REMB38-Real Estate Funding

Module Provider: Real Estate and Planning
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Autumn term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2020/1

Email: m.mori2@henley.ac.uk

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.Ìý

Aims:

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),ÌýtheÌýmoduleÌýwill review structured products and hybrid forms of financing.ÌýParticular emphasisÌýwill be given to the implications of different funding structures on returns that are achieved or are achievable by equity investors.Ìý

Assessable learning outcomes:

Intended learning outcomes:Ìý

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.Ìý

Assessable learning outcomes:Ìý

Upon completion of the module, students should be able to:Ìý

• apply finance theory to the funding decision process;Ìý


• be familiar with the different sources of funding available for real estate investments;

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


• embed the funding choice within an investment decision process;Ìý


• construct financing cash flows to enrich valuation models;


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

Additional outcomes:

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

Outline content:

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  Private lending and mortgagesÌý

  
  

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  Structured financeÌý

  
  


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  Capital market productsÌý

  
  


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  Hybrid financeÌý

  
  


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  Regulatory environmentÌý

  
  


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  Implications of funding structures for risk and returnÌý

  
  

Global context:

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

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 andÌýproblem solvingÌýworkshops, with an individual assignment acting as a consolidating and integrating vehicle for the taught material.Ìý

The block release taught element will be supportedÌýby the use ofÌýBlackboard. 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.Ìý

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).Ìý

Assignment submission deadline: Week 21Ìý(Term 2 Week 2)

Students completing the IPF DiplomaÌýand/or MSc IPF Entry routeÌýmust achieve a mark of at least 50 in order to achieve the IPF Qualification.Ìý

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 andÌýBlackboardÌýis also a useful learning tool during the period after the teaching week.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.aspx

Assessment requirements for a pass:

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.Ìý

Additional Costs (specified where applicable):

Last updated: 4 April 2020