RE3PDAF-Property Development Appraisal & Finance

Module Provider: Real Estate and Planning
Number of credits: 10 [5 ECTS credits]
Terms in which taught: Autumn term module
Non-modular pre-requisites:
Modules excluded:
Module version for: 2016/7

Module Convenor: Prof Pat McAllister


Summary module description:

The module examines the methods used to appraise the financial viability of development projects. Specifically, this module will critically examine the inherent value systems of various development viability appraisal techniques in an economic, social and environmental context. An understanding of the way in which land value is created and distributed underpins the content of this module. It then builds on this understanding in order to investigate the way in which financial risk and reward associated with development activity might be shared.

Assessable learning outcomes:
By the end of the module it is expected that the student will be able to:

Apply different development appraisal techniques and evaluate their relative strengths.
Critically evaluate methodologies involved in the appraisal of development projects.
Identify potential development sites, propose an optimum development strategy and evaluate its financial viability.
Incorporate equity and debt funding in real estate development appraisals.
Appreciate the nature of the key inputs into development appraisals.
Use appropriate software and computer techniques to price development opportunities.
Understand the nature and distribution of development risk and reward.
Appreciate the problems of risk identification, measurement, management and control in real estate development projects.

Additional outcomes:

Outline content:
1 Recap and critique of simple residual valuation
2 Cash-flow residual valuation (100% debt finance) – period-by-period and DCF
3 Development finance structures
4 Modelling and software
5 Risk analysis I – forecasting, sensitivity analysis, scenario modelling and simulation
6 Development viability appraisal in the planning system

Brief description of teaching and learning methods:
Lectures supported by workshops.

Contact hours:
  Autumn Spring Summer
Lectures 10
Seminars 10
Practicals classes and workshops 8
Guided independent study 72
Total hours by term 100.00
Total hours for module 100.00

Summative Assessment Methods:
Method Percentage
Report 100

Other information on summative assessment:

Formative assessment methods:
Seminar questions and IT sessions.

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:

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

    Reassessment arrangements:
    A 2,500 word (or equivalent) project.

    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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