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: 2019/0

Email: edward.shepherd@henley.reading.ac.uk

Type of module:

Summary module description:

This module provides a course of study that focuses on the property development process. The module aims to provide students with an understanding of:

• the factors which influence the development process and its outcomes;


• the activities, agents, events, relationships, skills and tasks involved;


• current trends in UK residential and commercial development; and


• applied techniques in the financial appraisal of development opportunities.

The content of the module is focused on the practicalities of real estate development, as well as on the broader political context in which development takes place. There is an emphasis on applying and linking concepts from economics, political economy and finance in order to help students to develop their understanding of property development as a multidisciplinary and social process. In addition, students will develop a practical and applied understanding of real estate development appraisal.

This module is delivered at the °ÄÃÅÁùºÏ²Ê¿ª½±¼Ç¼ only.

Aims:

The module has three overarching aims:

1. To develop students’ understanding of the practicalities of the development process i.e. the activities, agencies, events, relationships, skills and tasks involved.


2. To develop students’ capacity to critically analyse real estate development as a social and political process.


3. To develop students’ skills in the financial appraisal of development opportunities.

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 a development opportunity.

Additional outcomes:

In addition, by the end of the module it is expected that students will be able to:

• critically evaluate various conceptual models of the development process;


• discuss the variety of different types of developers and their objectives;


• critique the various private and public sources of new residential development;


• compare various explanations for commercial real estate bubbles and their relationship with development cycles;


• articulate the potential risks, rewards and possible losses associated with development activity;


• discuss the interrelationship of planning and the development process;


• demonstrate understanding of how the development land market works;


• explain the role of the planning system in delivering town centre regeneration;


• discuss the various techniques by which local planning authorities can capture a proportion of development value through the planning system.

Outline content:

• Models of the development process.


• Types of developer and development.


• Residential developers and development.


• Commercial real estate cycles.


• Land owners, land acquisition and land promotion.


• Development appraisal.


• Negotiating the planning system.

Global context:

This module is primarily focused on the UK context, but does draw on case study material from various other countries.

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:

Penalties for late submission on this module are in accordance with the University policy. Please refer to page 3 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:

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):

Last updated: 10 April 2019