Certificate of Real Estate Investment Finance SECTION A – INFORMATION What is the Certificate of Real Estate Investment Finance? The Certificate of Real Estate Investment Finance (CREIF) is designed to develop and enhance skills and understanding in real estate finance. CREIF covers the real estate market as a whole, and is relevant to those working in both the listed and unlisted sectors. Who Should Enrol CREIF is designed for management level real estate professionals who require a better understanding of practical and applied real estate finance and investment, particularly those in; property companies (listed and unlisted), managers of real estate funds, investment banks, investors, investment managers, trustees and advisors. Subject 1 –The Real Estate Investment Market Subject 1 investigates the impact of the economic environment and investment climate on real estate returns, including international factors, government policy and interest rates. You will study the similarities and differences between real estate in its various forms alongside other asset classes, notably equities, debt and alternative investments, and review the performance of listed against unlisted/direct real estate as well as asset classes domestically and internationally. Using case studies, you will examine the roles and responsibilities of real estate investors, asset managers, fund managers and portfolio managers. Subject 1 will:
Explain how monetary policy is used as a tool in the management of economic conditions Outline the factors that impact the economic environment and their effect on property returns Set out the factors that affect the investment climate Define the differences and characteristics of equity, fixed interest, alternative assets and real estate Compare the performance of listed and unlisted real estate to other asset classes Describe the real estate investment decision making process Define asset management, the roles and responsibilities of an asset manager and how it overlaps with property management o Outline the concept of active asset management and the critical components of an asset management, financial/funding and risk management plan o Draw out the factors that drive performance maximisation o Analyse the critical success factors behind negotiating and structuring leases Define fund management, the roles and responsibilities of a fund manager and how it overlaps with asset management identifying the critical factors in fund management value adding activities Define portfolio management and the roles and responsibilities of a portfolio manager o Examine the concepts of performance, taxes and risk adjusted returns and fees and explain a hedge fund Explore the real estate market and its products o Identify the driving factors behind the various real estate sectors o Explain the significance of REITs and the different products traded in global markets o Set out the characteristics of listed property types o Demonstrate the characteristics of the REIT model and the role and importance of private equity Development of specialisation of real estate market participants o Identify the major players and their responsibilities and define the role and responsibilities of a trustee Explore the differences between the listed versus the unlisted real estate market 1
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o Examine recent developments, compare the advantages, and examine the future of listed real estate o Analyse the factors that affect the ratings of listed real estate Review the real estate & management structures
Subject 2 – Applied Valuation Subject 2 looks at the valuation of real estate from a valuer’s perspective a capital market valuation perspective. You will compare and contrast the two with reference to the use of a due diligence report, and look at the valuation of development companies. Case studies outline worked examples and are used to demonstrate the valuation models. Subject 2 will:
Define the various valuation methods and techniques used by a real estate valuer o Outline the role of valuation standards and their application o Explain the concept of market value as distinct from net asset value (NAV) o Understand income analysis and how it impacts on real estate valuation o Identify what builds value and drives growth and how to optimise cash flow o Explain Capitalisation Rates, DCF, IRR, NPV and be able to cross-check the results with sales or direct comparison models o Demonstrate the application of valuation methods across various real estate markets dealing with sector specific issues Define the various models used when undertaking a capital markets valuation o Examine the factors that affect a capital markets valuation such as the value of intangibles including branding, quality of management, creditworthiness of the sponsor and/or manager, taxes and charges, interest rate changes and cycles and their impact o Explain how to calculate the price premium or discount to net tangible assets (NTA) benchmark and understand their importance and limitations o Demonstrate the use of valuations such as NTA/NAV, EBITDA, EV, ROEV, FFO & AFFO o Set out the correct use of the Discounted Cash Flow (DCF) method of valuation for equities, including the impact of variable Beta and terminal growth rates on the calculated value o Interpret the term ‘material change’ and its flow-on effect to valuations o Explain the concepts of diversification and portfolio theory in valuing groups of properties o Investigate how investors value investment opportunities differently Explain how to value a real estate development company o Analyse the different components of a property development company’s income stream o Analyse the different valuation techniques that may be used including Sum of Parts and multiples comparisons Explain the need for and use of due diligence o Define the key skills of a due diligence professional o Explain the term technical due diligence and understand what a technical due diligence report is o Describe the way in which findings of an investigation may affect any subsequent financial analysis o Identify the types of information that may be collected in a due diligence investigation
Subject 3 – Real Estate Finance & Investment Subject 3 covers the importance and complexity of real estate finance and its effect on investment returns locally and internationally. You will examine various forms of structured finance for the listed and unlisted real estate market, understand developing and pricing investment strategies and benchmarking performance, and look at accounting and financial analysis. Property derivatives are also introduced as a vital tool to portfolio management and asset relocation. Case studies are used throughout the subject to reinforce learning outcomes.
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Subject 3 will:
Describe how to structure and finance listed and unlisted real estate o Identify different types of financing models, their characteristics and issuances o Explain how to assess capital structure and its related issues o Identify specific issues associated with construction finance o Examine the concepts behind distressed assets o Compare the advantages of debt capital market instruments as opposed to bank finance o Analyse the concept of a public/private partnership o Describe the role of Credit Rating Agencies o Explore the types of asset security used in property markets when sourcing leverage Define investment strategies o Examine the concepts behind the pricing of listed real estate and distribution models of income o Explain the concepts behind dividend policy, financial leverage, optimal capital structures and trading strategies o Review property derivatives o Analyse performance evaluation and benchmarks o Explore the role of indices Undertake financial analysis and gain an understanding of accounting treatments o Identify the major impacts of IFRS on financial reporting o Analyse basic financial ratios relating to real property and listed entities Explain how to prepare a prospectus and marketing strategy for listing o Define the steps taken in the issuance of a prospectus and locate the information contained within a prospectus for a REIT o Describe the marketing strategy for listing an entity Identify the risks associated with real estate investments, including investment in REITs, listed property companies, unlisted funds and direct real estate o Identify the risks relating to operations o Analyse the concepts of systematic and unsystematic risk Consider cross border real estate investments o Examine the concepts associated with cross border transactions including macro and microeconomic factors o Review the decision making stages in cross border transactions o Examine the concepts behind Systematic versus Intuitive Decision Processes Define the acquisition process Understand the use and types of property derivatives and how they are priced and used as a hedging tool
Subject 4 – Legal and Regulatory Considerations Subject 4 brings together a number of regulatory and tax principles associated with real estate investment. It outlines the financial services industry, the statutes that underpin and regulate the industry and the authorities that administer the laws. You will examine different fund structures, the tax effects, and the regulation of both listed and unlisted funds and how a fund can be listed on an exchange. It also deals corporate governance and foreign investment. Subject 4 will:
Recognise the legal structures used to conduct businesses Describe the structure of regulation relevant to the real estate industry and the development of the financial services industry Consider the roles, historical development, functions, investigation powers, sanctions and organisational structure of regulatory bodies Examine the laws, regulations and non-statutory codes governing property funds and their activities 3
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Provide an overview of the procedures and requirements for listing on the exchange Define the statutory obligations imposed on listed companies and property funds to disclose material information to the market on an on-going compliance basis Provide an overview of the issues to consider when contemplating foreign investment in overseas properties Identify the basic features of money laundering and the regulatory framework in combating such activities Review the taxation considerations as they apply to property funds Provide an overview of the licensing framework and other legislation that applies to property fund managers and their personnel, and the licensing requirements applicable to them. Explore the regulatory framework for unlisted funds and, the regulatory considerations for unlisted property funds
How long is the course? 4 subjects are delivered over 8 months with compulsory workshop attendance. All subjects are to be taken over a maximum period of 2 years. No exemptions are available for relevant experience or prior learning How is the course delivered? Students download a set of course notes for each subject from a Learning Management System “My AI” to study, 4 - 5 weeks prior to the workshop How is the course assessed? Assessment is via the research tasks and a major project assignment. Students must submit one research task for each subject and one major project assignment for the course. For each assessment students will receive a mark and grade such as pass, credit, distinction, high distinction or fail. The student’s final mark for the CREIF course will culminate in a single final mark out of 100 and the mark will determine the associated final grade for the course. Students must achieve a final mark, graded as pass, credit, distinction, high distinction to be eligible to pass the course. Students who receive a final mark graded as a fail will not be eligible to receive the Certificate of Real Estate Investment Finance. Who awards the Certificate? APREA Institute Where can I get further information on CREIF? Tel: (+65) 6438-1110 or 800 908060 (HK Toll Free) or email: info@apreainstitute.asia
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SECTION B: ENROLMENT FORM PERSONAL INFORMATION & CONTACT DETAILS
Title (Dr/Mr/Mrs/Ms/Miss/Other): _______________________________Preferred Name(s): _____________________ Given Name: ____________________________ ____________________ Family Name:__________________________ Gender: ☐ Male ☐ Female Contact number, Home: _________________Work: _______________________________ Mobile:_________________________________ E-mail address: _________________________________________ Identity No/NRIC/FIN:_______________________ Date of Birth: ____________________________________________ Company Name: ___________________________________ Title/Position: ____________________________________ Department:______________________________________ Company Address: ________________________________ _________________________________________________________________________________________________ COURSE LOCATION ☐ CREIF (Singapore)
☐ CREIF (Shanghai)
☐ CREIF (Hong Kong)
☐ CREIF (Malaysia)
COURSE FEES (please state currency of payment) APREA Member Fee: ☐S$5,320 or ☐US$4,250 Non-Member Fee:
☐S$6,650 or ☐US$5,350
Organisations based in Singapore may be eligible for: (i) the enhanced Productivity and Innovation Credit (PIC) scheme which provides up to a 400% tax deduction or a non-taxable cash payout at a conversion rate of 30% when sending employees on external training. For further information on the PIC scheme, contact picredit@iras.gov.sg visit www.iras.gov.sg or call 1800 356 8622 (ii) Financial Sector Development Fund (fsdf) Support. Applications need to be submitted to the FSDF directly and are assessed on a caseby-case basis. For more details please contact fsdf@mas.gov.sg
PAYMENT
Please select one of the following payment options. Ensure that you have read the refund policy outlined under Section C: Terms & Conditions. Note: Fees are payable in either Singapore dollars or US dollars only. All fees are subject to change without notice and include taxes where applicable. Payment by employer by: ☐ Cheque or ☒Telegraphic Transfer (please select one) ☐ American Express Please provide full details of who will be responsible for payment of your course fees and where the invoice should be sent (if different from above). An authorising signature will be required in order to process your application. Name of company: ___________________________Department/Attention of: ______________________________ Address:__________________________________________________________________________________________ ______________________________________________________________________________________________ Name of person authorising payment:_____________________________ Title/Position:________________________ Telephone No:_______________________________________________ Emai:______________________________
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Authoriser’s signature:_________________________________ Date: ______________________________________ Personal Payment by: ☐Cheque or ☐Telegraphic Transfer (please select one) ☐American Express Cheques should be made payable to : ‘Asia Pacific Real Estate Association Limited’ Cheque No: _______________________________________ Bank: _________________________________________ Please note: for telegraphic transfers, bank account details will be provided on receipt of this enrolment. American Express (NB: a transaction fee of 4% will be added to the payment) Card Number:___________________________________ Cardholders Name:__________________________________ Valid from:______________________________________ Expiry Date:_______________________________________ Billing Address: ____________________________________________________________________________________ _________________________________________________________________________________________________ Cardholder’s Signature (authorising APREA to charge fees to my Card) Signature:_________________________________________________Date:___________________________________
COMPULSORY DECLARATION Student Declaration I hereby apply for enrolment with APREA Institute. I agree that if this application for enrolment is accepted by APREA Institute, I will be bound by the rules, regulations, by-laws and procedural policies of APREA Institute as laid down from time to time, including any disciplinary procedures. I confirm that the information provided by me in this form is in all respects correct and complete to the best of my knowledge and belief, and I consent to it being used by APREA Institute. I acknowledge that APREA Institute reserves the right to refuse my application for enrolment. I acknowledge that if at any time my conduct in classes, assessment or otherwise is considered by APREA Institute to be inappropriate, APREA Institute reserves the right in its discretion to refuse me permission to attend any APREA events or sit for any APREA Institute assessment, whether or not I withdraw from the course. I acknowledge that APREA Institute’s determination in respect of examination and assessment results is final and will not be subject to discussion or negotiation except in accordance with the APREA Institute’s rules and policies.
Signature: _____________________________________ Date: ________________________________________ APPROVING MANAGER’S SIGNATURE If your company policy requires your manager to approve your enrolment, this section must be completed. Approving Manager’s Name: Title/Position: ____________________________________________________________ Telephone:__________________________________
Email: _____________________________________________
Signature:___________________________________ Date:______________________________________________ PLEASE RETURN YOUR COMPLETED APPLICATION BY EMAIL TO info@apreainstitute.asia or fax +65 6438 5550
SECTION C: TERMS & CONDITIONS Refunds There will be no refund if a student withdraws after the program has commenced (please refer to SECTION D: CREIF SCHEDULE 2013 for commencement by location) , or where access has been provided to study notes, except under the following circumstances: •
Where the student’s application for enrolment is declined by APREA Institute.
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• •
Whereby reason or reasons beyond the student’s control e.g. Acts of government authorities, civil strikes and riots etc. the student is prevented from studying a subject. Where APREA Institute cancels a subject in which the student has enrolled.
Transfers Transfer of the enrolment is not permitted once the signed enrolment form and fee is received by APREA Institute. .
Payment terms •
Confirmation of enrolment is subject to receipt of full payment prior to commencement of the course. A confirmation will be sent once the enrolment has been processed and payment received.
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SECTION D – CREIF SCHEDULE 2013 CREIF Schedule 2013 Subject
Hong Kong
Singapore
11 Mar to 18 Apr (6)
4 Mar to 11 Apr (6)
Subject 1: Real Estate Investment Market Subject 3: Real Estate Finance & Investment WORKSHOP 1
19, 20 Apr
12, 13 Apr
WORKSHOP 3 Subject 2: Applied Valuation
29 Apr to 6 Jun (6)
22 Apr to 30 May (6)
Subject 4: Legal & Regulatory Considerations WORKSHOP 2 WORKSHOP 4 Subject 3: Real Estate Finance & Investment Subject 1: Real Estate Investment Market WORKSHOP 3 WORKSHOP 1 Subject 4: Legal & Regulatory Considerations Subject 2: Applied Valuation WORKSHOP 4
Shanghai
11 Mar to 18 Apr (6) 4 Mar to 11 Apr (6) 19, 20 Apr 12, 13 Apr 29 Apr to 6 Jun (6) 22 Apr to 30 May (6)
7, 8 Jun
31 May, 1 Jun
5 Aug to 5 Sep (5)
29 Jul to 29 Aug (5)
7, 8 Jun 31 May, 1 Jun 5 Aug to 5 Sep (6) 29 Jul to 29 Aug (5)
6, 7 Sep
30, 31 Aug
16 Sep to 24 Oct (6)
9 Sep to 17 Oct (6)
6, 7 Sep 30, 31 Aug 16 Sep to 24 Oct (6) 9 Sep to 17 Oct (6)
25, 26 Oct
18, 19 Oct
WORKSHOP 2
25, 26 Oct 18, 19 Oct
* The numbers in brackets indicate the number of weeks of study for each subject
www.apreainstitute.asia
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Kuala Lumpur