GY462 Half Unit
Real Estate Finance
This information is for the 2019/20 session.
Prof Olmo Silva S506A
This course is compulsory on the MSc in Real Estate Economics and Finance. This course is available on the MSc in Accounting and Finance, MSc in Risk and Finance and MSc in Urban Policy (LSE and Sciences Po). This course is available with permission as an outside option to students on other programmes where regulations permit.
The number of students that can be accommodated is limited. If the course is over-subscribed, places will be allocated at the Department’s discretion and a waiting list may be created. For further details, please contact your relevant Programme Coordinator.
This course aims to provide students with concepts and techniques for analysing financial decisions in real estate development and investment. Topics include: basic real estate investment analysis and financial leverage; real options approach applied to real estate; real estate investment performance and portfolio considerations; private equity in real estate, structured investment deals and waterfall analysis; fixed and flexible rate mortgage loans and mortgage payment issues; tax transparent real estate investment vehicles (REITs); and current and international trends in real estate (time permitting).
20 hours of lectures and 10 hours of seminars in the LT. 2 hours of lectures in the ST.
External interventions by real estate practitioners will be scheduled when feasible.
Students will be expected to complete in-class exercises and up to two take-home case-studies.
Key texts are:
Brueggeman, W. B. and J. D. Fisher (2005) Real Estate Finance & Investments (13th edition or newer), New York City, NY: McGraw-Hill/Irwin;
Linneman, Peter (2004) Real Estate Finance & Investments: Risks and Opportunities, (2nd edition or newer). Philadelphia: Linneman Associates.
A more detailed reading list will be handed out at the beginning of the course.
Exam (70%, duration: 2 hours, reading time: 10 minutes) in the summer exam period.
Presentation (30%) in the LT.
70% of the students' final grade will come from a two-hour closed book examination. The exam will consist of three questions and students will have to answer two out of these three questions. These questions will assess the material covered by the lecturers during the Lent Term as well as the topics discussed by the external speakers (two to three external interventions are planned every year; these are subject to confirmation).
30% of students' final grade will come from a group work and presentation on a "case study" in real estate financial investment. Students will be provided with some material and instructions towards the second or third week of the term and will be assigned to groups of 4-5 students. They will have to work both on an xl cash flow analysis of this real estate investment opportunity as well as on a short (20min) presentation they will give as a group.They will then be allocated some time during one of the classes to present their solution as a group and will be assessed both on their presentation skills and the technical understanding of the cash flow analysis used in their financial investment decision.
Student performance results
(2015/16 - 2017/18 combined)
|Classification||% of students|
Department: Geography & Environment
Total students 2018/19: 61
Average class size 2018/19: 15
Controlled access 2018/19: No
Value: Half Unit
Personal development skills
- Team working
- Problem solving
- Application of information skills
- Application of numeracy skills
- Commercial awareness
- Specialist skills