MPRE Master of Planning with Real Estate

Year of entry: 2022

Course unit details:
Real Estate Investment and Finance

Unit code PLAN41191
Credit rating 15
Unit level Level 4
Teaching period(s) Semester 1
Offered by Planning and Environmental Management
Available as a free choice unit? Yes

Overview

This module is a combination in the context of investment and finance. It aims to comprehensively examine the broad investment markets and to place into context the role of real estate as an investment asset by examining alternative investment vehicles.
The module will examine asset valuation and the principles of portfolio diversification across a wide variety of asset classes including: equities, debts and derivatives markets. Also, the module will equip students with knowledge of debt instruments, risk mitigation techniques, and debt securitisation used in the financing of real estate, and the structuring of debt instruments as investment products.
Through the case studies and discussions on the lectures, the students will be equipped with knowledge of the real estate capital markets, which will not only include the details on the structure of securities and markets but also examine how they can be used in the context of issues such as real estate portfolio construction and asset allocation, hedging and financing. Through workshop and tutorial exercises the students will develop competence in the application of quantitative techniques. Though the assessment process the students will be able to undertake an evaluation of a real estate asset and then build on that experience to evaluate a portfolio of investments.
 

 

Aims

• Explore the principles of investment and the creation of value
• Critically evaluate direct and indirect methods of investing in real estate
• Demonstrate approaches used in financing of funds and individual projects
• Introduce the various techniques in commercial real estate finance and to examine how risk and reward can be shared
• Examine the role of real estate in a mixed asset portfolio

 

Teaching and learning methods

A range of teaching and learning methods will be adopted with conventional lectures used to introduce the topics in a structured manner. Workshops and tutorials will be used to apply individual property investment and portfolio evaluation techniques and to facilitate critical debate about key issues in real estate investment theory and practice. There will be opportunities to explore current issues with property investors, and their advisors, to ensure that discussion and debate is grounded in current practice.

All unit material will be available online. Formative feedback will be provided through Q&A, discussion and interactive activities within lectures, workshops and tutorials. Verbal feedback will be available on coursework discussed during consultation hours and assignment surgeries. Where appropriate, the discussion board on Blackboard will be used as a repository for FAQs.

 

Knowledge and understanding

  • Demonstrate an understanding of different classes of investment, the role of direct and indirect property investment, and the structuring of debt and equity instruments as investment products
  • Have an overview of the current real estate finance market
  • Understand, analyse and compare alternative real estate funding techniques
  • Demonstrate a critical understanding of debt instruments, risk mitigation techniques and debt securitisation used in the financing of real estate

Intellectual skills

  • Undertake portfolio review and strategic investment decision-making
  • Apply and critically analyse measures of property investment performance

Practical skills

  • Construct robust models to analyse and value real estate investments
  • Anticipate real estate investment problems and structure appropriate solutions
     

Transferable skills and personal qualities

  • Collect and interpret quantitative and qualitative data
  • Effectively communicate ideas and concepts orally and in writing

Assessment methods

Online test (open book) of understanding of basic investment and finance definitions, and application to real estate practice (1 hour test) 10%

A 3000 word essay on chose topics: (90%)
1) Investment focus
2) Finance focus

 

Feedback methods

Detailed feedback on summative assessments will be provided via Blackboard. This will be in written or audio format.
 

Recommended reading

Baum A. (2015) Real Estate Investment: A Strategic Approach (3rd Edition), Abingdon: Routledge
Brown G. and Matysiak G. (2000) Real Estate Investment: A Capital Market Approach, Harlow: Financial Times (Prentice Hall)
Enever N., Isaac D. and Daley M. (2010) The Valuation of Property Investments (7th Edition) Oxford: EG Books
Isaac D. and O’Leary J. (2011) Property Investment (2nd Edition), London: Palgrave Macmillan
Cuthbertson, K. and Nitzsche, D. (2008) Investments, 2ndEdition Chichester: Wiley
Bruggeman W. B. and Fisher J. (2010) Real Estate Finance & Investment, 14th edition,
Irwin McGraw-Hill Geltner, D., Miller N., Clayton, J. and Eichholtz, P. (2007), Commercial Real Estate Analysis and Investments, Arizona: South-Western Educational Publishing
Ball, M., Lizieri, C., and MacGregor, B.D. (1998) The Economics of Commercial Property Markets, London: Routledge
Baum, A. and Hartzell, D. (2011): Global Property Investment - Strategies, Structures, Decisions, Oxford: Wiley Blackwell
Brooks, C. and Tsolacos, S. (2010) Real Estate Modelling and Forecasting, Cambridge: Cambridge University Press
Chan, S. H.; Erickson, J. and Wang, K. (2003) Real Estate Investment Trusts: Structure, Performance and Investment Opportunities Oxford: Oxford University Press
Imperiale, R. (2002) Real Estate Investment Trusts: New Strategies for Portfolio
Management, New York, John Wiley and Sons Inc
Linneman, P. (2011) Real Estate Finance and Investments, 3rd Edition, Philadelphia: Linneman Associates
Lizieri, C. (2009), Towers of Capital, Oxford: Wiley-Blackwell
Westerfield, R. and Jordan, B. (2012) Fundamentals of Corporate Finance, 8th edition, Boston: McGraw Hill

Study hours

Scheduled activity hours
Lectures 18
Seminars 18
Independent study hours
Independent study 114

Teaching staff

Staff member Role
Yishuang Xu Unit coordinator

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