12535 Property Investment and Development Feasibility

6cp; 8hrs x 4 days, 3hrs x 2 evenings, block mode
There are course requisites for this subject. See access conditions.
Postgraduate

Description

This is a core subject in the Master of Real Estate Investment and Master of Property Development programs.

The subject sets out why modelling and feasibility analysis is carried out, the logic behind the methodologies used. The subject gives an understanding of the base principles involved in carryout feasibilities and uses Excel spreadsheets for the creation of the analytical models, thereby giving students a solid foundation for potential future use of proprietary modelling programs.

The subject focuses on developing feasibility models for income-producing investments such as Retail, Office and Industrial properties, and property development projects mainly applying discounted cash flow (DCF) analysis. The subject also enables students to obtain DCF modelling skills valuing land acquisition, investment or development projects affected by changing conditions. The sensitivity factors that affect feasibility of property investment and development projects are discussed. Basic concepts on financial analysis, e.g., time value of money, rentals, and terminology such as CAPEX that relate to feasibility analysis are studied. Students' learning experiences include class engagement in discussion, DCF modelling practice in computer laboratory, online activities, group discussions and self-learning opportunities.

Knowledge and modelling skill learned from the subject can assist students in making decisions in real-life investment and development projects. Examples of subject contents include cash flows, time value of money, project returns, Net Present Value (NPV), Internal Rate of Return (IRR), rentals, Development and Operating costs and how those elements affect feasibility decisions.

Assessment is designed to assure students’ learning objectives are achieved upon completing the subject. Students are provided a real-life assignment aiming for them to understand the theory of DCF analysis, know to identify and source variables that are considered in investment and development projects, be able to interpret NPV and IRR results using DCF modelling skills. Students are tested on understanding of DCF principles and problem-solving ability in conducting feasibility analysis.

Typical availability

Autumn session, City campus
Spring session, City campus

Detailed subject description.

Access conditions

Note: The requisite information presented in this subject description covers only academic requisites. Full details of all enforced rules, covering both academic and admission requisites, are available at access conditions and My Student Admin.