What is covenant strength and why does it matter?

By Cleo Folkes

As many high street stores find themselves closing their doors permanently, we hear that landlords increasingly worry about covenant strength. What is it exactly that they worry about?

In property you often hear the word covenant strength when people talk about a tenant or the quality of an investment property or real estate loan. When you Google the definition for covenant it will tell you it is “an agreement” or something you “agree by lease, deed, or other legal contract”. Thus, when people talk about covenant strength, they are talking about how secure the income is coming from a lease with a tenant. Continue reading What is covenant strength and why does it matter?

Are REITs real estate?

Cambridge Finance Property Training Courses

Firstly, REITs, or Real Estate Investment Trusts, are companies that own and manage real estate. Therefore, owning shares in REITs is a way for investors to access the risks and rewards of holding property assets without having to buy and manage property directly. REITs typically pay out all of their taxable income (90% in the UK) as dividends to shareholders and in turn, shareholders pay income tax on those dividends. Continue reading Are REITs real estate?

Is England’s planning system in the wrong direction?

By Victor Alarsa

From a developer perspective, sometimes the UK planning system can be quite intricate and vague. One of the reasons is due to its uncertainty at the initial stage.

Before starting a site negotiation with the landowner, the developer needs to calculate the residual land value. However, to appraise the prospective development, the developer needs to know precisely the maximum number of unities, max stories height, and all other building metrics. That is only possible if the developer officially consults the local planning authority (pre-application), which is going to charge for the information (ranging from a few dozens to thousands of pounds).

That is a dilemma: the developer needs to decide whether it is worth to pay a pre-application fee for each and every new deal to verify the residual land value.

Continue reading Is England’s planning system in the wrong direction?

An overview of the “UK-complex-housing-planning-permission-system”

By Victor Alarsa

Who’s responsible for granting planning permissions?

The planning system is designed to be applied by local authorities. There are three layers of authorities:

  • Nationally (national plan)
  • County councils (regional plan)
  • Unitary authorities such as districts, boroughs or city councils, hereafter referred as to Local Planning Authority (LPA)

LPA is ultimately responsible for designing local plans and granting planning permission.

Continue reading An overview of the “UK-complex-housing-planning-permission-system”

RICS and Cambridge Finance collaborate to bridge the skills gap between real estate and finance

The Royal Institution of Chartered Surveyors (RICS) is delighted to announce a collaboration with Cambridge Finance to develop a comprehensive training course that will help bridging the gap between real estate and finance education.

The growing sophistication of the property and financial markets has meant that investment surveyors have not only been requested to advise on property location, covenants and physical structure of buildings, but also on debt, Continue reading RICS and Cambridge Finance collaborate to bridge the skills gap between real estate and finance

How to convince your boss to pay for your financial modelling training

More often than not employees find themselves trapped in a situation where they know they could do a better job, but just don’t have the right skills to implement more efficient routines. Training seems to be the key to solve their problem. However, there is always that question: “Should I pay for my training or should I ask the company to pay for it?”

In our experience, companies are more willing to pay for their staff’s training as long as they can see the short-term results of their investment, mainly improved process or product development.
Continue reading How to convince your boss to pay for your financial modelling training

What is the value a REIT?

What’s the value of a listed real estate asset? Our belief is that as markets trade on disagreements about the value of assets, the valuation process should be a crucial point in any investment course.

However, before we start, we want to highlight that a valuation exercise is an exercise of consistency and coherence. We call these the two pillars of the valuation exercise. On the course, you will understand better what this means but we want to draw your attention to this now. Thus, if the variables used on the different

Continue reading What is the value a REIT?