Conference date: November 27th, 2012 at 09.00 – 13.00
The financial markets are, still, in disarray and the property market is, still, largely being blamed for the credit crunch and unfortunate aftermaths like the recent bailout of Spain and it's catastrophic property plummet.
Policy makers in both the UK, in EU and internationally are working on establishing a new financial structure with less systemic risk and a (somewhat) split of retail and investment branches of banks.
But while the banks are enjoying a few years on the bench other types of financing are scouring the market for bargain property deals. Never has it been truer that those that have shall be given more.
Private equity, notably pension funds, have used the crisis to expand their search globally and the UK is seeing an hitherto unmatched influx of foreign capital. This will only rise if the UK is stripped of it's triple A credit rating.
The market is also seeing a surge of innovation in financing. New types of mortgages are introduced and Solvency II has opened up a market of buying property loans of banks to pension funds and insurance companies. Lately Pension Denmark bought into a bit of UK road work on this new option.
The conference gives an overview of the different financing options available to the property industry today, from bank loans to mortgages to private equity.
It also provides an in depth analysis of the current state of affairs in the financial markets and highlights the most important what-if scenarios and their possible consequence to the UK market, how to brace for it and, perhaps, be ready to profit.
This conference, in particular, will offer analytical insight into the financial backdrop of the property market now and in the coming years, giving you valuable insight into the state of the market and preparing you for what might come.
Bankers, mortgage brokers, commercial estate agents, surveyors, auditors, investors, city planners and financial advisors are the target audience of this conference. Everyone else with an interest in property finance will benefit from attendance as well.
• Birmingham City Council
• Peter Brett Associates
• NG Bailey
• GBR Phoenix Beard
• Creswell Estates
• Arthur Amos Associates
• Amber Real Estate Investments Ltd
• Ciel Properties Ltd
• Fira Landscape Ltd
• Thomas Vale Construction Plc
• McLaren Construction Ltd
• Barry Chinn Associates Ltd
• Halcrow Overbury Plc
• Skanska UK Plc
• SGH Martineau LLP
• LDA Design
• Granger Plc
• Wheeler Survey Ltd
• Estates Gazette
• Shepherd Construction Ltd.
• Bostock and Pollitt
• BWB Consulting
• Property Portal Group
• Pi-Property Insurance
• The Wilkes Partnership
• Buro Happold
• Interserve Construction Ltd
• Royal Liverpool Hospital
• ISG Construction
09.00 Arrival & Light Breakfast
09.25 Welcome & Conference Begins
09.30 Complex Future: Politics, Banking Union and the Economy
How are policy decisions at the international and national level along with banking and EU initiatives like a new banking union, Basel agreements and Solvency I and II affecting the UK and EU real estate markets? Will bad decisions of Spanish banks in the 90's and 00's mean EU wide financial regulations that unfairly or irrationally restricting financing of property across the EU? And how will the UK and other EU but non-euro countries be affected by this? Possible futures and best and worst case scenarios and their probability.
09.50 Libor hangovers – what will come after and what will it mean for the property market?
Billions of pounds worth of mortgages have been tied to the Libor. A quarter of a percent increased interest on a, say, £100m loan over a 5-year period can easily mean £1.5m in added interest which compared to maybe £20m in equity is so far from negligible that some of the hundreds and hundreds of property companies that have collapsed since 2008 are bound to sue their former banks. Can this trigger yet another round of bank insolvencies, which then again will cement the belief of policy makers that property is the root of all evil when it comes to stable financial markets? How will the libor hangovers unravel? Can and should investors pursue a banks with libor claims and how can they prepare for the world that comes after?
10.15 Loan agreements and deal structuring: current praxis
The structuring of loan agreements has come into focus especially in refinancing situations. What should you be aware of in the initial and later conversion of loan agreements and what is typically important for investors and developers on one side and banks and financiers on the other? How do you carry out a proper financial due diligence today and use it to create the best possible financial agreement?
10.35 Eurozone collapse – what if? And how to prepare for it.
What will a partial or full scale eurozone collapse mean for the property market in the UK and in the EU? How will financing be affected immediately after such a collapse and in the 2-3 years afterwards? What can be expected in the 3-5 year horizon? How can investors and financiers best prepare for a collapse scenario?
11.00 Coffee break & Refreshments
11.30 Bank Financing: Instruments, rates and loan-to-value demands 2013-2014
How can property financing be achieved by banks today? What is the common loan-to-value rate? What interest rates are being given and how much does the economics of the property itself affect this? How does banks assess risk in property today and which loan types are there on the market in both the UK and abroad?
11.55 Mortgage Financing 2013-2020
Mortgage financing is on the rise relative to bank loans and have been so for years. How attractive an instrument is a mortgage in todays market and what rate can you actually achieve? How do you tailor a project to meet the financial institutions' demands for flexibility and cash flow? What is the future of regulation for mortgage financing in the UK and the EU?
12.15 Foreign investors and alternative financing options
How important are the foreign investors' participation in the UK property market and how will the economic situation in Europe affect the UK market's relative attractiveness? Is it only London that is affected by the influx of foreign capital or is this a countrywide phenomenon. Can this foreign equity be used to finance developments or be mixed with banking or mortgage financing?
12.35 Pension Fund Financing and Solvency II
Solvency II opens the possibility of infrastructure and property financing by pension funds and insurance companies. Structurally it happens by a purchase of the financing of a given project and the first cases have already happened. Which types of properties will be of interest for these new financing sources? And what type of deal and loan construction will be attractive? Does this mean that pension funds will stop direct property investment or is this considered a separate investment vehicle which cannot substitute direct property investment?
13.00 Lunch & Conference Ends
For further details go to www.worldinproperty.co.uk