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Course Description

*Formerly CPE 119*

 

Course Description:

Finance is possibly the most critical aspect of a development project and occurs well before the start of construction. This course examines the fundamental building blocks to present a project for financing through a combination of peer collaboration, expert industry speakers, and case studies of active development projects from across Canada. Gain a comprehensive understanding of topics related to the development of revenue and budget projections, comparative and competitive analysis for a projected pro-forma, and potential market condition changes through to the completion of a development. Apply introductory concepts of time value of money to complete net present value and internal rate of return analysis. Learn about risk identification frameworks and mitigation strategies for timely project completion and repayment of project debt. Discuss developer financing options including first and second mortgages and equity structures to capitalize projects.

Course Learning Outcomes:

  1. Identify the various types of real estate assets that can be developed and define the municipal approval process required to commence development.
  2. Identify key real estate risk factors, including project-specific and macroeconomic variables, how they impact the viability of the project, and how to mitigate these risks.
  3. Compare and explain the various equity capital structures used to finance real estate projects and how they influence the securing of project debt.
  4. Develop a project pro-forma and cost estimate used in the financing decision, including discounted cash flow analysis, IRR modelling, and the time value of money assumptions.
  5. List the basic features of mortgage agreements, including first and second mortgages, as well as other types of private financing transactions and the legal framework supporting these agreements.
  6. Identify the familiar sources and providers of commercial real estate debt across the risk spectrum.
  7. Assess potential real estate projects with a focus on their viability in securing project financing.

 

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Type
Blended
Dates
Oct 21, 2022 to Nov 10, 2022
Type
Class
Days
F
Time
8:30AM to 4:30PM
Dates
Oct 28, 2022 to Nov 04, 2022
Schedule and Location
Hours
18.0
Delivery Options
Course Fees
Investment non-credit $995.00
Instructor(s)
Section Notes

Registration Deadline: October 21, 2022

  • Pre-Session materials available: October 21, 2022

  • In-person classroom session: October 28 & November 4, 2022

  • Site visit: November 2, 2022

  • Live online session: November 10, 2022

This course uses Desire2Learn (D2L), an online learning management system. The instructor will post your course outline and other materials in D2L. 

Faculty Bio: 

Aaron Forbes Attended the University of Calgary, majoring in Economics and became a CFA Charterholder in 2013. He is a licensed member of the Real Estate Council of Alberta and has completed the Mortgage Associates Program and is currently a Senior Director with MCAP’s Development Finance Group. To date, he has been involved in the structuring of over $2.0 billion of real estate transactions throughout Western Canada, including 1st and 2nd mortgages and has completed syndications with most major Canadian Banks, Alberta based lending institutions, pension funds and life insurance companies. In 2012, he spent 2 months volunteering in Phnom Penh, Cambodia with the Sovann Phoum Organization, a non-profit micro credit lender. Aaron currently sits on the Board of Directors for KV Mortgage Fund Inc., a private Edmonton based lender, as an independent member and a member of the Lending Review Committee.

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