The Introduction to Property Development and Investment Course aims to teach you how to invest in property development and walk you through how to make decisions concerning site acquisitions, professional team setup, project and budget management, financial analysis, funding and exit strategies.

You will be equipped with the knowledge to make investment decisions, identify and mitigate risks and deal with the intricacies of property acquisition, management and disposal.

Who should attend this course:

This course is suitable to those willing to learn about the whole life-cycle of property development, from site assembly to funding and disposal.

This course is aimed at professionals willing to develop their own real estate development schemes and to those working in surveying, planning and constructions companies seeking to understand how the whole development process works.

Details

Duration: 2 days

Location: London

CPD Hours: 12h

Level: General

Maximum number of delegates: 12

Content

Day 1

• Introduction to property development and investment
• Property development and investment as a business
• Market overview & where to find opportunities and the pipeline
• Development and investment strategies
• Financial return metrics
• Real estate economics & cycles – entry & exit planning
• Exit strategies
• Identifying and evaluating investment opportunities
• Market analysis: The real estate market cycle and investment opportunities
• Real estate investors: Hight Net Worth Invidividuals, Pension and Other Institutional Funds
• Valuation for commercial and residential properties
• Assessing Gross Development Values (GDV), key development costs, professional fees, interest costs and contingencies.
• Financial analysis: Discounted Cash Flow (DCF), profit on cost calculation, IRR, NPV, equity multiple
• Maximum bid price for site
• Obtaining planning permission and enhancing existing planning permission
• Planning permission explained
• Types of permits (no planning, outline, permitted development, full permission, enhancement potential)
• Pitfalls to watch for and managing expectations
• Structuring the offer for the site
• Reducing capital requirements: Purchase options explained
• Delayed completion options
• Full cash offers
• Landowner joint-ventures
• Aligning capital in a bid to offer for the site
• Landowner taking back 2nd mortgage on site
• Overage agreements
• Assessing the legal title and searches
• Construction and project management
• Contracting, monitoring works and phase completions
• Cost control, overruns and how to deal with budgets
• Setting up the professional and advisory teams: from quantity surveyors, to architects, accountants, construction companies, financial modelling & control, joint-ventures partners, solicitors and lawyers, and tax advisors
• Sourcing, engaging and motivating the team

Day 2

• Funding and financing the real estate project
• Sources and types of funding available: rates, sample terms and investment structures
• Principles of corporate finance: picking the right capital structure to fund the property development project
• Forward funding
• Typical senior debt terms and structures
• Typical mezzanine debt terms and structures
• Sourcing additional equity
• Inter-creditor and shareholders agreement
• Basics of development loan structures
• Lending criteria and typical capital structures
• Lending fees
• Introduction to UK Taxation of Real Estate
• Principles of taxation for real estate
• Property taxes and financial returns
• Taxes on acquisition, development, occupancy and disposal
• Off-shore versus on-shore companies’ taxation
• Exit options, sales, marketing strategy and tactics in practice
• Marketing and client segmentation
• International investors and marketing overseas
• Marketing strategy and tactics for your project
• Estate agents: structures, hiring and firing
• Structuring offers for buyers
• Controlling sales and marketing budget

Case study:

High-Rise and Fall

The story of how the European commercial property industry transformed from a local, small-scale business to an international, financially sophisticated, multi-billion-euro industry that was ultimately devastated by the 2008 crash.

By Andrea Carpenter

Sustainability in real estate

The value of green buildings

Sustainability certifications

Environmental, social and governance for development and investing

Well-being in real estate

Property Management

Property management requirements and strategies

Asset management plans, processes and control techniques

Case study:

Mixed-use site development in North London