“Our team enjoyed the training especially since you were able to tailor the course"
CBRE Frankfurt

European Real Estate Analyst

Course Length: 2-days
Pre-requisite: Real Estate Analyst course or similar experience

Learn how to model cash flows arising from property assets located in different countries across Europe. This course builds on modelling concepts taught in the Real Estate Analyst course and concentrates on building a variety of solutions to complex rent functions arising from the manifold features in European leases.

The course will describe in detail the typical lease structures in ten European countries including France, Germany, Czech Republic and Greece. Techniques used to update rents from a Consumer Price Index are also covered as well as complex cost functions.

Who should attend?

  • Anyone involved in sale, acquisition, investment advice, financial services, corporate services, valuation and development in European countries outside the UK.
  • Anyone who wishes to develop their modelling skills beyond the Financial Modelling in Excel course in further applied real estate contexts.
  • Anyone using real-estate appraisal software for pan-European portfolio models and has become aware of its limitations.
  • Anyone who is currently using Excel to build European real-estate models but would like to review examples other than their own, develop existing ideas on leases they currently model, and see examples of leases from countries they have not yet modelled.

Included with course

  • All Excel models used on the course, provided on disk
  • 2-months post course email and telephone support
  • Comprehensive course manual (also available separately and designed for self-study)

Day One (of 1)

Learn how to build advanced real estate models

Part A (morning)

  • Introduction and best practice
  • Revision of cash flow modelling principles: The rent function, Opex and Capex, Net Cash Flow (NCF), Net Present Value (NPV) and Internal Rate of Return (IRR)
  • Sensitivity analysis, multiple IRRs, reinvestment rates and cross over rates
  • Multi-let cash flow models, rent function and model layout
  • Data validation, date assumptions and periodicity

Part B (afternoon)

  • Rent function design methods: time-line, bubble diagrams, calculation tables and prototypes
  • Rent reviews, lease expiries, rent-free, and indexation
  • Multiple future leases
  • Scenario Analysis & goal seeking

Day Two (of 2)

Learn how to model complex rent projections and cost functions

Part C (morning)

  • Introduction to advanced indexation concepts
  • Referencing dates versus periods
  • Indexation timing: anniversary, calendar or specific
  • Discounts or premiums on rent adjustments
  • German style ratchet leases

Part D (afternoon)

  • Creating a complete project model to NOI and NCF
  • Modelling detailed Opex: Insurance, service charge, empty rates, letting fees, rent review fees, non-recoverables and miscellaneous items
  • Modelling Capex: fixed, variable, straight line, s-curve
  • Running yields and performance metrics
  • Comparative study of the different European leases in Austria, Czech Republic, France, Germany, Greece, Poland, Portugal, Spain, Sweden, and UK