17128 Property Development Finance
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Credit points: 6 cp
Result type: Grade and marks
There are course requisites for this subject. See access conditions.
Description
This subject aims to develop problem-solving capabilities, and an understanding the basic finance theories and their practical application in property development, together with communication and client presentation skills. The subject covers the sources and types of finance available for various property developments; debt versus equity; specialised financing techniques including hybrids, long-term and offshore finance; project finance; and evaluation techniques and risk management. Students are involved in developing financing strategies for property development projects, building discounted cash flow (DCF) models for making financing decisions, and analysing risk using sensitivity and scenario analysis.
Subject learning objectives (SLOs)
On successful completion of this subject, students should be able to:
| 1. | Explain financial management and finance sources for major categories of property development projects. |
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| 2. | Critically assess the relationship between theory and practical application of financing strategies. |
| 3. | Apply discounted cash flow models to assist with financial design of property development projects. |
| 4. | Analyse and evaluate development risks. |
Course intended learning outcomes (CILOs)
This subject also contributes to the following Course Intended Learning Outcomes:
- Effectively apply a variety of communication skills and technologies in professional contexts (C.1)
- Apply a comprehensive understanding of contemporary theory in the financial management and financing of property developments to professional practice (P.7)
- Apply appropriate technical analytic skills to a professional standard (P.8)
- Demonstrate knowledge of research principles and methods applicable to property development (R.1)
Contribution to the development of graduate attributes
The term CAPRI is used for the five Design, Architecture and Building faculty graduate attribute categories where:
C = communication and groupwork
A = attitudes and values
P = practical and professional
R = research and critique
I = innovation and creativity.
Course intended learning outcomes (CILOs) are linked to these categories using codes (e.g. C-1, A-3, P-4, etc.).
Teaching and learning strategies
Online learning activities will continuously reinforce the learning content for students throughout each week. The emphasis is on "learning by doing," and undertaking practical tasks and discussion forums on the various topics within this subject. Zoom sessions will provide hands on guidance through the major assignments.
Content (topics)
- Sources and types of finance,
- managing conflicts in team decision,
- discounted cash flow model,
- cost of capital,
- capital structures,
- assessing risks using sensitivities and scenario techniques,
- joint ventures,
- option theory,
- derivatives,
- Real Estate Investment Trust (REIT) and
- Commercial Mortgage Backed Security (CMBS).
Assessment
Assessment task 1: Quiz
| Intent: | This assessment is designed for students to understand financial and real estate markets. | ||||||||||||
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| Objective(s): | This task addresses the following subject learning objectives: 1 and 2 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): P.7 and P.8 | ||||||||||||
| Type: | Quiz/test | ||||||||||||
| Groupwork: | Individual | ||||||||||||
| Weight: | 20% | ||||||||||||
| Criteria: | Assessment task one comprises of four online quizzes each worth 5%. | ||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Assessment task 2: Case Study Assignment
| Intent: | This assessment is designed for students to understand the use of leverage in development. | ||||||||||||||||
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| Objective(s): | This task addresses the following subject learning objectives: 2, 3 and 4 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): C.1, P.7 and R.1 | ||||||||||||||||
| Type: | Case study | ||||||||||||||||
| Groupwork: | Individual | ||||||||||||||||
| Weight: | 45% | ||||||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Assessment task 3: Final Test
| Intent: | This assessment item is designed for students to understand the mechanics of debt and the associated risks. | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Objective(s): | This task addresses the following subject learning objectives: 1, 2, 3 and 4 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): P.7 and P.8 | ||||||||||||||||||||
| Type: | Examination | ||||||||||||||||||||
| Groupwork: | Individual | ||||||||||||||||||||
| Weight: | 35% | ||||||||||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Minimum requirements
Students must achieve at least 50% of the subject’s total mark.