REMF41-Real Estate Finance and Debt Markets

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

Module Convenor: Dr Stanimira Milcheva


Summary module description:

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 both residential and commercial real estate. By the completion of the module students will :

-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 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 60
Set exercise 40

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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