REMF27-Real Estate Finance

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

Module Convenor: Mr Gianluca Marcato

Email: g.marcato@henley.reading.ac.uk

Summary module description:

Aims:
The module will enable students to interpret the main principles of corporate finance with an appropriate emphasis on real estate. It will also allow students to recognise the strategic importance of real estate to corporate financial decision making.

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

-Develop skills in the estimation and evaluation of alternative approaches to capital budgeting decisions;
-Critically compare and contrast alternative methods of financing core projects;
- Apply main financial models to estimate the cost of funding;
-Understand the importance of real estate to corporate strategic financial decisions;
-Value real options and understand why they are important in real estate finance.

Additional outcomes:
The module also aims to encourage the development of IT skills and in particular the application of the principles of corporate finance to real estate. Students will also improve their ability to translate theoretical concepts into practical solutions.

Outline content:
- Analysis of lease or buy decisions for both financial and accounting aspects
-Reporting of real estate in company accounts
-Performance of real estate companies assessed through accounting numbers and ratios
-Comparison of valuation methods used in finance and in property. Traditional methods of property appraisal and development.
-Review of Capital Budgeting techniques applicable to real estate investment and development applications,
-Principles underlying decisions about capital structure, debt and equity financing, Project vs. company funding etc.
-Real estate financial decisions with applications of real options

Brief description of teaching and learning methods:
Core lectures supported by weekly seminars/workshops.

Contact hours:
  Autumn Spring Summer
Lectures 10
Tutorials 5
Guided independent study 85
       
Total hours by term 100.00
       
Total hours for module 100.00

Summative Assessment Methods:
Method Percentage
Written exam 100

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:
Two hours

Requirements for a pass:
The pass-mark for this module is 50%.

Reassessment arrangements:
By written examination only, as part of the overall examination arrangements for the MSc programme.

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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