17133 Investment Property Valuation
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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 is designed to foster a deep understanding of theory and practice applied by industry to the analysis of investment and owner-occupied property, within non-residential property market sectors. Students develop a strong theoretical and practical understanding of the established industry-based analysis, informing key decisions relating to property investment value and performance measurement. Relevant primary property market sectors include the commercial, retail and industrial sectors.
Subject learning objectives (SLOs)
On successful completion of this subject, students should be able to:
| 1. | Identify the structure of non-residential leases |
|---|---|
| 2. | An understanding of the terminology of non-residential leases |
| 3. | An understanding of direct comparison and capitalisation valuation methodologies. |
| 4. | Have an understanding of discounted cash flow valuation methodology |
| 5. | Have an understanding of investment analysis techniques and approaches |
| 6. | Develop an understanding of investment property performance measurement and reporting |
Course intended learning outcomes (CILOs)
This subject also contributes to the following Course Intended Learning Outcomes:
- Demonstrate a comprehensive theoretical understanding of property valuation methodologies together with the capacity to prepare valuation assessments to a professional standard (P.1)
- Apply a comprehensive understanding of property market drivers and key risk analysis techniques applicable to contemporary industry based practice (P.3)
- Demonstrate a theoretical and practical understanding of built environment law and procedures in a variety of property-related contexts (P.4)
- Synthesise knowledge related to a wide spectrum of property and asset management issues to the analysis of practiced based property portfolio scenarios (P.6)
- Apply a comprehensive understanding of contemporary theory in the financial management and financing of property developments to professional practice (P.7)
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)
- Capitalisation valuation methodology
- Yield analysis (Initial, Equivalent & Reversionary)
- Lessee & Lessor Interests
- Capitalisation Adjustments
- Face & Effective Rental calculations
- Dual Rate valuation methodology
- Legal framework for non residential leases
- Commercial Rents & Rent Review mechanisms
- Critical Lease Provisions impacting value in investment grade property
- Constructing Tenancy & Outgoing Schedules
- Direct Comparison methodology applied to investment property
- Discounted Cash Flow methodology for investment property
- Investment Property Performance Measurement & Reporting.
Assessment
Assessment task 1: Quiz
| Intent: | The intent of the assessment is to assess students' understanding and application of principles covered in the structure and terminology of non-residential leases. |
|---|---|
| Objective(s): | This task addresses the following subject learning objectives: 1, 2 and 3 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.1, P.4 and P.6 |
| Type: | Quiz/test |
| Groupwork: | Individual |
| Weight: | 20% |
Assessment task 2: Case Study Assignment
| Intent: | This assessment seeks to help your understanding of the construction of a discounted cash flow valuation in Excel. You do not need to prepare a valuation report. |
|---|---|
| Objective(s): | This task addresses the following subject learning objectives: 1, 2 and 3 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.4, P.6 and P.7 |
| Type: | Report |
| Groupwork: | Individual |
| Weight: | 40% |
Assessment task 3: Final Test
| Intent: | The intent of this assessment is to measure on an individual basis the understanding of principles covered in the structure and terminology of non-residential leases, relevant valuation methods, investment analysis techniques and approaches and investment property performance measurement and reporting. |
|---|---|
| Objective(s): | This task addresses the following subject learning objectives: 1, 2, 3, 4, 5 and 6 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.1, P.3, P.4 and P.7 |
| Type: | Examination |
| Groupwork: | Individual |
| Weight: | 40% |
Minimum requirements
Students must achieve at least 50% of the subject’s total mark.