20261 - REAL ESTATE FINANCE
CLMG - M - IM - MM - AFC - CLAPI - CLEFIN-FINANCE - CLELI - ACME - DES-ESS - EMIT
Department of Finance
Course taught in English
GIACOMO MORRI
Course Objectives
The course focuses on real estate market providing the students with the necessary tools in order to understand the tendencies of the different market segments (residential, office, commercial and industrial) and the various business models used by the main players (property companies, property management companies, developers, real estate funds).
The objective of the course is to provide the students with the basic principles of financial analysis, in order to allow them to evaluate the development, trading, financing and portfolio management operations, along with a clear understanding of the inner and outer critical factors relative to real estate market transactions.
After an introductory theoretical part needed to provide basic tools, the course includes many case studies, financial models for real estate and an analysis of the main transactions which have occurred in the few years.
Course Content Summary
- Real Estate Market and Players.
- Economic models: space & capital markets.
- Principles of Real Estate Investments & Financial Valuation.
- Real estate valuation & Feasibility study.
- Cap rate and Discount rate in the real estate.
- Real estate Financing.
- Real estate funds & REITs.
- Asset, Property and Facility Management.
- Property companies valuation and acquisition.
- Real estate indexes and performance valuation.
Detailed Description of Assessment Methods
For non attending students
Written exam on selected chapters.
For attending students
Both the evaluation of group assignments and a final written examination (multiple choice questions).
Textbooks
- D.M GELTNER, N.G MILLER, Commercial Real Estate Analysis & Investments, South Western, 2006, 2nd ed.
Slides, teaching notes, articles and case studies provided by teachers.
Prerequisites
Corporate finance and/or capital budgeting courses skills are strictly suggested.