REMF42-Introduction to Real Estate Finance

Module Provider: Real Estate and Planning
Number of credits: 10 [5 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: Mr Gianluca Marcato

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

Summary module description:

Aims:
The aim of this module is to enable students to be introduced to basic concepts of finance to be used within the context of investment appraisal of assets and real estate in particular. Students will understand how the decision to invest can be separated from financing decisions and be able to apply and critically evaluate different techniques for the pricing of investments. The module will enable students to understand the decision to invest in any project in a rigorous and consistent framework. Students will be introduced to the principles of diversification and introduced to portfolio theory and its application to real estate.

Assessable learning outcomes:
- understand the principles of interest rates, time value of money and discounting;
- understand risk & return
- recognise how to select the appropriate discount rate for investment/valuation decisions;
- understand and apply financial models to determine the discount rate;
- analyse the financial structure of a company and understand its impact on enterprise value
- read and analyse annual reports of companies

Additional outcomes:
- develop critical thinking and analytical skills

Outline content:
- Principles of diversification and portfolio theory
- Asset pricing
- Real estate investment and portfolio management
- Principles of risk and return
- The separation of financing and investment decisions;
- Capital budgeting and cost of capital
- Forms of financing available for Real estate

Brief description of teaching and learning methods:
The module will include lectures, class tutorials and problem solving 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
Class test administered by School 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:
Not applicable

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):

Last updated: 21 December 2016

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