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Training Courses

Real Estate Debt

Learn how the commercial real estate finance industry works, sources of funds and the main terminology in lending and analysis.

Date:
Mon 18 Jun 2018
Time:
09:30 AM - 05:00 PM
Venue:
London, Venue, TBC
CPD:
6 hours formal CPD
From
£449 + VAT

Overview

Real estate finance is now available from banks, insurance, pension and private equity funds, with appropriate gearing allowing real estate investors and developers to have access to larger opportunities and to leverage returns.

Some commercial real estate investments use very low debt levels whereas some other have a very high debt ratio, but overall an adequate balance between equity and debt can be beneficial on a risk adjusted basis in order to support sustainable real estate – and economic – growth.

On this course, participants will build up knowledge from time value of the money to understanding about the financial markets and debt structures, in both public (listed) and private markets and main terms. They will learn how to access the debt markets, the main players, and how to calculate simple debt structure, interest payments and loan amounts.

By enhancing the knowledge and skills in real estate finance, participants will be enabled to improve their performance when interacting with clients from the finance and investment community.

Learning outcomes

By the end of the course participants will be able to:

  • Comprehend the difference between debt and equity, capital structure, risk profile of geared and un-geared returns
  • Apply the main terminologies used in the financial markets and comprehend how they translate in to the commercial real estate industry
  • Explore the range of real estate debt finance and sources and how these can be structured, priced and analysed on a risk-adjusted basis
  • Learn how to calculate loan terms, such as balance outstanding and interest rates
  • Improve business interactions with investors, funders and clients from the lending and equity investment markets

Course contents

Commercial real estate debt and capital structure

Market size
Current trends

Sources of debt

Insurance companies and pension funds
Clearing banks
Merchant banks
Mezzanine finance houses
Debt funds
CMBS

Mortgage loan foundations:
The Time Value of Money


Compound interest
Future Value
Present Value
Future and Present Value of Annuity
Determining yields, or internal rate of return,
(IRR) on investments
Note: Participants will need a laptop for this session

Understanding loan terms

Loan to value
Loan amount 
Maturity date
Interest rate
Periodic payments
Note: Participants will need a laptop for this session

Brief overview: borrowing interest rates

Considerations: real rate, inflation expectation, risk

Calculation of interest rates and loan balances

Loan amortisation patterns
Interest only
Constant amortisation
Fully amortising – constant repayment
Partially amortising – constant repayment
Note: Participants will need a laptop for this session

Summary and comparisons

Loan amortisation patterns and repayment methods

Geared returns and sensitivity analysis

Price

  • RICS professionals £449 + VAT
  • Non-RICS professionals £559 + VAT
  • Visa

  • Mastercard

More locations available

If this course isn't running near you, register your interest and we will keep you updated next time it's occuring in your local area. When it's available, we'll email you with the course date, time and venue.

Register your interest

Have training delivered In-House

Call +44(0)24 7686 8584

Find out more about getting this course delivered in-house for your team, tailored to your business requirements and at a location to suit you.

Contact the In-House team

From
£449 + VAT
Book now