Course handbook MSc in Real Estate MSc in Real Estate ... · The MSc in Real Estate is a broadly-based course, which opens up a wide range of career paths. It combines modules in

September 2012

Course handbookMSc in Real EstateMSc in Real Estate Investment

Contents

Section 1 Course Directors’ Welcome ......................................................................... 1�

Section 2 Programme Information ............................................................................... 2�Programme Aims ..................................................................................................................... 2�Programme Structure ............................................................................................................... 3�Assessment Matrix ................................................................................................................... 4�Term Dates and Examination Periods ..................................................................................... 5�

Section 3 Module Descriptions .................................................................................... 6�Applied Valuation and Taxation ............................................................................................... 6�International Real Estate Markets ............................................................................................ 7�Investment Markets .................................................................................................................. 8�Landlord and Tenant Law ........................................................................................................ 9�Portfolio Risk Management .................................................................................................... 10�Property Valuation ................................................................................................................. 11�Quantitative Methods ............................................................................................................. 12�Quantitative Methods In Investment ...................................................................................... 13�Real Estate Asset Management ............................................................................................ 14�Real Estate Capital Markets .................................................................................................. 15�Real Estate Debt Markets ...................................................................................................... 16�Real Estate Development And Planning ................................................................................ 17�Real Estate Economics .......................................................................................................... 18�Real Estate Finance ............................................................................................................... 19�Real Estate Investment and Financial Analysis ..................................................................... 20�Real Estate Investment and Market Analysis ........................................................................ 21�Real Estate Modelling and Market Dynamics ........................................................................ 22�Business Research Project .................................................................................................... 23�Elective Information ............................................................................................................... 25�

Section 4 Regulations ................................................................................................ 26�Periods of Registration ........................................................................................................... 26�Degree Requirements ............................................................................................................ 26�Assessment Calculations ....................................................................................................... 26�Coursework ............................................................................................................................ 27�Failure and the Re-sitting of Modules .................................................................................... 27�Award of Distinction ............................................................................................................... 27�Award of Merit ........................................................................................................................ 28�Postgraduate Diploma ........................................................................................................... 28�Grade Related Criteria ........................................................................................................... 29�

Section 5 Additional Information ................................................................................ 30�MSc Course Office ................................................................................................................. 30�Moodle: Your Virtual Learning Environment .......................................................................... 30�Personal Tutors ...................................................................................................................... 31�Academic Staff Contact Details ............................................................................................. 31�The Royal Institution of Chartered Surveyors ........................................................................ 31�The Investment Property Forum ............................................................................................ 32�Real Estate Careers ............................................................................................................... 32

1

Section 1 Course Directors’ Welcome

From all the staff in the Real Estate Finance & Investment Group, welcome to Cass Business School and your Masters programme. We hope you will have an instructive and

enjoyable year with us.

You are joining more than 100 students from all over the world with a wide range of previous degrees, the majority with no knowledge of real estate. On graduation, most of you will be

looking to take the first steps on a career in the real estate industry. Our shared task is to

ensure that students from such varied backgrounds have the skills and the confidence they

need to succeed as real estate professionals.

This handbook summarises key information on the real estate Masters which you will need

through the year. You should note in particular the schedule for teaching and examinations

in Section 2, plus the guidelines on coursework and explanation of how your overall results will be built up in Section 3. For more general background, Section 5 tells you about the staff

who will be teaching on the courses and gives some initial comments about looking for jobs

in real estate.

Learning all you need to know to become an effective real estate professional in the space of one year is no easy task. Both our Masters degrees are designed to help you do that;

both are fully accredited by the Royal Institution of Chartered Surveyors (RICS) and highly

valued by employers. They are different in emphasis.

The MSc in Real Estate is a broadly-based course, which opens up a wide range of career

paths. It combines modules in the long-established real estate skills of valuation,

development and market analysis with a good grounding in quantitative analysis, finance and investment. Options in the second term cater for those who are aiming for graduate

entry into a firm of UK surveyors, and those intending to enter jobs overseas, or in other

branches of the industry such as fund management, development or banking. The MSc Real

Estate can be summarised as a real estate programme with good foundations in finance and investment

The MSc in Real Estate Investment has a different focus, which could be summarised as a

course in finance and investment which uses real estate as its subject matter. Alongside a good foundation in real estate skills, it provides a higher level of quantitative analysis and a

focus on financial markets in real estate – shares, debt securities and derivatives. It is

designed for students who aim at careers in those aspects of the industry which are found not only in banking and fund management but also among the traditional real estate

employers such as chartered surveyors and property companies.

On both degrees you will find a lot to learn. At first you may feel swamped with new concepts

and information. But over the course of the year - if you keep up with the lectures, reading and assignments - the pieces should fit together into a coherent picture. And we hope you

will find time to enjoy your time in London and at Cass alongside the hard work. If at any

time you think you have lost track of the aim of the courses, or you are struggling to keep up with the work, we will be happy to help.

George Herd, Course Director MSc Real Estate

Stephen Lee, Course Director MSc Real Estate Investment

2

Section 2 Programme Information

Programme Aims

Real estate – land and any structures on it – is big business. It accounts for around half of global wealth and the diverse activities associated with it – construction, building

management, leasing, trading, fund management, finance – together make up a larger

fraction of UK GDP than the manufacturing sector. So careers in the real estate industry take

many forms, and call up a wide range of skills. Some, the long-established real estate skills, focus on the management of buildings, brokerage of leases or investment sales, and asset

valuation. Over the last fifty years, investment in real estate has grown massively, and added

another set of real estate careers in fund management and finance. Most recently, the growth of mortgage backed securities, listed real estate firms and the introduction of

derivatives based on real estate indices has created a third layer of financial engineers and

traders who specialise in real financial markets.

A well-rounded real estate professional - even a specialist in one area - needs to be familiar with other aspects of the industry. Property valuers should consider the impact of global

capital flows on their market. To calculate risk, traders in mortgage-backed securities have to

assess the quality of the buildings and leases that underpin the loans.

This poses a challenge for real estate education. It has become impossible for any individual

to have in-depth understanding and skills in all aspects of modern real estate. Our Masters

programmes aim to produce graduates who would not claim to be specialists in everything in real estate, but are familiar enough with at least the concepts and methods used outside

their area of expertise to see the complete picture of the industry.

Both the MSc Real Estate and MSc Real Estate Investment, therefore, equip successful

students with:

• A thorough knowledge of the modern techniques applied to income flows, valuation

and appraisal in the real estate industry.

• Strong analytical skills in real estate, finance and investment and the ability to apply

those skills to practical questions.

• An understanding of the economic and financial context for real estate markets and

asset values.

Specific knowledge of real estate, finance and investment is coupled with general business skills including:

• Clear oral and written communication.

• The confident use of information technology.

• The ability to work effectively both individually and in groups.

The two Masters programmes, and options within the MSc Real Estate degree, offer differences in emphasis within the shared overall objectives:

3

• The MSc Real Estate emphasises core real estate skills, with sets of options

recommended for those intending to work as chartered surveyors in the UK or those intending to work in other areas of the industry or overseas.

• The focus of the MSc Real Estate Investment is on quantitative analytical skills

applied to real estate fund management and financial markets.

Programme Structure

MSc Real Estate

Term One • Real Estate Economics

• Quantitative Methods in Investment

• Real Estate Asset Management

• Property Valuation

Term Two • Real Estate Investment and Market Analysis

Plus three modules selected from:

• Applied Valuation and Taxation

• Landlord and Tenant Law

• International Real Estate Markets

• Real Estate Development and Planning

• Real Estate Finance

Term Three • Three Elective modules

• Business Research Project

MSc Real Estate Investment Term One

• Real Estate Economics

• Quantitative Methods

• Investment Markets

• Real Estate Investment and Financial Analysis

Term Two • Real Estate Capital Markets

• Real Estate Debt Markets

• Portfolio Risk Management

• Real Estate Modelling and Market Dynamics

Term Three • Three Elective modules

• Business Research Project

Please refer to the matrix on page four for related assessment weightings.

4

Assessment Matrix

Contact Hours Credits Weights of each part of assessment in module mark

Weights of each module in degree

total Coursework Exam

Core Modules

Term 1 Core 1 30 15 25% 75% 8.33%

Term 1 Core 2 30 15 25% 75% 8.33%

Term 1 Core 3 30 15 25% 75% 8.33%

Term 1 Core 4 30 15 25% 75% 8.33%

Total Term 1 120 60 33.33%

Term 2 Core 5 30 15 25% 75% 8.33%

Term 1 Core 6 30 15 25% 75% 8.33%

Term 1 Core 7 30 15 25% 75% 8.33%

Term 1 Core 8 30 15 25% 75% 8.33%

Total Term 2 120 60 33.33%

Total Core Modules 240 120 66.67%

Elective Modules

Elective One 18 10 100% 5.56%

Elective Two 18 10 100% 5.56%

Elective Three 18 10 100% 5.56%

Total Elective Modules 54 30 100% 16.67% Business Research Project 30 100% 16.67%

Degree Total 295 180 100%

ECTS equivalencies

Each MSc course is worth between 180 - 210 CAPS credits. As a general rule two CAPS

credits equal one ECTS credit. (For example, a course with 180 CAPS credits is worth 90

ECTS credits.)

*CAPS (Credit Accumulation of Programme Specification)

*ECTS (European Credit Transfer and Accumulation System)

Note: Coursework may take the form of an individual assignment, group assignment or invigilated test.

5

Term Dates and Examination Periods

Induction

16 – 28 September 2012

Term One

01 October – 07 December 2012

Term One Examinations

14 – 25 January 2013

Term Two

28 January – 12 April 2013

Term Two Examinations

29 April – 10 May 2013

Term Three

13 May – 28 June 2013

Term Three Assessments

01 – 12 July 2013

Re-sit Examinations and Assessments (terms one, two and three)

19 – 30 August 2013

Business Research Project Submission Date

02 September 2013

Students are expected to be in attendance at lectures and classes during term time, and to

attend all class tests and other courseworks which may fall during term time. Students should

not therefore make travel arrangements during term time. Any absence from any form of

assessment, which does not constitute valid extenuating circumstances, will result in the

student re-sitting the module as a second attempt

6

Section 3 Module Descriptions

Applied Valuation and Taxation SMM199

(MSc Real Estate)

Module leader Patrick Bond, Visiting Lecturer

Sessions 10 x 3 hour sessions

Assessment This module will be assessed bycoursework (25%) and an

examination (75%)

Educational aims

Property taxation and rates have a significant impact both on users of property and on

valuation and investment decisions. Surveyors need to be aware of these in order to advise

business people in order that they may make informed choices about property matters. This

module provides students with a thorough grounding in the various types of local and

national taxes affecting property and how these are incorporated in the valuation process

Learning outcomes

• Appreciate the reasons for the taxation of real estate.

• Demonstrate a working knowledge of the different forms of taxation and how they

affect property

• Apply different valuation methods to solve property valuation problems where issues

of taxation arise

• Appreciate the importance and contribution of the valuation surveyor both in relation

to advising clients on taxation issues and as an independent expert witness before

courts and tribunals

Syllabus

• Taxes: Capital Gains, Inheritance, Stamp Duty Land, Value Added Tax on property

• Valuations for Capital Gains Tax, Inheritance Tax and VAT

• Council Tax, Business Rates, rateable occupation and the hereditament

• Basis of assessment, the hypothetical tenancy and valuation dates

• Methods of valuation for rating

• The borderline between rating and council tax

• The appeals process for rating, empty property rates

Reading list

P.H. Bond & P.K Brown, Rating Valuation, Principles and Practice, 3rd Ed, Estates Gazette

2010

7

International Real Estate Markets SMM176

(MSc Real Estate)

Module leader Tony Key, Professor of Real Estate Economics



examination (75%)

Educational aims

The globalisation of real estate has lagged behind other asset classes. The last decade,

however, has seen a surge in new cross-border investment vehicles and capital flows.

International diversification is now a core strategy of real estate investors. A sound knowledge of international markets is therefore essential to an understanding of how

markets behave and a key aspect of the skills required by employers in the industry.

The module will integrate material from other elements of the course – on portfolio construction, real estate economics, and market analysis – into a framework for the

understanding of globalised real estate markets and add new material on the classification,

structure and performance of a range of national markets.

Learning outcomes

• Analyse the arguments for and against international real estate diversification

• Assess the investment potential of national real estate markets

• Apply portfolio optimisation techniques to international real estate data

• Apply presentation skills to the production and delivery of the investment prospectus

Syllabus

• The history of international real estate investment

• The case for global investment: diversification, opportunity set, home bias

• Currency risk and risk management in real estate

• International real estate market sizes, information, transparency, performance

• Accessing global real estate: direct and indirect, listed and unlisted vehicles

• Global real estate fund managers and funds

Initial reading list

Baum A. E. and Harzell D., Global Property Investment: Strategies, Structures, Decisions,

John Wiley & Sons, 2012

Hoesli, M., Lekander, J. and Witkiewicz, W., (2004) International evidence on real estate as

a portfolio diversifier, Journal of Real Estate Research, Vol. 26, pp. 161-206

8

Investment Markets SMM158

(MSc Real Estate Investment)

Module leader Professor David Blake, Professor of Finance



examination (75%)

Educational aims

This course aims to comprehensively examine the broad investment markets. It aims to

place into context the role of real estate as an investment asset by examining alternative investment vehicles. The module will examine asset valuation and the principles of portfolio

diversification across a wide variety of asset classes including: equities, fixed-income

securities, derivatives and the foreign exchange markets.

Learning outcomes

• Understand the principles of the efficient market hypothesis

• Understand the theoretical basis and application of Modern Portfolio Theory

• Understand equilibrium pricing models such as the Capital Asset Pricing Model and

Arbitrage Pricing Theory and understand their strengths and weaknesses

• Appreciate the workings, pricing and dynamics of the fixed income market

• Value derivative securities such as futures, forwards and options

Syllabus

• The efficient markets hypothesis and the predictability of equity returns

• Modern portfolio theory and asset pricing models

• Fixed income markets, bond pricing and the term structure of interest rates

• Foreign exchange markets and international investment

• Forward and futures

• Option markets and pricing

Reading LIST

David Blake (1999) Financial Market Analysis (2nd edition), John Wiley & Sons,

9

Landlord and Tenant Law SMM175

(MSc Real Estate)

Module leader Elliot Shatzberger, Visiting Lecturer

Sessions 10x 3 hour sessions


examination (75%)

Educational Aims The relationship between landlords and tenants is fundamental in the assessment of both

rents and capital values of property. This module explains how English law governs landlord

and tenant relationships and how law is taken into account in valuation. The module provides an in depth knowledge of the legislation and case law affecting the commercial and

residential property markets. It also enables students to apply this knowledge in theoretical

and real situations.

Learning Outcomes

• Be fully conversant with the main principles of landlord and tenant relationships

under common law, equity and statute

• Appreciate and understand the different points of view of both landlords and tenants

when dealing with real estate issues

• Show confidence in an ability to recognise, avoid or solve legal problems and to

communicate needs and wishes to lawyers

• Appreciate methods of resolving disputes apart from court action

• Demonstrate a sound knowledge of the legislation and case law affecting the

commercial and residential property markets

• Be able to apply legislation and case law to issues relating to landlord and tenant

relationships

Syllabus

• Easements, profits and covenants affecting land

• Creation and effect of leases in law and in equity; assignment and determination

• Covenants and terms commonly found in leases

• The law of landlord and tenant, remedies for landlord and tenant given breaches

• Statutory control of business and residential tenancies

Reading List Wilkie, M. Luxton, P. Morgan, J. & Cole, G. (2006) Landlord and Tenant Law, 5th Ed, Palgrave Macmillan

Garnier, S. (2008) A Practical Approach to Landlord and Tenant, 5th Ed, OUP, Blackstone

Press

Evans, D. (2004) The Law of Landlord and Tenant, Butterworths

Blackstones Statutes on Landlord and Tenant Law, latest edition

10

Portfolio Risk Management SMM194


Module leader Stephen Lee, Senior Lecturer in Real Estate Finance



examination (75%)

Educational aims

The aim of this module is to examine the management of private real estate portfolios. The

course will consider the investment strategies pursued by investors in real estate portfolio

management including: market analysis, asset management, regional & sector diversification and international investment.

Learning outcomes

• Understand techniques of index construction in real estate and the implications in relation to performance and risk measurement

• Understand the key issues in the management of real estate portfolios and the

asset’s role in a mixed asset framework

• Understand the primary issues involved in international investment and diversification both in real estate and in capital market assets

Syllabus

• Real Estate Market Analysis & Investment Strategies

• Application of Portfolio Theory to Real Estate

• Real Estate Portfolio Diversification

• Real Estate in a Mixed-Asset Portfolio

• Private Real Estate Funds

• International Investment & Diversification

• Alternative Asset Classes

Reading list

Brown, G. & Matysiak, G., (2000) Real Estate Investment, FT/Prentice Hall.

11

Property Valuation SMM173

(MSc Real Estate)

Module leader George Herd, Senior Lecturer

Sessions 10 x 3 hour sessions, plus tutorials

Assessment This module will be assessed bycoursework (25%) and an examination (75%)

Educational aims

This course aims to provide an overview of current valuation techniques commonly used and the legal background to both the valuation process and to the real estate markets generally.

The course will discuss and explain current UK valuation methodologies and examine legal

issues relevant to the valuation process.

Learning outcomes

• Appreciate the factors that underlie property values

• Be able to value a property based on current UK valuation standards

• Understand the different valuation approaches available

• Have an understanding of current landlord & tenant Law and how to apply it in the valuation process

• Understand the general principles of compulsory purchase legislation including the

assessment of compensation for land taken and disturbance

Syllabus

• Current UK valuation methodology

• The implications of taxation in valuation

• Landlord and Tenant Law

• Compulsory purchase

• Planning Law in outline

Reading list

Mackmin, Davies and Shapiro (2009)Modern Methods of Valuation of Land, Houses & Buildings (10

th ed), Estates Gazette.

Hayward (2008), Valuation: Principles into Practice, Estates Gazette

Millington (2001). An Introduction to Property Valuation. Estates Gazette.

Baum & Crosby, (2007) Property Investment Appraisal, Routledge.

12

Quantitative Methods SMM196


Module leader Dr Fotis Mouzakis, Lecturer



examination (75%)

Educational aims

This module introduces contemporary statistical techniques with a focus on applied real

estate research. The module seeks to introduce techniques and concepts within the context of tenant market and investment portfolio research. The techniques learnt in this module will

be applied and expanded on in other modules.

Learning outcomes

• Understand the application and the use of contemporary research methods applied to real estate data

• Be introduced to multivariate econometric analysis

• Gain experience in the application of these methods on real estate topics

• Be able to evaluate the outcome of empirical analysis in applied research

Syllabus

• Introduction to regression analysis

• Multivariate regression analysis fundamentals and testing

• Relaxing the assumptions of the classical model

• Heteroscedasticity

• Autocorrelation

• Model specification and testing

• Structural instability and measurement errors

• Dynamic econometric models

• Simultaneous equation models

• Non-stationarity and co-integration

Reading list

Salvatore, D. (1982) Schaum's Outlines - Statistics and Econometrics, McGraw-Hill

13

Quantitative Methods In Investment SMM679

(MSc Real Estate)

Module leader Dr. Mark Andrew, Senior Lecturer in Finance


Assessment This module will be assessed byan invigilated test(25%) and

an examination (75%)

Educational aims

This module introduces students to the basic concepts of quantitative and statistical

techniques. The techniques learnt in this module will be applied and expanded on in othermodules.

Learning outcomes

• Be familiar with the main quantitative techniques and statistics used in analysing real

estate markets

• Be able to construct and use appropriate indices in analysis

• Understand and be able to describe data descriptively

• Understand and be able to use statistical theory to make inferences from samples

• Be able to analyse a variable whose value changes over time

• Be able to look at casual and non-casual relationships between variables

Syllabus

• Data Transformations: percentage changes; levels; indexation; real and nominal

terms

• Descriptive Statistics: presenting and summarising data

• Inferential Statistics: probability, probability distributions, expected values, estimation,

hypothesis testing, correlation and covariance

• Time Series analysis: components; de-trending series

• Regression Analysis: simple regression, multiple regression

Reading list

Hill R.C., Griffiths W.E. & Judge G. (2001) Undergraduate Econometrics, 2nd Edition, Wiley.

14

Real Estate Asset Management SMM191

(MSc Real Estate)


Sessions 10 x 3 hourly sessions

Assessment This module will be assessed byan invigilated test(25%) and

an examination (75%)

Educational aims

The aim of this module is to provide a comprehensive coverage of the management of real

estate as an asset. While the course will examine many aspects of asset management from a portfolio perspective it will also examine other issues. The course will look at the asset

management of properties and how investors can add value. It will also examine real

estate’s role from the perspective of a corporate occupier.

Learning outcomes

• Understand the relationships between corporate strategy and real estate

• Understand the techniques of asset management

• Gain an appreciation of the role of property in the corporate sector

• Have a broad understanding of the perspectives and functions of property asset management

Syllabus

• Adding asset value

• Extracting asset value

• Relocation case study

• Current issues in asset management

Reading list

Haynes B and Nunnington N, (2009) Corporate Real Estate Asset Management: Strategyand Implementation, EG Books

Edwards V and Ellision L, (2003) Corporate Property Management: Aligning Real Estate withBusiness Strategy, Blackwell

Cooke H and Woodhead S, (2007) Corporate Occupier’s Handbook, EG Books

15

Real Estate Capital Markets SMM188


Module leader Tony Key, Professor Real Estate Economics: Lecturers Alex

Moss, Consilia Capital; Simon Martin, Tristan Capital Partners;

Nick Motson, Lecturer in Finance


Assessment This module will be assessed by coursework(25%) and an

examination (75%)

Educational aims

The course aims to provide comprehensive coverage of the real estate capital markets. The

module will not only provide details on the structure of these securities and markets but also

examine how they can be used in the context of issues such as real estate portfolio construction & asset allocation, hedging and financing. The course will also highlight the

different characteristics of many of these securities to those commonly traded in the

investment markets. This is particularly the case with Real Estate Investment Trusts (REITs)

where the contrast with the standard corporate structure, with respect to both corporate finance issues and investment behaviour, will be highlighted.

Learning outcomes

• Be aware of the alternative means of investing in real estate and the different characteristics of these securities and vehicles

• Appreciate the differences in relation to corporate finance issues of REITs and

conventional corporate vehicles

• Understand the investment dynamics of the traded real estate security sector

• Appreciate the potential uses in a portfolio context of real estate derivatives.

Syllabus

• Introduction to real estate equity vehicles

• Background to real estate investment trusts

• REITs and corporate finance

• Market dynamics and investment performance of traded real estate vehicles

• Real estate derivatives

• Introduction to the securitised debt markets


Chan, Erickson & Wang, (2002) Real Estate Investment Trusts. Oxford University Press

Fabozzi, F (2005) The Handbook of Mortgage Backed Securities. McGraw-Hill

16

Real Estate Debt Markets SMM177


Module leader Fotis Mouzakis, Lecturer



examination (75%)

Educational aims Recent years have seen a large rise in the used of debt finance in the sector, plus a rapid

evolution in the use of debt securitisation in the form of mortgage backed securities and other instruments. An understanding of the role of debt in the real estate market, in the

financing of funds and individual projects is therefore a core skill for investment

professionals.The module will equip students with knowledge of debt instruments, risk

mitigation techniques, and debt securitisation used in the financing of real estate, and the structuring of debt instruments as investment products.

Learning outcomes

• Understand the financial principles underlying debt financing.

• Understand how debt can be packaged into securitised products.

• Understand the pricing and risk rating of securitised debt products.

• Apply interest risk management techniques to real estate debt financing.

• Construct robust models of cash flows from securitised debt pools.

Syllabus

• Introduction to real estate financing

• Interest rate hedging and derivatives

• Analysis and modelling of the yield curve

• Commercial Mortgage Backed Securities (CMBS)

• The structuring, pricing and risk rating of CMBS pools

• Real estate security debt and bonds

• Collateralised Mortgage Backed Obligations

• Credit derivatives

• Credit risk modelling


Fabozzi, F. 2006 The handbook of mortgage backed securities, 6th 3d, McGraw-Hill.

17

Real Estate Development And Planning SMM179

(MSc Real Estate)

Module leader Bill Rodney, Senior Lecturer



examination (75%)

Educational aims This module is intended to provide students with an understanding of the major elements of

the real estate development process and how these components can be integrated to create viable and successful projects. The module will provide the student with the fundamentals of

how to analyse, develop and operate a range of real estate development projects.

Module material, lectures and cases concentrate on the identification and evaluation of the

critical assumptions and issues related to feasibility, financial feasibility, planning, acquisition, construction and operation of economically viable commercial real estate

projects; the development process and a comparison of the risks and the financing issues

associated with properties in development versus existing properties.

Learning outcomes

• Carry out quantitative appraisal and risk analysis of real estate projects.

• Understand equity and debt finance techniques and their application to property

development.

• Appreciate various technical and analytical approaches involved in appraisal of major

capital projects.

• Critically evaluate the factors that influence development decisions.

Syllabus

• Stages in the Development Process

• Development cycles

• Appraisal techniques from the basics to cash flows with finance

• Application of planning / zoning regulation and building control

• The rationale and techniques of development and redevelopment

• Financing development through debt and equity

Reading list

Cadman, D. Wilkinson, S. and Reed, R. (2008) Property Development, 5th Ed., Routledge

Isaac, D. (1996) Property Development Appraisal and Finance, Macmillan

Miles M, Berens, G and Weiss, M (2000) Real Estate Development: Principles and Process,

3rd Ed., Urban Land Institute

18

Real Estate Economics SMM174

(Msc Real Estate and Msc Real Estate Investment)

Module leader Professor Tony Key, Professor of Real Estate Economics



examination (75%).

Educational aims

The object of the module is to introduce students to the basic principles of economics, and the primary ways in which those principles are useful in the analysis of real estate

performance and real estate markets. Particular attention will be paid to the impacts of

changes in the economy on rental values, development activity, and real estate returns.

Throughout the principles examined will be applied to real-world illustrations of real estate trends, cycles and market structure.

Learning outcomes

• Understand the key principles of macro-economics and micro-economics

• Apply general economic principles to the analysis of real estate markets

• Understand core concepts of the real estate cycle, the allocation of land between

uses

Syllabus

• Basic micro economics, utility and household consumption, theory of the firm

• Introductory macro-economics: national accounts and the flow of income

• Keynesian and monetary approaches to analysis and policy

• Economic and real estate: occupier, investment and development markets

• Business cycles, cobweb theory and real estate cycles, fundamentals of forecasting

• The determination of rent, relationships between land rents and building rents

• Introduction to the economics of location, bid-rents and land allocation

• Public intervention in real estate markets

Reading list

Sloman, J. (2003), Essentials of Economics (3rd ed), Financial Times / Prentice Hall

Jowsey, E., and Harvey, J. (2003), Urban Land Economics (6th ed), Palgrave Macmillan

Ball, M., Lizieri, C., and MacGregor, B. (1998), The Economics of Commercial Property Markets, Routledge

19

Real Estate Finance SMM192

(MSc Real Estate)

Module leader Bill Rodney, Senior Lecturer



examination (75%).

Educational aims

The aim of the module is to enable the student to develop an appreciation of the various

techniques available in commercial real estate finance, to identify the different sources, both of dept and equity finance and to examine how risk and reward can be shared.

Learning outcomes

• Have an overview of the current commercial real estate finance market

• Understand, analyse and compare alternative commercial real estate funding techniques

• Select appropriate types of provider of commercial real estate finance

Syllabus

• The sources and supply of commercial real estate finance

• Alternative techniques of funding and finance, together with their implications for risk

and return

• Direct and indirect methods of funding

• Risk limitation instruments

• Financial partnership and joint ventures

Reading list

Isaac, D., (1998) Property Finance, Macmillan

Brown, G. & Matysiak, G., (2000) Real Estate Investment A Capital Market Approach, FT/Prentice Hall

20

Real Estate Investment and Financial Analysis SMM197





examination (75%).

Educational aims

The module will equip students with the knowledge of information sources, financial theory,

and modern appraisal techniques which underpin the appraisal and financing of real estate assets, with an emphasis on the practical modelling methods which constitute global best

practice in these fields. The module covers a core set of skills for the analysis of real estate

investments essential to an understanding of market behaviour plus the practices of asset

pricing and development in the industry. It comprises two main elements.

First is investment appraisal. Here the focus is on the adaptation of standard discounted

cash flow methods to real estate valuation and investment appraisal. Special emphasis is

put on the linkages between discounted cash flow methods and conventional methods based on capitalisation rates, the use of risk assessment tools such as sensitivity testing,

and the practical construction of appraisal models in Excel.

Second are the methods of financing real estate investments and development projects. This

element of the module provides the theoretical and practical background of equity and debt finance, including optimum capital structure comprising equity, senior and mezzanine debt.

Earning outcomes

• Understand the basis of discounted cash flow methods of investment appraisal

• Critically assess the robustness of assumptions used in appraisals, and the impact of

risk on appraisal results

Syllabus

• Financial mathematics, compounding, discounting and real estate cash flows

• Real estate appraisal by discounted cash flow methods

• Reconciliation of discounted cash flow and conventional appraisal methods

• Risk assessment, scenarios and sensitivity testing in appraisals

• The treatment of taxation, depreciation and leverage in appraisals

• The principles of equity and debt finance and their application to real estate

• Senior and mezzanine debt and optimum capital structure

Reading list

Baum, A., and Crosby, N. (2007), Property Investment Appraisal (3rd ed), Wiley-Blackwell

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Real Estate Investment and Market Analysis SMM195

(MSc Real Estate Investment) Module leader Tony Key, Professor of Real Estate Economics


Assessment This module will be assessed bycoursework(25%) and an

examination (75%).

Educational aims The module will equip students with the knowledge of information sources, market analysis

methods and modern appraisal techniques which underpin the valuation and investment appraisal of real estate assets, with an emphasis on the practical modelling methods which

constitute global best practice in these fields.

The investment appraisal element of the module focuses on the adaptation of standard

discounted cash flow methods to real estate. Special emphasis is put on the linkages between conventional and discounted cash flow methods and the practical construction of

appraisal models in Excel.

The second element of the module covers the acquisition and analysis of the market evidence needed to generate real estate appraisals. This includes the use of market

indicators to evaluate market pricing and investment potential, plus the theoretical and

practical background of trend analysis and forecasting methods.

Learning outcomes

• Understand the basis of conventional and discounted cash flow methods of

investment appraisal

• Critically assess the impact of risk on appraisal results

• Construct cash flow models for real estate assets and apply risk assessments to those models

• Compile and critically review analyses of real estate markets

Syllabus

• Financial mathematics, compounding, discounting and real estate cash flows

• Real estate appraisal by conventional and discounted cash flow methods

• Risk assessment, scenarios and sensitivity testing in appraisals

• The treatment of taxation, depreciation and leverage in appraisals

• Data sources and standard techniques in real estate market analysis

• Statistical techniques for trend analysis and basic forecasting models

Reading list Baum, A. & Crosby, N., (2007) Property Investment Appraisal (3rd ed), Routledge

Fraser, W. D., (2004) Cash-flow Appraisal for Property Investment, Palgrave-Macmillan

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Real Estate Modelling and Market Dynamics SMM190


Module leader Professor George Matysak, Henley-Reading Business School



examination (75%).

Educational aims

This is an applied econometric modelling course. It aims to provide students with

comprehensive coverage of the application of alternative modelling techniques. The course

examines modelling issues across the range of real estate related assets and markets. The course aims to illustrate the challenges in modelling such markets due to factors such as

data limitations. The module will contain a mixture of theoretical constructs and the

application of these in an applied econometric setting.

Learning outcomes

• Be comfortable with both the quantitative methods used in the course and their

application in a real estate context

• Appreciate the linkages between the theoretical background of real estate economics and applied modelling

• Have an in-depth appreciation of the techniques available in the modelling of market

behaviour in the private real estate market

• Have an understanding of simulation approaches and their uses

Syllabus

• Modelling real estate cycles

• Simultaneous equation models

• Rent adjustment models

• Vector autogressive models

• Regime switching and structural breaks

• Introduction to panel modelling

• Modelling housing markets

• Simulation: historical, bootstrapping and Monte Carlo

Reading list

The material for the course will be given in lectures, drawn from key journal papers on

econometric and quantitative modelling of real estate markets.

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Business Research Project SMM800

(MSc Real Estate and MSc Real Estate Investment)

Module leader A project supervisor will be allocated.


This is an individual project which students will develop in their

own time with support from their project supervisor.

Assessment Coursework 100% Delivery of the final project, indicative length: 8,000 words

Educational aims

• To train students to undertake individual research and provide them with an opportunity to specialise in a contemporary business or finance topic related to their

future career aspirations.

• To integrate and apply concepts from different aspects of their MSc.

Learning outcomes

On completing the project students will be able to:

• Identify specific business or finance related issues which would be useful to research

and shape an achievable research question around them.

• Develop a research question and plan and carry out a research programme to

address the question.

• Understand the theories and recent research relating to the project topic.

• Understand how to apply research methodologies to practical business and commercial issues.

• Show confidence in overcoming problems raised in the course of a practical research

project.

• Accept the challenge of carrying out a piece of research with elements of originality.

Project requirements

The choice of project is your responsibility. It is most important that you choose an area you are happy to work in, and in which you are confident of your abilities.

Students are encouraged to start thinking about project ideas at the beginning of their studies. By the end of the first term you will have gained sufficient knowledge to start to

develop ideas that can be discussed with faculty. We expect you to identify the basic idea or

research question, though this is likely to be modified after discussion with academic staff.

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Make effective use of the RPMS module. This module can be used to help to formulate your

ideas and design an appropriate methodology. It can also help you develop a specific project topic – the greater clarity you have about the topic of your project the more

successful it is likely to be.

The types of project allowed are:

What you can do. What you can’t do

• Business report on a contemporary

issue

• Business plan

• Statistical test of literature driven

hypothesis

• Empirical feasibility of a financial

strategy

• Development of a new product/

service / finance strategy

• Market survey

• Case study on a specific issue within

a particular company / organisation

• Numerical project that describes and

implements one or more numerical

methods for pricing, hedging or reserving for derivatives or portfolios.

• Pure literature surveys

• Some evidence that the writer has

learnt a new subject, a sort of extra elective

• A synthesis of other writing or a piece

of journalism

• A mere compendium of facts and statistics

• Projects totally unrelated to relevant

academic discipline and literature.

Reading lists

Student research and reading list will be defined by the subject matter of the project.

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Elective Information

Cass Business School provides an extensive range of elective modules for the different MSc

programmes. A special elective handbook, regarding your term three selection of modules,

will be distributed in the second term and will provide further information.

Electives which have previously been provided by MSc Real Estate and MSc Real Estate

Investment include:

• Real Estate Securitisation

• Residential Markets

• Professionalism

• Building Project Management and Procurement

Apart from those electives students will also be able to choose from preselected modules

offered by other MSc programmes. In the past these have included:

• Project Finance

• Corporate Restructuring

• Consulting Skills

Please note the School reserves the right to withdraw an elective if demand is insufficient and to add new electives if they are available. Space restrictions and timetable availability

may also affect the availability of electives.

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Section 4 Regulations

Described below are the rules governing the award of a MSc in Real Estate and MSc in Real

Estate Investment. For further information, the City University’s complete set of “Ordinances

and Regulations”, including the Assessment Regulations (Regulation 19) are published on

the University’s website http://www.city.ac.uk/about/education/academic-services/senate-

regulations

Periods of Registration

The periods allowed for completion of the qualifications are:

• Four years for a masters degree, full or part time

• Two years for a postgraduate diploma, full or part time

Degree Requirements

To qualify for a Masters degree a candidate must achieve at least 50% as an aggregate

mark for each module and an overall degree average mark of 50%. This will result in the

acquisition of 180 credits, which is the number required to achieve a master’s degree in Real Estate or Real Estate Investment.

Assessment Calculations

The rules governing calculation of module and overall degree marks are as follows;

• To receive credits for a MSc all modules must be passed

• There are no minimum mark requirements for separate assessment components (unless specifically stated). However, it is compulsory to complete all components and no module

mark can be awarded until these are completed.

• A module mark is calculated by aggregating marks for all assessment components as

stated in the module outline (section three).

• Where modules are assessed by both exam and coursework, these are weighted to

calculate the module mark. Please see the assessment matrix in section two for the

relative weightings.

• Where there are several pieces of coursework, the coursework results are calculated according to the relevant weightings.

• To calculate the overall degree mark, module marks are combined using weightings in

line with the relative credit value of each module.

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Coursework

All coursework and invigilated tests are compulsory and count towards the final degree. In

some modules presentations or invigilated tests may replace written coursework

assignments.

Some subjects may be assessed by coursework only. Precise details concerning examined

and non examined modules are provided in the module outlines.

Please note coursework is required to be submitted for assessment by the specified deadline date. Late coursework will receive imposed penalties. Late coursework will

immediately receive a deduction of five marks on the first day of lateness, with one further

mark deducted for each day of lateness, for a maximum of five days. After this point coursework will not be accepted and a mark of zero will be awarded.

All coursework should be submitted electronically via the virtual learning environment,

Moodle.It is essential that you keep a copy of all coursework submitted.

All sources used should be cited using the Harvard referencing system. Further information about this can be found on the Cass website:

http://www.cass.city.ac.uk/intranet/student/learning-resource-centre/citing-references

Coursework will be returned to students as quickly as possible with the aim of students receiving feedback within three to four weeks of their submission

Failure and the Resitting of Modules

• Any module with an aggregate mark of less than 50% is deemed to have been failed and

will have to be re-sat.

• To re-sit a failed module, a candidate must re-do all assessment components which gained marks of less than 50%.

• Candidates may re-sit a module only once.

• A candidate who successfully completes a re-sit will be awarded the credits for the

module. The mark awarded for the components will be capped at 50%. The mark awarded for other components will be the original mark. This mark will also be used in

calculating the overall degree mark

• A candidate who does not pass his or her re-sit by the date specified by the Assessment

Board will not progress on the programme and the Assessment Board will normally make a recommendation that they withdraw.

Award of Distinction

To calculate the overall degree mark all module marks are combined using the weighting in

the assessment matrix table. The award of distinction for the masters is based on:

• An overall degree mark of at least 70% with no modules failed at first attempt.

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Award of Merit

To calculate the overall degree mark all module marks are combined using the weighting in

the assessment matrix table. The award of merit for the masters is based on:

• An overall degree mark between 65% - 69.9% inclusive and no modules failed at first attempt

• Or an overall degree mark of 70% or more and one module failed at first attempt

Postgraduate Diploma

A student who has not accumulated enough credits to be awarded a masters degree may be

awarded a postgraduate diploma provided they have satisfied the following conditions:

• The total number of credits gained is equal to or greater than the minimum credits

stipulated in the programme specification for the award of a diploma.

For the award of a diploma a student may compensate a maximum of twenty core or core

elective credits provided the following conditions are met:

• The mark achieved for the module(s) to be compensated is at least 40%.

• The average mark of all modules to be counted towards the diploma, including those

modules to be compensated, is at least 50%.

Note that:

• The diploma average will be calculated in the same way as the masters average as

specified in the programme specification.

• The award of distinction and merit will also be calculated in the same way for the masters

degree, as specified in the programme specification.

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Grade Related Criteria

Class % Literary Knowledge Independent thought,

uses of sources and research materials

Presentation Professional

Dis

tinct

ion

85-

100

A Outstanding Comprehensive and

informative knowledge of

subject area, may include

new knowledge derived

from which the marker and

wider community may

learn; addresses the

learning outcomes/

assessment criteria in full

Where relevant,

evidence of independent

reading, thinking and

analysis and strong

critical ability

Well-constructed Professional

approach to

academic practice;

professional

standard generally 80-

84

Excellent

75-

79

Very good Sophisticated or strong -

shows knowledge of

complex issues or a broad

range of issues and

addresses the learning

outcomes/assessment

criteria well.

Where relevant, show

evidence of wide and

comprehensive reading

and critical ability

Clearly written Adhere to the

principles of good

academic practice

70-

74

Mer

it

65-

69

B Good Sound knowledge of a

broad range of issues or

detailed knowledge of a

smaller number of issues;

makes a good attempt to

address the learning

outcomes/assessment

criteria, realising all to

some extent and some

well

Evidence of thorough

research of the topic(s)

but some answers may

not be complete or

arguments sufficiently

explored. Some critical

ability will be evident.

Well-structured

and logically

written

Demonstrate good

academic practice

Pass

50-

64

C Satisfactory Adequate knowledge of

important issues – some

level of response to all

learning

outcomes/assessment

criteria but may not include

important elements or

information that is fully

accurate.

Where relevant,

development of ideas is

limited but attempts will

be made to analyse

materials critically

Expression and

structure may

lack clarity

Evidence of good

academic practice

will be limited

Fail

(0%

-49%

)

41-

49

D Poor Unsatisfactory work -

inadequate knowledge of

the important issues and

doesn’t succeed in

grasping key issues,

therefore learning

outcomes/ assessment

criteria will not be realised

No real development of

ideas and critical

analysis will be very

limited.

Presentation is

confused or

incoherent

General ignorance of

good academic

practice may be

evident

20-

40

E Very poor Knowledge is lacking

either through omission,

the inclusion of large

amounts of irrelevant

information or evidence of

significant

misunderstanding - totally

inadequate attempt to

address the learning

outcomes/ assessment

criteria

No critical ability will be

displayed

Confused,

incoherent or

unstructured

presentation

Ignorance of good

academic practice

will be evident

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Section 5 Additional Information

MSc Course Office

The MSc course office is here to support both staff and students and each MSc course has its own dedicated Course Officer that you will get to know over the course of your time here

at Cass. The Course Office team will provide you with course-related information, material

and your grades, advice relating to other areas of City University and support throughout the

duration of your studies.

Location

The course office is located on the 3rd floor of Cass Business School, 106 Bunhill Row,

London EC1Y 8TZ

You can contact the course office team either in person at the office, by email, telephone or

via Moodle, our virtual learning environment.

The MSc Real Estate and MSc Real Estate Investment Course Officer is Zoe Own and can

be contacted directly via telephone 020 7040 8211 or by email [email protected]

Office Opening Hours

During term time the course office is open to students:

Monday 1300 – 1830

Tuesday 1300 – 2000

Wednesday 1300 – 1830

Thursday 1300 – 2000

Friday 1030 – 1530

Outside of term time the course office is open to students:

Monday to Thursday 1300 – 1700

Friday 1030 – 1530

Moodle: Your Virtual Learning Environment

Moodle is the virtual learning environment used at City University and it provides a wide

variety of information and interactive environments to students, including the following:

• Module material and supplementary learning documents, including areas for the

submission of coursework and the release of coursework results.

• Timetables, including teaching and examination.

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• Specialist Masters, MSc specific and module pages providing information relating to each

area with supporting documents and forums.

• Links to the Learning Resource Centre, Careers, Student Advice and Clubs and

Societies.

Students are responsible for checking their Moodle pages and their City email account

regularly. This is how all information, including changes to teaching, is communicated. Course Officers manage the communications sent to students via Moodle and all

administrative enquiries should be directed to them for assistance.

Personal Tutors

Postgraduate Taught students are assigned a personal tutor at the beginning of the year.

This personal tutor will be available to provide general academic, professional and pastoral support and will also ensure students are aware of the additional and more specialised

support mechanisms available within the University.

Students should have the opportunity to see their personal tutor at least once a term; however it is the student’s responsibility to contact their personal tutor to make an

appointment.

The Course Office team is also here to assist should you need any support during the

course of your studies.

Academic Staff Contact Details

In addition to their main teaching responsibilities academics also engage in research,

administration and external work. As a result staff members may not be able to see you

without an appointment.

If the matter is non-urgent please make an appointment or make use of the office hours

many academics hold. If the matter is urgent please make this clear when contacting the

member of staff to request an appointment.

Lecturer’s contact details and office hours can be found on Moodle.

The Royal Institution of Chartered Surveyors

Both the MSc Real Estate and MSc Real Estate Investment are fully accredited by The

Royal Institution of Chartered Surveyors (RICS), which is the professional body for the real

estate industry. The RICS now has very active branches in many other countries, and RICS

membership is recognised globally as a high quality professional qualification.

The course accreditation means that students completing their Masters degree may apply to

become full Members of the RICS. Full membership of the RICS is awarded on passing an

Assessment of Professional Competence (APC). This can be taken after two years' practical experience and takes the form of a diary or work done during that period, a project

submission and an assessment panel. The two year period starts shortly after the award of

the Masters degree. Students intending to follow this route should make sure they are up to date with requirements for the APC, available from www.rics.org/apc or 020 222 7000.

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While you are studying for your Masters degree you are strongly advised to become a

student member of the Institution. This has benefits including invitations to events through the year and access to the RICS library. An RICS representative will give more information

on membership and application forms, during in the Induction period.

The Investment Property Forum

The Investment Property Forum recognises the MSc Real Estate Investment as providing

relevant skills necessary for those operating in the property investment market.

Under this arrangement graduates of the course will be offered membership of the Forum,

subject to the requirement that the graduate should have a minimum of two years relevant

work experience in the property industry. Graduates who meet the above criteria will be invited to join the IPF. Applicants will be expected to fill in an IPF application form, and will

need proof of their relevant work experience and their successful graduation from this

programme.

Real Estate Careers

You should be starting to think about your career objectives when you start the course. Many of the major employers of new graduates set deadlines for applications before the end of

December and complete their recruitment by March. And an idea of the type of job you want

to get will help to shape your choice of topics for the Business Research Project and Elective

modules.

The Cass Careers Service is there to help with information on employers, writing

applications, and preparing for interviews. The strong reputation of Cass real estate

graduates means that many of the major employers among surveying and financial firms will hold information sessions on recruitment at Cass or at their own offices, most of them in the

first term. A careers fair for real estate employers will also be held during the induction

period. Details of all these events specific to real estate will be e-mailed to you. There are also many potential employers of real estate graduates in other major sectors – such as

banks and management consultants. The leading firms in these sectors will also be visiting

Cass as for careers sessions organised for other programmes, so you should attend events

for any employers you are targeting.

Cass will provide you with a lot of support in looking for employment, but cannot get a job for

you. There are many potential employers you will have to seek out yourself, especially

smaller firms who do not have regular graduate entry programmes, nor visit Cass. The market remains very competitive, and there is a lot you can do to make the right choice and

to increase your chances of a successful application. You should, for example, use the

websites of firms to research what they do, keep up with the job advertisements in Estates Gazette, Property Week and Wednesday’s Financial Times, and take the opportunity to

meet up with Cass alumni at events through the year.

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Cass Business School 106 Bunhill Row London EC1Y 8TZ T: +44 (0)20 7040 8600 www.cass.city.ac.uk/masters

Documents

Course handbook MSc in Real Estate MSc in Real Estate ... · The MSc in Real Estate is a broadly-based course, which opens up a wide range of career paths. It combines modules in