Learning Objectives
At the end of the course delegates should have a broad understanding of the following subject areas:
- Main real estate investment types
- Commercial
- Residential
- Mixed Use
- Leisure
- Farmland
- Public service and utility, eg student accommodation, care homes
- Public Private Partnerships, PPPs, eg hospitals, schools, prisons
- Key terms used in property investment
- Dynamics of the main international real estate markets
- Analysing real estate investments: cash flows, yields and capital appreciation
- Valuation: using ratios, benchmarks and comparables data
- Risk analysis – analysing impact of voids, supply and demand pressures and macroeconomic factors
- Property development projects
- Initial analysis – understanding the opportunity
- Structure
- Financial modelling, including project Internal Rate of Return (IRR) calculation
- Risk analysis and mitigation
- Project monitoring
- Main property investors: institutional, specialist fund managers and developers
- Legal issues: ownership rights, lease terms, covenants and security of tenure
- Risk management: diversification, rent level maintenance, tenant credit analysis
- Hedging risk using interest rates and real estate derivatives
- Case studies: what can go right and wrong in real estate investment
Prerequisites
This course has no prerequisites. Although real estate investment analysis covers a wide range of financial and economic concepts, these will be introduced with no prior knowledge needed.