Introduction to Real Estate Investment, Development and Finance

Overview
This intensive two-day course, running from 9:00 AM to 5:00 PM* both in person in Central
London and virtually, offers a comprehensive introduction to real estate investment and
finance. It is designed for professionals looking to deepen their understanding of real estate
private equity, investment trusts (REITs) and real estate debt.

Day 1: Foundations of Real Estate Equity Investment and Key Concepts
The course begins with a welcome session where participants are introduced to the
objectives and structure of the course. An overview of real estate investment and finance will
set the stage, highlighting the importance of the sector and current market trends.
The first major topic covered is Real Estate Private Equity Investments. This session
provides an overview of private equity in real estate, discussing the structures and strategies
of real estate private equity investments and explaining the investment lifecycle. Participants
will then engage in evaluating real estate private equity deals, learning about the due
diligence process, key performance indicators and analysing a case study of a real estate
private equity deal.
After lunch, we will focus our attention to Real Estate Investment Trusts (REITs). Participants
will learn about the various types of REITs, the benefits and risks associated with investing in
them and how they function in terms of income generation and portfolio diversification.
Following this, the course will cover the analysis of REIT performance, focusing on key
financial metrics, valuation methods, market trends and a case study of a successful REIT.

Day 2: Real Estate Debt and Practical Applications
Day 2 will address the very important topic of Real Estate Debt. Participants will explore the
different types of real estate debt instruments, their role in property investments and
compare debt versus equity investments in the capital stack.
We will start the day by analysing the critical role of real estate debt finance in real estate
transaction and will further our knowledge on how to structure and source real estate debt.
This includes underwriting and risk assessment, negotiating terms and conditions and
analysing a case study on structuring a real estate debt deal. The course will further
examine the integration of real estate debt and equity in investment portfolios, whereby
participants will learn about portfolio management strategies, the benefits of diversification,
risk management and practical examples of portfolio analysis.
This course is designed to equip participants with a solid foundation in real estate investment
and finance, providing practical insights into the workings of REITs, private equity, and debt
instruments in real estate.

Maria Wiedner
Maria Wiedner

CEO / principal trainer

Romney Fox
Romney Fox

trainer / consultant

Course Content

Foundations of Real Estate Development and Investment

  • Why invest in real estate
  • Four quadrants of real estate investment
  • Real estate market cycles and their impact on investment decisions

Overview of Private Equity in Real Estate

  • Definition and key concept
  • Importance and role in the real estate marke
  • Current trends and market dynamics

Investment Strategies and Processes

  • Core, core-plus, value-add, and opportunistic strategies
  • Risk-return profiles of different strategies

The Investment Lifecycle

  • Sourcing and acquiring properties
  • Due diligence and underwriting
  • Asset management and value creation
  • Exit strategies and dispositions

Evaluating Real Estate Developments

  • Gross Development Value (GDV) and Net Development Value (NDV)
  • Residual Land Value (RLV)

Evaluating Real Estate Private Equity Deals
Performance Metrics and KPIs

  • Internal Rate of Return (IRR)
  • Equity Multiple
  • Net Operating Income (NOI)
  • Yields
  • Worth or Investment Value

Case Study Analysis

  • Real-world example of a private equity real estate development deal

Foundations of REITs

  • Introduction to REITs: History and purpose
  • Overview of REIT structures in different countries
  • Emerging Markets and REITs: Opportunities and risks
  • Market size and structure
  • Types of REITs: development, operating, internal vs external
  • The economic rationale for investing in REITs

REIT Investment Strategies

  • Portfolio Diversification with REITs
  • Public vs. Private REITs: Pros and cons

Legal and Regulatory Framework

  • REIT Legislation: A global overview
  • Tax considerations and requirements for REITs
  • Governance and compliance in REIT operations

REIT Financials and Performance Metrics

  • Understanding REIT Financial Statements
  • Key Performance Indicators for REITs (FFO, AFFO, NAV)
  • Analysing REIT dividend payout and sustainability

Valuation Techniques for REITs

  • Intrinsic vs Relative Value
  • Comparative analysis and benchmarking
  • Identifying value and stock selection
  • Market Trends Affecting REIT Sectors (Retail, Residential, Office, etc.)
  • The impact of economic cycles on REIT performance

Risks and Opportunities in REIT Investment

  • Macro-economic, sector and stock-specific risks
  • ESG Risks
  • Identifying and managing risks in REIT investment portfolios
  • Legal and Regulatory Changes: Impacts on REITs

The Future of REITs

  • Innovations in Real Estate: REITs and technology
  • The outlook for REITs: Trends and predictions

Case Study Analysis

  • Real-world example of a publicly-traded REIT

Fundamentals of Real Estate Debt Finance

  • The Real estate transactions’ capital stack
  • The importance of debt in real estate transactions

Real Estate Market Analysis

  • Understanding market trends
  • Asset class demand pre- and post-COVID-19
  • ESG, lenders’ and borrowers’ approaches
  • Evaluating market conditions for financing decisions
  • Geographic and sector-specific considerations

Types of Real Estate Debt Instruments

Commercial Real Estate Loans

1. Characteristics of commercial loans

  • Risk-Return

2. Loan structures

  • Interest-only
  • Constant amortisation and remaining balloon payment
  • Annuity
  • Cash Sweep

Development Financing
1. Financing new development projects

  • Strategy: Residential/ Commercial; domestic/ international


2. Risks and considerations

  • Developing entity, credit worthiness, project experience
  • Land development risks
  • Design Risks
  • Entitlement risks
  • Financing Risks
  • Cost overrun/ delay risk
  • Lease risk
  • Sale Risk

3. Phases of development financing

  • Total Development Costs and Sources of Funds
  • S-Curve and Debt Drawdowns

Key terms and covenants

  • Maturities: Development facility vs Investment properties
  • Financial covenants/ Default covenants
  • Reporting covenants/ Information covenants

Analysing real estate debt
1.
Financial Analysis Techniques from an investment and lending perspective

  • Property Investment

           - Net present value (NPV) and internal rate of return (IRR)

  • Lending

           - Debt service coverage ratio (DSCR)/ Interest Cover Ratio (ICR)
           - Debt Yield
           - Loan-to-value ratio (LTV)

2. Risk Assessment

  • Identifying and mitigating risks
  • Sensitivity analysis
  • Stress testing financial models

Commenting on Legal and Regulatory Framework
1. Legal Aspects of Real Estate Debt

  • Key legal documents (Loan agreement/ Security documents including Fixed charge/ mortgages deed, floating charge, pledges over rental income accounts)
  • Foreclosure process and implications
  • Lender liability and borrower protections

2. Regulatory Environment

  • Overview of relevant regulations

            - Basel III
                    - Output Floors
            - Sustainable Finance Disclosure Regulation
                    - Art. 8 and 9
            - Shariah Finance

  • Impact of regulations on real estate finance


Case Studies and Practical Applications

  • Real-world example of a real estate debt financing transaction
Estee Tan

“The content was excellent…very on point in terms of what I wanted to learn. The course gives you an overall view of property development and investments so that you’re able to look at things in the round”

Estee Tan
Finance Director
Student
Dates & Prices
DurationDuration CPD HoursCPD Hours LocationLocation LevelLevel DatesDates
2 days 14 The Cumberland, London /Online General

Virtual Live

In-Person

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