Property management requirements and strategies
- Asset management plans, processes and control techniques
