Real Estate Certificate Programme

To take full advantage of the hands-on exercises please bring your laptop to the course

Real Estate Certificate Programme Helping you thoroughly understand and implement different elements of real estate to position your organisation successfully in a competitive real estate market

5 EXCLUSIVE REAL ESTATE CERTIFICATES IN ONE EXCLUSIVE PROGRAMME Certificate One

Certificate In Real Estate Finance And Investment

Core Course

23 – 26 March 2014 • Radisson Royal Hotel, Dubai, UAE 19 – 22 October 2014 • Radisson Royal Hotel, Dubai, UAE

Core Course

Certificate Two

Certificate In Real Estate Modelling 11 - 14 May 2014 • Radisson Royal Hotel, Dubai, UAE

Certificate Three

Certificate In Real Estate Valuation

Includes Site Visit

1 – 4 June 2014 • Radisson Royal Hotel, Dubai, UAE

Certificate Four

Certificate In Real Estate Investment, Leasing And Management 14 – 17 September 2014 • Radisson Royal Hotel, Dubai, UAE

Includes Site Visit

Certificate Five

Certificate In Real Estate Development 7 – 11 December 2014 • Radisson Royal Hotel, Dubai UAE

Organised by

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Course Requirements And Certificates Delegates must meet two criteria to be eligible for an IIRME/GW Certificate of Completion for a course: 1. Satisfactory attendance – delegates must attend all sessions of the course. Delegates who miss more than 2 hours of the course sessions will not be eligible to sit the course assessment.

2. Successful completion of the course assessment.

The George Washington University School of Business, IIR Middle East’s Academic Partner, is dedicated to excellence: in its teaching and research about management, in the public and private sectors, within the United States and internationally.

Delegates who do not meet these criteria will receive an IIRME Certificate of Attendance. If delegates have not attended all sessions, the Certificate will clearly state the number of hours attended.

The school has a 75 year history of preparing men and women for leadership in both the public and private sectors. Known internationally for its dedication to academic excellence, the school draws students from all parts of the United States and around the world.

Course Assessment

Beyond first class teaching and scholarship, the school’s faculty offers practical experience in the issues and challenges confronting business and government. Its research centres link faculty and students with US and international business and government organisations. Recent distance learning initiatives have expanded the school’s global reach.

Assessment will be ongoing and based on in class participation, each equally weighted.

Course Requirement Delegates are requested to bring their laptop.

Meet Your Course Director Julian Spencer Roche Finance Training Consultant, Australia and UK From an old real estate family in the UK, Julian Roche worked as an economist for DRI McGraw-Hill and as a partner in a real estate development company with US investments before launching his own real estate consultancy specialising in global data provision. Later he spent five years as a senior consultant to a venture capital company in the UK, where he advised on corporate structure, flotations, trade sales and business valuations. He has also published a number of books on real estate derivatives and business valuations and has presented real estate courses internationally for a number of years.

Who Should Attend?

This course is designed for all property professionals who participate in the development process and those who finance, manage, buy or sell real estate. The course is also relevant for architects, mortgage brokers and urban planners.

V

Certificate This course is designed for property companies and developers, estate managers, fund and investment Five Certificate In Real managers including private investors and private equity specialists, bank lenders and lawyers. It will IV Estate Development also benefit non-finance professionals and property managers for real estate companies.

Certificate Four Certificate In Real Estate Investment, Leasing And Management

Delegates are expected to possess basic understanding of principles of real estate finance and investment. This course would be of interest to professionals who develop, finance, manage, buy or sell real estate, and especially: Real estate investors and analysts Bankers and lenders Real estate developers Mortgage brokers Real estate managers Property owners Certificate Three Planning and development Finance managers and analysts Certificate In Real Estate Valuation professionals in real estate businesses

Certificate Two Certificate In Real Estate Modelling

Certificate One Certificate In Real Estate Finance And Investment

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III

This course is designed to meet the needs of property and real estate professionals with responsibility for finance or investment and modelling activities. In particular, those working within the following departments will highly benefit: property development, real estate and property management, portfolio management, II planning and development, investments, contract management, property consultation, finance, family offices and real estate investments.

This course is designed to meet the needs of property and real estate professionals with responsibility for finance or investment activities.

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I

Certificate One - Core Course

Certificate In Real Estate Finance And Investment

23 – 26 March 2014 19 – 22 October 2014

Course Timings Registration will be at 07:30 on Day One. The course will commence at 08:00 and conclude at 14:30. There will be refreshment breaks at approximately 10:30 and 12:30 and lunch will be served at the end of each day’s session.

Case Study: Excel-add in programmes for real estate

Course Overview This course draws on global experience and is designed to provide you with a full background of the financial aspects of commercial and residential real estate in terms of how to calculate returns, how it is financed and how to successfully analyse leases, to invest and sell profitably.

Real estate evaluation experience is not required, but an understanding of concepts such as present value will be helpful.

Investors, lenders, borrowers, valuers, property developers, government agents involved in real estate planning and financing decisions, and financial analysts of all types will greatly benefit from attending this course.

Exercises: NPV and IRR calculations for real estate Advanced Property Analytics Cost of capital issues for real estate companies Costs, taxes and inflation Capital budgeting and real estate

Case Study: Cashflow proformas and real estate software

Day Two Valuation

You will gain a thorough understanding of the valuation process, as well as explore the principles behind financing a project. This will include a review of the different financial instruments, how they can be used and their impact on the overall performance of the real estate project.

To maximise this learning opportunity, practical simulation exercises have been included throughout the course. Please be sure to bring your own laptop to ensure you can take part in these excerisies to help link theory with practical systems and reinforce the understanding of the material presented.

Top 5 Learning Objectives 1. Understand the data requirements, standards and methodology of real estate valuation 2. Gain the analytical techniques you need to be an expert in real estate including modelling and risk analysis 3. Discover how to put across market conditions and property characteristics in terms of cash flow invested and received overtime 4. Know how to choose between direct and indirect property investment vehicles 5. Quantify and measure financial outcomes to help investment decision making

Day One Evaluating Real Estate Cashflows Real Estate Cashflow And Investment Measuring real estate cashflow Forecasting real estate values

Case Study: Forecasting errors and why they occur Assessing Net Present Value (NPV) for properties Ratio analysis and its value

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Mortgages, Development Loans And Valuation Mortgages And Bank Finance Concepts and applicability of the mortgage

Exercises: Calculating mortgages and impact on value Global statistics Available types of mortgage The secondary mortgage market Lending practice and pitfalls Recent funding developments How to model real estate finance

Case Study: Real estate investment and financing models Valuing Property Assets The red book methodology Changes and alterations in the blue book

Exercises: Market and cost approaches to valuation Alternative methodologies

Case Study: Valuing offices in different locations Measuring Property Performance Applicable concepts and methodologies Problems and issues with performance evaluation Sources of data Evolution of data measurement International comparisons of performance Current issues in performance management

Case Study: Comparing the performance of different property sectors in a range of international markets

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Securitisation Of Real Estate Real estate debt securitisation: MPTs, CMOs and REMICs, strips and floaters Real estate equity securitisation and investment performance The future of securitisation after the global financial crisis Alternatives to securitisation

Day Three The Work Of Surveyors And Lawyers Site And Building Analysis Property descriptions Legal title Building plans Tenancy details Running costs

Risk And Real Estate Applicable risks in real estate investment Modelling and evaluating comparative risks Risk management strategies Available risk management instruments Costs and benefits of risk management Statistical evidence

Case Study: Impact of site and building analysis on a range of real estate investments Legal Issues In Property Investment Major legal concepts in the acquisition, use, management and transfer of real estate The question of title Title in secondary transactions Disclosure and governance in real estate acquisition and ownership Key case law internationally Current legal issues affecting the real estate industry

Case Study: Using Monte Carlo techniques to evaluate the risk of a real estate investment Synthetic Property Replication of property performance Advantages and disadvantages of synthetic property investment The development of synthetic property (PINCS, SPOTS, etc) Currently available instruments Future developments

Case Study: Evaluation of legal issues in real estate investment transaction

Case Study: Synthetic property investment comparison with real estate

Case Study: Cashflow proformas and real estate software

Portfolio Analysis Characteristics of an investment portfolio The range of available investments Measuring portfolio performance VaR as applied to multi-asset portfolios Real estate in a balanced portfolio Empirical evidence on real estate investment Changes in portfolio structure worldwide

Developing Property Essentials of property development The roles of individual professionals and their accountability Project feasibility, design and marketing Project financing and feasibility Scheduling and budget control Sales and profit margins

Case Study: Comparison of buy-to-let and buy-to-sell real estate returns

Case Study: Comparison of international portfolios with real estate components

Day Four Property Investment Vehicles Ownership Vehicles Listed real estate companies versus direct investment Investment funds and trusts Quoted property investment trusts Limited partnerships

Case Study: Investment in high yield real estate debt The REITs market in the USA and application in Asia The European and Australasian REITs market

Case Study: Prospects for the REIT market in the Middle East

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Certificate Two

Certificate In Real Estate Modelling

11 – 14 May 2014

Course Timings Registration will be at 07:30 on Day One. The course will commence at 08:00 and conclude at 14:30. There will be refreshment breaks at approximately 10:30 and 12:30 and lunch will be served at the end of each day’s session.

Course Prerequisites Delegates should either have taken and attended the Real Estate Finance And Investment course OR should have working knowledge of Excel and financial concepts

Day One

Course Overview Real estate construction or investment requires a high level of expertise in building financial models if the building is to be profitable. The course covers such issues as how to model the role of debt, debt covenants, cash waterfalls, inter-creditor relations, restructuring and rescheduling of debt, how to model risk, and the role of equity and its rewards. During the course the delegates will build and evaluate a range of project finance models, covering projects as diverse as Public-Private Partnerships, major energy investments and private hospitals. Delegates will overcome the most complex aspects of building a reliable model, including uncertainty, currency and timescale mismatches, debt amortisation, depreciation, control account waterfall, cost structures, and the ability to easily shift time scales, as well as the ability to identify and control key sensitivities through spreadsheet

Using Excel For Modelling Worksheet organisation Data input, management and verification Use of colour/add-ins Naming of cells Location of input variables Review of Excel functions and their use Macros and their use Goal seeking Optimisation Circularity and how to resolve it Working with range names Graphs and charts What is needed from Excel and what is superfluous Principles of spreadsheets and workbooks

simulation.

Case Study: Evaluating good and bad Excel financial models

Course Methodology

additional benefits of the course.

Real Estate Cash Flow Limited recourse Quantification and allocation of risk Structuring and financing solutions The role of Islamic finance in project finance structures (with case studies) Project finance experience worldwide

Course Prerequisites

Case Study

This course will teach you all the available techniques and how to practically apply them through the use of Excel. Extensive use of case studies will be adopted to illustrate the principles covered.

Ultimately delegates will get practical tips on layout and style in building and analysing user-friendly models which are available as

It is imperative for you to have good Excel and real estate finance and investment knowledge prior to attending this course to maximise your learning experience.

Top 5 Learning Objectives

Equity Valuation Equity NPV/ IRR and project IRR XNPV, XIRR, MIRR Modelling cash flow and ratios Allowing for accountancy - depreciation, tax and capital allowances

1. Learn the techniques to develop a real estate financial model for construction and investment using Microsoft Excel

Case Study: Valuation and Cash Flow models

2. Understand Excel real estate financial models and their automated rivals 3. Be able to audit Excel real estate financial models 4. Get step-by-step instruction in inputs, formulae and techniques to construct and manipulate a model using real estate finance principles as you apply new concepts in a structured, hands-on learning environment 5. Use different valuation techniques to value any class of real

Real Estate Models The fundamentals of project finance model design Objectives of project finance models Design, testing and feedback Model sensitivity and auditing Definitions and analysis Revenue and cost modelling Cash adequacy, recourse, standby and liquidity Financial coverage ratios and the bank perspective

Case Study: Examples of real estate models

estate asset using your financial model

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Real Estate In The Gulf Design tolerance Dealing with escalation/inflation Dealing with non-correlated variables Pre-completion elements Estimating damages

Day Four Argus And @Risk Argus – An Alternative To Excel Real Estate Models Demand and capacity driven forecasts

Case Study: Examples of Excel project modelling

Consistency of capital expenditures and volume Operating revenue and expense drivers

Real Estate Model Issues Depreciation of fixed assets Control accounts – waterfall/cascade Status checking Modelling securitisation in project finance Working capital

Case Study: Modelling cash flow waterfalls Using Real Estate Models Input of models to the decision-making process Modelling a PPP transaction Deciding between corporate and project finance Benefit allocation between stakeholders

Cash flow design

Case Study: Building a model using ARGUS @Risk – Monte Carlo Software Methods of handling risk What is Monte Carlo analysis?

Worked examples of Monte Carlo analysis Applying @Risk to CS and CL models Analysing @Risk results Presentation of Monte Carlo results to senior management

Case Study: Review of several real estate models and their decision-making input

Day Two Building A Construct And Sell (CS) Model Building a real estate model. Based on a real example, provided by an equity investor in a real estate transaction, delegates will construct and use a model for the transaction. The exercise will include: Project review Analysing the inputs Costing construction Dealing with input priorities Data plausibility Modelling loan drawdown Sales price projections and cap rates Establishing value from a construct and sale transaction

Day Three Building A Discounted Cash Flow Model (DCF Model) Delegates will continue with the real example from Day Two to construct a model based on the assumptions of construction, with revised assumptions, and leasing out.

Revising construction inputs Loan assessment criteria PGI, EGI and NOI in the model Forecasting NOI and operating expenses Modelling loan amortisation IRR NPV and other valuation analysis

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Certificate Three

Certificate In Real Estate Valuation

1 – 4 June 2014

Course Timings Registration will be at 07:30 on Day One. The course will commence at 08:00 and conclude at 14:30. There will be refreshment breaks at approximately 10:30 and 12:30 and lunch will be served at the end of each day’s session.

Course Overview This course covers the methods and concepts of real estate valuation. At this course, you will learn to value most typical forms of real estate using a variety of techniques and methods, in the same way as a chartered surveyor. The focus is on properties and market conditions in the Gulf, but with plenty of international examples, including land, properties with development potential, and different classes of property such as offices, retail, hotels, and warehouses as well as residential property valuation.

Top 4 Learning Objectives

Case Study: Impact of International Accounting Standard 17 (leases) on real estate valuation Bricks, mortar and the building envelope Lifecycle costing Tests of financial solvency (static analysis) Tests of profitability (dynamic analysis)

Case Study: Applying the depreciated replacement cost methodology to value specialised (iconic) buildings

2. Identify the cost of capital for real estate

Residential Property – Assessing Capital Value Why buy residential real estate?

Does rental income matter for residential property?

What are the main problems?

Evidence from pension fund holding in Europe Qualitative issues, competition, style and marketing

3. Confidentially implement discounted cash flow valuation frameworks

Case Study: The buy-to-let market in Dubai

1. Understand the most widely-practiced property income valuation techniques and be able to critically analyse a real estate investment proposal

4. Be equipped to successfully negotiate terms of a real estate transaction

Day Two Discounted Cash Flow For Real Estate Investments

Day One Net Operating Income (NOI) Gross and net income Differences in calculating NOI Overall capitalisation rate Capital expenditure issues Differences between property types Approaches to the cap rate

Real Estate As An Investment Class Property Performance Analysis How is property measured?

Identifying what makes a good property Problems and issues with performance evaluation Sources of data Evolution of data measurement International comparisons of performance Current issues in performance management

Case Study: The band of investment approach Projecting Cash flows The dynamic behavior of the 4-Q model: stability versus oscillations Real estate pricing behavior: backward or forward looking?

Forecasting markets: univariate analysis, vector auto regressions, structured models.

Forecasting examples The definition and evaluation of “risk”

Case Study: Best international practice in property performance measurement Property In The Investment Portfolio Concept of Modern Portfolio Theory (MPT) Measuring variance (Beta and equivalents) Constructing a portfolio Property correlation with other assets Best international practice on property in a portfolio International trends in property correlation

Case Study: Forecasting techniques

Case Study: The addition of real estate to the GIPS (CFA Institute) valuation guidelines Commercial Property - Assessing Income Appraisal of income property – red book/blue book guidelines and their international equivalents Comparison with corporate finance valuation Reporting according to IFRS standards

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Creating And Using A Detailed Discounted Cash Flow (DCF) Model Debt service and pre-tax cash flow The sinking fund Lease variations Differences between sectors Estimating resale value Terminal capitalisation rates

Exercises: Delegates will use a number of real world examples to create and use spreadsheets for DCF valuation

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Hybrid products The pecking order theory of cost of capital The role of debt in corporate management

Land Prices Should land prices be calculated separately?

How cyclical are land prices?

Modelling land prices Empirical evidence on land prices Forecasting land prices Land price issues in the Gulf

Case Study: Economic Value Added (EVAtm) as applied to real estate companies Dividend pricing model The Capital Asset Pricing Model (CAPM) CAPM and corporate leverage (equity/asset betas)

Case Study: Data availability on land prices

Day Three

Exercise: Leveraging and de-leveraging equity cost

Alternative Valuation Techniques and Highest And Best Use Analysis (HBU) The Cost Approach Type of costs Methods of evaluating costs Sources of cost estimation Incurable and curable depreciation Market extraction method

Case Study: Arbitrage pricing theory in project finance structures Bank debt as a corporate funding tool The concept and application of the mortgage Prevailing mortgage rates, terms and conditions Funding a property company through debt Islamic funding instruments and characteristics

Exercises: Delegates will use spreadsheet models to calculate a range of cost estimates for individual properties The Sales Comparison Approach Value, worth and price Sources of comparable data Identifying points of comparison and difference Sales comparison approach example

Case Study: Mortgage lending criteria for typical banks Calculating and using WACC Target vs. actual capital structure Adjusting capital structure WACC information for property companies

Exercises: Using the sales comparison approach in practice

Case Study: Analysing a proposed development financing methodology

Highest And Best Use Approach Definitions of HBU Site value Improved value Calculating HBU

Introduction To Real Options How to calculate real option value Comparing the Black-Scholes and Binominal Expansion model Real world examples Problems with real option calculation Application to distressed firms’ equity and other financial applications

Case Study: Business Plan for a major Gulf project analysed Leasing Analysis Introduction to leases

Exercise: Delegates will study a range of real option calculations using customised spreadsheet models

Exercises: Stop calculations, lease valuation and feasibility rents Analysing comparables Analysing rental prospects

Exercises: Depreciation, net operating income and yield calculations Securing tenants in relation to valuation and finance Quality control and finance Forecasting and limiting operating costs Leases in the Gulf – issues and values

Day Four The Cost Of Capital, Real Options Introduction To Cost Of Capital Theory What is the significance of the cost of capital?

Differentiation between debt and equity

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Criticisms of CAPM Sources of beta and market risk premia Uses of CAPM in practice CAPM and project (individual property) financing

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Does property possess real options?

Examples of possible real estate real options Call Option approach to land value Samuelson-McKean approach Difficulties of measurement Potential benefits

Exercise: Delegates will value a potential development on the basis of conventional DCF and real option analysis Valuation In Practice How is valuation practiced by chartered surveyors?

What are the key elements of the RICS valuation guidelines?

What is the evidence on valuation practice in the Gulf Is valuation in the Gulf adhering to best international practice?

What are the differences between countries?

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Certificate Four - Includes Site Visit

Certificate In Real Estate Investment,Leasing And Management

14 – 17 September 2014

Course Timings Registration will commence at 07:30 on the first day of the course. The course will begin promptly at 08:00 and conclude at 14:30.

There will be two refreshment breaks at approximately 10:30 and 12:30. Lunch will be served at the end of the day.

Valuation theory and applications

Course Overview Property is the most important asset in the Gulf - in the world - yet the process of how to invest profitably in real estate, and how to manage it to best effect, is quite poorly understood. This course gets to the nuts and bolts of property investing - all the practical issues of how to select and manage tenants, risks, and refurbishments, voids and void decks - but also all the financial aspects such as fund management and organisation, tax issues for those countries that have tax regimes, and accounting. If you are managing real estate, either in a fund management role or a family office or for a company, this course is designed for you.

Top 3 Learning Objectives 1.

Develop a greater understanding of the role of property within the overall development and investment strategy of an organisation

Property taxation, valuation and legal framework Real estate in the Gulf – stock markets and family investments Key stakeholders within the property industry Property professionals and their role

Case Studies: The Royal Institute of Chartered Surveyors and the Urban Land Institute Financing Property Purchase Bank loans for property investment Secondary loans Islamic financial structures for real estate investment

Case Study: The role of an Islamic bank in real estate lending

2. Create detailed knowledge of the limitations and opportunities for the property industry 3. Enhance the management and organisational skills necessary for effective property management

Equity investment Calculation of returns

Examples of Excel financial models for real estate investment analysis – different classes of investment

Meet Your Guest Speaker

ARGUS DCF Valuation software demonstration

Christopher Gallop Chris has almost 30 years blue chip experience, with Deutsche Bank, UKAEA and British Gas. His achievements in real estate and infrastructure strategy delivery include asset optimisation, risk and capacity management, FM outsourcing execution and governance, project governance and P&L planning and responsibility. He has extensive experience of team leadership and performance optimisation. He has worked at local, regional and global levels with Board level client interaction. His direct experience extends to Germany, Switzerland, Russia, Dubai and EMEA generally as well as India and the UK.Chris has also held a number of advisory board positions in the not for profit sector, including with the City Fringe Partnership, the East London Business Alliance, and the London Borough of Tower Hamlets. He was educated at the University of Oxford, and has also studied at the University of Reading and the London Business School

Day One

Day Two The Law And The Occupier Property And Conveyancing Law Legal principles, structure, court and devolution Legal issues for property professionals

Examples of legal issues for property investment Law of contract Law of Tort, nuisance and negligence Land law, property rights and obligations Applied property law, legal issues in building and construction, planning and development, liabilities for owners / occupiers Islamic property legal issues Mortgage law

Case Study: The Saudi mortgage law story

Real Estate As An Investment

Differences in real estate law between Gulf and Western jurisidictions

Real Estate Background Real estate investment and management within the larger global economy Types of property and their performance

Case Studies: Real estate law and legal decisions in the Gulf

Case Study: Distribution of property by type in the Gulf – how many hotels, how much office space is required?

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Examples of land and property valuations

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All About Leases Nature and creation of leases Differences between types of commercial property leases Commercial leases and statutory control

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Residential tenancies and statutory control Structure of leases e.g. length of the lease period; including options for tenant alterations and expansion Lease calculations (with worked examples and exercises) Rent reviews and lease renewal options Covenants to leases e.g. repairing liability, occupancy conditions, sub-leases, termination, service charge provision Tenant Management Qualifying the prospective tenant financially

Occupant support services; premises support services; resource decision making

Case Studies: Software systems for property management Occupational Health And Safety Environmental issues Pest control Third party safety (customer/tenant/visitor) Fire safety Safety and insurance

Case Studies: Do ratings work?

Maintenance And Structural Preservation Property inspections, work schedules, and different types of maintenance work

Marketing considerations for office buildings – understanding the market, building a marketing plan, measuring marketing efficiency

Group work: Preparing a marketing plan for a commercial building in the Gulf Advertising and public relations; how to get referrals; canvassing for tenants; preparing a rental sales plan Security deposits and other negotiation issues Inspections Effectively handling inquiries and complaints What to incorporate in tenant and director’s meetings

Group work: Handing tenant negotiations Housing and tenant management

Day Three Bricks And Mortar Property Management Introduction to property management History of the profession – key property management companies

Case Study: What does Asteco do?

Defining the role of the property manager Duties, responsibilities, scope of management Construction techniques and property occupancy Concept of facilities management The co-ordination of people, processes and workplace Quality management and benchmarking.

Technology and administrative controls Advanced Operations And Facilities Management Principles of maintenance/construction Planning and monitoring Working with contractors and consultants Purchase and inventory supplies Risk management Property inspection Work order, maintenance requests and logs, task lists Plumbing and electrical repairs, and mechanical services Do’s and don’ts of maintenance Typical maintenance problems/solutions

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Procurement And Supply Chain Management Principles and underlying concepts of purchasing in a corporate environment Relationship with suppliers Property Life Cycle Planning Establishing asset management objectives Implementing asset management functional activities Key asset management elements Calculating the cost of facilities over the property life cycle Assessing facility performance requirements over the Property/asset life cycle Identification and diagnosis of building defects Inspections and defect surveys leading to the preparation of reports for dilapidations; cyclical schedules; schedules of condition on letting property and pre-acquisition reports Sustainability And Real Estate Management Green building occupation, management and value The balance between social, environmental and economic objectives in context of the built environment Historical background and climate change How sustainability affects property, energy efficiency, access and flexibility Threats to sustainability and concerns from stakeholders Measurement of sustainability including BREEAM, LEEDS, EPCs, DECs and understanding the Triple Bottom line.

Case Study: Designations, certifications, and accreditations that demonstrate adherence to sustainable business practices Sustainability and investment, CSR, financial impact of sustainability and incorporation into valuation and RICS guidance Ways in which sustainable property operations are integrated into management plans How to incorporate sustainable maintenance practices into property operations to help the property achieve its sustainability goals and reduce impact on the environment How to develop ways to attract and retain tenants and residents who desire green space, as well as methods to ensure tenants and residents help the property achieve its sustainability goals Choose sustainable options for tenant improvements and renovations at a property Ways to reduce the financial and environmental impact of transportation associated with a property

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Increasing Energy Efficiency The real estate manager’s role in increasing energy efficiency Methods to increase a property’s energy efficiency through operations and maintenance, equipment and technology, and tenant and resident education

Examples of methods to assess a property’s energy use and supply Methods to increase a property’s water efficiency through operations and maintenance, equipment and technology, and tenant and resident education Methods to improve the indoor environment at a property through operations and maintenance, equipment and technology, and tenant and resident surveys and education Methods to reduce, reuse and recycle that result in financial and environmental benefits Information Technology Information systems and technology Intellectual property and IT legislation Telecommunications Property and facilities management support systems Staffing The personnel needs of managed properties Strategies for hiring and retaining employees

Asset And Portfolio Management Business Management Strategic business planning processes Business life cycle Analysing industry trends

Examples of real estate investment and occupancy strategies for companies in the Gulf Accounting and monetary practices Insurance Financial Management Principles Reporting procedures in the management of different kinds of properties

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Decision making based on cost data; industrial, commercial and property finance ratio analysis Presentation to clients and management of client’s accounts

Case Study: Financial management - outlining a property’s sources of income and types of expenses and how they are accounted and reported

Case Study: Government real estate planning, institutions and strategies in the Gulf Application of legal and planning restrictions on asset enhancement Corporate property strategy

Contracts And Outsourcing How to determine the appropriate services to be outsourced Service Level Agreements (SLAs) Implementing SLAs Measuring the service performance Managing SLAs Preparation of tender documentation and the selection process Arranging and administering the contracts

Day Four

Case Studies: Principles of real estate management budgets

Real Estate Strategy Principles of property management within the built environment and a business environment Private and public strategy for the management of property resources within an operational plan

Management Management theory essentials Different forms of organisation Statistics and management reporting

Site Visit To Properties In Dubai

Preparing profit-and-loss statements Tax implications; tax records Cash flows; depreciation; investment tax credits; after-tax cash flow Risk management and how to obtain proper insurance Accounting theory and methods Asset and liability valuations Budgeting and cash flow analysis

Case Studies: Sale and leaseback Ownership Forms And Goals Ways investors can own real estate and their expectations for this type of investment The role of real estate funds Operational Property Portfolio Planning Master, action and project planning Change management and relocations Selling property

Group work: Preparing a sales marketing plan for a commercial property Portfolio Analysis Comparison of risk – return profiles of real estate and financial investment assets Measuring investment performance Principles of portfolio diversification The case for active portfolio management Application of property within a larger non-property investment market The nature of risk and return from property compared with bonds and equities

Case Studies: Portfolio management and property investment – how much property should a fund hold?

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Certificate Five

Certificate In Real Estate Development

7 – 11 December 2014

Course Timings Registration will commence at 07:30 on the first day of the course. The programme will begin promptly at 08:00 and conclude at 14:30. There will be two refreshment breaks at approximately 10:30 and 12:30. Lunch will be served at the end of the day.

Course Overview Real estate accounts for a vast proportion of nonpetroleum economic activity in GCC countries. Around the world, real estate constitutes approximately one third of all capital assets. You simply cannot ignore it as a business opportunity. An understanding of how real estate properties are conceptualised, designed and built is essential to making intelligent decisions to finance, manage, sell or buy real estate assets.

Over the last few years the region has enjoyed extensive growth in real estate markets, with on-going expansion and seemingly endless queues of willing buyers. But that period is now over. In recent times the expansion has slowed down considerably, but this does not mean that there are no exciting opportunities for real estate development: it just means developers have to be better informed and smarter, which is exactly what this course is designed to help them be.

The course will address all the actual elements of real estate development, from research and planning through to development and marketing. It contains numerous case studies from the region and around the world to focus on all the key issues developers need to know.

Case Study: Key Gulf developers, their projects and international diversification Working With Consultants The theory and practice of outsourcing Establishing the role of consultants in different organisations Consultant selection Costing consultancy Legal aspects of consultancy

Case Study: Comparing consultancy reports on proposed real estate developments Site Analysis Criteria for site analysis Methodology of site analysis Due diligence The creation of demand – how long can it work?

Case Study: Analysing a potential real estate construction site in the Gulf Site Selection Bid-rent curves and ‘natural’ zoning Linkage and transfer costs Comparative review of sites

Case Study: Evidence on site selection and profitability – the relevance of location to profitability

Top 4 Learning Objectives 1. Achieve a thorough understanding of the entire real estate development process

Day Two

2. Critically analyse a real estate development proposal and examine how to position your organisation successfully in a competitive real estate market 3. Be better equipped to negotiate the terms of a real estate transaction 4. Address key issues in setting, articulating and implementing development goals and processes

Day One Introduction To Real Estate Development The Stages Of The Development Process Introduction to the real estate development process The raw materials: land and demographics History of real estate development The role of market research and forecasting Differences between sectors Flow diagrams of real estate development

Case Study: Overview of real estate development in the Gulf Developers Types of developers – public and private Size and financial credibility of developers by project Developers and their partners The role of the public sector Success criteria for developers

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Getting To Grips With The Numbers Financial Analysis Methods of financial analysis Aims and objectives Calculating net operating income Debt service constants and payments Debt leverage and the role of lenders Before tax cash flow Amortisation and depreciation schedules Taxable income and after tax cash flow Net cash from sale Depreciation schedules in real estate development Ratio analysis (cash on cash, capitalisation rates, return on assets) Net Present Values and Internal Rate of Return analysis (including XIRR and MIRR) Comparison of results – solving the valuation puzzle

Group Exercise: Working through the financial analysis of an office real estate development Project Feasibility Technical feasibility Financial and commercial viability Role of competitors Integration with other projects and capital rationing

Case Study: Comparing projects for feasibility Presenting a feasibility study to the board

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Setting Budgets Working within the context of the strategic plan Forecasting sales and revenue Calculating cost of sales and overhead Rolling, incremental, flexible and zero-based budget methodologies Budget coordination: creating the master budget Limiting factors

Working with government Land development and infrastructure Title and title insurance

Case Study: Comparative analysis of government role in real estate development in the Gulf Construction Management Key phases of construction Costs and risks of construction Timelines and project management Disaster management and recovery

Case Study: Teamwork budget setting for a real estate development based on cost analysis Monitoring Budgets Actual vs. budget Calculating and interpreting variances Diagnosing the cause of variances Reforecasting Feedback and feedforward controls Barriers to successful budgeting Top-down vs. bottom-up processes Committing to, and owning, the numbers Total team participation Dos and don’ts of budgeting Overcoming the negative aspects of the budgeting process Examining human responses to budgets

Case Study: Putting a project back on track after a construction setback Completion Timelines for development Integrating commercial and construction activity Signing off on project stages Portfolio management

Case Study: Examples of real estate project management software

Day Four Case Study: Managing the budget over time for a major real estate project – competitive exercise

Day Three

Marketing Theory And Practice Key marketing objectives The role of advertising Costing marketing and cost-effective marketing

Management And Development The Contract And Negotiation Process Participating parties Legal aspects of real estate development Contract negotiation The role of lawyers Signature and action on contracts

Case Study: Group exercise on developing a marketing programme for a Saudi development Differentiating Marketing Between Types Of Real Estate Development Residential Office Industrial Retail Hotel and leisure

Case Study: Examples of legal action involving developers and contractors The Land Bank Land zoning and the decision for development Land prices and the cost of holding land Opportunity costs Land ownership obligations Enhancing land – services and base construction Subdividing and selling off

Case Studies: Examples of real estate marketing for different types of development

Case Study: How large should the land bank be? A comparison of best practice and achieved returns Design, Architecture And Building Critical issues of architecture Role of environmental analysis Health and safety analysis Tenant modifications and costs Infrastructural issues

Case Study: Building a business park from start to finish The Regulatory Process The role of government and local government Development permits

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Marketing The Project

Development Simulations Role of modelling Net Operating Income (NOI) and its components Estimating operating expenses Comparing sales methods (mortgage vs. instalment sales) Risk modelling, certainty-equivalents and available software Achieved pricing and time value of money Implications of funding strategies Interlocking projects Sale exchanges Portfolio management Property lifecycles and value

Case Study: Creating unique value – real options in real estate development – a comparative review Concluding Exercise: Managing a real estate development from start to completion, with a series of obstacles to overcome and management challenges to overcome

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Real Estate Certificate Programme Radisson Royal Hotel, Dubai, UAE FIVE WAYS TO REGISTER IIR Holdings Ltd. P.O Box 9428 Dubai, UAE

+971 4 335 2437 +971 4 335 2438 register@iirme.com

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DISCOUNTS AVAILABLE FOR 2 OR MORE PEOPLE CALL – +971 4 335 2483 E-MAIL – a.watts@iirme.com

WEB BC5326/BC5327/BC5328/BC5329/BC5330/BC5331

Date and Codes

Certificate One Certificate In Real Estate Finance And Investment

❏ BC5326 23 – 26 March 2014 ❏ BC5330 19 – 22 October 2014

Book 11 weeks before the course

Book 8 weeks before the course

Final Fee

US$ 3,995

US$ 4,495

US$ 4,795

Certificate Two Certificate In Real Estate Modelling

❏ BC5327 11 – 14 May 2014

US$ 3,995

US$ 4,495

US$ 4,795

Certificate Three Certificate In Real Estate Valuation

❏ BC5328 1 – 4 June 2014

US$ 3,995

US$ 4,495

US$ 4,795

Certificate Four Certificate In Real Estate Investment, Leasing And Management

❏ BC5329 14 – 17 September 2014

US$ 3,995

US$ 4,495

US$ 4,795

Certificate Five Certificate In Real Estate Development

❏ BC5331 7 – 11 December 2014

US$ 3,995

US$ 4,495

US$ 4,795

Course fees include documentation, luncheon and refreshments. Delegates who attend all sessions and successfully complete the course assessment will receive an IIRME/GW Certificate of Completion.

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All registrations are subject to our terms and conditions which are available at www.iirme.com/terms. Please read them as they include important information. By submitting your registration you agree to be bound by the terms and conditions in full.

Payments A confirmation letter and invoice will be sent upon receipt of your registration. Please note that full payment must be received prior to the event. Only those delegates whose fees have been paid in full will be admitted to the event. You can pay by company cheques or bankers draft in Dirhams or US$. Please note that all US$ cheques and drafts should be drawn on a New York bank and an extra amount of US$ 6 per payment should be added to cover bank clearing charges. In any event payment must be received not later than 48 hours before the Event. Entry to the Event may be refused if payment in full is not received.

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Cancellation If you are unable to attend, a substitute delegate will be welcome in your place. Registrations cancelled more than 7 days before the Event are subject to a $200 administration charge.

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Avoid Visa Delays - Book Now Delegates requiring visas should contact the hotel they wish to stay at directly, as soon as possible.

Visas for non-GCC nationals may take several weeks to process.

All registrations are subject to acceptance by IIR which will be confirmed to you in writing.

Due to unforeseen circumstances, the programme may change and IIR reserves the right to alter the venue and/or speakers.

Event Venue: Radisson Royal Hotel, Dubai, UAE Tel: +971 4 308 0000 Accommodation Details We highly recommend you secure your room reservation at the earliest to avoid last minute inconvenience. You can contact the IIR Hospitality Desk for assistance on: Tel: +971 4 407 2693 Fax: +971 4 407 2517 Email: hospitality@iirme.com © Copyright I.I.R. HOLDINGS B.V.

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