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Day 1:

Foundation & Leasing Knowledge (9:30am – 5pm: 6 hours of CPD each day)

Property needs Occupiers to Thrive

  • Understanding the occupiers: why own, why rent? For how long? What are tactical or strategic choices made by types of tenant?
  • What do landlords need to offer to attract tenants – and to keep them?
  • What is in demand is changing.

The Asset Types

  • Residential
  • Commercial: retail, office, industrial/logistics
  • Alternative Real Estate inc. stages of maturity
  • Other, incl. landbanking, forestry, agriculture, publicly held
  • Their share in institutional investment differ across the world

Which Markets are Growing or Declining? Why? 

  • Long-term and short-term trends
  • Macro and micro factors
  • Demand and pricing
  • The different types of cycles and their interplay
  • Structural and tactical moves

Asset-Specific Considerations & Risks

  • Market or structural risk and property-specific risks
  • Diversification
  • Examples of property-specific factors and their impact

Traditional Property Roles Demystfied

  • Job roles in RE designing, constructing, funding, letting, occupying, maintaining, managing, servicing, selling and investing
  • Who does what and why?
  • How do the roles interconnect? Who works with who?

The Property Industry is Changing

  • Different types of technology explained
  • Disruptors
  • Disintermediation
  • PropTech
  • AR, VR, drones, Space as a Service, sensors, co-working, co-living, pop-up stores, smart cities, BIM, modular construction and more
  • Software, portals, platforms
  • ESG (Environmental, Social, Governance) investing, climate, sustainability, green leases
  • Healthy design, well-being, placemaking, design, use of space
  • Clients are changing
  • How are companies and job roles changing?

The Letting Process

  • Solid jargon-busting session. We go from words like tenancy-at-will, licence and lease to take-up, headline rents, ERV, lease incentives and service charges all the way through to alienation, expiry, surrender, right to renew, tenant holding over, voids, alterations, dilaps and re-letting. Lease types explained. 
  • Points which are open to negotiation in a tenancy are explained. 
  • IFRS16, UK GAAP, reconciliation
  • Who pays for what?
  • How long does it take to complete a letting?
  • How do lease structures differ across Europe? And the world? Why this matters.

How lease events differ by property type

We will take an in-depth look at variance across asset types. For example retail property traditionally sees longer leases, fewer breaks, lower vacancy than the other traditional asset classes. Office income tends to be more volatile and see higher vacancy. Yet bankers prefer to lend on office property. This section will delve into how different property types tend to offer different levels of security of income, and how this is changing.

Case Study

Office space letting & supply in the City of London

 


 

Day 2:

Real Estate Investment (9:30am – 5pm: 6 hours of CPD)

How letting income translates into investment value

  • Length and security of income
  • How over-renting, rack rented and reversionary leases impact investment
  • Levels of risk and volatility impacts pricing
  • Demand for property is impacted by the economy and other asset classes
  • Differences found amongst the various asset classes. 
  • How value or worth is established
    • Run through of the 3 valuation approaches and five valuation techniques. Strengths & weaknesses. Don’t worry, it won’t get boring or too complicated.
    • What technique is used for what type of property
    • UK, German and other countries tend to value differently

Investment Jargon

We explain NIY, RY, EY, YP, IM, NPV and how to calculate them, and introduce key words such as capital expenditure or maintenance costs, capital markets, cash-on-cash returns, the 4 quadrants, WAULT, lease restructuring, transparency, liquidity, cash flow, obsolescence, market beta etc. etc.

Understanding Investors

  • What are the types of investors?
  • Which investor types are growing or declining?
  • QE, pensions, diversification, the wall of money.
  • The growth of alternatives
  • Why do investors want different things?
  • Investment styles and ways to invest
    • Prime, secondary and tertiary stock. Grade-A, Grade-B, Grade-C
    • Core, core+, value-add and opportunistic styles – what does it mean? Does it ever change?
    • Income or growth focussed
    • Can you have core offices in China, or core developments? What is manage to core?
    • Is property an inflation hedge?

Risks

  • Each property, investment style or route has a unique risk-return profile
  • Hurdle rates and risk premium
  • The pros and cons of investing in real estate
    • Characteristics of asset types explained
    • Diversification, correlation
  • Why buy, why sell?

Investment Fund Structuring

This section runs through the names of the various investment structures and explain their significance

Real Estate Investment Trusts

  • REITS and other listed property companies offer a liquid route to property
  • Why REITs/Listed? What are the pros and cons?

Real Estate Debt

  • Jargon-busting session, plus an exploration of UK lender types and types of debt.
  • How is debt structured?
  • How does risk differ?
  • Why take on RE debt? What about risk-return? Is lending safer than investing equity?

Case study

We study an actual investment memorandum and bring in the various aspects taught over the past 2 days. This helps by repeating material in context, brings theory to life, and the pieces of the property puzzle start to fall into place.

 

A detailed course manual that will act as a reference book will be supplied in hard copy and can be used for subsequent further study. The course manual is a strong supplement to the in-class experience. Together they create a deeper, more powerful way to learn. A dynamic, engaging course which receives rave reviews from attendees who vary from junior to senior managers.