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Summer Course
in Real Estate

In partnership with:

Real estate markets are rapidly changing with financing and investment decisions growing in complexity.

The banking sector is also facing a new wave of regulations that is changing the way real estate investors access funding. Mezzanine debt, REITs, and equity capital markets have become an increasing source of funds in real estate deals.

The real estate market is now highly competitive and companies often rely on well-trained workers capable of making investment decision in an environment of complexity. For investors, intermediaries and other real estate players to remain successful, building experience in an exceedingly specialized market has become a must. With this course, you will receive an excellent training that allows you to learn thoroughly the new trends and techniques in the field of real estate finance.

Course Leaders

Prof. Dr. Jaime LUQUE, Associate Professor ESCP Europe, Madrid Campus

Prof. Dr. Jaime LUQUE

Associate Professor ESCP Europe
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Ádám BANAI, PhD, Director at National Bank of Hungary, Financial System Analysis Directorate

Ádám BANAI, PhD

Director at National Bank of Hungary, Financial System Analysis Directorate
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János MAJOR, The Hungarian National Asset Management Inc, Deputy Chief Executive

János MAJOR

Deputy CEO at Hungarian National Asset Management Inc. (MNV Zrt.)
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Christina Novak Hansen, Research assistant / PhD student, Chair of Business Ethics and Management Control, Berlin Campus, ESCP Europe

Zsolt Pilhál

Property Finance and Development
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Target Group

MSc or PhD candidates specialized in finance or real estate
Those who are working in the financial side of the real estate industry
Workers of financial institutions and central banks

Course Objectives


1

Practice the valuation of revenue generating properties by applying sound asset pricing methods and using Excel to perform pro-forma analysis

2

Learn how to design mortgages that meet the needs of different investors

3

Understand the implications of leverage in real estate

4

Understand the implications of different capital structures in real estate assets

5

Model sophisticated real estate “waterfall” spreadsheets with Excel for a variety of different capital structures and scenarios

At the end of the course the participants will reach a deep understanding of real estate finance both on the residential and commercial side. They are going to see the big picture on the new trends of real estate industry.

Contact Person for Enrollment and more information

Creative Madrid Summer School 2019 - Key Features - ESCP Europe

Key Features

  • 5 days programme, starting on June 24 and ending on June 28. Every day classes will start at 9am and finish at 3pm, except Friday when classes finish at noon
  • At the end of the course the participants will reach a deep understanding of real estate finance both on the residential and commercial side. They are going to see the big picture on the new trends of real estate industry
  • Study in the heart of the ancient city of Budapest, one of the most beautiful cities in Europe

Summer Course
in Real Estate
Curriculum

24/06/2019 (MONDAY)

09:00 am - 12.00 pm
The Basic Real Estate Investment Model – Jaime LUQUE (ESCP Europe)
This lecture will review the basic real estate investment model, which is a necessary step towards the understanding of a more sophisticated analysis of real estate investment decisions which includes multiple layers of debt and equity.
13:00 am - 15.00 pm
Real estate market from a macro perspective – Ádám BANAI (Director of the Central Bank of Hungary / Directorate Financial System Analysis).
Real estate market has a strong effect on the whole economy and vice versa. As residential property is one of the main assets of households, consumption and saving decisions are strongly influenced by house prices. In the corporate sector, property prices influences demand for new investments, and ultimately has an effect on the construction industry and its suppliers. Finally, residential and commercial real estates are serving as the main collateral type for bank loans. Participants will get a deeper understanding on the relation of the real estate and different sectors.

25/06/2019 (TUESDAY)

09:00 am - 12.00 pm
TCommercial Mortgage Debt: Design, Prepayment, Refinancing and Default – Jaime LUQUE (ESCP Europe)
This lecture introduces the basic concepts and methodology useful for dealing with real estate debt from the investor’s perspective. We will use Excel to compute mortgage payments and balances for a variety of loan types, compute mortgage yields to evaluate mortgages, and model the implications of refinancing and prepayment decisions.
13:00 am - 15.00 pm
The State and the Real Estate – János MAJOR
  • How governments are handling their own real-estate stock?
  • How much real estate is needed for the state sector?
  • How the state sector interacts with the private sector?
18:00 am - 20.00 pm
Social event (winetasting)

26/06/2019 (WEDNESDAY)

09:00 am - 12.00 pm
Real Estate Capital Structures – Jaime LUQUE (ESCP Europe)
This lecture moves beyond debt to consider sophisticated capital structures with multiple layers of debt and equity. We will extend the setting used in the previous module to construct “water falls” Excel spreadsheets to model a variety of situations.
13:00 am - 15.00 pm
The Reconstruction of the “Main Square of the Nation”, and Related Projects: an Atypical Program – Tamás WACHSLER
The Parliament of Hungary issued a program to renew Kossuth Lajos square (the square surrounding the Parliament building) in 2011. As the project went on, its scope has continuously increased, including buildings of the executive as well as the legislative branch, and even private buildings. Is it a good idea to “group” developments based on their actual location rather than their ownership?

27/06/2019 (THURSDAY)

09:00 am - 12.00 pm
Real Estate Private Equity – Jaime LUQUE (ESCP Europe)
This lecture relies on a case study that gives students exposure to both the quantitative and qualitative aspects of investing in commercial real estate through a private equity structure. After discussing the case students should be able to:
  • Understand the mechanics of private equity
  • Create a pro-forma analysis of expected cash flows to outside investors and the private equity firm, and
  • Learn to model uncertainty in commercial real estate transactions
13:00 am - 15.00 pm
Consequences of Real Estate Market's Volatility on Debt and Equity Structures – Zsolt PILHÁL
The case study based presentation is focusing on the application and implementation of complex directions of debt and equity structures in case of restructuring, turn-around and other intensive processes. How can lenders and sponsors minimazing losses or maximizing return-on-equity where the underlying business cases are suffering big losses or gaining extra upside benefit comparing to default case? We are discussing the business rationale of recapitalization, refinancing and earn-out structures, parallel with reorganization and restructuring techniques. There are two planned case studies: a) a "chapter 11" case when borrower and lender are thrown back on each other, b) a property development case, where development expenses and rental/sales prices are booming.

28/06/2019 (FRIDAY)

09:00 am - 12.00 pm
Commercial Mortgage Debt in Distress – Jaime LUQUE (ESCP Europe)
This lecture relies on a case study that allows students to understand the impact of distressed mortgage debt on commercial real estate investment projects. Emphasis will be put on the financing aspects of a distressed commercial mortgage debt “workout” between the borrower and the lender.

Contact Person for Enrollment and more information

Creative Madrid Summer School 2019 - Key Features - ESCP Europe

Key Features

  • 5 days programme, starting on June 24 and ending on June 28. Every day classes will start at 9am and finish at 3pm, except Friday when classes finish at noon
  • At the end of the course the participants will reach a deep understanding of real estate finance both on the residential and commercial side. They are going to see the big picture on the new trends of real estate industry
  • Study in the heart of the ancient city of Budapest, one of the most beautiful cities in Europe

Summer Course
in Real Estate
Fees and Financials

The total tuition fee for the July 2019 summer school course is €1,500 + VAT, which includes the five-day course with coffee break and lunch, and one social event on Tuesday (winetasting).

Contact Person for Enrollment and more information

Creative Madrid Summer School 2019 - Key Features - ESCP Europe

Key Features

  • 5 days programme, starting on June 24 and ending on June 28. Every day classes will start at 9am and finish at 3pm, except Friday when classes finish at noon
  • At the end of the course the participants will reach a deep understanding of real estate finance both on the residential and commercial side. They are going to see the big picture on the new trends of real estate industry
  • Study in the heart of the ancient city of Budapest, one of the most beautiful cities in Europe