Prof Olmo Silva CKK.4.30

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 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); development finance; and current and international trends in real estate (time permitting).

In the Department of Geography and Environment, teaching will be delivered through a combination of classes/seminars, pre-recorded lectures, live online lectures, in-person lectures and other supplementary interactive live activities.

This course is delivered through a combination of classes/seminars and lectures across the Winter Term (plus one revision session in Spring Term).

External interventions by real estate practitioners will be scheduled when feasible.

This course includes a reading week in Week 6 of Winter Term.

Some enrichment (non-compulsory) activities related to the course might be scheduled during this period (e.g. sessions on cash-flow modelling in excel).

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 spring exam period.
Presentation (30%) in the WT.

The presentation will involve both individual as well as group work.