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Real estate finance is now available from banks, insurance, pensionĀ and private equityĀ funds, with appropriate gearing allowing real estate investors and developers to have access to larger opportunities and to leverage returns.

SomeĀ commercial real estateĀ investmentsĀ useĀ very low debt levels whereas someĀ other have aĀ very high debt ratio, but overallĀ an adequateĀ balance between equity and debt can be beneficial on a risk adjusted basis in order to support sustainable real estate – and economic – growth.

Despite debt finance being of fundamental importance to the real estate markets, its characteristics are not well understood by the surveying community, especially the effect of debt on the risk and return profile of real estate returns and how debt could eventually lead to distressed assets.

On this course, participants willĀ build up knowledgeĀ aboutĀ capital structure, how debt impacts the risk and return profile of investments, ways to access the debt markets as well as the main characteristics of debt facilities.Ā They will learnĀ about financial covenants and how leverage buy-out schemes work in practice.

By enhancing the knowledge and skills in real estateĀ debtĀ finance, participants will be enabled to improve their performance whenĀ raising debt andĀ interacting with clients from the finance and investment community.

This course is delivered in partnership with

RICS Regulated


Details

Duration:Ā  3 sessions of 1.5h each
Location:Ā Online
CPD Hours: 4.5
Level: Basic
Course fee: RICS Members: £165 + VAT/Non RICS Members: £195 + VAT

Next Dates:

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Topics Covered


Session 1

  • Motivations to use debt
  • Capital Structure
  • Sources of debt
  • Understanding loan terms
  • Understanding financial covenants
  • Current market considerations

Session 2

  • Types of debt facilities
  • Cost of debt
  • Interest rate risk and hedging instruments

Session 3

  • Recourse vs. Nonrecourse Debt
  • Real Estate debt underwriting: main points to be considered
  • Distressed Real Estate and Non-Performing Loans (NPLs)

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