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:

• Introduction to Shopping Centre Investment
• Retail Property Appraisals

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.

OUTLINE

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

• GLA v. GBA
• Layout
• Entrances
• Facilities
• Special Features

Game: Build your shopping centre

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

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

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

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.