This course develops an understanding of the tools for assessing real estate investment opportunities at the micro-level paying attention to the characteristics that distinguish real estate from other assets. It covers the discounted cash flow models applied to evaluate financial feasibility for real estate investment. Specific techniques include developing cash flow proformas, ratio analyses and capitalization rate. The concept of leverage is also introduced in relation to cash flow projections.

It covers portfolio theory, risk analysis, WACC, CAPM, risk diversification roles of real estate, different asset classes, asset management, and international real estate investment strategies, performance measures and options.

This course applies contemporary economic thinking and research to explain real estate market fundamentals. It offers knowledge to appreciating demand and supply determinants of the property market. It analyses how this market interacts with other asset markets, capital markets, and the broader economy, using theory with empirical evidence. It also covers the workings of the urban economy vital to the vibrancy of real estate. The course provides an integrative framework for understanding and forecasting the forces that shape the price, rent, and return of space markets, investment asset markets, and real estate industries.

This course develops an understanding of the tools for assessing real estate investment opportunities at the macro or portfolio level, as well as the micro or asset level. It covers modern portfolio theory before examining the role of property in an institutional investment portfolio with particular attention given to property portfolio performance analysis, diversification benefits and investment strategy. Real estate asset management involves optimising the cash flows generated from real estate assets by a direct real estate owner, investor or an organisation which incidentally heads, owns or leases real estate to support its corporate mission. This course examines how direct real estate should be managed proactively to enhance property value or the worth of the business operations the property facilitates.

The course covers innovations in debt capital markets, mainly the design of mortgage contracts and the development of real estate securitisation and structured financing products globally. Students will acquire a toolkit that allows them to understand mortgage mathematics, term structure models and the pricing of embedded options in real estate debt instruments. The course also covers credit analysis and the role of credit rating for real estate debt. Emphasis will be placed on the investment characteristics and pricing of secondary real estate instruments such as Mortgage-Backed Securities (MBS), Collateralised Mortgage Obligations (CMOs), asset-backed securitisation deals, as well as publicly traded debt paper.