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: 2017/8

Module Convenor: Dr Gianluca Marcato

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

Summary module description:

The module presents in depth concepts of real estate finance both theoretically and empirically. It can be seen as an advanced course in corporate finance (funding and valuation) applied to real estate topics.


Aims:

The module will enable students to interpret the main principles of corporate finance (cost of funding and valuation) with an appropriate emphasis on real estate. It will allow students to recognise the strategic importance of real estate to corporate financial decision-making processes. Finally analytical and financial modelling skills will be improved.


Assessable learning outcomes:

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




  • Understand how financial issues influence decisions involving real estate within the firm;

  • Analyse the capital structure of a real estate firm and its weighted average cost of capital;

  • Examine the main sources of funding and their pricing;

  • Critically discuss the choices of target return required for real estate investments;

  • Apply and evaluate different appraisal methods used for real estate assets;

  • Analyse the contribution of both real and financial options to the pricing of securities/assets and their use within a decision-making process.


Additional outcomes:

The module aims to encourage the development of analytical and quantitative skills in relation to the application of finance principles 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 companies in financial accounts

- Comparison of valuation methods used in finance and real estate.

- Principles underlying decisions about capital structure, debt and equity financing;

- Application of real option analysis to real estate finance decisions.


Brief description of teaching and learning methods:

The module will consist of a mix of formal lectures and seminars/workshops. Additionally, students will be expected, on an independent basis, to read prescribed articles and prepare for class interaction.


Contact hours:
  Autumn Spring Summer
Lectures 10
Practicals classes and workshops 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:

The module will be assessed through a two-hour formal examination.


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:

Reassessment will be by the same method as for the module's original assessment requirements, subject to variation by the Examination Board where appropriate.


Last updated: 10 May 2017

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