SEMINAR LENGTH
3 days
SUBJECT FOCUS/CONTENT
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Review of valuation concepts and techniques used in real estate applications, in both domestic and international and in public and private markets
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Examination of transaction structuring issues, tax implications, and deal process in real estate
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Exploration of structured finance and derivative securities applications in real estate finance
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Framework for marketing real estate finance ideas to bank clients which includes: identifying a client’s needs, reviewing relevant valuations, financing alternatives and current market conditions, proposing the best solution and executing the deal
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Detailed transaction studies that explain the execution of real estate deals and potential marketing problems or opportunities that can arise
Valuation in Real Estate
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Methodologies
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Replacement Cost
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Appraisals
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Capitalization Rates
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Full DCF Analysis
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Comparable Transactions
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Earnings Yield
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NAV
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Industry Metrics
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Public Market Valuation (REITs)
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Emerging Markets Valuation Issues
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Currency-driven adjustments
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Inflation-driven adjustments
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Local market factors
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Project Finance: Deal Structuring and Process
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Capital Structure:
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Construction Financing
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Permanent Mortgage Funding/Private market financing
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Public market financing, including 144A
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Equity investors
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Tax Credits
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Tenant Financing
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Buy-side Capital Providers
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Insurers
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Pension Funds
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Mortgage Bankers
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Mortgage Conduits
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Bond Mutual Funds
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REITs
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Contracts and Party Obligations
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Documentation
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Insurance
Structured Finance: Applications
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Lease Finance
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Securitizations of Tenant Receivable Streams
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Uses in Risk Management
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Tax Issues
Capital Markets Specialist Presentations
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Discussion of the bank’s position in capital markets product areas relevant to real estate mandates
Client focus workshop
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Analysis and discussion of a selected client situation involving real estate work that leads to subsequent presentations and follow-up marketing in coordination with the capital markets specialists
TARGET AUDIENCE
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Investment bankers who cover clients with potential real estate finance needs
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Relationship Managers who cover clients
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with potential real estate finance needs
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Capital Markets and other product specialists that help investment bankers and RMs market and execute real estate mandates
PARTICIPANT OBJECTIVES
By the end of the workshop, participants will:
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Understand the basics of real estate valuation
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Grasp the key issues in capital structure in real estate, as well as structured finance applications
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Be familiar with real estate transaction process and mechanics
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Be able to identify opportunities and work with their clients in defining real estate needs and opportunities
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Be ready to prepare a pitch book and market real estate finance ideas to clients
METHODOLOGY
Lectures, presentations, discussions, and case studies. Participants will be asked to identify potential client real estate finance applications in advance of attending the course with a view to making presentations and working with specialists during the session to develop a call plan and marketing approach.