REMB38-Real Estate Funding

Module Provider: Real Estate and Planning
Number of credits: 20 [10 ECTS credits]
Terms in which taught: Autumn term module
Non-modular pre-requisites:
Modules excluded:
Current from: 2021/2

Module Convenor: Dr Isil Erol

Type of module:

Summary module description:

The module reviews the main sources of debt and equity funding available in real estate investment markets, presenting the implications for ownership, cash flows and rates of return. 


The module will present and analyse several sources of funding and their pricing. The process of raising equity for private real estate investment will be introduced and examined. As far as debt funding is concerned, alongside traditional methods (e.g. private lending and mortgages), the module will review structured products and hybrid forms of financing. Particular emphasis will be given to the implications of different funding structures on returns that are achieved or are achievable by equity investors. 

Assessable learning outcomes:

Intended 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. 

Assessable learning outcomes: 

Upon completion of the module, students should 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;

  • analyse the return implications of funding choices for equity invest ors. 

Additional outcomes:

Cash flow modelling of project appraisal with different funding structures will enhance students’ analytical skills. 

Outline content:

  • Private lending and mortgages 

  • Structured finance 

  • Capital market products 

  • Hybrid finance 

  • Regulatory environment 

  • Implications of funding structures for risk and return 

Global context:

The literature and datasets that are referred to throughout the module provide a mixture of UK and international examples. 

Brief description of teaching and learning methods:

The course will be delivered as a block release with online support after the module has ended. The block release teaching will comprise lectures, seminars and problem solving workshops, with an individual assignment acting as a consolidating and integrating vehicle for the taught material. 

The block release taught element will be supported by the use of Blackboard. The course information, handouts, presentations and assignment will be supplemente d by use of discussion boards on technical aspects of the assignment and other material. 

Contact hours:
  Autumn Spring Summer
Lectures 20
Seminars 10
Guided independent study:      
    Wider reading (independent) 20
    Advance preparation for classes 20
    Completion of formative assessment tasks 30
    Revision and preparation 50
    Essay preparation 50
Total hours by term 0 0
Total hours for module 200

Summative Assessment Methods:
Method Percentage
Written assignment including essay 100

Summative assessment- Examinations:

Summative assessment- Coursework and in-class tests:

The assessment will be based on written assignments: One essay (35% of the total mark, with a word guide of 1,500 words) and one report based on the Excel analysis (65% of the total mark, with a word guide of 2,500 words). 

Assignment Submission Deadline: Week 22?

Students completing the IPF Diploma and/or MSc IPF Entry route must achieve a mark of at least 50 in order to achieve the IPF Qualification. 

Formative assessment methods:

Informal feedback is accessible via seminars/tutorials during the teaching block week where key theoretical and empirical concepts are applied and tested. Communication via email and Blackboard is also a useful learning tool during the period after the teaching week. 

Penalties for late submission:

The below information applies to students on taught programmes except those on Postgraduate Flexible programmes. Penalties for late submission, and the associated procedures, which apply to Postgraduate Flexible programmes are specified in the policy “Penalties for late submission for Postgraduate Flexible programmes”, which can be found here:
The Support Centres will apply the following penalties for work submitted late:

  • where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
  • where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.
The University policy statement on penalties for late submission can be found at:
You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Assessment requirements for a pass:


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: 20 May 2021


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