Global Property Investment: Strategies, Structures, Decisions

1. Auflage 2011
ISBN: 978-1-4443-3528-6
Verlag: PAPERBACKSHOP UK IMPORT

Buch, Englisch, 576 Seiten, Format (B × H): 177 mm x 244 mm, Gewicht: 1111 g

Developments in the sophistication of global real estate markets mean that global real estate investment is now being executed professionally. Thanks to academic enquiry, professional analysis and entrepreneurial activity, backed by the globalisation of all investment activity, there is now an available body of material which forms the basis of this scholarly but practical summary of the new state of this art.

The measurement, benchmarking, forecasting and quantitative management techniques applied to property investments are now compatible with those used in other asset classes, and advances in property research have at last put the ongoing debate about the role of real estate onto a footing of solid evidence.

The truly global scope and authorship of this book is unique, and both authors here are singularly well qualified to summarise the impact and likely future of global innovations in property research and fund management. Between them, they have experienced three real estate crashes, and have observed at first hand the creation of the real estate debt and equity instruments that led to the global crisis of 2008-9.

Global Property Investment: strategies, structure, decisions offers a unique perspective of the international real estate investment industry with:

* a close focus on solutions to real life investment problems
* no excessive theoretical padding
* a target of both students and professionals
* highly qualified dual-nationality authorship

With many cases, problems and solutions presented throughout the book, and a companion website used for deeper analysis and slides presentations (see below), this is a key text for higher-level real estate students on BSc, MSc, MPhil and MBA courses worldwide as well as for practising property professionals worldwide in fund management, investment and asset management, banking and real estate advisory firms.

Autoren/Hrsg.

Baum, Andrew E.

Baum, Andrew

Hartzell, David

Fachgebiete

• Wirtschaftswissenschaften Betriebswirtschaft Unternehmensfinanzen Finanzierung, Investition, Leasing
• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Anlagen & Wertpapiere
• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Internationale Finanzmärkte
• Wirtschaftswissenschaften Volkswirtschaftslehre Internationale Wirtschaft Internationale Finanzmärkte

Inhaltsverzeichnis

Preface xAcknowledgements xvPART ONE REAL ESTATE AS AN INVESTMENT: AN INTRODUCTION 1Chapter 1 Real estate - the global asset 31.1 The global property investment universe 31.2 Market players 61.3 Property - its character as an asset class 111.4 Conclusions 28Chapter 2 Global property markets and real estate cycles 322.1 Introduction 322.2 The United States 342.3 The UK property market - a performance history 672.4 Continental Europe 802.5 Asia 832.6 Conclusions 91Chapter 3 Market fundamentals and rent 943.1 Introduction: the global property cycle 943.2 The economics of rent 953.3 Forecasting rents 1093.4 Conclusions 116Chapter 4 Asset pricing, portfolio theory and real estate 1174.1 Risk, return and portfolio theory 1174.2 A property appraisal model 1244.3 The model components 1324.4 The required return for property assets 1404.5 Forecasting real estate returns 1424.6 Conclusions: a simple way to think about real estate returns 151PART TWO MAKING INVESTMENT DECISIONS AT THE PROPERTY LEVEL 155Chapter 5 Basic valuation and investment analysis 1575.1 Introduction 1575.2 Estimating future cash flows 1615.3 The discount rate 1665.4 Conclusions 170Chapter 6 Leasing 1716.1 Introduction 1716.2 Legal characteristics of leases 1736.3 The leasing process 1746.4 Important economic elements of a lease 1746.5 Lease economics and effective rent 1926.6 Conclusions 199Chapter 7 Valuing commercial real estate: the unleveraged case 2037.1 Introduction: the investment opportunity 2037.2 Developing a pro-forma income statement 2067.3 Valuation using the cap rate 2107.4 Valuation using cash flows 2127.5 Applying discounted cash flow to analyze investment feasibility 2197.6 Conclusions 221Chapter 8 Mortgages: an introduction 2228.1 Introduction 2228.2 What is a mortgage? 2238.3 The risks and returns of mortgage investment 2258.4 The fi nancial components of a mortgage 2268.5 The mortgage menu 2298.6 An introduction to mortgage mathematics 2318.7 Conclusions 247Chapter 9 Commercial mortgage underwriting and leveraged feasibility analysis 2489.1 Introduction 2489.2 The mortgage underwriting process 2489.3 Investment feasibility with leverage: before-tax analysis 2569.4 Investment feasibility with leverage: after-tax analysis 2639.5 Global variations in real estate debt 2709.6 Conclusions 272Chapter 10 Valuing the private real estate entity 27410.1 Introduction: the four quadrants and private equity 27410.2 Sponsor economics 27610.3 The life cycle of a private equity fund 27710.4 Fund economics 27910.5 Waterfall structures 28210.6 Private equity structures in the credit crisis 28910.7 Conclusions 291PART THREE REAL ESTATE INVESTMENT STRUCTURES 293Chapter 11 Unlisted real estate funds 29511.1 Introduction to unlisted real estate funds 29511.2 The growth of the unlisted real estate fund market 29911.3 Unlisted fund structures 30311.4 Characteristics of unlisted real estate funds 30711.5 Liquidity and valuation issues 31011.6 The case for and against unlisted real estate funds 31211.7 Conclusions 317Chapter 12 Public equity real estate 31912.1 Introduction 31912.2 REITs and REOCs 32012.3 Listed funds and mutual funds 32112.4 Exchange-traded funds (ETFs) 32112.5 The US REIT experience 32212.6 The global market 33112.7 REIT pricing 33512.8 Conclusions 339Chapter 13 Real estate debt markets 34013.1 Introduction 34013.2 A brief history lesson 34213.3 Wall Street Act I: the early residential mortgage-backed securities market 34413.4 Wall Street Act II: senior-subordinated securities, the advent of structured finance 35013.5 Wall Street Act III: the evolution of structured finance 35613.6 Collateralized debt obligations (CDOs) 36113.7 Summary 36313.8 Mezzanine debt 36413.9 Cash-out refinancing 36713.10 All good things must come to an end 36913.11 Conclusions 377Chapter 14 Real estate derivatives 37814.1 Introduction 37814.2 A short history of the real estate derivatives market 37914.3 Total return swaps 38114.4 Structured real estate index notes 38614.5 Traded property futures and options 38714.6 Pricing property derivatives 38914.7 Property derivatives: pros and cons 39914.8 Property derivatives: spin-offs 40114.9 Conclusions 405PART FOUR CREATING A GLOBAL REAL ESTATE STRATEGY 407Chapter 15 International real estate investment: issues 40915.1 Introduction: the growth of cross-border real estate capital 40915.2 The global real estate market 41115.3 The case for international real estate investment 41515.4 The problems: an introduction 41915.5 Technical issues 42015.6 Formal barriers 42315.7 Informal barriers 42715.8 Conclusions 433Chapter 16 Building the global portfolio 44016.1 The top-down portfolio construction process 44016.2 Strengths, weaknesses, constraints: portfolio analysis 44716.3 A pricing approach for international property 45116.4 Managing currency exposure and currency risk 46316.5 Portfolio construction 47116.6 Conclusions 474Chapter 17 Performance measurement and attribution 47517.1 Performance measurement: an introduction 47517.2 Return measures 47617.3 Attribution analysis: sources of return 48717.4 Attribution analysis: the property level 48917.5 Attribution analysis: the portfolio level 49217.6 Attribution and portfolio management: alpha and beta 50217.7 Performance measurement and return attribution for property funds 50517.8 Conclusions 518Chapter 18 Conclusions 52018.1 Why property? 52018.2 Liquid structures 52118.3 Unlisted funds 52118.4 International investment 52318.5 Best-practice real estate investment 52318.6 Pricing 52418.7 The future 525References 526Glossary 533Index 548

Über Autor(innen)

Andrew Baum was appointed Professor of Land Management at the University of Reading, UK in 1989. He is now Professor of Real Estate Investment at the University of Cambridge and a Fellow of St John's College, Cambridge. He is former Head of Research, Prudential; CIO Property and Head, International Property, Henderson Global Investors, and has chaired the investment committee for the CBRE Global Investors Multi-Manager business since 2008.David Hartzell is Steven D. Bell and Leonard W. Wood Distinguished Professor in Real Estate and Professor of Finance at the Kenan-Flagler Business School, University of North Carolina, USA. He is a former vice president at Salomon Brothers Inc. in New York and is now a board member with Highwoods Properties, a REIT.