REMB05-Real Estate Investment Appraisal

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

Module Convenor: Prof Neil Crosby


Summary module description:

The aim of this module is to enable students to develop understanding of the financial, technical and market context of the appraisal of investments in general and the appraisal of real estate in particular. Students will be able to understand and apply cash flow techniques for the pricing and appraisal of investments and apply these techniques to commercial real estate investments.

Assessable learning outcomes:
Intended learning outcomes:

•Understand the concepts and definitions of different values in exchange and use,
•Understand the broad framework within which investment in assets takes place
•Understand the mathematical basis of finance and discounting and apply cash flow techniques to property cash flows
•Identify and evaluate the information needs of major commercial real estate investment appraisals and construct cash flows for typical commercial property investments both before and after financing.
•Understand and apply risk adjustment measures to the outcome of appraisals,
•Evaluate the outcome of financial appraisals and their role in decision making.
•Understand the separation of financing and investment decisions.

Additional outcomes:
•Construct spreadsheet templates to undertake major appraisals

Outline content:
Outline content:
•Investment markets and opportunities
•The separation of financing and investment decisions
•Concepts of price, value and worth
•The investment characteristics of commercial real estate markets
•Information flows within commercial real estate markets
•Discounting and other financial appraisal techniques
•The choice of discount rate - investor or investment derivation?
•Introduction to risk management and analysis

Brief description of teaching and learning methods:
The course will be delivered as a block release with on-line post course support. The block release teaching will comprise 4 days of lecture, class tutorial and problem solving workshops and computer workshops, with a major individual project assignment acting as a consolidating and integrating vehicle for the taught material.
The block release taught element will be supported by the use of Blackboard.

Contact hours:
  Block Release
Lectures 10
Tutorials/seminars 10
Practicals 10
Other contact (eg study visits) On-line Discussion Board
Private study  
Total hours 30 + on-line learning support
Number of essays or assignments 1 major appraisal assignment
Other (eg major seminar paper)  

Summative Assessment Methods:
Method Percentage
Written assignment including essay 100

Other information on summative assessment:
The course will include 1 major appraisal assignment. It will be a major problem solving appraisal project which will assess the ability of students to critically examine technique and apply them to complex real estate investments. Guide length 4500 words excluding the major calculation element and other appendices.

As this is a core Module of Special Significance for all students joining the programme from September 2012, a mark of 40 must be achieved in order for the MSc to be awarded.

Formative assessment methods:

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:

Length of examination:

Requirements for a pass:

Reassessment arrangements:
Appraisal project which will achieve a maximum mark of 50.
Reassessment will be by the same method as for the module's original assessment requirements, subject to variation by the Examination Board where appropriate

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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