RE3FM-Finance and Markets

Module Provider: Real Estate and Planning
Number of credits: 20 [10 ECTS credits]
Terms in which taught: Autumn / Spring / Summer module
Non-modular pre-requisites:
Modules excluded:
Module version for: 2016/7

Module Convenor: Mr Gianluca Marcato


Summary module description:
After introducing the main concepts of corporate finance and their application to real estate markets, the module presents and analyzes the structuring, functioning and pricing of main financial products, such as REITs, derivatives and mortgage-backed securities.

This module aims to enable students to develop their understanding of the operation of the commercial real estate market within a broader capital market setting and to develop students’ analytic capacity. Upon completion of the module, students should have an understanding of key theoretical concepts in finance, be able to appraise critically published work in the field and apply this knowledge to the analysis of practical real estate problems.

Assessable learning outcomes:
Upon completion of the module, a student should be able to:
• identify and explain the main theoretical concepts relating to financial analysis of the real estate markets;
• discuss, and appraise critically, relevant literature applying financial models to real estate markets;
• apply theoretical finance principles to solve practical real estate problems;
• analyse capital market and corporate financial data using quantitative techniques;
• analyse the structure and pricing of financial instruments in real estate markets;
• interpret and evaluate published results of empirical research in the field.

Additional outcomes:
In addition, students will:
• enhance their oral and communication skills through discussions in the tutorial sessions;
• develop their IT skills through computer-based exercises;
• enhance their capacity to read and discuss about complex published material in a critical fashion

Outline content:
The module will develop material on investment and finance introduced in Part 2 of the programme, emphasising theoretical and empirical analyses of real estate markets. Linkages between the property market and other capital markets and asset classes will be explored.

Material covered will include: market efficiency, corporate financial decision-making and capital budgeting; the weighted average cost of capital and capital structure; forms of financing available for real estate; the investment characteristics of real estate, both direct and indirect; securitised property debt; property market price behaviour, smoothing, price discovery and return distributions; the pricing of risk; property market derivatives; other relevant financial issues.

Brief description of teaching and learning methods:
The module is based on a mixture of lectures and seminars/tutorials. Importantly, students are expected, on an independent basis, to read prescribed articles and prepare for the seminars/tutorials on a weekly basis.

Contact hours:
  Autumn Spring Summer
Lectures 10 10 2
Seminars 10 10
Guided independent study 68 65 25
Total hours by term 88.00 85.00 27.00
Total hours for module 200.00

Summative Assessment Methods:
Method Percentage
Written exam 100

Other information on summative assessment:

Formative assessment methods:
Through the discussion during seminars and the correction of exercises assigned in class during tutorials.

Penalties for late submission:
The Module Convenor will apply the following penalties for work submitted late, in accordance with the University policy.

  • where the piece of work is submitted up to one calendar week after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for the piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
  • where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

  • The University policy statement on penalties for late submission can be found at:
    You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

    Length of examination:
    One three-hour examination.

    Requirements for a pass:
    A mark of at least 40% overall.

    Reassessment arrangements:
    One three-hour examination paper in August/September following finals.

    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: 21 December 2016

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