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:
Current from: 2018/9

Module Convenor: Mr Pin-Te Lin


Type of module:

Summary module description:

This module presents and the theoretical and practical principles of asset allocation choices and portfolio management. After introducing the concept of diversification and single index model, different optimisation models are examined, along with specific features of real estate portfolios related to performance measurement and available vehicles to build such a portfolio.


This module enables students to develop their understanding of the concepts of investment strategy, portfolio selection and performance measurement and their application to real estate markets. It develops students’ analytic capacity. Students will have a detailed understanding of key theoretical concepts in investment strategy (e.g. efficient frontier, risk diversification, single index model) and their application in a real estate context. They will also be able to use statistical toolboxes for portfolio decision making, critically examine published work in the field, and apply this knowledge to the analysis of real estate investment decisions within a portfolio context.

Assessable learning outcomes:

Upon completion of the unit, a student should be able to:

•    Identify, explain and apply key theoretical concepts of investment strategy, portfolio selection and performance measurement in financial and, more specifically, real estate markets;

•    construct the mean-variance efficient frontier and identify the optimal risky portfolio for a given universe of risky assets;

•    explain the pricing of assets using a CAPM;

•    discuss relevant literature in international markets, being able to interpret and critically examine published results of empirical research in the field;

•    understand portfolio optimisation models and issues related to their application using real estate data

•    apply theoretical investment strategy and portfolio management principles to practical real estate problems;

•    analyse capital market data using quantitative techniques to identify theoretically optimal portfolio strategies and assess managers’ performances;

•    identify a suitable strategy to build a real estate portfolio using both direct and indirect investment. 


Additional outcomes:

In addition, students will:

•    develop their business report writing skills through the coursework;

•    develop their IT skills through the computer-based workshops;

•    enhance their capacity to read complex published material in a critical fashion.

Outline content:

The unit will cover risk and return and investors’ investment preferences; models of portfolio selection and pricing (portfolio theory, efficient frontier, capital asset pricing model, portfolio optimisation models); the place of real estate in mixed asset class investment strategies; structuring the property portfolio through sector and geographical mix and/or through the use of indirect vehicles; performance measurement, attribution analysis and the analysis of manager performance; benchmarking and the measurement of real estate market activity. The module will draw on both academic and professional literature and utilise data and examples from international markets.

Brief description of teaching and learning methods:

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

Contact hours:
  Autumn Spring Summer
Lectures 20
Seminars 10
Guided independent study 170
Total hours by term 200.00
Total hours for module 200.00

Summative Assessment Methods:
Method Percentage
Written exam 90
Class test administered by School 10

Summative assessment- Examinations:

The module will be assessed through a three-hour formal examination (90%).


Summative assessment- Coursework and in-class tests:

The module will be assessed through a one-hour in-class test (10%) to take place in timetabling week 28 (week 9) of the spring term.

Formative assessment methods:

Formative assessments (for example multiple-choice self tests) will be provided for self-monitoring and revision. Informal feedback will also be accessible via workshops/seminars where key theoretical and empirical concepts will be applied and tested.

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:

Assessment requirements for a pass:

The pass mark for this module is 50%

Reassessment arrangements:

The re-assessment will be a three-hour exam (100%) for the entire module with no class test replacement, subject to variation by the Examination Board where appropriate.

Additional Costs (specified where applicable):

Last updated: 5 February 2019


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