REMB05-Real Estate Investment Appraisal

Module Provider: Real Estate and Planning
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2018/9

Email: s.devaney@reading.ac.uk

Type of module:

Summary module description:

This module develops the theory and practice of appraisal of individual property investments aimed mainly at the commercial and industrial investment markets.  Students will be able to prepare cash flow appraisals of the main commercial property types, understand required returns including property risk premia, how cash flow is generated and how property investment relates to other asset markets

Aims:

The aim of this module is to enable students to develop understanding of the financial, technical and market context of the appraisal of investments in general and the appraisal of real estate in particular. Students will be able to understand and apply cash flow techniques for the pricing and appraisal of investments and apply these techniques to commercial real estate investments.

Assessable learning outcomes:

• Understand the concepts and definitions of different values in exchange and use,

• Understand the broad framework within which investment in assets takes place

• Understand the mathematical basis of finance and discounting and apply cash flow techniques to property cash flows

• Identify and evaluate the information needs of major commercial real estate investment appraisals and construct cash flows for typical commercial property investments both before and after financing.

• Understand and apply risk adjustment measures to the outcome of appraisals,

• Evaluate the outcome of financial appraisals and their role in decision making.

• Understand the separation of financing and investment decisions.

Additional outcomes:

• Construct spreadsheet templates to undertake major appraisals

Outline content:

• Investment markets and opportunities

• The separation of financing and investment decisions

• Concepts of price, value and worth

• The investment characteristics of commercial real estate markets

• Information flows within commercial real estate markets

• Discounting and other financial appraisal techniques

• The choice of discount rate - investor or investment derivation?

• Introduction to risk management and analysis

Global context:

This module is available to both home and international students.  The approaches are generic but the institutional context used to demonstrate and apply these approaches is based in the UK market.

Brief description of teaching and learning methods:

This programme is delivered via a block teaching period for each module.  The taught block teaching week includes lectures, class discussions and practical workshops arranged around a case study.

The block release taught element will be supported by the use of Blackboard.

Other contact: On-line materials and support.

Total hours: 26+ online support.

Summative assessment- Examinations:
None

Summative assessment- Coursework and in-class tests:

29th April 2019 – Term 3 – Week 2 (week 35)



The course will include 1 major appraisal assignment. It will be a major problem solving appraisal project which will assess the ability of students to critically examine technique and apply them to complex real estate investments. Word guide length 4000 plus calculations/appendices, excluding the major calculation element involving spreadsheets and other appendices (equivalent to a 5000 word essay (including calculation and annotation).

As this is a core Module of Special Significance, a mark of 40 must be achieved in order for the MSc to be awarded.

Formative assessment methods:

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

Assessment requirements for a pass:
50%

Reassessment arrangements:

Appraisal project which will achieve a maximum mark of 50.

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):

No additional costs

Last updated: 25 October 2018