Summary module description:

The module presents the main sources of funding available in real estate markets, presenting the implication on returns, ownership and cash flows.


Aims:

The module will present and analyse several sources of funding and their pricing. The process of raising equity for listed companies and unlisted funds will be introduced and examined. As far as debt funding is concerned, alongside traditional methods (e.g. private lending and mortgages), the course will also cover structured products and hybrid forms of financing. Particular emphasis will be given to the implications of different debt structures on returns achieved/achievable by equity investors.


Assessable learning outcomes:

The module aims to provide students with the core knowledge required to appreciate the unique characteristics of financing decisions in the context of commercial real estate. After the module completion, students will be able to:

- Apply finance theory to the funding decision process

- Be familiar with the different sources of funding available for real estate investments 

- Critically analyse the structure and pricing of each funding opportunity

- Embed the funding choice within an investment decision process.

- Construct financing cash flows to enrich valuation models.

- Be able to analyse the return implications of funding choices for equity investors


Additional outcomes:

Students will develop an overall awareness of the financing decision making process. Cash flow modelling of project appraisal with different funding structures will enhance students’ analytical skills. 


Outline content:

Project vs company financing

Analysis of sources of real estate finance such as:

- Private lending and mortgages

- Structured finance

- Capital market products

- Hybrid finance

Implication of each source for returns to equity investors


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 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 100

Other information on summative assessment:

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


Formative assessment methods:

Informal feedback will 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: 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:

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.


Last updated: 15 May 2017

Letter 'IPO.MODCAT1STKT' - Generation started at 15/May/2017 13:32:31.16.

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