13. July 2016 - 10:00
London, London
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Cambridge Finance Real Estate Debt Structures & Financial Modelling - 2 days course | Wednesday, 13. July 2016

Construct a robust real estate financial model from scratch and use it to assess the financial risk and return profile of a geared investment project with debt finance  techniques.


This course is aimed at financial analysts working for for banks, real estate consultancies and property consultancies seeking a best practice approach to building robust real estate debt models.


Delegates will learn to construct a discounted cash flow model for senior debt and mezzanine finance and perform stress tests for the investment and lending decisions. Delegates will also learn credit fundamentals which will enhance their property lending analysis and underwriting processes.


Who should attend this course:


The Real Estate Debt Finance courses are suitable for those willing to develop their debt origination modelling skills. This is a course aimed at experienced professionals and modellers who would like to improve their debt finance understanding and modelling expertise to the next level and comply with credit underwriting criteria.



Details


Duration: 2 daysLocation: LondonCPD Hours: 16Level: IntermediateMaximum number of delegates: 6



Content



Day 1



Sources of Funds & Lending Criteria


Insurance companies and pension fundsClearing banksMerchant banksMezzanine finance houses


Debt Covenants & Calculations


Operational Covenants: asset maintenance, disclosure requirements, insurance and credit line


Financial Covenants: interest cover ratio, debt service coverage, loan to value


Senior Debt Financial Modelling


Debt Modelling


Interest Only


Constant Amortisation


Constant Repayment


Rolled-Up Interest


Cash Sweep


Cash Trap


Revolving Facilities


Case study: office building debt lending in the UK  (I)


 



Day 2



Mezzanine finance


Modelling mezzanine structures


Overview of inter-creditor agreements


Mezzanine interest and fees


Debt Prioritasiation


Modelling cash flow waterfall


Coupon and capital repayment schedule and prioritisation


Maximum loan amount


Credit Analysis


Stress test


Capital adequacy calculations


Case study: office building debt lending in the UK (II)