CREFC Europe Spring Conference - Schoenherr · • Deals/situations where preferred equity makes more sense than mezzanine financing for Lenders or Borrowers • The cost of money

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CREFC Europe Spring Conference16 & 17 April 2015

Hosted by

One New Change, London EC4M 9AF

Conference co-chairs:Klaus Betz-Vais, Director, Real Estate Finance, HelabaAndrew Petersen, Partner, K&L Gates LLPPaul Dittmann, Head of Senior Mortgages, M&G Investments

Programme Outline Keynote SpeaKerS:Gerard LyonsChief Economic Advisor to the Mayor of London

Dr Savvas SavouriToscafund Asset Management LLR

Programme subject to change


08:30 – 18:00 registration open

09:00 – 10:30 Introduction to Commercial Mortgage Backed Securities (CMBS)

Pre-registration

is required

This educational session will explain the following:

• What are CMBS?• Who are the main players in these transactions?• How are these deals structured and rated?• Why do investors buy CMBS bonds?

10:30 – 10:45 NETWORKING BREAK

10:45 – 12:15 Introduction to property Lending against operating assets

Pre-registration

is required

This educational session will address:

• How to get comfortable with a lease• Cash flows and the fundamental shift on valuations

These educational sessions are aimed at junior market participants and students; they are complimentary for CREFC Europe members and students with a real estate finance focus.

Non-members are invited to attend at a nominal price of £100 + VAT (bulk discounts available).

All those interested must pre-register. Walk-in registration will not be available for the above sessions.

Please note that access to the above sessions is separate to the main CREFC Europe Spring Conference.

If you are joining the Spring Conference which begins Thursday afternoon at 12:30 please note that the above sessions are available at no additional cost.

Thursday 16 AprilEducation Sessions

Educational Sessions

Complimentary to CREFC Europe members and

students

SPEakErS’ DinnEr To be held on Wednesday 15 April

Sponsored by



Thursday 16 April

SprInG ConFerenCe BeGInS

Refreshments throughout the daySponsored by

12:15 – 13:30 NETWORKING LUNCH

12:15 – 13:30 Student networking Lunch – Invite only

13:30 – 13:40 Welcoming remarks

13:45 – 14:30 Keynote SpeaKer – Dr. SaVVaS SaVoUrI toscafund asset Management LLr Sponsored by

Since 2008 Savvas Savouri has been a partner and chief economist at Toscafund Asset Management, having headed economics and strategy departments at a number of investment banks. Before entering financial services Savvas taught at the LSE, Oxford University and Moscow State University. Dr Savouri was awarded a doctorate in Econometrics and Mathematical Economics from the LSE where he also obtained masters and bachelor degrees in the same discipline.

14:35 – 15:20 Headwinds and tailwinds: the capital flows into real estate

• Are deals being priced appropriately, or are investors getting money out the door?• How will the property sector perform when interest rates rise? Will debt refinancing be available

at today’s favourable rates?• Is rental growth confined to the major centres across Europe, or are we experiencing a broader

recovery? Are lenders now reflecting rental growth in their financing terms?• Pricing in the markets, the effect of sectors and geographies, and core versus peripheral

countries. How available is debt finance in the periphery? Is availability of debt driving pricing?

15:20 – 15:45 AFTERNOON TEA

15:45 – 16:30 alternative and niche asset classes – Where is the smart money going?

• From core to opportunistic – Which segment of the market offers the best way to take advantage of dislocation in the European market? Can debt providers take advantage of the same dislocation?

• Which alternative or niche asset classes show the most promise and where in Europe are the bright spots for each asset class? Who are the lenders?

• What levels of return are managers promising investors? What assumptions are being made about debt pricing and availability to generate these levels?

• Construction Financing: Pre-let or speculative? Finding a higher yield in the increasingly competitive market

16:35 – 17:20 Uncovering and profiting from global opportunities in developed, emerging and frontier markets

• Which countries are undervalued, and where can you generate returns? How much of this is driven by debt availability?

• Where can size and scale be maximized?• Partnering with local operators to achieve your goals • Which markets are overpriced and which are underpriced?• Are investors correctly pricing in macroeconomic risks when looking at peripheral markets?

How do lenders look at macroeconomic risks versus investors?

17:30 – 19:00 NETWORKING RECEPTION



08:45 – 15:00 registration open

08:45 – 09:25 NETWORKING BREAKFAST

09:25 – 09:30 Welcoming remarks

09:35 – 10:15 the Cre Senior Debt Lender – a bank’s viewpoint: are they moving out of their comfort zone?

• Originating loans outside of core product lines• Competing for business against CMBS shops and alternative lenders now that spreads have dropped• Are banks originating throughout the capital stack? Embedding mezzanine within the senior debt?• Viewing risk and interest rate rises• What can banks do that alternative providers cannot? Capex, revolvers and relationship management? • Are Pfandbrief Banks undercutting the market and where does the margin compression end?

10:20 – 11:00 Intercreditor Issues

This session will discuss how market practice is evolving against the backdrop of rapidly diversifying lending and security structures

11:00 – 11:20 NETWORKING BREAK

11:20 – 12:00 the hunt for yield at any cost?preferred equity versus mezzanine finance: Why choose one versus the other?

• Common deal structures/terms in today’s market – How have they changed since last year?• Who are the new mezzanine debt providers? Insurance companies, regional/foreign banks,

large banks, private equity firms• Deals/situations where preferred equity makes more sense than mezzanine financing for Lenders or Borrowers• The cost of money with coupons getting lower, compressing spreads in a low rate market –

are there rewards for the risk?• What to avoid and why

12:05 – 12:45 Securing financing in today’s market: a borrower’s perspective

• Should investors use the best debt provider for each deal, or a firm they have an on-going relationship with?

• Do Borrowers have greater negotiating power than this time last year? If so, over what points? • Managing leverage, deciding how much to take and diversifying funding sources• Rating / pricing inflection points

- Alternative forms of financing?

12:45 – 13:30 Keynote SpeaKer – GerarD LyonS Leading global economist and Chief economic advisor to the Mayor of London

Gerard Lyons is an expert on the UK and global economy and is currently advising the colourful Mayor of London, Boris Johnson. Formerly the Chief Economist and Group Head of Global Research at Standard Chartered, he is a respected economic forecaster with an impressive track record and many awards to his name.

13:30 – 14:15 netWorKInG LUnCH

Friday 17 April



14:15 – 14:55 Is the London Cre market bubble about to burst?

• Where are we in the London real estate cycle? Are Lenders becoming more cautious?• Are we in a bubble? Is there room for prices to go higher?• What can we learn from past cycles? Lessons for Lenders versus lessons for Borrowers?• Where do leasing rates currently stand? New versus renewals, price per sq. ft., and how are

Lenders reflecting these in their financing structures?

15:00 – 15:40 Follow the yellow brick road: The search for value and yield beyond gateway markets

• Examining the behaviour of returns in different interest rate and debt liquidity environments. Are Lenders using the right assumptions when underwriting loans in the more volatile regional markets?

• Assessing the changing risk-return profile of different debt and equity strategies• Which secondary and tertiary markets look attractive? Is there any debt available for assets in tertiary markets?• Which asset classes have the highest upside? Are lenders in a position to benefit from value growth?• Are bubbles forming within some asset classes? If so, are lenders aware of the risks?

15:40 – 16:00 ConFerenCe Co-CHaIr Wrap Up

16:00 CLoSe

Friday 17 April


Host Sponsor

Sponsors

Media Sponsors

BROOKLANDPARTNERS LLP

Documents

CREFC Europe Spring Conference - Schoenherr · • Deals/situations where preferred equity makes more sense than mezzanine financing for Lenders or Borrowers • The cost of money