Retail Property Investment School

This school combines two of our courses:

The Intro to Shopping Centre Investments is more quantitative than before but retains the definitions, historical, practical and strategic context. This provides the fund/asset manager, investing in shopping centres for the first time, with everything they need to know to discuss the asset with their peers.
The Retail Property Appraisals course is for the investor/asset manager who wants to drill deeper into the quantitative analysis of any retail portfolio. The course can be taken on its own and like all our financial modelling courses it is Excel based and data driven from the very start.
 

Who will benefit from this course?

  • Real Estate Professionals who would like to update their knowledge of the investment, performance and profit enhancement strategies of retail assets.
  • Shopping centre managers who would like to communicate more effectively with investors and owners on the financial impact of their management strategies.
  • Asset managers and fund managers who would like to understand the impact of their strategies on asset and shareholder value in a more granular and integrated fashion.
  • Suppliers to shopping centres to help them quantify and communicate how their product can add value.
  • Data companies’ providers who would like to further understand the needs of shopping centre investors in order to help them improve their service.
  • Analyst and modellers who would like to improve their understanding of financial models in respect of retail property assets.

 

Course Outline


Day One


Day One

  • Retail and Shopping Centre History
  • Shopping Centre Definitions
    • Industry Definitions
    • Retail QuiltsTM
    • Creating your own definition
  • Revo, ICSC and other Membership, Research and Policy Bodies
  • Retailers, Consumers and Consumer Behaviour: Comparative study
    • Retailer Classifications
    • Consumer Classifications
    • Operational Metrics: Footfall,Dwell,Frequency,Spend
  • Shopping Centre Design
  • Humanics, Mechanics, Branding and Design
  • Design Considerations and Metrics

Game: Build your own shopping centre
Network Evening: Dinner for delegates and course contributors

Day Two


Day Two

  • International Retail Industry
    • Retailers and Brands
    • Retail Categories Profit & Loss Statements
    • Key Performance Indicators
    • Retail Trends
    • Franchising

Game: The Retail Trading Billionaire

  • Online Retailing
    • Development, Size & Structure of the Market
  • Retail Property Macro Economics
    • Global Demand and Supply
    • Retail Property Indicators in global Retail
    • Occupier, Asset and Development Market
  • Understanding key retail lease covenants
  • Financial Modelling of Retail Property Assets
    • Retail Property Development
    • Retail Property Investment

Workshop: Calculate the development cost of your shopping centre

Day Three


Day Three

Game: Lease your shopping centre

  • Reviewing the Leasing Strategy
  • Analysing the financial model of your shopping centre
  • Shopping Centre Ownership
    • Companies, Partnerships, REITS and Joint Ventures
    • Global retail property ownership and control

Day Four


Day Four

Retail Property Models

  • What makes retail property models unique?
  • Input Variables and the Profit Cycle
  • Financial Model Layout and Design
  • Understanding the nature of Retail Property Cash Flows

Advanced Cash Flow Modelling

  • Internal Rate of Return (IRR), Net Present Value (NPV) and other metrics
  • The three Rent Function methods
  • Logic Functions and Arrays
  • Multi-let Cash Flows
  • Multiple and Period Varying Growth Rates

Retail Property Rent Functions

  • Common Retail Property Lease Covenants
  • Retail Tenancy Schedules
  • Zone A calculations
  • Turnover, affordability ratios and rental capture
  • Rental Growth, inflation and fixed rent
  • Rent Functions and Rent Projection

Analysing the Tenancy Schedule

  • Hypothetical study of ‘The Galleries’ Shopping Centre
  • Unit Plan and Micro Location
  • Using Excel as a database and linking to external data sources
  • Data visualisation methods
  • The Bayfield Retail Quilt (Tenant Mix Analysis)
  • Lease Expiry Profiles and Event Analysis

Round up and Conclusions of Day Four

Day Five


Day Five

Shopping Centre Portfolio Case Study

  • Choosing the Retailer Classification
  • Cross Referencing Consumer Classification
  • Completing the Tenancy Schedule
  • Generating Typologies from tenancy schedules

Rent Functions for Shopping Centres

  • Breaking Complex rent functions from existing models
  • Planning the rent function
  • Events and Rents Table formulae
  • Full Rent Function

Full Project Cash Flow

  • Scenario Testing and Risk Analysis
  • Building a rent function for the case study shopping centre
  • Testing the rent function
  • Creating CAPEX and OPEX functions for the case study
  • Calculating IRR, NPV and other Investment Metrics
  • Testing the IRR for errors

Footfall and Performance Metrics

  • Destination capacity calculations
  • Footfall Signatures
  • Peak hour performance
  • Performance Metrics

Round up and Conclusions of Day Five

 

Post-Course Support

We complement all our financial modelling courses with two months’ learning support, to make sure you will fully benefit from our training.

How does it work?
You can contact us at any time and one of our experts will come back to you within two working days. The expert’s time is limited to 10 minutes per inquiry on questions related to the course material only.

Need More?

One Year Learning Support

We also offer an exclusive learning support for a whole year to assist you whenever you need us. To use this offer contact Kendal Bahadirgil before or after your financial modelling course and request “one year learning support” for the additional fee of only £500 + VAT.