CEM335-Real Estate Development: Appraisal and Analysis

Module Provider: School of Construction Management and Engineering, School of Built Environment
Number of credits: 10 [5 ECTS credits]
Level:7
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2023/4

Module Convenor: Prof Pat McAllister
Email: p.m.mcallister@henley.reading.ac.uk

Type of module:

Summary module description:

This module provides a course of study that focuses on the financing and financial appraisal of real estate development projects. ÌýThe module aims to provide students with an understanding of:

• the investment mathematics underpinning the financial modelling of development appraisal projects;Ìý


• the main development appraisal techniques;


• and the financing of real estate development projects.

The content of the module is focused on the financial appraisal of real estate development projects.ÌýStudents will develop a practical and applied understanding of real estate development appraisalÌýwhich includes an introduction to basic financial mathematics.

This module is delivered at the ºÚ¹Ï³ÔÁÏÍø only.

Aims:

The module has three overarching aims:

1. To develop students’ understanding of theÌýproject appraisal techniques underpinning the financial analysis of real estate development projects.


2. To develop students’ capacity toÌýapply a range of development appraisal techniques toÌýprocessreal estate development projects.


3. To develop students’ knowledge and understanding of the financing of real estate development projects.

Assessable learning outcomes:

By the end of the module it is expected that students will be able to apply appropriate techniques in the financial appraisal of real estate development projects.

Additional outcomes:

Outline content:

• Basic investment mathematics (calculating future and present values).


• Discounted cash flow modelling (calculating Net Present Value and Internal Rate of Return).


• Core principles of appraising real estate development projects.


• The key information needs for building real estate development appraisals.


• Key financial performance metrics for real estate development projects.


• Real estate development appraisal methods (the simple residual method, the discounted cash flow method incorporating a fixed profit margin and finance, the discounted cash flow method incorporating a hurdle Internal Rate of Return).


• Introducing loans into modelling real estate development project cash flows.


• Introducing joint venture structures into modelling real estate development project cash flows.

Global context:

This module is primarily focused on the UK context, but the techniques and knowledge are applied in many global markets.

Brief description of teaching and learning methods:

Summative assessment- Examinations:

Summative assessment- Coursework and in-class tests:

The module will include an assignment comprising a development appraisal and accompanying report with a limit of 1,500 words.

Formative assessment methods:

The module includes appraisal teaching which will have in-class problem solving workshops.

Penalties for late submission:

The below information applies to?all full time and flexible modular?students on taught PGT programmes in SBE.Ìý

The Support Centres will apply the following penalties for work submitted late:Ìý

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;Ìý


• where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.Ìý

ÌýThe University policy statement on penalties for late submission?which applies to all full time and flexible modular PGT students in SBE?can be found at:?/cqsd/-/media/project/functions/cqsd/documents/cqsd-old-site-documents/penaltiesforlatesubmission.pdfÌý

You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.Ìý

Assessment requirements for a pass:

A mark of at least 50% overall is required for a pass.

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):

1. Required text books:Ìý


2. Specialist equipment or materials:Ìý


3. Specialist clothing, footwear or headgear:Ìý


4. Printing and binding:Ìý


5. Computers and devices with a particular specification: Casio FX-83GTPLUS or Casio FX-85GTPLUS – approximately £20.00


6. Travel, accommodation and subsistence:Ìý

Last updated: 27 July 2023