Introduction

Real assets, including real estate, infrastructure, commodities, and natural resources, represent a key area of investment and financing in both private and public sectors. These assets play an essential role in diversified investment portfolios and are crucial for economic growth and development. This 5-day training course will provide participants with a comprehensive understanding of real assets finance, including valuation, financing structures, investment strategies, risk management, and the challenges associated with financing real assets.

Course Objectives

• Understand the role of real assets in finance and investment portfolios.
• Learn the principles and techniques for valuing real assets such as real estate, infrastructure, and natural resources.
• Gain insights into financing structures used for real assets investments, including equity, debt, and hybrid instruments.
• Understand risk management techniques specific to real assets.
• Explore the regulatory landscape and market dynamics influencing real assets finance.
• Learn about emerging trends and future opportunities in real assets investment and financing.

Who Should Attend?

• Financial professionals involved in real asset investment and management (e.g., investment analysts, asset managers, and portfolio managers).
• Real estate professionals, infrastructure developers, and commodity traders.
• Investors seeking to diversify their portfolios through real assets.
• Consultants, advisors, and legal professionals working with real asset financing structures.
• Academics and students interested in real assets finance.

Day 1: Introduction to Real Assets Finance

• Session 1: What are Real Assets?
  • Definition and types of real assets: Real estate, infrastructure, commodities, and natural resources.
  • The role of real assets in the economy and financial markets.
  • Real assets vs. financial assets: Key differences and investment considerations.
• Session 2: Real Assets in Investment Portfolios
  • The role of real assets in diversification and portfolio optimization.
  • Risk-return profiles of different real assets.
  • Historical performance and trends in real assets investing.
• Session 3: Key Market Drivers and Dynamics
  • Global demand and supply factors influencing real asset markets.
  • Economic cycles, geopolitical risks, and regulatory factors affecting real assets.
  • Overview of current market conditions and future growth opportunities.

Day 2: Real Estate Finance and Investment

• Session 1: Introduction to Real Estate Finance
  • Key principles of real estate finance: Types of properties (commercial, residential, mixed-use) and market drivers.
  • Real estate market segmentation and investment strategies.
  • Real estate investment vehicles: Direct ownership, REITs, and real estate funds.
• Session 2: Real Estate Valuation Techniques
  • Methods of valuing real estate: Income approach, comparable sales approach, and cost approach.
  • Key financial metrics: Capitalization rate (cap rate), net operating income (NOI), internal rate of return (IRR).
  • Valuation in different market conditions: Booms, busts, and stabilization periods.
• Session 3: Financing Real Estate Projects
  • Real estate financing structures: Equity, debt, and hybrid financing.
  • Types of real estate financing: Senior debt, mezzanine financing, and joint ventures.
  • The role of debt financing: Loan-to-value (LTV) ratio, debt service coverage ratio (DSCR), and terms of real estate loans.

Day 3: Infrastructure Finance and Investment

• Session 1: Introduction to Infrastructure Finance
  • Definition and types of infrastructure investments: Transport (roads, bridges), utilities (water, power), social infrastructure (hospitals, schools).
  • The role of infrastructure in economic development and long-term investments.
  • Infrastructure investment vehicles: Public-private partnerships (PPPs), infrastructure funds, and project financing.
• Session 2: Valuing and Financing Infrastructure Projects
  • The valuation of infrastructure assets: Income-based approaches and cost-based approaches.
  • Financing infrastructure projects: Debt, equity, and government support.
  • Understanding long-term cash flow models and the role of risk-sharing in financing.
• Session 3: Public-Private Partnerships (PPPs) and Project Financing
  • Structuring PPPs: Roles of the public and private sectors, risk allocation, and financing models.
  • The role of government in financing and supporting infrastructure projects.
  • Case studies of successful infrastructure financing models: Transport, energy, and social infrastructure projects.

Day 4: Commodities and Natural Resources Finance

• Session 1: Introduction to Commodities Finance
  • Types of commodities: Energy (oil, gas), metals (gold, silver), and agricultural products (wheat, coffee).
  • The role of commodities in investment and hedging strategies.
  • Commodity markets: Physical markets vs. futures markets.
• Session 2: Financing Commodity Projects
  • Commodity project financing: Types of deals, capital structures, and risk considerations.
  • The role of commodity trading companies and banks in financing commodity projects.
  • The impact of market volatility on commodity finance and risk management strategies.
• Session 3: Natural Resources and Energy Finance
  • Financing energy projects: Renewable vs. non-renewable energy projects.
  • Valuation of natural resources: Reserves, production, and market prices.
  • Risk management in natural resources finance: Political risk, price fluctuations, and environmental considerations.

Day 5: Risk Management and Regulatory Considerations in Real Assets Finance

• Session 1: Risk Management in Real Assets Investment
  • Identifying and assessing risks in real asset investment: Market risk, credit risk, liquidity risk, and operational risk.
  • Risk mitigation techniques: Diversification, hedging, insurance, and structured finance.
  • The role of due diligence in managing investment risks.
• Session 2: Regulatory and Legal Considerations
  • The regulatory landscape for real asset markets: Government regulations, environmental laws, and taxation.
  • How regulations affect real estate, infrastructure, and commodity finance.
  • Compliance issues and best practices in managing legal risk.
• Session 3: Future Trends in Real Assets Finance
  • The impact of digital transformation and technology on real asset markets.
  • Emerging trends in sustainable real assets finance: Green buildings, renewable energy projects, and ESG investing.
  • The role of blockchain and smart contracts in real assets transactions.

Course Conclusion

• Recap of Key Learnings
• Interactive Q&A Session
• Certification of Completion