REMFRES-Real Estate Securities

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: Dr Chen Zheng


Type of module:

Summary module description:

To acquire knowledge of the market structure and pricing of financial products available for indirect investment in real estate. To develop a critical understanding of the different features of real estate securities and overall market offer. To master the implication that specific characteristics of real estate assets have on the pricing of such securities.


This course introduces students to the primary securitised real estate markets. Equity vehicles examined will include listed companies, with a focus on Real Estate Investment Trusts. The module will also examine debt products (e.g. mortgage-backed securities) and other real estate derivative products and investment vehicles. The module will present how the different markets and securities are structured and their implication on models used to price such financial products.

Assessable learning outcomes:

The module aims to provide students with the core knowledge required to appreciate the unique characteristics of real estate securities. Students will be able to use current research to enable them to critically analyse several real estate securities. By the completion of the module students will be able to:

• Understand what differentiates direct and indirect investment in real estate;

• Analyse the market structure and dynamics of different real estate securities

• Explain key differences between real estate securities in terms of structure and pricing;

• Be familiar with asset pricing theory and present pricing models used for different products;

• Understand the key determinants in the growth of such markets/products and their usefulness in a portfolio context.

Additional outcomes:

Students will improve their analytical and quantitative skills and will also develop an overall awareness of the determinants of real estate market performance and the importance of alternative investment vehicles.

Outline content:

The module will introduce both market structures and pricing models of real estate securities such as:

• Listed vehicles: Real Estate Investment Trusts and Property Companies

• Mortgage-Backed Securities

• Real Estate Derivative Products


Brief description of teaching and learning methods:

The module will consist of a mix of formal lectures and workshops/seminars. 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
Practicals classes and workshops 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

Summative assessment- Examinations:

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

Summative assessment- Coursework and in-class tests:

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:

Assessment 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: 31 July 2018


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