Course Introduction

The capital allocations to real estate have increased significantly in the last decade due to lower bond yields. For institutional investors, fund managers and entrepreneurs alike, real estate investments have become a path to wealth creation and a source of portfolio diversification for a wide range of investment entities.  Global economy and financial market disruption often present a challenge for real estate industry including fair valuation of real estate assets, decision making process and tenant whose ability to pay rents has been impeded.

This Oxford Management Centre training course provides participants with a deep understanding of real estate financing and investments by comparing and contrasting real estate finance and investments with traditional financing and investment decision process. The delegates will gain a sufficient knowledge of various aspects related to real estate industry including real estate principals, mitigating risk in real estate investing and strengthening their decision-making capability in the field.

This real estate finance and investment training course will highlight:

• Financing options available for real estate.
• Learn how to optimize mix of debt and equity in financing real estate investments.
• Application of traditional financing theory on real estate sector.
• Investment decision techniques and their application to real estate sector.
• Ability to asses the risk and returns associated with real estate investment

Training Methodology

This Real Estate Finance and Investment training course will be structured as a highly participative workshop with formal presentations and interactive worked examples to make the learning experience worthwhile for the delegates. Relevant examples will be used throughout the training to illustrate the application of each of the topics covered and opportunities for the delegates to learn and apply the key finance and investment principals in real estate business.

Who Should Attend?

This Real Estate Finance and Investment training course is designed to provide a deep dive understanding of the fundamentals and emerging opportunities in real estate. The training is suitable for a wide range of delegates, but will greatly benefit:

• Real Estate investors (including pension funds and private equity firms)
• Real Estate Developers
• Private wealth investors
• Sovereign wealth fund
• Fund Managers
• Finance Professionals engaged in real estate investment
• Bankers and Lenders
• Public and Private Sector Property Managers.
• Property Tenants including government agencies.
• Institutional Lenders
• Advisory firms.
• Accountants and other Consultants advising the real estate industry.
• Individuals willing to enhance their knowledge on real estate sector.

Course Outline

DAY 1

Overview of real estate finance and invest

• An international overview of real estate market.
• Banking and real estate.
• Fund managers.
• Valuation standards.
• Investment value.
• Mortgage lending value.
• Sales comparison approach.
• Cost approach.
• Income approach.

DAY 2

Source of Finance for real estate

• Potential Funding Sources for real estate
• Long Term Source of Finance
• Short Term Source of Finance
• Evaluation of the Types of Finance in real estate
• Equity Finance
• Debt Finance available for real estate
• How to estimate the Cost of Weighted Average Cost of Capital (WACC) for real estate firms.
• Application of Capital Asset Pricing Model (CAPM) in real estate.
• Measures of Risks in real estate investments.

DAY 3

Investment Decisions in real estate.                                  

• The principal of cash flow forecast
• Evaluating real estate Investment Decision using:
• Payback
• Accounting Rate of Return (ARR)
• Net Present Value (NPV)
• Internal Rate of Return (IRR)
• Analysing real estate Investment Decision using:
• What If Analysis
• Sensitivity Analysis
• Simulation
• Applying Economic Value Added to real estate investments.

DAY 4

Asset Allocation Strategies in real estate investment

• Investment Opportunities in real estate.
• Real estate Required Rate of Return.
• Sustainable Investment Strategies.
• Risk and return of real estate investments.
• Portfolio Theory application in real estate business.
• Estimation of systematic risk for real estate firms.

DAY 5

Assessment of Business Performance in real estate

• Ratio analysis for real estate business.
• Management’s point of view.
• Owners’ point of view
• Lenders’ point of view
• Ratios as a system – pyramids of ratios
• Integration of real estate financial performance.
• Predicting financial distress for real estate firms.