Fundamentals of Commercial Real Estate Debt Finance

This commercial property valuation course is delivered by a trainer who has had a career in the financial services industry and financial training for over 45 years. He started his career with National Westminster Bank (now part of RBS) before moving to Mellon Bank NA, a major regional US bank (now part of Bank of New York Mellon). At Mellon Bank, he held several credit analysis and account management positions in London, focusing on large UK corporations and UK subsidiaries of US corporations. He also had two extended work assignments in the USA, on the second occasion as an account officer responsible for a group of US subsidiaries of non-US multinationals.

After 11 years at Mellon Bank, he joined Swiss Bank Corporation (now UBS) in London where he was actively involved in the development and ongoing management of the bank's UK Commercial Real Estate lending activities. His Real Estate-related skills were further developed at Debenham Tewson Financial, a subsidiary of one of the world’s leading Real Estate advisory firms.

Since 1992 he has been primarily focused on training in the areas of Corporate Credit Analysis, Financial Restructuring, Project, Infrastructure and Structured Debt Finance, such as Real Estate Finance and Asset Securitisation. He has designed and delivered tailored and public courses in more than 60 countries. In these areas he has worked with a wide range of corporate and investment banking firms; Development Finance Institutions; public sector organisations; Export Credit Agencies; property investment and many major corporations.

Participants in courses run by him range from recent graduates to experienced line managers, and in areas as diverse as bond sales and trading to credit research and Relationship Management positions in financial institutions, as well as project engineers and professional advisers and public sector employees in the area of Project Finance.

In the area of Real Estate Finance, the trainer has run both public and tailored training programmes on a global basis with participants working in banks, Real Estate companies, Real Estate investors, Public Sector organisations and professional services firms.

Our commercial property valuation course will provide participants with an intensive overview of:

• Risk analysis, from a lender’s standpoint, in financing large-scale Commercial Real Estate transactions.
• Key drivers impacting the value of Commercial Real Estate.
• Key elements influencing capital structuring decisions, with an emphasis on debt structuring issues.
• The principal debt financing options.
• Key risk mitigants in Commercial Real Estate transactions and financings.

• Focused content in a short period providing an intensive overview of key risk and structuring issues in Commercial Real Estate Debt Finance.
• Practical content using a core case study to illustrate the topics covered in the training.
• References to further reading that will illustrate the topics covered in the training.
• Provides a structured methodology in a short period that can be used as an “aide-memoire” when assessing Commercial Real Estate Debt Finance transactions.
• Topical coverage of trends in the Commercial Real Estate markets to put course content in context.

This commercial real estate valuation course will be relevant to a range of people working in organisations involved in the arrangement, analysis and structuring of large-scale Commercial Real Estate debt financing transactions. This includes banks, Real Estate companies, Real Estate Investors, Public Sector organisations and Professional Services firms.

Limited previous practical experience in the financing of Commercial Real Estate transactions has been assumed.

To obtain maximum benefit from this training, participants should have some familiarity with the principles of financial analysis and Commercial Real Estate valuations, and the main features of the key financing products used in Commercial Real Estate finance.

Familiarity with the main functions in Excel will also assist you in obtaining maximum benefit from this commercial real estate valuation course.

Background

Commercial Real Estate has always been affected by economic cycles, but the impact of COVID and technology will also have an ongoing impact on how and where people work and shop and therefore demand for Commercial Real Estate, as well as valuations. Given these cyclical and structural changes, as well as political tensions; lenders and investors will need to evaluate the structuring of Commercial Real transactions, monitor financing exposures more intensively, and sector and specific property selection will be increasingly important.

Course methodology

This commercial real estate debt finance training course will be delivered in two half-day modules.

Part 1 of this commercial property valuation course will be primarily focused on key features of Commercial Real Estate, the historical performance of Commercial Real Estate, and the key risk issues and the principles of valuation techniques.

Part 2 will focus on the financial structure of Commercial Real Estate transactions, and structuring issues in terms of risk protection from a lender’s standpoint.

A primary focus will be on the financing of single property transactions, and on “traditional” sectors of Commercial Real Estate – offices, retail and industrial / logistics. There will however be some brief coverage of alternative types of Real Estate such as hotels in terms of the risk analysis and how this impacts financing. There will be brief coverage of the analysis of Real Estate Investment Trusts (REIT)

To ensure that this commercial property valuation course is interactive there will be one case study involving a large-value Commercial Real Estate transaction, such as a distribution centre, throughout the training. The case study will consider risks both during the development period and also when it is income-producing.

Background on the case study and a supporting spreadsheet will be provided before the training so that participants have an opportunity to familiarise themselves with the material and maximise the benefits of the training programme. Participants will need to access the spreadsheet during the training.

Participant profile

Limited previous practical experience in the financing of Commercial Real Estate investing and transactions has been assumed. To obtain maximum benefit from this training participants should have some familiarity with the principles of financial analysis and Commercial Real Estate valuations, and the main features of the key financing products used in Commercial Real Estate finance.

Familiarity with the main functions in Excel will also assist participants in obtaining maximum benefit from this commercial real estate valuation course.