Effective Management In The Real Estate Arena March 15, 2008

TOPIC EFFECTIVE MANAGEMENT IN THE REAL ESTATE ARENA
DATE MARCH 16 - 18 2008
LOCATION COLLEGE OF BUSINESS ADMINISTRATION – SHUWAIKH CAMPUS
TIME 8:45 A.M. – 5:45 P.M.
FEES KD 1000
SPONSOR THE GLOBAL CENTER
PROGRAM OUTLINES
A Private Seminar for Experienced Real Estate Professionals
Introduction
Real estate professionals across the world are being challenged to build and sustain a competitive advantage.
Changes in the industry and many new dynamics are forcing senior executives to transform the ways they
lead, craft strategy, build teams, as well as execute and deliver value.
The global capital markets are in a state of turmoil, and the global real estate markets are presenting new
challenges and opportunities.
Newly emerging requirements, from regulatory to accounting transparency, from environmental to
competitive, are forcing changes in the market place every day. Today’s and tomorrow’s professionals
need more cross-functional expertise and global perspectives.
These forces and others are all at work and are causing senior management teams to sharpen their
thinking every day, and seek better and more efficient ways to manage the business.
Professor Nabil N. El-Hage will guide participants into an exploration of real challenges in the industry,
and, in a highly interactive two day seminar, will help us to explore emerging trends and opportunities
and provide insights on ways to enhance our portfolio management.
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Type of Attendees
The seminar is designed to cultivate multifaceted Real Estate Leaders, preparing them to take an
expanded scope of responsibilities. It is addressed to mid to upper level Real Estate (RE) Officers and
Managers with an average of 10 years experience.
The program is intended to help RE Owners, Private RE Developers, Lending and Acquisition Officers, REIT
Officers, and RE Industry Service Providers – such as Financial Analysts, Lawyers, Architects, Urban
Planners, and Brokers – taking their career to the next level.
Benefits for Participants
• The program will give Real Estate professionals exposures to RE assets.
• It will immerse the participants for two days with a group of highly qualified RE executives and
faculty member from Harvard Business School for an open discussion of the business in the most
direct and relevant terms.
• By exploring the latest approaches to RE issues, strategy development, and marketing
competitive analysis, the participants will enhance their real estate expertise, analysis skills, and
decision-making capabilities.
• The participants attending this program will benefit from the opportunity to step back from dayto-
day obligations and further sharpen the skills necessary to succeed in today’s and future RE
market competitions.
Mode of Learning
The primary mode of the study will be case studies and discussions that will require intensive preparation.
Moreover, the program will include lecturing sessions where experienced faculty members will disseminate
information as appropriate for further discussions.
The case studies approach, interactive discussions, small group discussions, and exposure to the latest
research, are used throughout the program to enhance the participants’ real estate expertise, leadership
skills, and decision-making capabilities.
Program Takeaways
The participants will learn to:
• Develop a greater understanding of the external forces shaping the Real Estate global trends.
• Analyze the risks and rewards of different capital structures and financing options.
• Negotiate and close Real Estate deals that create more value for all parties.
• Build strategic skills for effective decision-making and implementations.
• Evaluate the differences between investing in private and publicly held Real Estate.
• Understand REITs, their valuation, capital structure, and issues related to their governance
business models.
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Program Director
Nabil N. El-Hage is a Professor of Management Practice, graduated with highest honors from the Harvard
Business School. Professor El-Hage received several academic awards at HBS, including Baker Scholar,
Dean’s Doctoral Fellow, and Loeb-Rhoades Fellow. Prof El-Hage was the Chairman and CEO of a number
of private institutions, such as Jeepers, Inc. He worked in consultancy for McKinsey & Company and
successfully led a spinout of the Back Bay Restaurant Group through an IPO. Professor El-Hage has served
on a dozen boards of private and public companies. Professor El-Hage has previously taught in executive
education programs in Kuwait (Mergers and Acquisitions; Private Equity) which were recorded to be wellreceived
by the audience of many Kuwaiti professional executives, and he was one of the 5 HBS faculty
who taught in the Premier Business Management Program in Malaysia.
Guest Speakers
Dr. Alexander Batchvarov is the Head of Global Structured Finance Research at Merrill Lynch and also
has served as Merrill Lynch’s Head of International Structured Product Research since 1998, providing
research on securitization, structured finance, portfolio credit derivatives, cash and synthetic collateralized
structures, Islamic Finance, property derivatives in both developed and emerging markets of Asia,
Europe, North and South America, Middle East and Africa.
Christopher Flinos is responsible for Merrill Lynch's real estate practice across the MENA region. He
has experience working on a number of bespoke real estate transactions with developers, sellers and
purchasers either investing into or out of the GCC region. Christopher previously worked in Qatar and is
currently managing a number of high value transactions within MENA.
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SCHEDULE SUMMARY
SESSION Starting
Time
DAY 1 – MARCH 16 2008
REGISTRATION & REFRESHMENTS 16:45
1. SESSION 1 - GROSVERNOR GROUP LIMITED 17:15
DINNER AT THE CHAIRMAN’S CLUB 19:45
DAY 2 – MARCH 17 2008
2. SESSION 2 - HIJINX, INC 09:00
COFFEE BREAK 10:30
3. SESSION 3 - PATRIMONIO HOY – A FINANCIAL PERSPECTIVE 10:45
LUNCH 12:15
4. SESSION 4 - CORPORATE AVENUE 13:15
COFFEE BREAK 14:45
5. SESSION 5 - FAN PIER 2005 15:00
DAY 3 – MARCH 18 2008
6. SESSION 6 - THE ARTS PROPERTY AND HOTEL 09:00
COFFEE BREAK 10:30
7. SESSION 7 - NEW SONGDO CITY – KOREA 10:45
LUNCH 12:15
8. SESSION 8 - CASE STUDY BY MERRILL LYNCH 13:15
COFFEE BREAK 15:15
9. SESSION 9 - PANEL DISCUSSION 15:30
10. EVALUATION AND CERTIFICATE AWARD 17:30
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DETAILED PROGRAM
DAY 1 (March 16, 2008)
SESSION 1: DISCUSSION AND LECTURE (Grosvernor Group Limited 207-064)
Topics: To examine real estate derivatives.
Case: In early 2006, Nick Scarles, Director of Corporate Finance at Grosvernor, is contemplating a
transaction involving real estate derivatives that could revolutionize the way Grosvernor invested
internationally. Some questions on his mind were: How developed were real estate derivates markets?
What were the costs and benefits of using these contracts? What about Grosvernor’s longstanding
commitment to local operations and knowledge? He has to decide how he will present his views on the
subject to his CEO
Dinner: CHAIRMAN’S CLUB
DAY 2 (March 17, 2008)
SESSION 2: CLASS DISCUSSION (HiJinx, Inc. 204-070)
Topics: Real Estate expansion strategy. Malls, and in particular entertainment, destination malls.
Landlord incentives. Tenant improvement allowances. Real estate leasing strategies.
Case: This chain of indoor children’s amusement parks must decide on a real estate expansion strategy in
the face of a difficult capital market and a failed IPO. Owners of lesser-quality malls are eager for this
firm to lease space in their malls, and will offer aggressive financial incentives. Should HiJinx accept
such incentives, even it means deviating from its expansion strategy? And why do the landlords offer
such rich incentives? Throughout this program, the implication of each case study for your
organization will be explored explicitly.
SESSION 3: CLASS DISCUSSION (Patrimonio Hoy – A Financial Perspective 207-059)
Topics: To learn about the housing market in emerging markets, the challenges of penetrating new
segments based on low-income populations, and the potential of doing so profitably by private sector
corporations.
Case: Patrimonio Hoy, a program targeting the housing needs of low-income families launched by
CEMEX, a major Mexican corporation and a leading global cement company, has gone from a market
research project to a highly visible initiative in 22 cities and has earned public recognition. The president
of Cemex North America must decide whether it is corporate social responsibility or a new business line.
In the process, it allows analysis of the Patrimonio Hoy program versus the traditional alternatives from
the perspectives of both the end-user and of the corporation.
SESSION 4: CLASS DISCUSSION (Corporate Avenue 805-022)
Topics: To examine landlord-tenant relationships.
Case: Born in Taiwan, raised in Hong Kong, and schooled at Indiana University, against her father’s
wishes. Now Camille Ping was in her Shanghai office in late September 2003, in charge of leasing all of
the properties of Hong Kong-based property developer Shui On Group in Shanghai, and debating her role
as landlord and issues at hand with tenants.
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SESSION 5: CLASS DISCUSSION (Fan Pier 2005 207-079)
Topics: Land valuation. Reclaimed land (from the Ocean.) Large real estate multi-use development
project.
Case: Fan Pier, a large parcel of land on Boston’s waterfront, has been the subject of nasty litigation for
over a decade. Now, the Canadian owners, the Pritzker family, comes under severe political pressure to
sell to a qualified local buyer. How should the prospective buyer, Cornerstone Realty Investors,
determine the value of the raw land. After all, the buyer’s money will be needed to enable this
development. So, how much value should one attribute to the undeveloped, raw, land?
DAY 3 (March 18, 2008)
SESSION 6: CLASS DISCUSSION (The Arts Property and Hotel 803-009)
A Discussion of the Many Real Estate Asset Classes – Differences and Similarities
Topics: We will discuss the differences and similarities between Real Estate Asset Classes. Hotels, malls,
apartment complexes, industrial buildings, and office developments all fall under the heading of “Real
Estate.” But does a hotel have more similarities with an industrial park, or an airline company? We will
discuss the similarities and differences, and the various financing mechanism seen in each of these asset
classes.
SESSION 7: CASE DISCUSSION (New Songdo City – Korea 206-019)
Topics: To explore design, demand, and execution issues of building a new city.
Case: New Songdo City. The government of South Korea has chosen John Hynes and Gale
International to construct New Songdo City. This is an entirely new city, about the size of Boston,
between the new Incheon airport and the capital of Seoul. The proposed city is the government's attempt
to create an Asian financial and business center to rival Shanghai and Tokyo. But how to design, market,
build, and finance a whole city is up for grabs. Is this the typical developer hubris or can it really work?
SESSION 8: SUBPRIME AND REIT
Topics: To explore subprime’s implication for the Region on portfolio investments and credit market.
REIT outlook in the Region and its potential.
Case: REIT (Singapore and Brazil) – By Merrill Lynch
Discussing the capital markets in general, REIT case for Singapore and Brazil and driving factors that
differ from the US and European REITs, followed by discussion on developments in GCC Real Estate
market (REITS, Subprime – Credit Crunch?)
SESSION 9: FINAL LECTURE AND PANEL DISCUSSION
Topics: To explore the current events in the capital markets and real estate arenas. From interest rate
swaps to real estate synthetic investments from CMBS to sub-prime, we will leave with a better
understanding of what is happening in the current global environment and the local market
Speakers: The Panel members would comprise of Expert(s) from the Kuwait Real Estate Market, Merrill
Lynch, and HBS Program Director. The Panel Moderator: AlMutawir’s Company
If you are interested, please contact at:
Tel: 965-4988375/6 Fax: 965-4827312
Email: [email protected]

Official Website: http://www.cba.edu.kw/CBA_Events.htm