CORPFIN 7049 - Real Estate Valuation and Investment (M)

North Terrace Campus - Semester 2 - 2016

Real estate is a significant investment focus in managing investor portfolios. This course looks at the issues in financing and investing in real estate with an emphasis on commercial real estate. It covers the general context of real estate as an investment, including the role and contribution of property trusts versus direct investment, and discusses what differentiates real estate from other assets. Valuation models are investigated (including cash flow models, and comparative valuation and the influence of real options value). Real estate investment financing is investigated, looking at project financing as well as general investment. Lastly issues in project development are considered. Building on the Business Schools existing links with the American Real Estate and Urban Economics Association, the course covers the tools for direct investors and advisors to make better decisions with respect to real estate investment, using case studies of Singaporean, Australian and international projects and investment outcomes to illustrate the issues involved.

  • General Course Information
    Course Details
    Course Code CORPFIN 7049
    Course Real Estate Valuation and Investment (M)
    Coordinating Unit Business School
    Term Semester 2
    Level Postgraduate Coursework
    Location/s North Terrace Campus
    Units 3
    Available for Study Abroad and Exchange Y
    Prerequisites CORPFIN 7005
    Course Description Real estate is a significant investment focus in managing investor portfolios. This course looks at the issues in financing and investing in real estate with an emphasis on commercial real estate. It covers the general context of real estate as an investment, including the role and contribution of property trusts versus direct investment, and discusses what differentiates real estate from other assets. Valuation models are investigated (including cash flow models, and comparative valuation and the influence of real options value). Real estate investment financing is investigated, looking at project financing as well as general investment. Lastly issues in project development are considered. Building on the Business Schools existing links with the American Real Estate and Urban Economics Association, the course covers the tools for direct investors and advisors to make better decisions with respect to real estate investment, using case studies of Singaporean, Australian and international projects and investment outcomes to illustrate the issues involved.
    Course Staff

    Course Coordinator: Dr Limin Xu

    Name: Dr Limin Xu Location: Room 12.24, 10 Pulteney St Telephone:8313 0735 (work) Email:limin.xu@adelaide.edu.au
    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

  • Learning Outcomes
    Course Learning Outcomes
    COURSE Learning Objectives By the end of this course students should be able to: 1.Understand the core drivers of real estate market values, and market performance particularly in the Asia Pacific area. 2.Understand the models by which real estate assets are financed and the ways in which investors participate. 3.Understand the positioning of real estate within a portfolio and the opportunities it presents for investors. 4.Apply models for the assessment of real estate development projects.
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Deep discipline knowledge
    • informed and infused by cutting edge research, scaffolded throughout their program of studies
    • acquired from personal interaction with research active educators, from year 1
    • accredited or validated against national or international standards (for relevant programs)
    1-4
    Critical thinking and problem solving
    • steeped in research methods and rigor
    • based on empirical evidence and the scientific approach to knowledge development
    • demonstrated through appropriate and relevant assessment
    1-4
    Teamwork and communication skills
    • developed from, with, and via the SGDE
    • honed through assessment and practice throughout the program of studies
    • encouraged and valued in all aspects of learning
    4
    Career and leadership readiness
    • technology savvy
    • professional and, where relevant, fully accredited
    • forward thinking and well informed
    • tested and validated by work based experiences
    4
    Intercultural and ethical competency
    • adept at operating in other cultures
    • comfortable with different nationalities and social contexts
    • able to determine and contribute to desirable social outcomes
    • demonstrated by study abroad or with an understanding of indigenous knowledges
    1-4
    Self-awareness and emotional intelligence
    • a capacity for self-reflection and a willingness to engage in self-appraisal
    • open to objective and constructive feedback from supervisors and peers
    • able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate
    1-4
  • Learning Resources
    Required Resources
    This course is developed around a text book, and this will provide much of the reading you require. The text is widely used internationally for such courses, and is:Geltner, Miller, Clayton and Eihholtz, Commercial Real Estate, Analysis and Investments, OnCourse Learning, 3edition, 2014
    Online Learning
    All material is available on MyUni.
  • Learning & Teaching Activities
    Learning & Teaching Modes
    The course is taught via seminar-based classes, reinforced through class participation in problem solving.
    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    The University expects full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week (over 12 weeks) to their studies. This means that you are expected to commit approximately 108 hours (9 hours x 12 week) for a three-unit course of private study outside of your seminars. Students are expected to attend all seminars.
    Learning Activities Summary
    The course material consists of 6 topics. The topics are listed below:
    Topic 1: Introduction to Real Estate Valuation (1, 2, 4 & 6)
         Real Estate Space and Asset Markets
         Real Estate System Some Basic Urban Economics
         Real Estate Market Analysis
    Topic 2: Basic Financial Economic Concepts and Tools (7, 8 & 9)
        Real Estate as an Investment
        Present Value Mathematics for Real Estate
        Measuring Investment Performance: The Concept of Returns
    Topic 3: Real Estate Valuation and Investment Analysis (10, 11 & 12)
        The Basic Idea: DCF and NPV
        Nuts and Bolts for Real Estate Valuation
        Advanced Micro-level Valuation
    Topic 4: Financing and Investment Analysis (13, 14 & 15)
        Use of Debt in Real Estate Investment
        After-Tax Investment Analysis and Corporate Real Estate
       Real Estate Investment Capital Structure
    Topic 5: Real Estate Investment(21, 22 & 23)
        Real Estate and Portfolio Theory
        Equilibrium Asset Valuation and Real Estate's Price of Risk in the Capital Market
        Real Estate Investment Trust (REITs)
    Topic 6: Real Estate Development (27, 28, & 29)
        Real Options and Land Value
        Investment Analysis of Real Estate Development Project

    Note: Reading may be varied during the semester. All .pdf files are uploaded to MyUni
  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    The assessment components are:
    1.One group assignment (worth 25% towards your final grade) that will be distributed during the seminar, date of submission to be agreed.
    2.One individual assignment (worth 15% towards your final grade) that will be distributed during the seminar, date of submission to be agreed.
    3.Group presentations and participations during seminar (worth 10% towards your final grade).
    4.One closed-book final exam worth 50% to your final grade.

    Legible hand-writing and the quality of English expression are considered to be integral parts of the assessment process. Marks may be deducted in all assessments because of poor hand-writing or English expression. Students in this course are not permitted to take a DICTIONARY (English or English-Foreign) into the examination. The use of calculators in the examination is permitted in this course. Academic Honesty Policy: http://www.adelaide.edu.au/policies/230/
    Assessment Detail

    No information currently available.

    Submission

    No information currently available.

    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

  • Student Feedback

    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.