Commercial Real Estate is a major investment Asset Class, represents a very substantial portion of corporate assets and provides collateral and credit support for a huge volume of bank and Capital Markets financings, ranging from lending to the SME sector to Commercial Mortgage Backed Securitisations. Commercial Real Estate values are very sensitive to the underlying economic fundamentals as well as the financial markets. Additionally Commercial Real Estate values and performance are also influenced by specific factors such as the quality of the Real Estate, lease terms, tenant risk, market sector and geographic focus making it essential to understand the specifics of each Commercial Real Estate Asset.
The teaching approach emphasises "learning by doing" using case studies and examples of specific transactions, where feasible, as the principal method of learning. To maximise the benefit to the participants, case studies will:
- mostly focus on the main types of Commercial Real Estate – office, retail and industrial;
- concentrate on large scale transactions involving both single pieces of Commercial Real Estate or portfolios / corporate financings;
- Primarily relate to the financing of single asset companies, both developments and existing investments. There will be some coverage of Commercial Real Estate companies and Investment vehicles
Participants should already be familiar with the core principles of corporate credit risk analysis, the fundamental principles of investment appraisal techniques, and the core functions in Excel. Some previous familiarity with the financing of Commercial Real Estate has been assumed.