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Day 1:
Foundation & Leasing Knowledge (9:15am – 5pm: 6.5 hours of CPD each day – 13 hrs in total)
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.
Asset Types & Levels of Investment
- Residential
- Commercial: retail, office, industrial/logistics
- Alternative and Operational Real Estate inc. stages of maturity across countries
- Other, incl. landbanking, forestry, agriculture, publicly held
- Their share in institutional investment differ across the world
ESG
- How ESG matters
The Rise and Fall of Property Markets: Real Market Dynamics
- Introduction to drivers of the property market
- Long-term and short-term trends
- The most important push and pull factors
- The different types of cycles and their interplay
- How pandemics, wars and inflation impact in the short and long-term
- Structural and tactical moves
- Leasing demand
- What segments are growing, which are declining?
Asset & Sector-Specific Considerations & Risks
- Market or structural risk and property-specific risks – just some of the 57 known risks!
- Diversification
- Sector-specific considerations
Traditional Jobs in Property
- Job roles in designing, constructing, funding, letting, occupying, maintaining, managing, servicing, selling and investing in property
- Who does what and why?
- How do the roles interconnect? Who works with who?
Property Leases & the Leasing Process: key knowledge
- 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.
- What is in a lease, what happened when?
- Lease elements open to negotiation
- Who pays for what?
- How long does it take to complete a letting?
- The lease structures differ in the UK and abroad. 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 (9:15am – 5pm: 6.5 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 sectors
- How value or worth is established
- Yields: an overview of the different types
- Run through of the 3 valuation approaches and five valuation methods and their techniques. We explain the various strengths & weaknesses. Don’t worry, it won’t get boring or too complicated.
- What technique is used for what type of property
- The UK, Germany and other countries tend to value differently
Understanding Investors
- What factors matter most?
- What are the types of investors?
- Investing into direct real estate or going the listed or unlisted route
- Fund names & investor types
- Which investor types are growing or declining?
Routes to Real Estate Investment
- 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, balanced or growth focused
- Can you have core offices in China, or core developments? What is manage to core?
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.
Routes to Commercial Real Estate Investment
This section runs through the names of the various investment structures and explain their significance
Explaining 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?
Explaining unlisted (private) Equity or Debt Funds
- What can you invest in, and how
- What are the pros and cons of going the non-listed, private route?
Explaining 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.
We provide consultancy and training to those working in or with the property industry in the UK and abroad.
Registered in England & Wales
Company registration no. 11006326
VAT no. 285 9645 43
Address
Property Overview c/o Crunch Accounting
The Knoll Business Centre, Unit W8A,
325 Old Shoreham Road,
Hove,
East Sussex,
BN3 7GS