Retail Property Investment School

A Five day school that focuses on Retail from theoretical knowledge to the practical skills base to compliment one another.

This school combines two of our courses:

The Intro to Shopping Centre Investments is more quantitative than before but retains the definitions, historical, practical and strategic context. This provides the fund/asset manager, investing in shopping centres for the first time, with everything they need to know to discuss the asset with their peers.
The Retail Property Appraisals course is for the investor/asset manager who wants to drill deeper into the quantitative analysis of any retail portfolio. The course can be taken on its own and like all our financial modelling courses it is Excel based and data driven from the very start.

Who will benefit from this course?

Real Estate Professionals who would like to update their knowledge of the investment, performance and profit enhancement strategies of retail assets.
Shopping centre managers who would like to communicate more effectively with investors and owners on the financial impact of their management strategies.
Asset managers and fund managers who would like to understand the impact of their strategies on asset and shareholder value in a more granular and integrated fashion.
Suppliers to shopping centres to help them quantify and communicate how their product can add value.
Data companies’ providers who would like to further understand the needs of shopping centre investors in order to help them improve their service.
Analyst and modellers who would like to improve their understanding of financial models in respect of retail property assets.

Course Outline

Day One

Introduction To Shopping Centre Investments I

Retail and Shopping Centre History

Shopping Centre Definitions

Industry Definitions
Retail Quilts^TM
Creating your own definition

Revo, ICSC and other Membership, Research and Policy Bodies

Retailers, Consumers and Consumer Behaviour: Comparative study

Retailer Classifications
Consumer Classifications
Operational Metrics: Footfall,Dwell,Frequency,Spend

Shopping Centre Design

Humanics, Mechanics, Branding and Design

Design Considerations and Metrics

Game: Build your own shopping centre
Network Evening: Dinner for delegates and course contributors

Day Two

Introduction To Shopping Centre Investments II

International Retail Industry

Retailers and Brands
Retail Categories Profit & Loss Statements
Key Performance Indicators
Retail Trends
Franchising

Game: The Retail Trading Billionaire

Online Retailing

Development, Size & Structure of the Market

Retail Property Macro Economics

Global Demand and Supply
Retail Property Indicators in global Retail
Occupier, Asset and Development Market

Understanding key retail lease covenants

Financial Modelling of Retail Property Assets

Retail Property Development
Retail Property Investment

Workshop: Calculate the development cost of your shopping centre

Day Three

Introduction To Shopping Centre Investments III

Game: Lease your shopping centre

Reviewing the Leasing Strategy

Analysing the financial model of your shopping centre

Shopping Centre Ownership

Companies, Partnerships, REITS and Joint Ventures
Global retail property ownership and control

Day Four

Retail Property Appraisals I

Retail Property Models

What makes retail property models unique?
Input Variables and the Profit Cycle
Financial Model Layout and Design
Understanding the nature of Retail Property Cash Flows

Advanced Cash Flow Modelling

Internal Rate of Return (IRR), Net Present Value (NPV) and other metrics
The three Rent Function methods
Logic Functions and Arrays
Multi-let Cash Flows
Multiple and Period Varying Growth Rates

Retail Property Rent Functions

Common Retail Property Lease Covenants
Retail Tenancy Schedules
Zone A calculations
Turnover, affordability ratios and rental capture
Rental Growth, inflation and fixed rent
Rent Functions and Rent Projection

Analysing the Tenancy Schedule

Hypothetical study of ‘The Galleries’ Shopping Centre
Unit Plan and Micro Location
Using Excel as a database and linking to external data sources
Data visualisation methods
The Bayfield Retail Quilt (Tenant Mix Analysis)
Lease Expiry Profiles and Event Analysis

Round up and Conclusions of Day Four

Day Five

Retail Property Appraisals II

Shopping Centre Portfolio Case Study

Choosing the Retailer Classification
Cross Referencing Consumer Classification
Completing the Tenancy Schedule
Generating Typologies from tenancy schedules

Rent Functions for Shopping Centres

Breaking Complex rent functions from existing models
Planning the rent function
Events and Rents Table formulae
Full Rent Function

Full Project Cash Flow

Scenario Testing and Risk Analysis
Building a rent function for the case study shopping centre
Testing the rent function
Creating CAPEX and OPEX functions for the case study
Calculating IRR, NPV and other Investment Metrics
Testing the IRR for errors

Footfall and Performance Metrics

Destination capacity calculations
Footfall Signatures
Peak hour performance
Performance Metrics

Round up and Conclusions of Day Five

Post-Course Support

We complement all our financial modelling courses with two months’ learning support, to make sure you will fully benefit from our training.

How does it work?
You can contact us at any time and one of our experts will come back to you within two working days. The expert’s time is limited to 10 minutes per inquiry on questions related to the course material only.

Need More?

One Year Learning Support

We also offer an exclusive learning support for a whole year to assist you whenever you need us. To use this offer contact Kendal Bahadirgil before or after your financial modelling course and request “one year learning support” for the additional fee of only £500 + VAT.