Capital Market Valuations & Private Equity for Real Estate

Course details

Learning Outcomes

• Understand real estate public/ private equity capital markets in Asia and valuation techniques;
• Apply models for real estate investments, structures and techniques to enhance profitability;
• Use Three Appraisal Approaches to multiple real estate assets and developments
• Describe the advantage and disadvantage of direct, private equity, fund and REIT structures
• Discuss current global real estate market capital flows and key investment trends

Who should Attend

This training course is specifically designed for decision makers in all organizations and aimed mainly at:

• CEOs, CFOs, COOs with responsibility for Strategic Management
• Investment Bankers
• Real Estate Consultants / REITs Managers
• Financial Analysts
• Institutional Investors
• CFA Candidates

Participants are not required to have specific prior experience of any of the subject areas. More experienced individuals will be able to build on their knowledge through practical, current case studies.

Workshop Outline

Section A: Listed Developers and REITs

Basic Methodology of Discounted Cash flows

• Net Present Value (NPV)
• Internal Rate of Return (IRR)
• Payback Period
• Other Investment Decision Criteria

Physical Real Estate Valuation

• NOI and Cap rate

Capital Market Valuations

Calculating the cost of equity, cost of debt and WACC (Weighted average cost of capital)

• The truth on cost of capital
• What should it be? - Cost of equity, cost of debt & WACC.
• Computing the beta for a stock
• Estimating the risk free rate
• Estimating the equity market risk premium
• The concept of a tax shield
• Why capital structure is important
• Computing WACC

Discounted cash flow valuation

• Computing free cash flow
• Determining terminal value using different methods
• Determine fair value
• Sensitivity analysis

REIT valuation

• Explain Dividend yield
• Net Asset Value
• REIT comparables

Section B: Asia Private Equity

Introduction to Asia private equity

• How to calculate expected IRR
• Merits and considerations of deal structuring
• Identify exit opportunities