CEM335-Real Estate Development: Appraisal and Analysis

Module Provider: School of Construction Management and Engineering, School of Built Environment
Number of credits: 10 [5 ECTS credits]
Terms in which taught: Spring term module
Non-modular pre-requisites:
Modules excluded: CEM106 Sustainable Heat and Power CEM107 Sustainable Design and Management Principles and Practice
Module version for: 2017/8

Module Convenor: Dr Edward Shepherd

Email: edward.shepherd@henley.reading.ac.uk

Summary module description:
Real estate development encompasses a range of skills and knowledge derived from a number of disciplines. Several techniques are used to undertake financial analysis of development opportunities and critically evaluate different techniques for the pricing and appraisal of development opportunities with a particular emphasis on risk management.

The aim is to develop a conceptual understanding of the key elements of the real estate development process and a comprehensive understanding of the key techniques for evaluating the various aspects of the feasibility of real estate development. The roles of the various participants involved in the development are critically reviewed to develop insights into the elements of the process such as planning consent and finance, procuring construction services and design.

Assessable learning outcomes:
Define the development process.
Identify different forms of development financing and sources of finance
Construct different discounting and other techniques for appraising and financing development opportunities.
Identify the different aspects of and key factors affecting development feasibility
Critically compare the use of different techniques for the appraisal of development opportunities,
Identify and evaluate the information needs of major commercial real estate development appraisals,
Understand the management of risk and apply risk-adjustment measures to the outcome of development appraisals,
Evaluate the outcome of financial appraisals and its role in decision making.

Additional outcomes:
Construct spreadsheet templates to undertake major appraisals.

Outline content:
The development process
Assessing development feasibility
The financing of development
Development appraisal
Sources of risk and risk management
Negotiating the planning system

Brief description of teaching and learning methods:
The module will be taught by lectures, seminars and tutorials with worked examples of practical appraisals.

Contact hours:
  Autumn Spring Summer
Lectures 12
Seminars 9
Tutorials 3
Guided independent study 76
Total hours by term 100.00
Total hours for module 100.00

Summative Assessment Methods:
Method Percentage
Written assignment including essay 100

Other information on summative assessment:

Formative assessment methods:
worked examples in class.

Penalties for late submission:
Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx

Length of examination:

Requirements for a pass:
A mark of 50% overall

Reassessment arrangements:
Students are required to contact the School to confirm reassessment arrangements

Additional Costs (specified where applicable):
1) Required text books:
2) Specialist equipment or materials:
3) Specialist clothing, footwear or headgear:
4) Printing and binding:
5) Computers and devices with a particular specification:
6) Travel, accommodation and subsistence:

Last updated: 25 September 2017

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