This masterclass is intended for individuals who are curious about the opportunities presented by the emerging market in real estate derivative products.  The session will chart the developments of this new sector in Europe and the United States, look at the benefits that derivative products can offer, explain the structure of the market and its participants, examine the mechanics of a typical contract, the strategies of the counter-parties and review the indices that are being used as the basis for trade.  Last but not least, it will consider the applicability of property derivatives to Asia and the initiatives that are underway to bring them to the region.

• Fundamental concepts – What is a derivative?
• Buying the index – How can derivatives be applied to property?
• Short or long?  Alternative uses and strategies for derivative products
• Examining the role of banks and brokers
• Striking a bargain – How are contracts priced?
• Property derivatives as a tool for real estate fund managers - How fast is it likely to grow?

Followed by Q&A session

About IPD

IPD is a global information business dedicated to measurement of real estate investment performance through the supply of independent market indices and portfolio benchmarks.  Founded in 1985, the company has established services in over 20 countries and on 5 continents, and is developing new projects in several more.  In Asia, IPD is working on individual country services in Japan, Korea, Singapore, Hong Kong, and has created a Pan Asian service for international investors.  Please visit www.ipdglobal.com/asia for more information.

Your Masterclass Leaders:

Kevin Swaddle
Director, Asia Pacific
IPD Global, United Kingdom

Kevin is responsible for developing IPD’s services in Asia, where IPD has an established service in Japan and is setting up services on a Pan Asia basis.  He is also a Director of IPD Australia, having joined IPD from Hill Samuel Asset Management where he was Head of Research and Investment Strategist.  He was educated at University College, Durham and later at Nuffield College, Oxford where he was awarded his doctorate from the faculty of Social Studies.  He also has a Diploma in Surveying and is qualified as a member of the Royal Institution of Chartered Surveyors.

Stephen Moore
Head, Asia Pacific Property Derivatives
GFI Colliers, Hong Kong

Stephen Moore is Head of GFI Colliers, a joint venture between leading Inter Dealer Brokers, GFI Group and Colliers International, the global real estate consultancy.  GFI Colliers was formed in April 2006 to explore the emerging area of property derivatives and its applications in the Asia Pacific region.  Prior to leading this joint venture, Stephen has worked with GFI Group in London before moving to Hong Kong in October 2001, establishing GFI's corporate and sovereign dollar bond and credit derivative market here in Asia Pacific.  Stephen moved into the property world in January 2006 and has since collaborated with the University of Hong Kong to establish the Real Estate Index Series (HKU-REIS).  He has since established relationships with other index providers in Australia, Japan, Korea and Singapore in a push for both residential and commercial derivatives around the region.

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• In which cities and regions are your current investments?  What are you seeking for in future investments?
• Examining changing industry trends over the past year - What are you doing to stand out in the increasingly crowded market?
• Addressing current market problems and interests - What worries you?  How do you effectively use the depth and relevance of intellectual property for delivering actionable insights? 
• Exploring how listed companies are changing what they do from investing overseas to growing fees from investment management

This illustrious industry leaders’ panel will share valuable insights, tips, tools and news to help realtors improve  their performance and returns.

• Structuring, arranging and managing financial transactions – Unlocking the key to maximising returns and creating new opportunities for investors, owners and users of real estate
• Extending the reach and impact of cross-border transactions 
• Maintaining leadership in the full cycle of property investment sales and acquisitions - How can this be achieved?
• Determining the absorption capacity and management of capital flow volumes in Asian real estate

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• Empowering the pursuit of direct property – What are the key drivers?
• Challenges and risks on the global scene - How does it contrast with Asia?  How do we overcome them?
• Seeking diversification opportunities for leveraging potential returns
• Assessing the feasibility of REITs as a surrogate for direct property investment
  

• Progress and state of real estate securitisation in Asia
• Other concurrent and related trends in the Asian real estate landscape
• Implications for real estate capital providers and users
• Application to strategic capital management: The CapitaLand experience
  

• Assessment of REITs across Asia - How does their performance match up?
• How will the surge of new capital from Asian REITs shape the real estate investment arena? 
• REIT analysis through net asset value and discounted cash flow model – Which works better and why?  How apparent is the usage of financial engineering in Asian REITs?
• Expansionary trends of Asian REITs in 2007: Mere speculation or reality set to stone?  How will equity volatility and diverging performance hamper this wave? 
  

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Chairman:

 Stuart Crow
 Regional Director, Head of Asia Capital Markets
 Jones Lang LaSalle, Singapore

• Public versus private equity: Who is in the driver seat?
• Determining the factors for driving the REIT privatisation phenomenon – How likely are these transactions to continue?
• Examining the continuing globalisation of the REIT privatisation structure – How soon will this trend flood to Asia?  How will it affect both tenants and owners in the long-run? 

This panel will explore the recent trend in the privatisation of public real estate operating companies with private  real estate equity capital.  The panelists will address partnership terms, how these transactions are getting done  and why they have become so popular.

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• Highlighting the attractions, pitfalls and the unique structures used in recent transactions
• Determining the optimal private equity asset allocation into Asian property markets
• Crafting a scalable and sustainable long-term Asian business model – An overview of equity capital flows into real estate across borders and between countries
• Core to opportunistic investing with international and niche mixed in: Maximising risk adjusted returns and achieving diversification benefits
  

• Deployment of capital in sourcing the deals: How are hedge funds and private equity integrating real estate into their return streams?
• Delving into the similarities and differences of investors’ objectives, concerns and challenges in tapping the real estate sector  
• How do niche asset classes differ from the standard core property types?
• Acquiring interests in funds and partnerships
  

Chairman:

Ben McCarthy,
Managing Director & Head of Australia & New Zealand Structured Finance,
Fitch Ratings

• Outlook for CMBS in Asia: Why should real estate companies consider CMBS?
• Development of capital markets as a key to asset value growth – Experiences from Japan, Singapore, Australia, Hong Kong, India, China and Thailand
• Risks and returns of CMBS products relative to other debt alternatives
  

• The local and global perspective: Structuring the deal amidst legal and tax developments
• Revitalising post bubble markets and reviving liquidity
• Risk management and adaptation to diversifying business models of developers – How will capital competition and market conditions impact the financing mix?
  

• Understanding general structures of primary and secondary real estate debt markets – How does the pricing and valuation of MBS, CMBS and CMOs come into play?
• Decoding the mathematics and finance of structure and cash flow characteristics in real estate debt instruments
• Application of valuation and analysis techniques to fixed income instruments – How extensive is the variety and diversity in the Asian real estate market? 
  

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• Comparative usage of REITs and CMBS: Exploring CMBS transaction by REITs
• Examining investors’ motivation for CMBS - Diversification versus enhancing yields
• Assessing yield compression on properties, valuations and country risk – Where are investors likely to be focusing on in the next few years?
• Out of reach: Is there anything, if at all, that cannot be financed?
  

• Analysing the current state of the lending market in Asia – What are the fund financing considerations and options?
• Estimating the leverage in lending – How far can one go?
• What levels of maturity, transparency and professional services can be expected for your property business operations?
• Structuring CMBS, mezzanine and distressed debt in a real estate portfolio
  

Chairman:

 Peter Mitchell
 Chief Executive Officer
 Asian Public Real Estate Association (APREA), Singapore

• Defying conventional wisdom: Will the rosy outlook for REITs last?
• Applications and mis-applications – The highs and lows of the global REIT market
• What are the lessons to be learnt by the Asian REIT community?
  

Back by popular demand!  REIT managers will demonstrate each of their capital management strategies and pit their portfolio structures / performances against one another.  Investors will determine for themselves which REIT is poised to be the most rewarding in the coming year.

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• Diverse markets, exchange control restrictions and varying interest rate differentials - What are the best practices for hedging risk?
• Handling key structuring issues - What do investors want when a REIT invests offshore?
• Global versus Asian REITs: Determining the differentiation in capital management structures and  strategies
• Taking out currency risks while preserving returns - How do you do it?

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• Differentiating the global and Asian investor outlook – Bullish or bearish for the coming year? 
• How dedicated to Asia is your portfolio allocation? 
• Identifying key Asia-focused investor strategies – Where does the added value lie? 
• Responding to the call from an increasingly sophisticated investor base – How best to cater for both differentiation and quality?

• Balancing real estate products in your portfolio: What is your breakdown of debt, equity and REITs?
• Identifying the level of risk tolerance: What are your return expectations?  Are you hitting your benchmarks?
• Achieving global diversification through passive investment with possible yield enhancements using weighting methodologies
• Public versus private investing – What are the due diligence measures, differences and advantages?
  

• Asset allocation to property – Are we in the era of playing catch-up with equities and bonds?
• Determining the possibility and impact of interest rates hike
• Future hubs of economic development: Which Asian cities promise the highest levels of success?
• Projecting Asia’s real estate market outlook in the next decade: Which are the major regions of growth?  What are the business strategies to be implemented? 

Our panel of economists and real estate analysts will provide contrasting and thought-provoking insights,  highlighting the challenges and opportunities for that lie ahead for 2007 and beyond.

• Reinforcing the business case for a strategic allocation to global real estate securities: What types of deals are you pursuing in Asia?
• Increasing competition for scarcely available real estate - Finding a safe home for investment capital
• Evaluating potential for the property market to expand in size through acquisitions, development and IPOs 
• Assessing exit strategies
  

• The overall market outlook for Asian property: What are your expansion plans in Asia?
• Maintaining resourcing agility and achieving measurable net cost savings - What is considered to be appropriate and consistent service levels in the long-run?
• Getting an edge with tight supply - Can a tenant make a better deal with a REIT or private owner?
• Sustainable buildings: Why are tenants increasingly demanding “going green”?

This panel will focus on how landlords can deliver a better service to tenants and end-users through continued  innovation in an increasingly competitive market.  How will demand for the different types of commercial  property and services change?

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Chairman:

Anthony de Francesco,
Head of Research,
Colonial First State Global Asset Management

• Are there still viable opportunities in these mature markets?  If so, what and where can you seek them?
• Identifying the push and pull factors for cross-border investments 
• Overcoming tax issues and legal constraints: What types of platforms and activities are global powerhouses using to gain momentum across the border? 
• Structuring foreign investments and developments: Which structure makes the most sense and why?  Can local partners add value?
  

• The attraction of Japanese real estate: Which sectors and cities have the fastest growing investor demand?  Which offer the best near-term and long-term potential?    
• Comparing and contrasting the risk appetite of domestic versus international investors – Managing risk and exposures efficiently for sustainable growth  
• Outlook for general investor interest in Asia Pacific: Has Japan priced itself out of attractiveness?
  

• Vietnam’s visible leap into the 21st century: How is the horizontal construction sector shaping up?
• Bullish investor sentiments on the Vietnam property market – Analysing the influx of foreign-invested projects into respective cities and sectors
• The broadening range of investment opportunities with overly affordable properties – A genuine draw for FDIs or is greater inspection required beyond the hype? 
  

• Meeting the bottom line and managing expectations with creative and global investment strategies
• Keeping the ends in mind while justifying the means - Understanding critical key issues of structure, strategy, implementation and performance in real estate investment management
• Expert insights on optimal investor allocation between: Direct and indirect investments, different vertical sectors and the mass variety of geographical markets
  

• Under the microscope: Working within and around cross boundary regulatory challenges
• Gauging the value and importance of portfolio diversification among targeted markets and assets – What is the crux to achieving excellent ROIs?
• Allocating into private equity real estate – What are the objectives and criteria for the Middle Eastern investor?  Where lies the value of real estate risk premium today?
  

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Integrating emerging markets into real estate portfolios: Investors have been turning to emerging markets in Asia, emerging Europe and Latin America in search of increased returns. Panelists will discuss due diligence challenges and unique opportunities these markets offer.

Chairman:

Paul MacPherson
Chief Development Officer
Jumeirah International

• Examining India’s global position in the 21st century – What is required to propel the real estate industry to the next level of global competitiveness?
• Outlining trade policies and growth drivers for potentially lucrative foreign investments
• Measuring risk and managing volatility in India’s capital market: What risk management processes and controls are available and how successful are they in reaping returns?
• Capitalising on investment hotspots and assessing key factors for successful real estate management
  

• Reviewing China’s real estate market trends
• Recent development and building trends in China
• Comparing China and India – What are the lessons to be learnt?
  

• Tracking the sustainability of China’s economic development and real estate growth: Short-term myth or long-term reality?
• Gaining the inside track into China’s most profitable cities and sectors – Uncovering tips for focusing on profitable end goals and maximising ROIs
• Evaluating successful FDIs in China – Identifying the core challenges, pitfalls and lessons learnt
• Securing a larger share of the growing pie in China real estate – What are foreign players’ strategies for market capitalisation?
  

These sector specific parallel sessions offer an in-depth analysis of key real estate segments such as: Retail,  warehousing and industrial, residential luxury and hotels.  Major players from each segment represent as  facilitators to discuss the burning issues of the day.

Roundtable A: Redefining borders and opening new horizons in retail dynamism

• Analysing the impact of changing consumer demographics on the retail market outlook
• Formulating innovative business differentiation techniques
• Thinking out of the box: How does brand building drive brand connection and elevation?
• Raising the bar and surviving competition amidst the retail business cycle: How will reinvention come into play?

Chairpersons:

Morgan Parker
President, Asia
Taubman Asia, Hong Kong

Ian Hawksworth
Managing Director, Capital & Counties
Liberty International, United Kingdom

Carmine Rotondaro
Worldwide Real Estate Director
Gucci Group, Italy

Roundtable B:  Achieving state-of-the-art superiority through industrial and distribution

• Deriving market trends and demand generators for industrial space
• Reviewing the latest investment, acquisition and development trends: What is the value for integrating large economies of scale?
• Forecasting risks and returns through industrial market segmentation
• Globalisation of Asian property markets: How will “movers” and “shakers” in the  manufacturing and technology sectors shape evolving industrial business models?

Chairpersons:

Fritz Wyler
Senior Vice President, Operations & Leasing, Asia
AMB Property Corporation, Singapore

Dennis Yeo
Managing Director
Colliers International, Singapore

Roundtable C: The thrills and spills of residential luxury – Where are we heading?

• Catching the buzz and capitalising on the growing phenomenon of “Condo hotels”
• Asian residential luxury growth: Are the mass and luxury sectors the only safe bets for current investments?
• Continuing the momentum for the luxury segment – What steps can be undertaken to preserve its allure in prompting investor movement for search of high returns?

Chairpersons:

Nigel Cornick
Chief Executive Officer
Raimon Land, Thailand

Choe Sunjoon
Team Manager
ShinYoung Co. Ltd, South Korea

Frank Marriott
Senior Director, Regional Investment, Asia Pacific
Savills, Hong Kong

Roundtable D: Unveiling the refreshing new era of hotels – Capitalising on the investment hype

• Managing the overall outlook for Asia hospitality: How will lodging trends impact the rise and fall of hotels and resorts?
• Identifying realistic returns and profit expectations fuelled by the current hotel construction boom
• Crafting effective brand strategies for end-user differentiation and individual innovation

Moderator:

Andreas Flaig
Executive Vice President & Head of China
Jones Lang LaSalle Hotels, China

Panelists:

Thomas Monahan
Senior Vice President of Acquisitions & Development
Starwood Hotels & Resorts Asia Pacific, Singapore

Paul Logan
Vice President, Development, Southern Asia
InterContinental Hotels Group Asia Pacific, Singapore

Paul MacPherson
Chief Development Officer
Jumeirah International, UAE

Hosted by

Chairman:

Mark Vlassopulos
President
Eighth Wonder

• Evaluating the right timing for property derivatives – Why now?  Who will benefit and how?  
• Drawing parallels between the US and UK models: What can be learnt for the Asian market?
• Bridging the gap between real estate investors and derivatives traders
• Achieving liquidity in a hot new market – Determining efficient pricing and the best profit structures
  

• Macro market overview: How have CDOs changed the real estate finance and credit markets?
• Comparing CDOs versus traditional financing methods – How have lending practices and lending volumes changed in managing business liabilities?
• Analysing the life cycle and structure of a managed versus static CDO
• Modelling the new dynamic market of CDOs – How are rating agencies’ methodologies and issues changing?
  

• The hospitality and leisure boom in Asia: How does it match up against the residential, commercial and industrial sectors?
• Mastering the techniques for capturing premium yields in the Asian real estate market
• Comparing and contrasting Asian with foreign markets – How does branding for hospitality and leisure come into play?
• Mixed-use and compact leisure developments: Transforming old ideas into new appeal?  What is the ideal product mix for every facet of the project?
  

• Impact of the integrated resort boom to the property sector
• Discovering benefits on land and property valuation
• Investigating the demand for gaming services and the trickling effect on real estate
• Broadening regional and global tourism appeal: Mastering the art and science of achieving desired returns
  

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Registration and breakfast begins at 9.00am with the masterclass commencing at 10.00am and ending at 3.00pm.  Networking luncheon is at 12.00pm for all delegates. 

This masterclass aims to provide a contemporary perspective for comprehending the multifaceted, multidimensional and substantial dynamics of real estate, which is best accomplished through a strategic framework that provides the basis for gaining practitioner insights into the operative paradigms of investment decision-making.  These sessions will examine some key aspects of assessing and managing risks for international investment and development whilst equipping individuals with improved strategies for integrating a company’s real estate assets with the strategic management of its business units and the overall corporate strategy.           

Session 1: Real estate in a portfolio

• What does modern portfolio theory suggest about real estate in an investment portfolio?
• Theory and empirical evidence
• Direct versus indirect investments (direct property purchase versus investment through a REIT, a property company or a mutual fund)
• Impact of liquidity and transaction costs - How much illiquidity can your portfolio afford?
• What do some large pension and insurance funds in North America do?

Session 2: Mechanics of real estate investment – Now that you have decided how much to allocate to real estate, how do you go about doing it?

• Alternative forms of investment: Direct property purchase, property company, REIT, real estate mutual fund, mortgage investing, mortgage-backed security investing, real estate price indices (traded in Chicago and London), investing in financial institutions that are exposed to real estate
• Institutional specifics of real estate investment in the Asian countries
• The future of the Asian market

Followed by Q&A session

Your Masterclass Leader:

Professor Andrey Pavlov
Visiting Associate Professor of Real Estate
The Wharton School - University of Pennsylvania, USA
Associate Professor of Finance
Simon Fraser University, Canada