Real Estate Private Equity (REPE) Financial Model
Originally published: 20/04/2022 11:31
Publication number: ELQ-26423-1
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Real Estate Private Equity (REPE) Financial Model

Financing Model presenting a Real Estate Private Equity business scenario.

Real estate private equity (REPE) firms raise capital from outside investors, called Limited Partners (LPs), and then use this capital to acquire and develop properties, operate and improve them, and then sell them to realize a return on their investment. REPE firms usually focus on commercial real estate – offices, industrial, retail, multifamily, and specialized properties like hotels.

This financial model presents a business scenario of a REPE firm and analyzes property acquisitions costs, debt financing, property operating income, property level cash flows and returns, fund level cash flows and partnership cash flows and return metrics.

Outputs of the model include Acquisitions and Debt Schedules, Property Monthly Operations Analysis, Property Monthly and Annual Cash Flow, Fund Annual Cash Flow, Partnerships Cash Flow and a professional Executive Summary presenting firm's results.

The structure of the template follows Financial Modeling Best Practices principles and is fully customizable.

• General Business Info & Reporting Metrics
• Fund Level Assumptions (Ownership share between General and Limited Partner, Set up costs & Fund Level Expenses)
• Properties Portfolio (10 different properties, Acquisition, Hold and Disposition Timing)
• Properties Acquisition & Disposition Assumptions (Purchase Price, Acquisition & Closing Fees, Sale Price, Cap Rates, Selling Costs)
• Properties Revenue & Costs Assumptions
• Debt Assumptions (Loan to Value, Interest Rates, Loan Term)

• Total Acquisition Costs (All-in-basis) and Loan (Loan Amount, Monthly Payment) calculations
• Debt Schedule per Property
• Properties Operations Analysis (Revenue, Opex, CapEx, Net Cash Flow)
• Properties Monthly and Annual Cash Flow including Unlevered and Levered Cash Flows, Return Metrics (IRR, MOIC) and Partners Cash Flow distribution
• Fund Level Annual Cash Flow (including Investment Cash Flow of each property and Fund Level Expenses)
• Partnership Cash Flows (a standard 4-tier IRR hurdle waterfall model to distribute proceeds between investors)
• Executive Summary presenting overall REPE performance

Detailed instructions on the use of the model are included in the Excel file.

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No matter if you have no experience or you are well versed in finance, accounting, and the use of Microsoft Excel, our professional financial models are the right tools to boost your business operations!
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Further information

Presents a business scenario of a REPE firm

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