Executive Certificate in Real Estate Finance - NUS SDE
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Executive Certificate
in Real Estate Finance
“Bridging Real Estate and Capital Market”
2021-2022
Open for Registration
Real Estate Portfolio &
Risk Management
(17 - 21 May 2021)
Modules:
• Real Estate Portfolio & Risk Management
• Real Estate Investment & Asset Management
• Real Estate Finance & Securitisation
1
T HE NUS D EPARTMENT O F R EAL E STATE
NUS Real Estate has a team of dedicated staff who are committed to excellence in real estate education and research.
Many prominent and distinguished leaders in the Singapore real estate industry are alumni of NUS ReaI Estate.
Established in 1969, the Department of Real Estate offers a 4-year honours BSc (Real Estate) programme and a MSc (Real
Estate) Programme. It also runs a Master of Business Administration with specialisation in Real Estate jointly with NUS
Business School. The ECREF was introduced in 2011 to provide a structured programme for executives in the real estate
and finance sectors.
On the research front, NUS continues to establish itself as the leading real estate research university in Asia.
FUNDING SUPPORT
FTS-Eligible
This programme is approved for listing on the Financial Training Scheme (FTS) Programme Directory and is eligible for FTS
claims subject to all eligibility criteria being met.
The FTS is available to eligible entities, at a 50% funding level of programme fees subject to all eligibility criteria being met.
FTS claims may only be made for programmes listed on the FTS Programme Directory with specified validity period. Please
refer to https://www.ibf.org.sg/programmes/Pages/IBF-FTS.aspx for more information.
SkillsFuture Credit
This programme is approved for listing on the SkillsFuture Credit (SFC) Course Directory. It is eligible for claims subject to
all eligibility criteria being met. Please refer to https://www.skillsfuture.gov.sg/credit for more information.
1
C ONTENTS
T H E NUS D E P A R T M E N T O F R E A L E ST A TE ................................................................... 1
C OU R SE O BJE C TI V E S ........................................................................................... 3
C OU R SE O U TL I N E .............................................................................................. 3
W H O S H OU LD E N R O L .......................................................................................... 3
H I GH LI GH T S ..................................................................................................... 3
P RE V I OU S P A RT I C I P A N T S ..................................................................................... 4
F E E D BA C K ....................................................................................................... 6
M A Y 2021 M OD U LE : R E A L E S T A T E P O R TF O LI O & R I SK M A N A GE M E N T ................................ 7
A U GU ST 2021 M OD U LE : R E A L E S T A T E I N V E ST M E N T & A S SE T M A N A GE M E N T ....................... 11
M A Y 2022 M OD U LE : R E A L E S T A T E F I N A N C E & S E C U RI TI SA TI O N ...................................... 15
PANEL OF D I ST I N GU I SH E D P R OFE S S O RS .................................................................... 19
PANEL OF D I ST I N GU I SH E D P RA C TI T I O N E RS ................................................................ 21
A P P LI C A T I ON & F E E S ......................................................................................... 35
F U N D I N G S U P P O R T ........................................................................................... 35
C E R T I FIC A T E ................................................................................................... 35
R E G I ST RA T I O N , R E FU N D AND C A N C E L LA TI O N P O L I C Y .................................................... 35
A P P LI C A T I ON F O RM ........................................................................................... 36
C O N T A C T I N F OR M A TI O N ..................................................................................... 37
2
COURSE OBJECTIVES
The evolution of the real estate investment industry has created a demand for a special group of professionals who
not only have deep knowledge and understanding of the real estate market, but are also familiar with the dynamics
of the capital markets.
To meet this demand, the Executive Certificate in Real Estate Finance (ECREF) was introduced to integrate the best
of real estate and finance knowledge. Participants will acquire critical concepts and skills relevant throughout the
life cycle of a public/private real estate fund, from fund raising, acquisition, and asset management to exit. This
pool of trained specialists will enhance Singapore's attractiveness as the real estate investment and fund
management hub in Asia.
C OURSE O UTLINE
The ECREF will be offered in three modules. W HO S HOULD E NROL
This program will benefit professionals and managerial
• R E A L E ST A TE P O RT F O LI O staff employed by REITs, private real estate funds, real
& R I SK M A N A GE M E N T estate investment companies, property development
This module covers issues related to investment in companies, real estate consultants, investment banks,
real estate securities and derivatives, covering both financial institutions, and government agencies,
debt and equity instruments as well as risk particularly those who are involved in business
management associated with investing in real estate development and asset management.
in a portfolio context.
• R E A L E ST A TE I N V E ST M E N T H IGHLIGHTS
& A SSE T M A N A GE M E N T • Engaging seminars for mastering the complexity of
This module covers issues related to direct real real estate investment, finance and securitization.
estate investment and asset management.
• Comprehensive and stimulating program with real
• R E A L E ST A TE F I N A N C E & S E C U RI TI SA TI O N world exposure
This module covers issues related to fund raising • Not-to-be-missed opportunities to learn from
through the traditional and alternative routes,
distinguished professors and senior professionals
including securitisation.
• Excellent networking opportunities with
Each module is standalone and will run as a 5-day
practitioners in real estate and finance sectors
intensive programme. Registration of the ECREF is by
modular basis. Application for each module will be • Flexible schedule and intensive day classes
opened around six weeks prior to the start of each
module.
The ECREF is distinctive in terms of its rigour and
Participants who complete all the three modules will practical relevance. Instructors include distinguished real
receive an Executive Certificate in Real Estate Finance estate professors and industry practitioners.
awarded by the Department of Real Estate, National
University of Singapore.
3
P REVIOUS P ARTICIPANTS Real Estate Investment Trusts & Fund Managers
AEP Investment Management
ARA Managers (Asia Dragon)
The ECREF attracts a good mix of mid- to senior-level executives
Ascendas Funds Management (Singapore)
from the real estate, finance and business communities in
Singapore and overseas. Former participants included chief Aviva Investors
operating officer, chief financial officers, partners, managing Boustead Funds Management
directors, senior vice-presidents, general managers, vice- Cambridge Industrial Trust Management
presidents, assistant general managers, directors, senior CapitaCommercial Trust Management Limited
managers, managers and senior executives from the following Capitamall Trust Management
organizations:
FCL Management Services
Keppel REIT Management
Real Estate Developers & Investors
Amara Holdings LaSalle Investment Management
Asiamalls Management Mapletree Commercial Trust Management
apbcOffices Mapletree Logistics Trust Management
Bukit Sembawang Estates MGPA (SG)
CapitaLand Parkway Trust Management
CBRE Global Investors
Finance
Centurion Corporation
ChoiceHomes Investments AIA Singapore
City Developments Allianz Investment Management Singapore
Frasers Centrepoint BMW Financial Services
GIC CIMB Bank, CIMB Research
Global Logistic Properties DBS Bank, DBS Vickers
Hong How Corporation iFast Corporation
Hong Leong Holdings Lion Global Investors
ING REIM (Singapore) MayBank
Jewel Changi Airport Devt NTUC Income Insurance Co-operative
JMD Investment OCBC Bank
Keppel Land International Societe Generale Bank & Trust
Koh Brothers Development STI Financial Group
Lee Holdings Sumitomo Mitsui Banking Corporation
Lendlease Singapore UBS Asset Management
LHN Group UOB Limited, UOB Kay Hian
Mapletree Investments
Government Agencies
MCC Land (Singapore)
OUE Limited Building and Construction Authority
Perennial Real Estate Holdings Changi Airports International
Qingjian Realty (South Pacific) Groups Housing & Development Board
Singbridge International JTC Corporation
Soil-Build (Private) Urban Redevelopment Authority
Straits Construction Singapore
Real Estate Consultancy
Taisei Corporation
TEE Realty CB Richard Ellis
UOL Group DTZ Debenham Tie Leung (SEA)
Warees Investments Huttons Asia
Wee Hur Holdings Jones Lang Lasalle
Wheelock Properties (Singapore) Knight Frank
4
OrangeTee.Com South Africa
Savills (Singapore) Thailand
Surbana International Consultants UAE
UGL Services Premas Operations Vietnam
Hospitality
Carlson Hotels
Banyan Tree Holdings
Hotel Properties Limited
Hotel Royal Limited
Marina Bay Sands Private Limited
Seacare Hospitality Pte Ltd
Tang Holdings Private Limited
Others
Allen & Gledhill LLP
CEVA Logistics
Hyflux Limited
KPMG
PricewaterhouseCoopers Advisory Services Pte. Ltd.
Progressive Builders
Rodyk & Davidson LLP
Sunpeak Construction
VICO Construction
YCH Group
International Participants
Australia
Belgium
Canada
China
England
Hong Kong
India
Indonesia
Japan
Kuwait
Macau
Malaysia
Mongolia
Myanmar
Nigeria
Philippines
Saudi Arabia
Singapore
5
F EEDBACK
Feedback from the previous participants was overwhelmingly
positive. Overall, the level of satisfaction for the ECREF
programme is 4.6 (out of a maximum of 5.0). In particular, the
participants are extremely satisfied with the effectiveness of the
programme as well as the quality of the trainers (4.6 out of 5.0).
What our past participants say:
“The NUS Department of Real Estate is to be congratulated “Thank you for the fantastic job in hosting and teaching the
for taking advantage of this unique position to create and course. The merging of theory with applicable experience
run the GCREF in Singapore and I believe that it would be from real life practitioners definitely gives a much more
remiss of any property professional not to consider this relevant understanding to folks in the RealEstate industry.
course as part of his or her continuous professional Looking forward to your next module.” – Mr Adrian Tan |
development” - Mr Gurjit Singh, Chief Operating Officer of Manager, Risk Management, Global Logistic Properties Ltd
Sorouh Real Estate PJSC, UAE
"Thanks for imparting your knowledge and sharing the case
“Priceless and a 'MUST ATTEND' for real estate studies. I got quite a bit from the module." - Tan Guan Heng,
professionals across the value chain” – Mr Ian Chua, former Managing Director, International Council of
Associate Director (Asian Equities) Lion Global Investors Shopping Centers, Inc. Asia-Pacific Office
“Participants in the course were very interactive and the "The NUS-ECREF course allowed me to continue working
speakers were very good.” – Ms Marianne Ang, Executive while learning real-time, up-to-date real estate finance case
Director (Asset Services), CBRE studies that I was able to apply in my market immediately.
The quality of our cohort, speakers and alumni exceeded my
“Excellence in achieving your objective of this course in expectations and all of them are now my professional
providing insight on bridging real estate and capital contacts. The program is a great combination for learning
market” – Mr Albert Leo, National Director, Jones Lang and networking and having access to relevant case studies
LaSalle used by the program is hard to find!" – Joey Radovan, Vice
Chairman, JLL Philippines
“This is a good forum to learn from the industry experts and
practitioners and for networking” – Ms Gladys Lee, SVP (DBS
Bank)
6
R EAL E STATE P ORTFOLIO
& R ISK M ANAGEMENT
M AY 2021 Module: Monday - Thursday, 0845 - 1730, 17-20 May 2021
Optional Tutorials, Friday, 0930 - 1730, 21 May 2021
Real Estate Portfolio Day 1
& Risk Management Session 1: Setting the Stage: Real Estate Risk and Returns
Session 2: Analysing & Pricing Real Estate and REIT Stocks
O VERVIEW Session 3: Seeking Alpha – The Search for Superior Return
Portfolio management essentially consists of three major
activities: asset allocation, shifts in weighting across major
Day 2
asset classes, and security selection within asset classes. To
minimize risk, investment theory asserts that investors need
to diversify. The four quadrant model of real estate Session 4: Risk Diversification in a Portfolio Context
investment in particular offers a framework for
investment managers to take positions across real estate Session 5: REIT ETFs: Access to Global Real Estate Exposure
public and private, debt and equity markets.
Session 6: Managing a Global Real Estate Portfolio
Focusing on indirect real estate as an investment asset class, Session 7: Panel: The Future of Real Estate
this module is structured around the goal of a portfolio
manager, which is to assemble various securities into
portfolios that address investor needs (which are often
defined in terms of risk) and then to manage those portfolios Day 3
so as to maximize returns for investment risk undertaken.
Compared with the traditional method of investing directly Session 8: Prudent Capital & Financial Risk Management for
in real estate, real estate‐backed securities offer investors REITs
an indirect route to take equity and debt interests in real Session 9: Analysing & Pricing Real Estate Debt Instruments
estate. Real estate investment trusts (REITs) in particular
allow investors to participate in a portfolio of properties that
may be geographically diversified and professionally Day 4
managed.
Session 10: An Entrepreneurial Approach to Risk
Blending theory with application to real world problems and Management
illustrated using case studies, the topics covered in this Session 11: Real Estate NPLs: Risk and Opportunities
module is divided into three broad areas, namely (1) the
Session 12: Real Estate Credit Risks Management – A
analysis and pricing of real estate equities and debt
Banker’s Perspective
instruments, (2) strategic portfolio allocation to diversify
risk and tactical allocation to achieve superior returns, and
(3) risk management techniques for real estate investors, Day 5 – Optional (additional registration fee applies)
including latest insights on opportunities and challenges in
a securitized and globalized real estate market. Tutorial 1: Valuation of REIT Stocks
Tutorial 2: Asset Allocation & Portfolio Construction
– A Numerical Exercise
7
P ROGRAM S CHEDULE asset class weightings. Focusing on their pursuit for superior
returns (alpha), this session focuses on the stock selection and
The main programme will run for 4 days. Classes generally starts market-timing strategies of an institutional investor and
at 0845 and end at 1730 daily. There will be two coffee breaks portfolio manager. Topics to be covered include key aspects of a
and a lunch in between. Review sessions, facilitated by the winning real estate stock; projecting performance and growth of
Module Coordinator, will be held throughout the course. There listed real estate companies; quantity, pricing and timing issues
are two post-seminar tutorials on (1) Valuation of REIT stocks, related to buying and selling decisions.
and (2) Asset Allocation & Portfolio Construction – A Numerical
Exercise on the 5th day.
Day 2
Day 1
Session 4: Risk Diversification in a Portfolio
Session 1: Setting the Stage: Real Estate Risk
Context
and Returns
Diversification is a strategic device for dealing with risk and asset
allocation can best be described as the blending together of
Real estate is a large investment category, but it has received major asset classes to obtain the highest long-run return at the
relatively limited direct investment from portfolio investors lowest risk. Managers may also make opportunistic shifts in
because of its lack of liquidity, the difficulty in valuing the asset class weightings in order to improve return prospects over
investment, limited understanding of its risk character, and the longer-term objective.
relatively high cost of management. Real estate securities
provide an alternative route to investing in direct real estate
without its associated problems. This session sets the stage for Session 5: REIT ETFs: Access to Global Real
this module by providing a background on the measurement of Estate Exposure
real estate returns and risks. Using the balance sheet model, the
cash flows of a real entity is then partitioned into debt and equity Exchange-traded funds (ETFs) are investment funds traded on
securities. The session concludes with a review on how the stock exchanges and have gained popularity in recent years. A
market for securities works efficiently in general. real estate ETF invests in REITs that attempt to replicate the
performance of a specific real estate or REIT index. This session
Session 2: Analysing & Pricing Real Estate and examines the mechanics and coverage of real estate ETFs, real
estate benchmarks as well as the issue of tracking errors.
REIT Stocks
Investment decisions are only as good as the information they Session 6: Managing a Global Real Estate
are based on and a critical analysis of a firm is central in Portfolio
projecting the degree of risk surrounding future economic
events and in selecting the best investment option. Investors
thus need to study the performance of equities, both against the GIC is a sovereign wealth fund (SWF) established by the
appropriate sector as a whole and also against competitors Government of Singapore in 1981 to manage Singapore’s foreign
within the sector. Using appropriate case studies, this session reserves. Taking a long-term approach to seek sustainable
examines the practical challenges faced by equities analysts in returns over time, the company takes advantage of investment
analyzing and valuing real estate equities and REIT stocks. The opportunities across different assets and markets. This session
session also covers the fundamentals of business valuation and addresses the challenges of managing a global real estate
financial statement analysis from a practical perspective, using portfolio. The principles underpinning the company’s evaluation
case studies on listed real estate companies and REITs to identify of cross-border investment projects and risk management
the various factors that impact on shareholder value. techniques for overseas projects will also be covered.
Session 3: Seeking Alpha - The Search for Session 7: Panel: The Future of Real Estate
Superior Return
In the 2020 SEI/Preqin Survey of Real Estate Managers and
Investors, it was noted that investors now face a series of
Portfolio managers try to beat the market and improve their
bewildering structural changes that will fundamentally
return prospects through careful selection of securities that have
transform how they operate in the future. Nowhere is this truer
above-average expected return within the asset class as well as
than in real estate investing, where technology, demographics,
through tactical asset allocation through opportunistic shifts in
8
climate, and affordability are just some of the factors quickly Day 4
reshaping how and where people live, work and play. The
distinguished panel of real estate veterans will discuss how these
macro trends will impact and change the future of real estate Session 10: An Entrepreneurial Approach to
investing. Risk Management
The general theme of an entrepreneurial approach to risk
Day 3 management is not avoid risk but rather to recognise it, assess it
and manage it. It is imperative to understand that with every
investments there are inherent associated risk that will prevent
Session 8: Prudent Capital & Risk Management us from realising the anticipated value. Consequently, it is the
Strategy for REITs good entrepreneur who understands this well, and takes
necessary steps (mitigation and controls) to prevent controllable
REITs have low financial reserves because they are required to critical risk elements from affecting the probability of the
disburse at least 90% of their net income as dividends. In a realising the investment returns. It is after assessing the
volatile credit market, a primary concern of financially possibility for permanent loss against the investment price that
constrained REITs is their ability to access capital and maintain a decision can then be taken to invest or not.
adequate liquidity to refinance maturing loans and fund capital
expenditures. Hence, the financial well-being of REITs is highly Session 11: Real Estate Non-Performing Loans
dependent on the availability of credit. (NPLs): Risks and Opportunities
This session covers both the principles and practice of a prudent The pandemic has impacted the performance of businesses and
and dynamic capital and financial risk management from a CFO properties. As loan performance worsens and the level of NPLs
perspective to ensure continuous access to funding at optimal rises, banks are expected to moderate their lending. This gives
cost, maintain stable distributions to unitholders and achieve a rise to opportunity for non-traditional lenders to fill the lending
steady net asset value. A dynamic and pro-active approach of gap and investors to acquire distressed or NPLs. Apart from
managing the balance sheet, liability and liquidity risk of a REIT, discussing the opportunity, the session will explain how
which is also applicable to any real estate holding vehicle, will investment in NPL requires a different mindset, how investors
also be covered. generate returns, what skills are required and key risks to
diligence. Financing options for NPL investments will also be
Session 9: Analysing & Pricing Real Estate Debt covered.
Instruments
Session 12: Real Estate Credit Risks
Focusing on the investment and financial analysis of real estate
debt instruments, this session is divided into two parts. The first Management – A Banker’s Perspective
part provides an analytical framework that is underpinned by
fixed income pricing. The objective is to equip participants with This session covers issues related to the management of credit
some basic financial engineering principles that underlie the risks associated with underwriting commercial real estate loans
securitization of real estate financial instruments. The from a banker’s perspective. The learning objectives of the
instruments covered begin with mortgages as the key building session are (1) to identify the risks involved in commercial real
blocks of real estate debt and move on to debt pools of estate loans for investment & development properties, (2)
mortgage-backed securities. The second session examines real understand how bankers hedge their risks through loan
estate debt capital markets in relation to real estate financing. It structures, covenants and other considerations to mitigate
aims to provide participants with an appreciation of debt design, lender’s risk, and (3) restructuring & workouts using hypothetical
the creation of derivative debt investments collateralized by real scenarios of distressed loans.
estate and the determinants of debt pricing. It will also look at
the institutions involved in the structuring process and their
roles in financial innovation.
9Day 5 – Optional Tutorials
(separate registration fee applies)
Tutorial 1: Valuation of REIT Stocks
This workshop provides opportunities to put into practice a
number of the theoretical and conceptual frameworks as applied
to the valuation of REIT and property stocks. Using publicly
available financial information, workshop participants will
construct valuation models for REITs and property stocks that
they select under the guidance of the workshop facilitators.
These valuations will then be discussed in the context of current
market conditions, and situated within a portfolio and risk
management framework.
Tutorial 2: Asset Allocation & Portfolio
Construction – A Numerical Exercise
Portfolio theory provides both a theoretical justification for
diversification and an analytical framework for assembling
individual securities in such as way as to achieve proper
diversification. The theory adds to the expression “don’t put all
your eggs in one basket” by quantifying “how many eggs should
we put in which baskets.” The purpose of this tutorial is to
demonstrate how Excel can be used to solve some simple
problems in the area of portfolio management such as asset
allocation as well as the determination of alpha and beta of a
real estate security.
10I. R E A L E ST A TE F U N D A M E N TA L S
& I N V E S TM E N T A N A L Y S I S
The course begins with an overview of the importance of
M AY 20192021
AUGUST Module:
M ODULE : real estate as an asset class. Topics to be covered include:
the relation between real estate values and risk;
determinates of required rates of return for investment
Real Estate Investment decisions; analysis and forecasting of the primary
economic drivers of real estate rental rates and market
& Asset Management values; the dynamic relationship among space (rental)
markets, property markets, and capital markets.
The pro-forma cash flow analysis forms the backbone of
O VERVIEW - A V ALUE A PPROACH
the preliminary underwriting of the investment
opportunity. Topics to be covered include: develop a
“Although the subject of real estate can be studied from basic commercial real estate pro forma; the starting point
many perspectives, we have adopted the value perspective for implementing a discounted cash flow analysis of real
as our unifying theme. Why? Because value is central to estate investment decisions; how basic ratios and rules
virtually all real estate decision making including whether of thumb are typically used in the valuation/decision
and how to lease, buy, or mortgage a property acquisition; making process; use of net present value and the internal
whether to renovate, refinance, demolish, or expand a rate of return in a decision making context; expanded
property; and when and how to divest (sell, trade, or discussion of commercial real estate cash flow pro
abandon) a property.... The key to making sound formas, risk analysis, and discount rates.
investment decisions is to understand how property
values are created, maintained, increased, or destroyed.”
II. A C QU I SI TI O N P RO C E S S
- Ling & Archer (2010) & S T RU C TU RI N G
This first step in the investment process is finding the
This module covers issues related to direct commercial real right potential investment. Real estate deals have also
estate investment and asset management. Participants will become more challenging and sophisticated in terms of
learnaa“real”
gain “real”world
worldperspective
perspective of
of how
how to
to manage the real their size, scope and complexity. Nowadays, structuring
estate investment and asset management process more the right deal is as important as finding the right
effectively and efficiently. Adopting a value approach, this property. Topics to be covered include: acquisition
module is about making informed decisions concerning real process; deal sourcing; negotiation and due diligence;
estate. Virtually all decisions about the acquisition, regional investment opportunities; deal structuring;
disposition, or improvement of real estate depend on some ownership and tax efficient vehicles.
assessment of the real estate’s value. These decisions
involve comparing the resulting value of an action to its
immediate cost. III. A SSE T M A N A GE M E N T
This module will cover four broad areas, namely
Fundamentals
This of Real
module will coverEstate
four & broad
Investment
areas, Analysis;
namely Real estate investment is no longer seen as a passive
Acquisition Process
Fundamentals of Real
& Structuring;
Estate & Investment
Asset Management;
Analysis; game where a property is bought, held passively over a
Development.
Acquisition Process & Structuring; Asset Management; and passage of time, and then sold for a profit. Property and
Development. asset managers play a critical role to help unlock and
create value through asset repositioning and
enhancement strategies. Topics covered include: pro-
active asset management; strategic asset plan; yield
maximisation & asset enhancement strategy; marketing,
leasing & property management; refurbishment and
capex plan; hold-sell analysis; redevelopment &
disposition decisions; retail management and tenant mix
strategies.
11R EAL E STATE I NVEST MENT
IV. D EVELOPMENT & A SSET M ANAGEMENT
(Subject to confirmation)
Real estate development is a highly creative but complex
process which entails the orchestration of finance, Day 1
materials, labor and expertise by many actors within a
wider, social, economic and political environment. At its Session 1: Setting the Stage & Real Estate Market Analysis
best, the whole process is synergistic - that is the
Session 2: Deal Sourcing, Negotiation & Structuring
ultimate combination of resources has a greater value
than the sum of its individual parts. Topics covered
include real estate development process; acquiring sites,
Day 2
value aspects of good design and strategic real estate
marketing. Session 3: Property Development: The Dynamics of
Value Creation
Session 4: Tax Issues in the Acquisition, Ownership &
Disposal of Properties
Session 5: Real Estate Investment Analysis
Day 3
Session 6: The Value Aspects of Good Design
Session 7: Valuation & Acquisitions of Hotels & Resorts
Session 8: Study Tour: Guoco Tower
Day 4
Session 9: Strategic Asset Management
Session 10: A Proactive Real Estate Strategy: Buy, Fix & Sell
Session 11: Panel: Real Estate Investment: Cross-border
Opportunities & Trends
Day 5 – Optional
Workshop 1: Tutorial: Constructing DCF Model for an
Integrated Project
Workshop 2: Case Workshop: Making Real Estate Investment
& Divestment Decisions
12P ROGRAM S CHEDULE involved, their motivations as well as their value contributions;
from site acquisition, to project management, and strategic
marketing of the completed project.
The main programme will run for four days. Classes start at 0845
and end at 1745 daily. There will be two coffee breaks and a
Session 4: Tax Issues in the Acquisition, Ownership
lunch in between. Module coordinators will be available
throughout the course to facilitate review sessions. In addition
and Disposal of Properties
to eleven stimulating sessions anchored by distinguished
professors and veteran practitioners on the main programme, At each stage of the life cycle in the acquisition, ownership and
there are two post-seminar tutorial and case workshop on the disposal of properties, there is a range of tax issues that the
fifth day. investor is confronted with. In this session, some of these tax
issues will be covered such as Additional Buyer’s Stamp Duty
(ABSD) and income tax.
Day 1
Session 5: Real Estate Investment Analysis
Session 1: Setting the Stage & Market Analysis
This session starts with the development of a basic commercial
Real estate is the single largest component of wealth in our real estate pro forma, the starting point for implementing a
society. The first part of this session begins with an overview of discounted cash flow analysis of real estate investment
the importance of real estate as an asset class. Then the relation decisions. This is followed by discussions on how basic ratios and
between real estate values and risk and determinates of rules of thumb are typically used in the valuation/decision
required rates of return for investment decisions will be making process. The use of net present value and the internal
discussed. Changes in the value of real estate can dramatically rate of return in a decision making context will be thoroughly
affect the wealth of businesses and their capacity to grow. analyzed, followed by an expanded discussion of commercial
Government policies affect real estate markets, and therefore real estate cash flow pro forma, risk analysis, and discount rates.
values, in different ways. The second part of the session focuses
on the analysis and forecasting of the primary economic drives
of real estate rental rates and market values and the dynamic Day 3
relationship among space (rental market, property markets, and
capital markets).
Session 6: The Value Aspects of Good Design
Session 2: Deal Sourcing, Negotiation & Structuring Design is a rational process and not an afterthought. In a
competitive Real Estate market scenario, design is one key
Real estate deals have become more challenging and aspect to provide a differentiating factor. Good design enhances
sophisticated in terms of their size, scope and complexity. The the value of a project and the developers’ bottom line. The key
first step in the investment process is finding the right potential question is how can value aspects of good design be identified
investment. Nowadays, negotiating and structuring the right and implemented? Using specific examples of various
deal is as important. This session will cover practical aspects of development types, this session outlines the importance of
the acquisition process, ranging from deal sourcing and adopting a rational design process from land acquisition to
negotiation to due diligence. It concludes with a case study of a translation of a development concept into tangible plans for the
REIT recapitalisation opportunity that utilised appropriate proposed development. The value aspects of good design will be
structures to minimise risk to the investor. emphasized in some development types.
Day 2 Session 7: Valuation & Acquisition of Hotels
This session covers the valuation and acquisition of hotels,
Session 3: Property Development: The Dynamics of
resorts, and other hospitality related properties. Value remains
Value Creation a cornerstone in the real estate investment world. In a sales
transaction, one of the primary concerns of the vendor and the
Real estate development is a highly creative but complex purchaser is value, the appropriate selling and buying price for
process. At its best, the development process is synergistic, that the real estate interest. In finance, the value of the real estate as
is, the ultimate combination of resources has a greater value a collateral is also key to the financial institutions. Likewise, value
than the sum of its individual parts. This session provides an is a primary consideration to private, public and institutional
overview of the real estate development process; the key players
13investors, shareholders, stockbrokers and underwriters involved Session 11: Panel: “Real Estate Investment: Cross-
in the business of real estate.
border Opportunities & Trends”
Session 8: Study Tour: Guoco Tower Why should investors diversify geographically? The panel session
discusses the overpowering case why investors should not
ignore regional and global real estate markets, such as Asia,
Guoco Tower is the office tower of Tanjong Pagar Centre. Rising
Australia, Europe and Americas. In addition to discussing new
290 metres above sea level directly above an MRT station, opportunities, the panel will also cover the challenges faced and
Tanjong Pagar Centre is Singapore’s tallest building. A new how to avoid common mistakes made by investors venturing
landmark in Singapore’s evolving CBD, the ambitious vertical city into a foreign market.
seamlessly integrates a mix of uses, comprising office, retail,
luxury residential, hotel and urban park. This study tour provides
an inside story covering interesting issues and challenges faced Day 5 – Optional Workshops
by the developer during the development process, from land (separate registration fee applies)
bidding to financing, designing, constructing, marketing, and
managing the mixed-use integrated development.
Workshop 1: Tutorial on Constructing DCF Model
for an Integrated Project
Day 4
Discounted cash flow (DCF) analysis is widely used to evaluate
Session 9: Strategic Asset Management the feasibility of real estate investment and development
projects. Using a case study for illustration, this tutorial
Real estate is a unique asset class in which superior investment demonstrates the step-by-step process of constructing a DCF
returns can be achieved through strategic and proactive asset pro-forma for an integrated development project in Singapore
management. In today’s fast changing world, real estate asset to derive the proposed project's Net Present Value (NPV) and
managers play a critical role in unlocking and creating significant Internal Rate of Return (IRR).
value through proactive & strategic asset management
programs. The first session will provide an overview of strategic Workshop 2: Case Workshop: Making Real Estate
Asset Management from a top down perspective on key issues
Investment & Divestment Decisions
such as strategic asset plan, yield maximisation and repositioning
& asset enhancement, hold-sell analysis, redevelopment and
innovative divestment strategies. The second session will be a In October 2013, BlackRock acquired MGPA, a Singapore-based
case study on how an asset manager can think creatively to independently managed real estate investment firm. The
derive ‘out of the box’ solutions to restructure & to reposition a acquisition expanded BlackRock’s real estate portfolio to an
troubled asset in order to maximise returns to the Investor. estimated AUM worth US$23.5 billion, offering investors access
to the world’s top six markets which constitute 75 percent of the
Session 10: A Proactive Real Estate Strategy: global investable commercial real estate stock. Shortly after the
acquisition, BlackRock began the divestment of its Singapore and
“Buy, Fix & Sell”
Malaysia assets. Within two years, the real estate assets in
Singapore and Malaysia are put on the market. The case study
Blackstone is the largest real estate private equity firm in the
will focus on two features revolving around BlackRock’s disposal
world with $472 billion of assets under its management. Its
of the Intermark in Malaysia. The first is to examine the strategic
global real estate portfolio includes office, retail, hotel, industrial
motivation behind BlackRock’s acquisition of MGPA and the
and residential properties. Blackstone’s three-prong real estate
portfolio management strategy through the disposal of the
investment strategy is based on: (1) acquiring high quality,
Intermark. The second feature is to analyse what the potential
income-producing assets at discounts to replacement cost, (2)
acquisition of the Intermark would entail for the investment
improving the properties through aggressive asset management
portfolio of prospective buyers.
and targeted value-add initiatives, and (3) selling the assets,
once they are stabilized, to long term real estate holders and
return capital to their investors. This session covers case studies
of Blackstone’s “buy it, fix it, and sell it” strategy to real estate
investment.
14R EAL E STATE F INANCE
AUGUST 2022 M ODULE : & S ECURITISATION
R EAL E STATE F INANCE (Subject to confirmation)
& S ECURITISATION Day 1
Session 1: Setting the Stage: Real Estate Finance
O VERVIEW Session 2: Real Estate Securitisation: A Primer
Real estate investment and ownership generally require Session 3: Playing the Right REIT Card
sizeable amount of money, often beyond the resources
of the individual or firm undertaking the investment.
Hence, most investors are in practice constrained by the Day 2
huge capital outlay required. Financing is thus an
important component of investing in real estate. The Session 4: Partnerships, JVs & Syndications
capital typically comes from two sources: a lender that Session 5: Structured Real Estate Finance
advances borrowed funds in exchange for future
payments, and an equity investor who provides the
remainder of the capital. Lenders are primarily concerned Day 3
about two loan risks: Loss of loan principal & non- Session 6: Corporate Financing & Sale-Leaseback
payment of debt service. Equity investors, on the other Financing
hand, are motivated by cash flow, value appreciation, and Session 7: Managing a Real Estate Private Equity Fund
the benefits of tax shelter.
Session 8: Study Tour – Paya Lebar Quarter
Blending theory with application to real world problems,
this module covers issues related to fund raising for real Day 4
estate investment. In the first part, alternative ways to
finance real estate via the traditional as well as innovative Session 9: Structuring a REIT with Hospitality &
Overseas Properties
routes of project, corporate and structured debt
financing will be covered. This is followed by fund raising Session 10: Managing & Growing a REIT
via the equity route, focusing primarily on joint-ventures, Session 11: Panel: Green Real Estate Financing &
private funds, and public listed REITs. Investment
Review & Closing
In total, there will be twelve sessions and two workshops
conducted by distinguished professors and practitioners
in the real estate industry focusing on the theme of real Day 5 – Optional (Additional fee applies)
estate financing and securitisation. Another
distinguishing feature of the ECREF is the Module Session 12: Excel Workshop: Modelling Waterfall Cash
Coordinators who act as a facilitator of learning to ensure Flows for JVs
rigour, continuity and synergy so that all the sessions will Session 13: Case Workshop: REIT Management &
fit together. Governance: A Case of 2 REITs
15P ROGRAM S CHEDULE Day 2
The main programme will run for 4 days. Classes generally starts
at 0845 and end at 1730 daily. There will be two coffee breaks Session 4: Partnerships, JVs & Syndications
and a lunch in between. Review sessions, facilitated by the
Module Coordinator, will be held throughout the course. There Property developers and investors may supplement their capital
are two post-seminar workshops on the 5th day. with that from other co-investors to invest through partnerships
and joint-ventures. Syndication involves a group of investors
pooling their capital to enhance the quality and quantity of their
investments and to reduce their risks through diversification.
Day 1
This session will cover the principles and common terminologies
related to real estate fund management, such as forms of capital
Session 1: Setting the Stage - Real Estate syndication, the rationale behind real estate funds, and
Finance structuring considerations using real case examples.
One major attraction of real estate as an investment is the use Session 5: Structured Real Estate Finance
of debt to increase the expected equity rate of return. However,
the risk of the equity position also increases. Thus, a major This session examines how structured finance and securitisation
of real estate assets such as RMBS, CMBS, mezzanine debt and
decision for the borrower involves the amount of debt and
derivatives have helped to open up new sources of financing to
equity to use. In the first part, the concept of financial leverage
is examined by considering how the level of financing affects the property investors and owners. Relevant issues such as credit
IRR of a real estate investment. A numerical exercise will be enhancements to the investor to reduce default risk to an
acceptable level, creation of senior and subordinated tranches
employed to illustrate how leverage can magnify equity returns.
for different risk appetite, and rating of securities by
independent credit rating firms will be examined. Case studies
on Singapore rated RMBS and CMBS will be used to illustrate the
Session 2: Real Estate Securitisation: A Primer process.
In the past, the essence of real estate development and
investment was “finding the deal.” Nowadays, real estate
transactions are increasingly driven by creative structuring and
Day 3
innovative financing. Tracing the evolution of the environment
in which real estate financing decisions are made, and in Session 6: Corporate Financing & Sale-
particular, the integration of real estate and capital markets, the Leaseback Financing
session provides a primer understanding on real estate
securitization and its implications on the real estate industry. The growth for real estate companies – property developers, real
estate investment trusts, private real estate funds – is
intrinsically dependent on corporate finance strategies. The
recent global financial crisis underscores the importance of
Session 3: Playing the REIT Card Right capital structure and sources of financing. This session examines
the strategic financial issues associated with maximizing firm
Deciding if REIT is the right strategy for you? The real estate value to shareholders, capital structure theories and empirical
game has transformed significantly with the emergence of REITs. evidence pertaining to how various sources of capital – equity
While the impact of REITs cannot be ignored, deciding on and debt – affect firm value.
whether a REIT is an appropriate vehicle for a property owner is
dependent on a number of factors, such as the quality of the The second section also examines capital recycling as an
portfolio of real estate assets and the motivation of the alternative way that property owners may finance their real
sponsors. estate holdings. Focusing on the mechanics of a sale & leaseback
transaction, the factors affecting the own-versus-lease
decisions, including the off-balance sheet impact on a
corporation’s financial statement, will be covered.
16Session 7: Managing a Real Estate Private Session 10: Managing & Growing a REIT
Equity Fund
Since REITs are required to disburse most if not all their earnings
Thinking about getting into the real estate private equity (REPE) to the unitholders, they are financially constrained and have no
business? Whilst operating expertise is a good start for a would- choice but to rely on external debt or capital markets to finance
be fund manager, there are still plenty of differences between their acquisitions. This session will focus on a prudent capital and
overseeing the construction of a property and running the day- financial management strategy to fuel growth while being
to-day operations of a REPE fund. The session covers the exposed to an increasing volatile capital markets. Issues to be
practical aspects and critical issues related to starting and examined include finding the balance in maintaining acquisitions
managing a private equity fund, such as fund raising, capital in a volatile market while minimizing the cost of capital and risks.
utilization, investor relations and exit strategies. The prospects
as well as risks and challenges faced by REPE funds investing in
foreign markets will also be covered.
Session 11: Panel “Green Real Estate Financing
& Investment”
Session 8: Study Tour – Paya Lebar Quarter
How can real estate players leverage on green financing in the
Lendlease is a leading international property and infrastructure capital markets, such as issuance of green bonds and equities?
group with operations in Australia, Asia, Europe and the From an investment perspective, is it possible to achieve
Americas. Its current development pipeline totals S$49.3 billion superior economic returns by supporting green real estate?
globally. Valued at S$ 3.3 billion, Paya Lebar Quarter is its largest
project in Asia and a hero in their focus on urban regeneration While public finance has traditionally been an important source
projects that transform spaces and cities. of financing to promote a low-carbon and climate-resilient
economy, the capital markets can play an important role in this
Paya Lebar Quarter is located within the culture-rich green transformation. This panel will discuss recent initiatives
neighboorhoor of Paya Lebar. Inspired by this connected culture, and challenges faced by responsible owners, developers,
the architecture celebrates the idea of “living fabric” – bringing bankers and investors to invest in as well as finance green assets
to life the green, connected spaces and historic and cultural and adopt the ESG criteria.
nuances of the precinct and surrounding sites. It comprises
three office towers, a 429-unit premier residence, and over 200
retailers with indoor and alfresco dining experiences sit amidst
lush green, connected spaces.
Review & Closing
This closing session provides a quick review of the topics covered
in this module.
Day 4
This is followed by presentation of ECREF certificates to
participants who have completed all the three modules.
Session 9: Structuring a REIT with Hospitality &
Overseas Properties
Many REITs listed in Singapore own overseas properties. Since
the process of a REIT IPO can be grueling and time consuming,
this session focuses on key considerations at every stage of the
IPO process to ensure a successful listing of a REIT. Using
relevant case studies, a variety of issues will be covered including
special considerations required to structure and operate a REIT
which own hotels and properties outside of Singapore.
17Day 5 – Optional Workshops
(separate registration fee applies)
Session 13: Excel Workshop: Modelling
Waterfall Cash Flow for JVs
This workshop explains how to use Microsoft Excel to build the
3-Tier Waterfall model and the 5-Tier Waterfall model for Joint
Venture Partnership structures. Related concepts such as
Promote and Claw-Back will be also explained. You will
understand how to model, “when the original capital invested
will be returned, and when and in what proportion the returns
on that capital will be distributed from the real estate
transaction to each party in the JV structure.”
This workshop requires basic understandings of the Discounted
Cash Flow Model and the fundamental operations of Microsoft
Excel.
Session 14: Case Workshop: REIT Management
& Governance: A Case of 2 REITs
This workshop will consider management and governance issues
with two cases involving real estate investment trusts (REITs)
with specialist assets, namely Sabana Shari'ah Compliant REIT
and Croesus Retail Trust, both listed on the Singapore Stock
Exchange. The cases will draw out how REIT management and
governance structures and mechanisms affect a REIT’s cost of
capital, and investigate the returns and risks presented by these
REITs for their various stakeholders.
The workshop will cover the REIT governance issues surrounding
Sabana Shari'ah Compliant REIT, its relationship with related
parties and the management, and evaluate the debate on
internalized or external management structures for REITs
through the case of Croesus Retail Trust.
18L EARN F ROM O UR P A NEL OF D ISTINGUISHED P ROFESSORS
JOSEPH OOI
Professor, National University of Singapore
Joseph Ooi is Professor of Real Estate at the National University of Singapore (NUS) where he is serving
concurrently as Vice-Dean (Academic) of the School of Design and Environment (SDE), Deputy Director
of the Institute of Real Estate and Urban Studies (IREUES) and Director of the Executive Certificate in
Real Estate Finance (ECREF). He is the current President of the International Real Estate Society, which
is a federation of six regional real estate academic societies.
Joseph has published more than 50 peer-reviewed papers in top real estate finance and economics
journals, such as Journal of Law & Economics, Journal of Money, Credit & Banking, Journal of Regional
Science, Regional Science & Urban Economics, Real Estate Economics, Journal of Real Estate Finance
& Economics, Journal of Housing Economics, Journal of Real Estate Research, and Urban Studies. A
serial winner of best paper prizes at international conferences, Joseph received the NUS Young
Researcher Award in 2005, NUS SDE Dean’s Chair in 2015, and the Weimer School of Advanced Studies
in Real Estate & Land Economics Fellowship in 2017 for his outstanding and impactful scholarly
accomplishments.
Joseph is a highly versatile scholar who excels at teaching a broad range of subjects at different levels.
He has conducted training workshops for many real estate-related organisations and agencies. Joseph
has won many teaching excellence awards, including the Outstanding Educator Award, which is the
highest teaching accolade in NUS. He is a Fellow of the NUS Teaching Academy, which is a think tank
for educational matters in NUS.
Joseph is an executive committee member of Urban Land Institute (ULI), Singapore. He has served as
External Examiner for University of Reading (2011-2014), External Curriculum Review Committee for
VinUniversity’s Bachelor of Real Estate (2019) and board of directors for the Asian Real Estate Society
(2012-2018). Joseph also sits on the editorial board of numerous peer-reviewed real estate journals.
Joseph received the International Real Estate Society’s Achievement Award in 2008 for his outstanding
contribution to research, education and practice at the international level.
Joseph obtained his B.Sc. (Estate Management) and M.Sc. (Real Estate) degrees from NUS and his
PhD in Real Estate Finance from the University of Manchester (formerly UMIST).
ONG SEOW ENG
Professor, National University of Singapore
Seow Eng is Professor of Real Estate at the National University of Singapore. His research interests
include securitised real estate, REITs, real estate derivatives, price discovery and housing finance
issues. He has published in many international journals and three of his papers won American Real
Estate Society prize. He was the past president of the Asian Real Estate Society and the International
Real Estate Society. He has also served on the board of the American Real Estate and Urban
Economics Association (AREUEA).
Seow Eng has substantial work experience in investment and portfolio management, derivative
analysis and property valuation, and was an independent director of Cambridge Industrial Trust, a
real estate investment trust listed on the Singapore Exchange. He served as the Vice Chairman
(Education) for the Urban Land Institute South Asia council and a leading member of the academic
steering committee for the Asian Public Real Estate Association. He consulted for several public and
private institutions, including JTC, HDB, CapitaLand and various property consultancy firms.
Seow Eng holds a B.Sc. in (Estate Management) (1st class Hons) from NUS and a Ph.D. in Finance from
Indiana University. He is also a CFA charter holder.
Bridging Real Estate and Capital Markets Page 19LUM SAU KIM
Associate Professor, National University of Singapore
Sau Kim is Assistant Dean and handles fund raising and communications at the School of Design &
Environment (SDE). She has been actively promoting SDE’s “Well and Green” agenda which includes
SDE4, the first new-build net-zero energy building in Singapore, and a human-centric sustainable
campus precinct. Her research interests cover the areas of housing and land policy, index construction
and green finance. Winner of several teaching awards in the university, Sau Kim currently teaches real
estate finance and securitization. She has also provided consultancy services for a number of
organizations including Citibank, GIC Real Estate, Housing & Development Board, Ministry of Housing
of the Kingdom of Saudi Arabia, Ministry of Law of Singapore, Singapore Land Authority and Urban
Redevelopment Authority.
Sau Kim holds a PhD in Business Administration (Finance and Real Estate) from University of California
at Berkeley. She also has a Masters in Land Economy from University of Aberdeen and a B.Sc. (Estate
Management) honors degree from NUS.
CRISTIAN BADARINZA
Assistant Professor, National University of Singapore
Cristian Badarinza is an Assistant Professor at the National University of Singapore, a Research Fellow
of the Institute of Real Estate and Urban Studies, and a Network Associate of the Centre for Economic
Policy Research, London. Before joining NUS, Cristian has been a Postdoctoral Fellow at the University
of Oxford, and a Research Assistant in the Monetary Policy Research Division of the European Central
Bank in Frankfurt am Main.
Cristian has been teaching undergraduate, graduate and PhD-level courses in financial
macroeconomics, portfolio and asset management, asset pricing, real estate finance and valuation
over the eight years. His research interests are in the areas of real estate finance, household finance
and financial economics. He is also part of the Initiative for International Comparative Household
Finance, which connects academics seeking to explore how household financial markets (such as
mortgage, pension, and risky asset markets) are set up around the world, and whether there are
international best practices that can be established.
Cristian has obtained a PhD and an MSc in Economics from Goethe University, Frankfurt am Main.
CHRISTOPHER GEE
CFA, Head of Equities Research, J.P. Morgan (former)
& Senior Research Fellow, National University of Singapore
Chris has worked in the investment banking, analysing the real estate sector (developers and REITs)
in various markets in the Asia region for the past eleven years. He was rated the top Singapore analyst
in the Institutional Investor surveys from 2005 to 2010. He was the Head of Asia Real Estate Equities
Research for J.P. Morgan from end 2006 to early 2012. Chris joined J.P. Morgan in Singapore in August
2002 as Head of Equities Research from ING Financial Markets, where he was the head of equities
research for Singapore and Malaysia from 2000. He holds the CFA charter and trained as a chartered
accountant with Price Waterhouse in London in early 1990s.
Chris is now the Head of the Governance and Economy Department at the Institute of Policy Studies
where he works on housing, health and retirement adequacy policy issues related to an ageing
population. He is also a non-executive director of CapitaRetail China Trust Management Ltd, the
manager of Singapore’s first China shopping mall REIT.
Bridging Real Estate and Capital Markets Page 20You can also read
