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Packed with exercises and case studies

Certificate In Real Estate Modelling 23 – 26 October 2011

Dusit Thani Hotel Dubai, UAE

www.iirme.com/remodelling

TOP 5 LEARNING OBJECTIVES 1. Learn the techniques to develop a real estate financial model for construction and investment using Microsoft Excel 2. Understand Excel real estate financial models and their automated rivals 3. Be able to audit Excel real estate financial models 4. Get step-by-step instruction in inputs, formulae and techniques to construct and manipulate a model using real estate finance principles as you apply new concepts in a structured, hands-on learning environment 5. Use different valuation techniques to value any class of real estate asset using your financial model

WHO SHOULD ATTEND This course is designed to meet the needs of property and real estate professionals with responsibility for finance or investment and modelling activities. In particular, those working within the following departments will highly benefit: property development, real estate and property management, portfolio management, planning and development, investments, contract management, property consultation, finance, family offices and real estate investments.

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Certificate In Real Estate Modelling

23 – 26 October 2011 Dusit Thani Hotel, Dubai, UAE

Meet Your Expert Course Leader Julian Spencer Roche Finance Training Consultant, Australia and UK From an old real estate family in the UK, Julian Roche worked as an economist for The George Washington University School of Business, IIR Middle East’s Academic Partner, is dedicated to excellence: in its teaching and research about management, in the public and private sectors, within the United States and internationally. The school has a 75 year history of preparing men and women for leadership in both the public and private sectors. Known internationally for its dedication to academic excellence, the school draws students from all parts of the United States and around the world. Beyond first class teaching and scholarship, the school’s faculty offers practical experience in the issues and challenges confronting business and government. Its research centres link faculty and students with US and international business and government organisations. Recent distance learning initiatives have expanded the school’s global reach.

DRI McGraw-Hill and as a partner in a real estate development company with US investments before launching his own real estate consultancy specialising in global data provision. Later he spent five years as a senior consultant to a venture capital company in the UK, where he advised on corporate structure, flotations, trade sales and business valuations. He has also published a number of books on real estate derivatives and business valuations and has presented real estate courses internationally for a number of years.

Course Overview Real estate construction or investment requires a high level of expertise in building financial models if the building is to be profitable. The course covers such issues as how to model the role of debt, debt covenants, cash waterfalls, inter-creditor

Course Requirements And Certificates

relations, restructuring and rescheduling of debt, how to model Delegates must meet two criteria to be eligible for an IIRME/GW Certificate of Completion for a course:

risk, and the role of equity and its rewards. During the course the delegates will build and evaluate a range of project finance models,

1. Satisfactory attendance – delegates must attend all sessions of the course. Delegates who miss more than 2 hours of the course sessions will not be eligible to sit the course assessment. 2. Successful completion of the course assessment. Delegates who do not meet these criteria will receive an IIRME Certificate of Attendance. If delegates have not attended all sessions, the Certificate will clearly state the number of hours attended.

covering projects as diverse as Public-Private Partnerships, major energy investments and private hospitals. Delegates will overcome the most complex aspects of building a reliable model, including uncertainty, currency and timescale mismatches, debt amortisation, depreciation, control account waterfall, cost structures, and the ability to easily shift time scales, as well as the ability to identify and control key sensitivities through spreadsheet simulation.

Course Assessment Assessment will be based on an interview with each delegate and a multiple-choice questionnaire, each equally weighted.

Course Methodology This course will teach you all the available techniques and how to practically apply them through the use of Excel. Extensive use of case studies will be adopted to illustrate the principles covered. Ultimately delegates will get practical tips on layout and style in building and analysing user-friendly models which are available as additional benefits of the course.

Course Prerequisites It is imperative for you to have good Excel and real estate finance and investment knowledge prior to attending this course to maximise your learning experience.

971-4-3352437

971-4-3352438

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Course Timings Registration will be at 8.00 on Day One. All four days will run from 8.30 to 14.30 with two breaks for coffee and refreshments at appropriate intervals; lunch will be served at the end of each course day. Status checking Day One Modelling securitisation in project finance Working capital Using Excel For Modelling Worksheet organisation Case Study: Modelling cash flow waterfalls Data input, management and verification Use of colour/add-ins Using Real Estate Models Naming of cells Input of models to the decision-making process Location of input variables Modelling a PPP transaction Review of Excel functions and their use Deciding between corporate and project finance Macros and their use Benefit allocation between stakeholders Goal seeking Optimisation Case Study: Review of several real estate models and their Circularity and how to resolve it decision-making input Working with range names Graphs and charts Day Two What is needed from Excel and what is superfluous Principles of spreadsheets and workbooks Building A Construct And Sell (CS) Model Building a real estate model. Based on a real example, provided Case Study: Evaluating good and bad Excel financial models by an equity investor in a real estate transaction, delegates will construct and use a model for the transaction. The exercise will Real Estate Cash Flow include: Limited recourse Project review Quantification and allocation of risk Analysing the inputs Structuring and financing solutions Costing construction The role of Islamic finance in project finance structures (with Dealing with input priorities case studies) Data plausibility Project finance experience worldwide Modelling loan drawdown Sales price projections and cap rates Case Study Establishing value from a construct and sale transaction Equity Valuation Day Three Equity NPV/ IRR and project IRR XNPV, XIRR, MIRR Building A Discounted Cash Flow Model (DCF) Model Modelling cash flow and ratios Delegates will continue with the real example from Day Two to Allowing for accountancy - depreciation, tax and capital construct a model based on the assumptions of construction, allowances with revised assumptions, and leasing out. Case Study: Valuation and Cash Flow models Revising construction inputs Loan assessment criteria Real Estate Models PGI, EGI and NOI in the model The fundamentals of project finance model design Forecasting NOI and operating expenses Objectives of project finance models Modelling loan amortisation Design, testing and feedback IRR NPV and other valuation analysis Model sensitivity and auditing Definitions and analysis Day Four Revenue and cost modelling Cash adequacy, recourse, standby and liquidity Argus And @Risk Financial coverage ratios and the bank perspective Argus – An Alternative To Excel Real Estate Models Case Study: Examples of real estate models Demand and capacity driven forecasts Consistency of capital expenditures and volume Real Estate In The Gulf Operating revenue and expense drivers Design tolerance Cash flow design Dealing with escalation/inflation Dealing with non-correlated variables Case Study: Building a model using ARGUS Pre-completion elements Estimating damages @Risk – Monte Carlo Software

Case Study: Examples of Excel project modelling Real Estate Model Issues Depreciation of fixed assets Control accounts – waterfall/cascade

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Methods of handling risk What is Monte Carlo analysis? Worked examples of Monte Carlo analysis Applying @Risk to CS and CL models Analysing @Risk results Presentation of Monte Carlo results to senior management

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Certificate In Real Estate Modelling 23 – 26 October 2011 Dusit Thani Hotel, Dubai, UAE FIVE WAYS TO REGISTER IIR Holdings Ltd. P.O Box 21743 Dubai, UAE

971-4-3352437 971-4-3352438

GCS/IIR Holdings Ltd. P.O Box 13977 Muharraq Kingdom of Bahrain

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DISCOUNTS AVAILABLE FOR 2 OR MORE PEOPLE CALL – 971-4-3352483 E-MAIL – a.watts@iirme.com WEB BC4020 Event

Course Fee Before 14 August 2011

Course Fee Before 11 September 2011

Final Fee

US$ 3,950

US$ 4,450

US$ 4,750

Certificate in Real Estate Modelling 23 – 26 October 2011

Interested in running this course in-house?

Course fees include documentation, luncheon and refreshments. Delegates who attend all sessions will receive a Certificate of Attendance.

DELEGATE DETAILS Name: .............................................................................................................................................................................................................. Job Title: ......................................................................................................... Email: ..................................................................................... Tel: ..................................................... Fax: .................................................... Mobile: ..................................................................................

Please call the Customised Training Solutions Team on 971-4-3352439 or CTS@iirme.com All registrations are subject to our terms and conditions which are available at www.iirme.com/terms. Please read them as they include important information. By submitting your registration you agree to be bound by the terms and conditions in full.

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A confirmation letter and invoice will be sent upon receipt of your registration. Please note that full payment must be received prior to the event. Only those delegates whose fees have been paid in full will be admitted to the event. You can pay by company cheques or bankers draft in Dirhams or US$. Please note that all US$ cheques and drafts should be drawn on a New York bank and an extra amount of US$ 6 per payment should be added to cover bank clearing charges. In any event payment must be received not later than 48 hours before the Event. Entry to the Event may be refused if payment in full is not received. Credit card payment If you would like to pay by credit card, please tick here and a member of our team will contact you to take the details

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Avoid Visa Delays - Book Now Delegates requiring visas should contact the hotel they wish to stay at directly, as soon as possible. Visas for non-GCC nationals may take several weeks to process. All registrations are subject to acceptance by IIR which will be confirmed to you in writing. Due to unforeseen circumstances, the programme may change and IIR reserves the right to alter the venue and/or speakers.

Event Venue: Dusit Thani Hotel, Dubai, UAE Tel: 971-4-3433333 Accommodation Details We highly recommend you secure your room reservation at the earliest to avoid last minute inconvenience. You can contact the IIR Hospitality Desk for assistance on: Tel: +971-4-4072693 Fax: +971-4-4072517 Email: hospitality@iirme.com © Copyright I.I.R. HOLDINGS B.V.

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If you are unable to attend, a substitute delegate will be welcome in your place. Registrations cancelled more than 7 days before the Event are subject to a $200 administration charge. Registration fees for registrations cancelled 7 days or less before the Event must be paid in full. Substitutions are welcome at any time.


Certificate In Real Estate Modelling