Introduction to Real Estate Fund Management

A course introducing the fund management process, specifically applicable to real estate funds.
The course revises the real market and the opportunities available before comparing the risks and reward of investment in the underlying asset with investment in shares of a real estate fund (aka indirect real estate investment). When setting up a fund, the various different structures available and the broader legal framework for real estate investment activity in the UK is reviewed. Finally financial analysis of the fund revising portfolio modeling theory and benchmarking performance are demonstrated using spreadsheet models.

Outcomes

On this course you will:

  • Understand the fund origination; real estate investment and strategy
  • Gain appreciation of investment management at the fund level
  • Learn the different types of funds and the rationale for choosing a particular type of fund
  • Analyse real estate portfolio risk and return
  • Review the UK and international available benchmarks
  • Learn how to manage real estate risk at the portfolio level

Who will benefit from this course

  • Real Estate Portfolio and Fund Managers
  • Real Estate transaction teams working with Portfolio and Fund Managers
  • Real Estate professionals in relationship and supporting institutional Investors
  • Research teams designing strategies and Fund products
  • Real Estate professionals looking to expand their knowledge
  • Recent Graduates interested in taking the Investment Management Fund path

 

Course Outline


Day One


Day One

The Economics, size and structure of the UK Real Estate market

  • Introduction to the Real Estate Market
  • Investment opportunities and the four-quadrent model
  • Value by geography, sector and structure
  • Manager or Investor

Direct Real Estate Investment

  • Global Economic Environment
  • Occupancy Market cycle
  • Investment cycle: Dev & asset market
  • Credit Market
  • Real Estate cycles: Where are we now?
  • Direct Real Estate total returns

Introduction to Unlisted Real Estate

  • What is unlisted Real Estate and why invest?
  • Size and structure of unlisted markets
  • Products and Investors
  • Direct vs Indirect

Fund Structures – Part 1

  • Financial Services Regulatory framework
  • Types of funds (UK, Luxembourg, Ireland, offshore, open or close-ended, limited life or evergreen, regulated or unregulated)
  • Rationale for choosing a particular type of fund (For example investor type, location and investment powers, asset location, costs)
  • Regulatory implications and requirements, including for cross-border distribution

Regulatory Framework Part 2

  • Strategic considerations for structure: legal, tax, regulatory and commercial
  • Case studies:Unit Trust/Limited Partnership with US feeders, Corporate with Luxembourg SPV’s, Luxembourg RAIF with US feeders
  • Rationale for choosing a particular type of fund (For example investor type, location and investment powers, asset location, costs)
  • Looking Forward: UK and EU horizon, Post Brexit

Conclusions

Day Two


Day Two

An overview to Listed Real Estate

  • What is listed Real Estate and why invest
  • Size and Structure of listed real estate
  • REITs and access to finance
  • UK Performance vs Global Performance
  • Indirect: UK vs Europe

Real Estate Financial Models

  • Basics of Real Estate Financial Modelling and Revision of risk and return metrics calculation
  • Drivers of a single asset investment model
  • Impact of Opex and Capex considerations

UK Real Estate Rend Considerations

  • Lease structures and terms
  • Examples and differences across UK and Europe
  • Rent function Modelling
  • Impact on the overall Real Estate Model
  • Indexes & Benchmarks UK and International available benchmarks- factsheet

Fund Management & Stategy

  • Bottom Up vs ‘Top Down’ approach to Fund Management
  • Managing Real Estate risk at the portfolio level

Conclusions