RICS/REDAS: Corporate Real Estate Financing – Key Principles

One key component of the real estate investment and management process which may sometimes be neglected is the financing aspect. Real estate is one of the most leverageable investment asset classes and the appropriateness of the financing arrangement in place (not necessarily simply the cheapest), may result in a significant difference between yield enhancement and value deterioration.

Today, there is a wide range of sources and options for corporate real estate funding depending on the regulatory/legal operating environments and maturity of financial markets of different jurisdictions. As real estate investments become increasingly diversified across different geographical markets and the operating environments become more volatile and impacted by one-off events (such as COVID-19), there is an increasing need to understand real estate financing fundamentals in ensuring the most appropriate financing arrangements are put in place for your investments. Financing arrangements also impact how real estate investments are to be structured, as with tax and legal considerations.

This course aims to provide a fundamental understanding of the different corporate real estate funding options available and key considerations in determining the appropriate financing for a specific property/project. Equipped with this understanding, real estate professionals can become more confident in assessing and structuring their real estate investments, engaging financial institutions on funding requirements and improving their business interactions with investors and clients in the real estate industry.