REMF45-Investment Appraisal and Valuation

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: 2019/0

Module Convenor: Dr Steven Devaney


Type of module:

Summary module description:

This module develops the theory and practice of appraisal for individual property investments, mainly in the context of the commercial and industrial real estate investment markets. It will consider different bases of value, different approaches to appraisal, required returns and yields, how cash flow is generated and how property investment relates to other asset markets. 


To enable students to understand the financial, technical and market context of the appraisal of investments in general and the appraisal of real estate in particular. Students will understand the different concepts of value and how they relate to decision making in the property investment market. They will be able to apply simple cash flow models to the pricing of property investments and apply such models for the appraisal of Investment Value and Market Value as defined by International Valuation Standards. The information content of appraisals will be investigated, including inputs such as rental values, depreciation rates and exit yields. 

Assessable learning outcomes:

Upon completion of this module, students should be able to: 

  • Understand different concepts of value and evaluate their application to real estate.  

  • Apply mathematics of compounding and discounting to real estate investments. 

  • Evaluate the information needs of real estate investment appraisals. 

  • Construct and adapt spreadsheet templates to undertake cash flow appraisals. 

  • Understand the outcomes of appraisals and their role in decision making. 

Additional outcomes:

Students will develop their written communication and numerical skills. 

Outline content:

  • Characteristics of commercial real estate markets; 

  • Concepts of price, value and worth; 

  • Applying financial mathematics: discounting, etc.; 

  • Target rates, growth rates and yields, 

  • Information needs for real estate appraisal, 

  • Discounted cash flow modelling; 

  • Introduction to market valuation techniques. 

Global context:

Both national and international examples are used in the course of lectures, though with a primary focus on the UK commercial real estate market. 

Brief description of teaching and learning methods:

The module will comprise lectures and problem solving workshops, with a class test and an individual project assignment for assessment of the taught material. The taught element will be supported by the use of online resources. 

Contact hours:
  Autumn Spring Summer
Lectures 20
Tutorials 10
Guided independent study:      
    Wider reading (directed) 70
    Revision and preparation 30
    Essay preparation 70
Total hours by term 200 0 0
Total hours for module 200

Summative Assessment Methods:
Method Percentage
Written assignment including essay 90
Class test administered by School 10

Summative assessment- Examinations:

Not applicable.

Summative assessment- Coursework and in-class tests:

The course will include a one-hour class test and an assignment. The latter will be a problem solving project (guide length of 2,500 words, plus necessary calculations and appendices) which will assess the ability of students to apply market valuation techniques and cash flow models to multi-occupancy commercial real estate investments. The class test will take place in either week 14 or week 15 (penultimate and final weeks of autumn term). The project submission date will be in week 20 (first week of spring term). 

Formative assessment methods:

Tutorial exercises 

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 means of a single problem solving project involving investment appraisal techniques, subject to variation by the examination board where appropriate. Guide length of 3,000 words, plus necessary calculations and appendices. 

Additional Costs (specified where applicable):

Last updated: 26 April 2019


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