Commercial Real Estate is a major investment Asset Class, represents a very substantial portion of corporate assets and provides collateral and credit support for a huge volume of bank and Capital Markets financings, ranging from lending to the SME sector to Commercial Mortgage-Backed Securitisations. Moreover, the Real Estate markets are extending from traditional investment categories such as offices and retail to now include increased interest in areas such as distribution centres, hotels and Private Residential Rental properties and student accommodation.
Commercial Real Estate values are very sensitive to the underlying economic fundamentals as well as the financial markets. With interest rates in the US, UK and the Eurozone starting to rise, there are concerns that this will adversely impact Commercial Real Estate values. Additionally, Commercial Real Estate values and performance are also influenced by specific factors such as the quality of the Real Estate, lease terms, tenant risk, market sector and geographic focus making it essential to understand the specifics of each Commercial Real Estate Asset.
There will be one or two core case studies involving large value Commercial Real Estate transactions throughout the training, using the example of a single asset financing, supplemented by other cases/exercises to illustrate specific issues in the programme.
Whilst there will brief reviews of a financial model for a core case study, for participants seeking to develop their financial modelling skills Redcliffe Training provides Real Estate modelling training programmes.
This programme is designed for personnel working on large scale Commercial Real Estate transactions, with limited or no practical experience of the practical aspects of Commercial Real Estate Finance working in organisations such as
- Project developers and investors
- Commercial and Investment banks
- Commercial Real Estate Debt Funds
- Private Equity firms investing in Real Estate
- Sovereign Wealth Funds
- Construction companies
- Accountancy firms
- Law firms
- Real Estate advisory firms
- Architectural practices and Quantity Surveying firms
- Government and other Public Sector Agencies
It has been assumed that participants will have limited or no prior practical experience of Commercial Real Estate Finance.
Participants should already be familiar with the core principles of financial analysis, the fundamental principles of investment appraisal techniques, the core functions in Excel and the main features of debt financing products.
To maximise the benefit to participants case studies will
- Mostly focus on the main types of Commercial Real Estate – office, retail and industrial
- Concentrate on large scale transactions
- Primarily relate to the financing of single-asset companies, both developments and existing investments. There will be limited coverage of Commercial Real Estate companies and Investment vehicles
Each participant will be required to bring a laptop to the course