REPE modelling test

Hi folks, I have a modelling test for a REPE in London in the next few days (3 hours test).

I have created multiple excel sheets from scratch but i would like to know what is expected from a potential summer intern (e.g. Waterfall modelling, etc.). 

Do you guys have any tips and/or past interview tests that I can use to train?

Thanks a lot!

 
Most Helpful

Make sure it's as dynamic as possible and try to reduce as much as you can the number of hard coded inputs. Practice a decent formatting for the excel (yes, it matters).

I'm not saying it's impossible but it may be unlikely to find a waterfall in an intern model. One thing I suggest is to practice building rent rolls (ideally with some leases expiring + market growth and CPI indexation).

Feel free to pm me anyway, happy to help 

 

Thanks a lot, guess I'm going to double down on the basics.

Are there any formulas that can do the job quickly for rent growth and CPI indexation? I'm using nested if statements also to take into account for potential step ups but the formula is quite long and might be hard to understand for others. 

Should I also practice on multiple lines of debt or a simple (but flexible) acquisition line is enough? I have been trying to include also a capex line but the way I model it is exactly the same as the acquisition line so I'm now quite used to that.

 
JB97

One way to do it is to put the date of each rent increase in one column and the corresponding rent in another column and use a lookup formula like index match to make that flow into the revenue line. Definitely do not use nested if statements on a modeling test if you can avoid it.

Yeah I was using it to select the correct rent for the period but how can I model the cpi indexation without if statements? Should i use boolean logics instead of if statements?

My formula follows this logic using if statements: if date = step up date --> use the new rent otherwise old rent and if the month is the same as the indexation month take past period rent and make it grow by a certain %. 

 

This is the easiest thing you can do for passing rents (i.e. where you have the passing rent per sqm for every tenant, so that you just have to link it to the CPI). See screenshot here -> https://i.imgur.com/f7CK6HS.png

The CPI indexation line starts from 1 and you multiply it for (1+[CPI_Figure]) every January

If you have the rent per sqm at the beginning of the contract you have to divide the revenue cell for the "CPI indexation" cell at the beginning of the contract (so that you don't include the CPI indexation before the contract start). Hope I was clear enough (:

Apart from that:

  • Formatting #1: use a different style for inputs (e.g. bold blue for inputs)
  • Formatting #2: learn the custom formatting for CoC/equity multiple returns (1.25x) and for the other figures - just put this in custom formatting "#,##0;(#,##0);-"

I am quite free today so if you want show me some model of yours for feedback feel free to DM me

 

Thank for the advice on formatting, I am still a bit confused on how to do the growth as I would like to make it dynamic without to many input from my side.

Is it acceptable to create a model not that flexible when it comes to these minor things?

Btw I can't DM you, there seems to be an issue so if you could send me a DM with a contact I can share with you my model. Cheers!

 

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