Description
Studying this module, you will focus on the speculative property developer, identified as one of the most significant clients.
It will demonstrate to you how property developers operate and then embrace strategic decision-making, land acquisition, raising finance, predicting demand and managing risk. You will learn how to undertake investment project financial appraisals, sensitivity analyses and scenarios.
The lecture and seminar titles you will attend are as follows:
- Introduction: Types of speculative developer including actors, roles and relationships in the development process. Simple methods of calculating investment returns and residual land valuations
- Project investment appraisal using net present value (NPV). Risk and uncertainty. Where do positive NPVs ‘come from’? Are property markets ‘efficient’?
- Required return under risk: market risk, Capital Asset Pricing Model (CAPM) and beta coefficient (beta).
- Managing risk and uncertainty: financial risk, unique risk and market risk.
- Group presentations; case studies of firms and projects.
Module deliveries for 2024/25 academic year
Last updated
This module description was last updated on 19th August 2024.
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