REMF57-Real Estate Funding

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: 2019/0

Email: m.mori2@henley.ac.uk

Type of module:

Summary module description:

The module presents the main sources of funding available in real estate markets, presenting the implication on returns, ownership and cash flows.Ìý

Aims:

The module willÌýcoverÌýand evaluateÌýseveral sources of funding and their pricing. The process of raising equity for listed companies and unlisted funds will be introduced and examined. As far as debt funding is concerned, alongside traditional methods (e.g. private lending and mortgages), theÌýmoduleÌýwill also cover venture capital and hybrid forms of financing.ÌýParticular emphasisÌýwill be given to the implications of different debt structures on returns achieved/achievable by equity investors.Ìý

Assessable 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. After the module completion, students will be able to:Ìý

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  apply finance theory to the funding decision process;Ìý

  
  

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  demonstrate a familiarity with the different sources of funding available for real estate investments;Ìý

  
  


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  critically analyse the structure and pricing of each funding opportunity;Ìý

  
  


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  Embed funding choicesÌýwithin an investment decision process;Ìý

  
  


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  Construct financing cash flows to enrich valuation models;Ìý

  
  


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  Be able to analyse the return implications of funding choices for equity investors.Ìý

  
  

Additional outcomes:

Students will develop an overall awareness of the financing decision making process. Cash flow modelling of project appraisal with different funding structures will enhance students’ analytical skills.?Ìý

Outline content:

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  Project financing;Ìý

  
  


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  Analysis of sources of real estate finance such as:Ìý

  
  

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  Private lending and mortgages;Ìý

  
  


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  Structured finance;Ìý

  
  


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  Capital market products;Ìý

  
  

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  Hybrid finance.Ìý

  
  

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  ImplicationsÌýof eachÌýfinanceÌýsource for returns to equity investors.Ìý

  
  

Brief description of teaching and learning methods:

Summative assessment- Examinations:

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

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.?Ìý

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.aspxÌý

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: 28 August 2019