REMF39-Real Estate Investment Analysis

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 Simon Andrew Stevenson


Summary module description:

The module will provide an examination of real estate markets, with particular emphasis upon the nature of the underlying asset and how this impacts upon real estate investment and finance. The module provides an introduction to the economic dynamics of real estate markets, property investment and the sources of real estate finance. The module also aims to enable students to develop an understanding of the financial, technical and market context of the appraisal of real estate investments. Students will be able to understand and apply cash flow techniques for the pricing and appraisal of investments and apply these techniques to commercial properties.

Assessable learning outcomes:
The module aims to provide students with the core knowledge required to appreciate the unique characteristics of real estate as an investment asset. By the completion of the module students will be able to:

-Analyse property markets and appreciate the factors underlying their performance;
-Critically understand the concepts and definitions of different values in exchange and use;
-Develop skills in the mathematical basis of discounting and apply cash flow techniques to property cash flows;
-Identify and evaluate the information needs of commercial investment appraisals and construct cash flows both before and after financing;
-be introduced to risk adjustment measures and be able to evaluate the outcome of financial appraisals and their role in decision making.
-Enhance understanding in the analysis and comparison of alternative commercial real estate funding techniques;
-Critically appreciate the importance of factors such as market size, liquidity and institutional differences in investment performance;
-the key differences between alternative real estate investment vehicles;
-Assess individual property investments and compare geared and ungeared investment;
-Understand techniques of index construction in real estate and the implications in relation to performance and risk measurement;

Additional outcomes:
The module will aid students in developing an overall awareness of the determinants of real estate market performance and the importance of alternative vehicle and funding structures. The course will also aid in the development of students quantitative and spreadsheet skills.

Outline content:
• Investment characteristics of commercial real estate markets
• An introduction to real estate economics and market analysis
• Concepts of price, value and worth
• Investment Appraisal and Risk
• Real Estate Indices and Performance Measurement
• The real estate development process
•Alternative sources of real estate financing and their implications on investment appraisal
• The Impact of Gearing on Asset Return and Risk

Brief description of teaching and learning methods:
The module will consist of a mix of formal lectures and applied workshops.

Contact hours:
  Autumn Spring Summer
Lectures 30
Practicals classes and workshops 10
External visits 10
Guided independent study 150
Total hours by term 200.00
Total hours for module 200.00

Summative Assessment Methods:
Method Percentage
Written exam 80
Written assignment including essay 20

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:
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:
Three 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.

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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