REMB37-Real Estate Finance

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

Module Convenor: Dr Stanimira Milcheva

Email: s.milcheva@reading.ac.uk

Summary module description:

Aims:
The module covers a range of material relating to real estate finance and debt markets, focussing on the types of funding and the vehicles to access the financial markets available to real estate borrowers. This module also assesses the financing decisions from the perspective of the lenders. The material examines key risk factors for borrowers and lenders with regards to real estate finance and how these can be hedged using derivative instruments. Securitisation and in particular Commercial Mortgage Backed Securities (CMBS) as financing vehicles will also be examined. Given the core role played by interest rates for financing decisions, the module will explore the role of central banks and monetary policy transmission channels in relation to real estate finance. Finally, it will assess how real estate financing decisions are affected by current financial market regulation.

Assessable learning outcomes:
The module aims to provide students with the core knowledge required to appreciate the unique characteristics of financing issues in the context of commercial real estate. By the completion of the module students will be able to:
-Be familiar with the different sources of real estate finance and make funding decisions
-Be able to analyse the risk factors, from the perspective of both borrower and lender
-Understand the structure of the financial markets and their role within the underlying commercial and residential property markets
-Have an appreciation of the broader impact of the credit market on both the economy as a whole and the real estate market
-Develop skills in cash flow analysis of financing cash flows.

Additional outcomes:
The module will aid students in developing an overall awareness of the financing process from both a borrower’s and a lender’s point of view. The course will enable students to critically assess recent academic literature and will aid in the development of students’ quantitative and spreadsheet skills.

Outline content:
Types and sources of real estate finance
Securitisation
Financial institutions
Risk analysis
Monetary policy
Financial market regulation

Brief description of teaching and learning methods:
The module will be delivered in a block teaching week over 4 days supported by the University on-line platform. The block teaching week will consist of a mix of formal lectures and applied workshops.

Contact hours:
  Autumn Spring Summer
Lectures 20
Practicals classes and workshops 10
Guided independent study 170
       
Total hours by term 200.00
       
Total hours for module 200.00

Summative Assessment Methods:
Method Percentage

Other information on summative assessment:

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: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx
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:
Written assignment - 100% of the marks for the module.

The pass-mark for this module is 50%.

As this is a core Module of Special Significance for all students joining the MSc Real Estate Investment & Finance programme from September 2016, a mark of 40 must be achieved in order for the MSc to be awarded.

Reassessment arrangements:
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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