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Commercial Real Estate Valuation

Agenda Program Online
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Location
Prague, NH Hotel Prague
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Price
N/A
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Lecturer
N/A
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Language
English
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Evaluation
N/A
Hybrid Training
Hybrid
Both classroom and online training available
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Price for online training
N/A
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Attend this intensive 2-day training program and learn:

How valuers use traditional and modern methods to appraise property
The differing techniques to valuing various property types
What is meant by an IVS compliant valuation report?
How to interpret the results through better understanding of the underlying inputs and assumptions
Valuation of development sites
How to approach the valuation of emerging real estate asset classes
Current trends in the pan-European property market
Course Description:
Real estate valuation reports can be opaque and difficult to decipher and yet are a crucial element of the world of investment and development. This course will develop skills by taking participants through the process of preparing commercial property valuations. Participants will be introduced to basic valuation approaches and how to identify the key drivers of real estate value. Building on the initial theory, more sophisticated methods will be covered that combine in the production of high-quality valuation reports.

Each session will provide an insight to the valuation profession looking at the procedures followed by property valuation experts. Day 1 will introduce you to the main concepts, offering an overview of the methodologies employed in the appraisal of real estate as well as the main regulatory frameworks. Day 2 will provide an opportunity to examine practical examples that will include development sites, leisure properties and multi-tenant assets.

What is the goal of this training?
This training will be of interest to practicing and novice valuers, as well as those that use valuation reports and stakeholders in the real estate investment process. The training will also bridge the gap between users of property valuation reports and the valuers who prepare them. This will ensure the instruction and report processes will run smoother, saving time and expense. You will learn the relevance of real estate as an investment medium, particularly relevant as the availability and sophistication of property investment products continues to grow.

Who should attend?
  • Investors
  • Fund Managers
  • Asset Managers
  • Property Analysts
  • Real Estate Financers
  • Valuation Professionals

Program of the seminar: Commercial Real Estate Valuation

The seminar timetable follows Central European Time (CET).

09.00 - 09.10 Welcome and Introduction

09.10 - 12.15

Section 1: Introduction to Property Valuation

  • Run through of topics for the two days.
  • Warm up exercise - "Why do we need to value property?"
  • Property as an Asset
  • Market conditions in CEE
  • Introduction to methods of property valuation
  • Overview of main organisations that regulate Real Estate Valuation, IPMS, Ethics

Case study: Consideration of comparable buildings - what features drive value?

Section 2: Commercial Real Estate valuation methods and bases

  • Commercial Real Estate valuation methods
  • UK model - 5 traditional methods of valuation plus modern methods
  • US/International model - 3 approaches
  • How methods affect value
  • Growth implicit methods v Growth Explicit methods
  • Worth v Price v Value
  • Valuations for secured lending, valuations for financial reporting

Case study: Comparison of methods

12.15 - 13.15 Lunch Break

13.15 - 17.00

Section 3: Starting small - valuation of a single-let property (Investment method)

    Inputs
  • Consider and compare lease terms
  • Calculation of a suitable capitalisation rate
  • Valuation Arithmetic (PV, Year's Purchase, growth)
    Outputs
  • Initial yield
  • Reversionary yield
  • Equivalent yield
  • Equated yield

Case study: Valuation of a single-let investment opportunity, calculation of equivalent and equated yields

Section 4: Growth Explicit Models of Valuation

  • Cash flow for real estate investments
  • Discount rate
  • Net Operating Income
  • Discounted Cash Flow (DCF) model for RE
  • Internal Rate of Return v NPV
  • Worth or Value, Appraisal or Valuation?

Case study: Valuation of single-let investment using modern methods, comparison and discussion

09.00 - 12.15

Section 5: Development Valuation

  • Warm up exercise - "Value sensitive factors - discussion"
  • Stages of development
  • Traditional Methods
  • Modern Methods
  • Comparison

Case study: Valuation of development site

Section 6: Multi-let properties

  • Valuing multi-let assets
  • WAULT and Running yield
  • Valuation specifics by property type - inherent differences between the main sectors

Case study: Shopping centre valuation - qualitative v quantitative measures and their effects on valuation

12.15 - 13.15 Lunch Break

13.15 - 17.00

Section 7: Accounts-based Methods of Valuation

  • Using accounts to value properties
    • Leisure
    • Hospitality
    • Cafes/bars
  • Purchase price and the effect of goodwill

Case study: Valuation of a hotel

Section 8: Emerging Property Sectors

  • Co-working spaces
  • Urban logistics
  • Build-to-rent properties

Conclusion of the Course

Training catalogue in PDF
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