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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: 2022/3
Module Convenor: Dr Yuan Zhao
Email: yuanyuan.zhao@henley.reading.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 fundingdecision 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 investors.Ìý
Additional outcomes:
Cash flow modelling of project appraisal with different funding structures will enhance students’ analytical skills.Ìý
Outline content:
Private lending and mortgagesÌý
Structured financeÌý
Capital market productsÌý
Hybrid financeÌý
Regulatory environmentÌý
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 moduleÌýwill 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 moduleÌýinformation, handouts, presentations and assignment will be s upplemented by use of discussion boards on technical aspects of the assignment and other material.Ìý
Ìý | Autumn | Spring | Summer |
Lectures | 20 | ||
Seminars | 10 | ||
Guided independent study: | Ìý | Ìý | Ìý |
Ìý Ìý Wider reading (independent) | 20 | ||
Ìý Ìý Advance preparation for classes | 20 | ||
Ìý Ìý Completion of formative assessment tasks | 30 | ||
Ìý Ìý Revision and preparation | 50 | ||
Ìý Ìý Essay preparation | 50 | ||
Ìý | Ìý | Ìý | Ìý |
Total hours by term | 200 | 0 | 0 |
Ìý | Ìý | Ìý | Ìý |
Total hours for module | 200 |
Method | Percentage |
Written assignment including essay | 80 |
Class test administered by School | 20 |
Summative assessment- Examinations:
Summative assessment- Coursework and in-class tests:
20% of the assessment will be in the form of an online multiple choice test during the module week.
The remaining 80% of the assessment will be an individual report based on Excel analysis with a word guide of 3,000 words (equivalent to a 4,000 word essay).Ìý
Ìý
Assignment Submission Deadline:ÌýWeek 17
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:
The below information applies to students on taught programmes except those on Postgraduate Flexible programmes. Penalties for late submission, and the associated procedures, which apply to Postgraduate Flexible programmes are specified in the policy £Penalties for late submission for Postgraduate Flexible programmes£, which can be found here: /cqsd/-/media/project/functions/cqsd/documents/cqsd-old-site-documents/penaltiesforlatesubmissionpgflexible.pdf
The Support Centres will apply the following penalties for work submitted late:
- 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;
- 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.
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.
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: 13 October 2022
THE INFORMATION CONTAINED IN THIS MODULE DESCRIPTION DOES NOT FORM ANY PART OF A STUDENT'S CONTRACT.