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.

Note: You can also attend these courses separately. However, people attending the entire week will get £300 off and will receive the Retail Property School diploma.

 

Course Outline


Day One


Day One

Comparative quantitative study of 10 International Shopping Centres:

  • 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

Ranking the shopping centre sample
Understanding the interaction between Retail Property KPIs and their impact on asset level returns
Footfall, Threshold, Engagement and Conversion
The mathematics of optimising Retail Property KPIs
Resilience through demographic change and different stages of the business cycles
Retail Property Investment Appraisals

Using one of the 10 shopping centres above this session will create and analyse the following:

  • Turnover, affordability ratios and rental capture
  • Rental growth, inflation and fixed rents
  • Financial model layout
  • Retail Tenancy Schedules and ITZA calculations
  • Rent functions and rental projection
  • Service Charges and Operational Expenditure (OPEX) and Capital Expenditure (CAPEX)
  • Project Financing
  • Internal Rate of Return (IRR), Net Present Value (NPV) and other metrics

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 the global Retail Occupier, Asset and Development Markets
    • How retail space responds to trends
  • 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

Comparative quantitative study of 10 International Shopping Centres:

  • Bayfield Retail QuiltTM
  • Retailer Classification within sample
  • Catchment areas analysis within sample
  • Operational metrics within sample
  • Bottom up shopping centre definition
  • Analysis of vacancy and appropriateness of tenant mix
  • Footfall and sales data overlays
  • Catchment versus operational dimension analysis
  • Fragmentation, clustering and co-location analysis
  • Analysis of geometric facility
  • Analysis of aesthetics and design
  • Sustainability

Ranking the shopping centre sample
Understanding the interaction between Retail Property KPIs and their impact on asset level returns: Footfall, Threshold, Engagement and Conversion
The mathematics of optimising Retail Property KPIs
Resilience through demographic change and different stages of the business cycles
Retail Property Investment Appraisals

Using one of the 10 shopping centres above this session will create and analyse the following:

  • Turnover, affordability ratios and rental capture
  • Rental growth, inflation and fixed rents
  • Financial model layout
  • Retail Tenancy Schedules and ITZA calculations
  • Rent functions and rental projection
  • Service Charges and Operational Expenditure (OPEX) and Capital Expenditure (CAPEX)
  • Project Financing
  • Internal Rate of Return (IRR), Net Present Value (NPV) and other metrics

Macroeconomic impacts on retail property KPIs
Sensitivity analysis and testing the impact of retail property KPIs on asset level returns

Day Five


Day Five

Create and analyse your own case study:

  • The retailers ‘played’ by the delegates are digitally captured in a tenancy schedule.
  • From the tenancy schedule delegates, will be asked to generate a Retail Quilt in Excel
  • Delegates will then rank their shopping centre using the techniques learned in day one

Build a rent function to project rent, complete a full project cash flow and calculate returns.

Various scenarios are presented to each of the teams who will be shown how to quantitatively answer the following:

  • How resilient is your leasing strategy to the scenarios presented?
  • Has your shopping centre performed within expectations?
  • Which solutions might you propose to help maintain the value of your centre?

 

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.