Real estate finance is now available from banks, insurance, pension and private equity funds, with appropriate gearing allowing real estate investors and developers to have access to larger opportunities and to leverage returns.
Some commercial real estate investments use very low debt levels whereas some other have a very high debt ratio, but overall an adequate balance between equity and debt can be beneficial on a risk adjusted basis in order to support sustainable real estate – and economic – growth.
On this course, participants will build up knowledge from time value of the money to understanding about the financial markets and debt structures, in both public (listed) and private markets and main terms. They will learn how to access the debt markets, the main players, and how to calculate simple debt structure, interest payments and loan amounts.
By enhancing the knowledge and skills in real estate finance, participants will be enabled to improve their performance when interacting with clients from the finance and investment community.
Course outcomes:
- Comprehend the difference between debt and equity, capital structure, risk profile of geared and un-geared returns
- Apply the main terminologies used in the financial markets and comprehend how they translate in to the commercial real estate industry
- Explore the range of real estate debt finance and sources and how these can be structured, priced and analysed on a risk-adjusted basis
- Learn how to calculate loan terms, such as balance outstanding and interest rates
- Improve business interactions with investors, funders and clients from the lending and equity investment markets
Details
Duration: 1 day
Location: London
CPD Hours: 6
Level: Basic
Course fee: RICS Members: £325 + VAT/Non RICS Members: £420 + VAT
Next Date:
13 February 2020 – Manchester
4 March 2020 – London
24 June 2020 – London
Content
Overview
Use of debt in CRE investment
Current trends in UK and Europe
Sources of commercial real estate debt
Lender types and their drivers
Private & Public Debt Market
Main Characteristics of Loan Types and Structure
Loan Types, Structures, Syndication
Understanding Loan Terms
Loan Repayment Mechanisms
Debt Pricing and Economic Drivers
Current pricing levels
Current lending terms
Economic drivers