The April issue of Real Estate Capital confirms investor interest in reopening and reviving the European CMBS market.
Changes to the new style CMBS demanded by investors are around information disclosure, independence of advisers and most importantly control rights in events of default.
While some suggested changes are helpful such as the ability to sack property managers without cause after a loan default, with managers obliged to transfer information, selecting and negotiating with a new property manager can be a lengthy process and requires in-depth knowledge of what is needed to transform the assets into a performing loan.
Many requests address rights of the controlling class, noteholders should be aware though that where only a portion of the loan has been securitised this controlling party is often the B-noteholder or subordinate lender, who has different interests from the senior bond holders. In addition the senior noteholders are in most cases not real estate professionals.
Of course terms of engagement of rating agencies are not a secret and follow defined fee structures. It is up to investors to enquire.
A timeless, comprehensive and practical reference tool and self-study guide
After more than 10-year of professional experiences, I decided, it was time to share my knowledge. Today, there are strong forces in the financial industry pushing for the less developed commercial real estate market to adopt more complex quantitative approaches in assessing real estate risk. However, knowledge is often not passed on and materials available have not kept up to include new models and concepts to ensure they become common practice and general industry knowledge.
My answer to the problem was a book that is a practical guide for those wishing to gain further skills and knowledge in financial modelling for real estate investments not only in Europe, but all around the world. The book is aimed at professionals and graduate students of real estate investment, real estate finance, surveying and land economics who do not have a comprehensive mathematical, statistical and programming background. But it will also give students from other finance and accounting courses an understanding of how to apply models from equity and fixed income analysis to real estate as an alternative asset class. By using an interdisciplinary approach it closes the gap between real estate and other financial asset classes and shows how market and credit risk models from these areas can be adopted and adapted to analyse real estate investment. In addition, it bridges the gap between the pure quantitative financial modeller and the professional analyst. It provides financial modelling for real estate debt, equity and derivates to underpin investment and credit decisions.
What are the key features of the book?
– Summary of key concepts featured at the beginning of each section
– Each model or tool described is accompanied by a working example using excel or VBA
– Step-by step guide to set up new models
– Useful links for data sources and analysis tools at the end of each section
– Summary of literature suggested for further reading at end of each section