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Retail Property Investment School
18 November @ 9:00 am - 22 November @ 5:00 pm
18th - 22nd November
Retail Property Investment School
Who will benefit from this school?
- 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.
The Retail Property School combines two courses:
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.
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
Shopping Centre Design
Humanics, Mechanics, Branding and Design
Design Considerations and Metrics
- GLA v. GBA
- Special Features
Game: Build your shopping centre
- International Retail Industry
- Retailers and Brands
- Retail Categories Profit & Loss Statements
- Key Performance Indicators
- Retail Trends
Game: The Retail Trading Billionaire
- 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
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
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
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
In day two delegates will be guided through creating and analysing their own case study.
Delegates will be given a 60 unit shopping centre layout and 80 retailers. Delegates in teams, will then lease the shopping centre using the available tenants.
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
Delegates will be required to 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:
1. How resilient is your leasing strategy to the scenarios presented?
2. Has your shopping centre performed within expectations?
3. Which solutions might you propose to help maintain the value of your centre?
Delegates will have been asked prior to the course to send a shopping centre layout from a centre they manage or own or simply like the look of. A selection of these will be chosen and discussed in light of the techniques learnt over the last couple of days.