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About this this course:

An exclusive programme offered by Cambridge Finance and in line with the Royal Institution of Chartered Surveyors (RICS) financial modelling competency, this course covers the main topics related to real estate financial modelling in Excel, leading up to the Cambridge Finance Certificate in Real Estate Financial Modelling. Delegates will learn how to create robust financial models from scratch, from traditional valuation methods to fully bespoke cash flows.

As an interactive, hands-on and live course, this certificate will ensure that delegates are able to demonstrate that they can develop and apply property cash flows in Excel in order to provide detailed and reasoned advice on the performance of investment and risks.

After the course, we also provide a 2-month course support, full of real-life case studies and alumni meet-ups for best long-term learning (new feature!).

This Certificate comprises the following courses:

Real Estate Investment & Financial Modelling
Real Estate Debt Structures & Financial Modelling
Real Estate Financial Modelling Masterclass

Cambridge Finance is the only real estate financial modelling training company regulated by the RICS and we are their exclusive partners in their real estate finance and investment content development.

Learning outcomes:

  • Construct robust and fully automated multi-tenant property cash flows from scratch
  • Be able to audit third-party cash flows
  • Understand how cash flow inputs and outputs are interlinked and how to test for errors
  • Develop and produce sensitivity and scenario analysis
  • Be able to give investment recommendation based on quantitative methods

Who should attend this course:

  • Professionals in the industry, particularly analysts in the commercial property investment and capital markets, who need to create financial models from scratch, analyse them and give investment recommendations
  • APC candidates on the Property Finance and Investment or on the Commercial Property Pathway who would like to take Financial Modelling as a competency to Level 2 and 3
  • Real estate professionals who want to advance their financial modelling skills and receive the Cambridge Finance Certificate which is the de-facto gold standard for showing real estate financial modelling skills in your CV

Details

Duration:  In-person & virtual – 5 days 9 am to 5 pm
Location: In-Person – Central London, Virtual – Zoom
CPD Hours: 32 hours
Level: Basic to Advanced

Course fee:

Early Bird
plus VAT
Book Early & Save
Book & Pay min. 30 days before course start date
RICS members Virtual Live Course £2,545
RICS Members In-Person Course £3,295
Non RICS Members Virtual Live Course £2,795
Non RICS Members In-Person Course £3,545
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Regular Price
plus VAT
Quality Training
Book and/or pay less than 30 days in advance
RICS members Virtual Live Course £2,800
RICS Members In-Person Course £3,625
Non RICS Members Virtual Live Course £3,075
Non RICS Members In-Person Course £3,900
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Payment Plan available

Dates:

  • 24-28 January 2022 – In Person & Virtual
  • 21-25 March 2022 – In Person & Virtual
  • 20-24 June 2022 – In Person & Virtual
  • 19-23 September 2022 – In Person & Virtual
  • 21-25 November 2022In Person & Virtual

Please note – Delegates attending our In-Person courses need to bring their own laptop to the course. Delegates attending virtually will need a second screen to follow the course and do the exercises simultaneously.

If you can’t make the dates and require online or on demand courses please contact us.

Content


In-Person & Virtual: Day 1


Best practice in financial models

  • Simple tips to help you become an efficient financial modeller
  • How to avoid errors and present your models in a persuasive way

Implicit investment valuation methods

  • Term & Reversion
  • Layer / Hardcore
  • Property yields
  • Defining term and reversionary yields
  • Calculating the equivalent yield

Build your cash flow from scratch

  • Inputs: passing rent, estimated rental value, initial and exit yields, market growth, review cycles and most importantly, target returns
  • Outputs: internal rate of return, net present value and worth
  • Annual and quarterly discounted cash flows: modelling purchase price, passing rent, rent reviews, exit rent and exit price

Analyse the results

  • IRR, NPV and Worth
  • Data tables & sensitivity analysis
  • Risk visualisation (charts)

Case study:

  • Single-tenant office building in the UK

In-Person & Virtual: Day 2


Multiple tenant properties

  • Modelling tenancy schedules and rents forecast
  • Rent reviews, upward-only, break options, lease expiry
  • Modelling hypothetical second leases
  • Void period, rent free and estimated rental values

Time-varying rental growth

Net Operating Income Forecast

  • Modelling capital expenditure for refurbishment and operating costs (letting fees, void costs, empty rates)

Investment decision

  • When to accept the project and make investment recommendation

Case study

  • Multi-tenant office building in the UK

In-Person & Virtual: Day 3


Capital structure, sources of debt funds & lending criteria

  • Capital structures: debt & equity
  • Explanation of different debt & equity structures
  • Sources of debt fund & lending criteria

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 repayment modelling

  • Interest Only
  • Constant Amortisation
  • Fully-Amortising Constant Payment
  • Partially-Amortising Constant Payment
  • Rolled-Up (Capitalised) Interest

In-Person & Virtual: Day 4


Pro-Forma Development Cash Flow Modelling

  • Site Purchase
  • Gross Development Value (GDV) versus Net Development Value (NDV)

Development Timeline Modelling:  Phases and Duration

Development Costs Modelling: Hard Costs and Soft Costs

  • S-Curve
  • Straight-Line
  • Known Costs
  • Mezzanine finance
    • Modelling mezzanine structures
    • Mezzanine interest and fees

Debt prioritisation

  • Modelling cash flow waterfall
  • Coupon and capital repayment schedule

Analysis

  • Maximum loan amount based on financial covenants
  • Credit Analysis
  • Stress test
  • Capital adequacy calculations

Case study:

  • Office development lending

In-Person & Virtual: Day 5


Real Estate Risk

Sensitivity Analysis 

Data Tables

Scenario Analysis

Automatic scenario modelling

Simulation Analysis

Monte Carlo analysis 

Case Study

Delegates will learn how to add a real life tenancy schedule and debt facilities into the models to prove that they are able to model and analyse any investment-grade commercial property transactions in the European markets.

 

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