We can deliver this course in-house: Your company, your location, your needs Contact Jeff Hearn: +44 (0)20 7017 7190 jhearn@iirltd.co.uk MASTERING REAL ESTATE VALUATION Learn the practical tools, strategies and techniques for valuing the major forms of real estate assets London Dates: 8-10 June 2016 COURSE LEADER: Julian Roche, International Real Estate Expert Over three intensive days you will benefit from a detailed understanding of a wide range of topics and issues, including: Understanding the mechanics of the most widely practiced property income and capital valuation techniques Identifying the cost of capital for real estate Learning how to successfully implement discounted cash flow valuation frameworks Acquiring the ability to value a range of different types of properties Understanding the international nuances and differences in valuation approaches
MASTERING REAL ESTATE VALUATION This course covers the methods, concepts and application of real estate valuation. You will learn to value most typical forms of real estate using a variety of techniques and methods, in the same way as a chartered surveyor. The focus is on properties and market conditions in central Europe, but with plenty of international examples, including land, properties with development potential, and different classes of property such as offices, retail, hotels, and warehouses as well as residential property valuation. You will gain a thorough practical understanding of the valuation process, as well as explore the principles behind financing a project. This will include a review of the different financial instruments, how they can be used and their impact on the overall performance of the real estate project. The course makes extensive use of case-studies, worked examples and practical exercises to help you develop both a theoretical and more importantly, a practical understanding of the course content. Our intention is to equip you with realworld skills and knowledge that you ll be able to implement immediately. To maximise this learning opportunity, simulation exercises have been included throughout the course. Please be sure to bring your own laptop to ensure you can take part in these exercises to help link theory with practical systems and reinforce the understanding of the material presented. Course Leader: Julian Roche From an old real estate family in the UK, Dr Julian Roche began his career as a Fast Stream Civil Servant and then worked as an economist for what is now Global Insight. He was a partner in a real estate development company with US investments, before launching his own real estate consultancy specialising in global data provision. Later he worked in the City in what became LIFFE, specialising in real estate, before spending five years as a senior consultant to a venture capital company in the UK, where he advised on corporate structure, flotations, trade sales and business valuations. He has also published a number of books on real estate modelling, business valuations and derivatives. He has presented real estate training courses internationally for over a decade and is the author of IFF s highly acclaimed Real Estate distance learning course. WHY CHOOSE IFF AS YOUR TRAINING PROVIDER? Track Record we have over 20 years experience of providing training to the banking, finance and energy sectors Relevance training courses are designed for small delegate groups which ensures you maximise the time and contact with your course director Innovation our courses are continually reviewed so you can be sure they are focusing on the most current issues Knowledge all of our trainers are highly experienced and are world leading subject matter experts in the field they teach so you can be confident you are learning from the very best Small class sizes to aid knowledge acquisition and increase your personal interaction with the trainer Value our philosophy has always been to provide a practical training experience with skills that can be used to gain a tangible return on your investment Accreditation we are accredited by the British Accreditation Council (BAC) IN-COMPANY TRAINING SOLUTIONS SAVE MONEY IMPROVE PEFORMANCE REDUCE RISK If you have four or more people to train, our in-company courses can be delivered for you anywhere in the world and are the perfect solution for you. Many organisations have realised that IFF in-company courses offer so much more than conventional courses. Here s why: We focus on providing our clients with training solutions that are specifically designed for them in order to help them address their key business challenges IFF programmes are designed by practitioners for practitioners. We equip our clients with the practical skills and knowledge they need to succeed Our international faculty of trainers are some of the world s leading experts in their chosen field. We only use the best minds in the business We ve been supporting our clients for over 20 years; you can be sure that, as such, our track record makes us the lowest risk training partner you could find By focusing on the business issues behind the training need, we can ensure that the content and focus are targeted 100% on the needs of the business Quality is critical to our success. Our reputation has been built over 20 years by delivering programmes of the highest standard. We will never compromise on our desire to ensure that our courses surpass the expectations of our clients, not meet them. IFF is the chosen in-company training provider for some of the world s leading financial institutions, so rest assured you ll be in good company. We ll also meet with you anywhere around the globe. Only by understanding our clients business issues can we hope to add substantial value. That s why we work with our clients face to face all over the world. If you would like one of our consultants to meet with you to talk about your needs in more detail or if you would simply like more information as to how you ll benefit from our in-company programmes, please contact Jeff Hearn (Managing Director) on +44 (0)20 7017 7190 or email: jhearn@iirltd.co.uk
Your comprehensive course agenda Mastering Real Estate Valuation Real Estate as an Investment Class Property Performance Analysis How is property measured? Identifying what makes a good property Problems and issues with performance evaluation Sources of data Evolution of data measurement International comparisons of performance Current issues in performance management Best international practice in property performance measurement Property in the Investment Portfolio Concept of Modern Portfolio Theory (MPT) Measuring variance (Beta and equivalents) Constructing a portfolio Property correlation with other assets Best international practice on property in a portfolio International trends in property correlation Pension fund and private equity investment in European property Commercial Property - Assessing Income Appraisal of income property RICS Valuation Practices and international comparisons Comparison with corporate finance valuation Reporting according to IFRS standards Important aspects of the RICS Valuation Standards (including valuer independence) Residential Property Assessing Capital Value Why buy residential real estate? Does rental income matter for residential property? What are the main problems? Measurement criteria for residential real estate hedonic approaches Qualitative issues, competition, style and marketing Residential price trends in Europe comparative analysis Discounted Cash Flow for Real Estate Investments - Net Operating Income (NOI) Gross and net income Differences in calculating NOI Overall capitalisation rate Capital expenditure issues Differences between property types Approaches to the cap rate The band of investment approach Projecting Cash flows The dynamic behaviour of the 4-Q model: stability versus oscillations Real estate pricing behaviour: backward or forward looking? Forecasting markets: univariate analysis, vector auto Regressions, structured models Forecasting examples The definition and evaluation of risk Forecasting techniques Creating and Using a Detailed Discounted Cash Flow (DCF) Model Debt service and pre-tax cash flow The sinking fund Lease variations Differences between sectors Estimating resale value Terminal capitalisation rates Delegates will use a number of real world examples to create and use spreadsheets for DCF valuation Land Prices Should land prices be calculated separately? How cyclical are land prices? Modelling land prices Empirical evidence on land prices Forecasting land prices Land price issues in Europe Data availability on land prices The Cost Approach Type of costs Methods of evaluating costs Sources of cost estimation Incurable and curable depreciation Market extraction method Delegates will use spread-sheet models to calculate a range of cost estimates for individual properties The Sales Comparison Approach Value, worth and price Sources of comparable data Identifying points of comparison and difference Sales comparison approach example Using the sales comparison approach in practice Highest and Best Use Approach Definitions of HBU Site value Improved value Calculating HBU Business Plan for a major project analysed Leasing Analysis Introduction to leases Analysing comparables Analysing rental prospects Securing tenants in relation to valuation and finance Quality control and finance Forecasting and limiting operating costs Leases in Europe issues, the law and values Stop calculations, lease valuation and feasibility rents Depreciation, net operating income and yield calculations Introduction to Cost Of Capital Theory What is the significance of the cost of capital? Differentiation between debt and equity Hybrid products The pecking order theory of cost of capital The role of debt in corporate management estate companies Dividend pricing model The Capital Asset Pricing Model (CAPM) CAPM and corporate leverage (equity/asset betas) Exercise: Leveraging and de-leveraging equity cost Criticisms of CAPM Sources of beta and market risk premia Uses of CAPM in practice CAPM and project (individual property) financing Bank debt as a corporate funding tool The concept and application of the mortgage Prevailing mortgage rates, terms and conditions Funding a property company through debt Islamic funding instruments and characteristics Calculating and using WACC Target vs. actual capital structure Adjusting capital structure WACC information for property companies D Y STU CASE Economic Value Added (EVA TM ) as applied to real Arbitrage pricing theory in real estate SPV finance structures Mortgage lending criteria for typical banks Analysing a proposed development financing methodology Introduction to Real Options How to calculate real option value Comparing the Black-Scholes and Binominal Expansion model Real world examples Problems with real option calculation Application to distressed firms equity and other financial Applications using customised spread-sheet models Does property possess real options? Examples of possible real estate real options Call Option approach to land value Samuelson-McKean approach Difficulties of measurement Potential benefits Delegates will study a range of real option calculations Delegates will value a potential development on the basis of conventional DCF and real option analysis Valuation in Practice How is valuation practiced by chartered surveyors? What are the key elements of the RICS valuation guidelines? What is the evidence on valuation practice in Central Europe Is valuation in Central Europe adhering to best international practice? What are the differences between countries?
Watch the video here: /INCVID In-Company Training The International Faculty of Finance has been the world leader in specialist in-company training for over 20 years. We excel at designing and providing customised training solutions which meet your organisational goals, objectives and business challenges, whilst delivering an outstanding return on investment. Our international faculty of expert trainers will create the perfect programme for your needs. Our in-company courses can also save you up to 40% compared to traditional public courses, making big savings on travel costs and reduced time away from the desk. IFF delivers in-company training to clients all over the world, at all levels within an organisation across every sector of banking and finance. This is what makes us so successful in meeting the diverse needs of our clients. Not only does our reputation for quality make us different from other training organisations, but we have a passion to ensure that our courses surpass the expectations of our clients, not just meet them. Why choose IFF In-company Training? Cost Efficient Customised Content Convenient Specially Selected Trainer Free Pre-course Assessment Consistent Quality Post Course Evaluation Dedicated Account Manager Dedicated Logistics Manager Tailored Course Materials Interactive & Practical Case Studies Tailored to Specific Regions & Sectors Rest assured - that when choosing IFF not only are you making a safe decision financially and professionally we guarantee the results you need to achieve from training. When it comes to improving the skills, knowledge and performance of your team, department or organisation IFF in-company training is the ultimate solution. Contact us to discuss further: +44 (0)20 7017 7193 jhearn@iirltd.co.uk Tel: +44 (0)20 7017 7190 Email: cs@iff-training.com 4
MASTERING REAL ESTATE VALUATION PK=RK1367 5ways to register... 1 Tel: +44 (0)20 7017 7190 2 Fax: +44 (0)20 7017 7802 3 Email: cs@iff-training.com 4 Web: 5 Mail: Customer Service Manager International Faculty of Finance 4th Floor, Maple House 149 Tottenham Court Road London W1T 7AD Your VIP code is on the address label. If no label, please quote A X IFF Training is accredited by the British Accreditation Council (BAC). The British Accreditation Council is recognised internationally and provides the clearest mark of educational quality and excellence. Accreditation by BAC is recognised by the UK Border Agency so the fact that IFF is BAC-accredited should help with your visa application. If you would like us to contact you with a registration form via email, please tick which date you wish to register for, providing your contact details below in BLOCK CAPITALS. You can send this to us, using the contact details above. Course: 3 day IFF Mastering Real Estate Valuation Training Course Venue: Central London 8-10 June 2016 (FLF3889) Full Name: Email Address: Phone Number: Administration Details: Cost: Including documentation, lunch & refreshments your investment in this course is 2299 + VAT= 2758.80 The VAT is subject to change and may differ from the advertised rate. The amount you are charged will be determined when your invoice is raised. (Our VAT number is: 365 4626 36) Register by Register after 4 March 2016 4 March 2016 Course fee 2099.00 + VAT @ 20% 2299.00 + VAT @ 20% = 2518.80 = 2758.80 SAVE 200 PLACES CANNOT BE GUARANTEED UNTIL FULL PAYMENT HAS BEEN RECEIVED. Methods of Payment (Our VAT no is 365462636): By Bank Transfer, Cheque or Credit Card *if you would like to pay by credit card, please register via our secure payments website at, otherwise details of alternative ways to pay will be on the invoice you receive after registration. To ensure we provide the highest level of security for your credit card details we are unable to accept such payments via email or fax which ensures that these details are never stored on our network. Save money with in-house training SAVE up to 40% and improve performance with our cost-effective tailored in-house courses Contact Jeff Hearn for more details: +44 (0)20 7017 7190 jhearn@iirltd.co.uk What happens if I have to cancel? The following charges will apply for written notice received: 30 + days before the course: 10%, 15 30 days before the course: 50%, 1 15 days before the course: 100% In the unfortunate event that a course is cancelled, IFF Ltd are not liable for any costs incurred by participants in connection with the course. Transfers The following charges will apply for written notice received: 30 + days before the course: free of charge; 15 30 days before the course: 10%, 1 15 days before the course: 100% Data Protection The personal information shown on this form, and/or provided by you, will be held on a database and may be shared with other companies in the Informa Group in the UK and internationally. If you do not wish your details to be available to other companies in the Informa Group please contact the Database Manager at the above address, Tel +44 (0)20 7017 7077, Fax +44 (0)20 7017 7828 or email: integrity@iirltd.co.uk. Occasionally your details may be obtained from, or made available to, external companies who wish to communicate with you offers related to your business activities. If you do not wish to receive these offers, please tick the box. Incorrect Mailing If you are receiving multiple mailings or you would like us to change any details or remove your name from our database, please contact the Database Manager at the above address, Tel +44 (0)20 7017 7077, Fax +44 (0)20 7017 7828 or email: integrity@iirltd.co.uk quoting the reference number printed on the mailing label. International Faculty of Finance, 4th Floor, Maple House 149 Tottenham Court Road, London W1T 7AD Paper sourced from sustainable forests ElementalChlorine Free (ECF)