REIF Fundamentals - Understanding the Commercial Design of Real Estate Investment Products

After completing this course, the learner will be able to understand the macroeconomic factors that drive real estate investments and the overall environment for real estate products from an investor perspective, including different product formats (open, closed, listed, segregated accounts) and liquidity, risk and performance criteria. Students will also cover European and Luxembourg markets for real estate investment products and the basic commercial differences in the design of open-ended and closed-ended funds.

Introduction

• Case Study: Your own practical exposure to Real Estate investment (Location/Style/Equity/Debt/Income/Tax)
• Introduction to the real estate investment asset class
• Understanding the overall environment for real estate investments from an investor perspective
• Understand different product formats (open, closed, listed, segregated accounts)
• Key real estate fund investment criteria for investors
• Overview: European and Luxembourg markets for real estate investment products

A brief introduction to:

• Principles of tax & legal structuring
• Designing a financial framework
• Roles of parties involved in real estate funds
• Typical operating processes in real estate funds
• Typical governance & controls in real estate funds

Case study 1: What do you expect to see in a term sheet for an open-ended fund?
Case study 2: How will the commercial design differ for a closed-ended fund?