| CODE | ISR5042 | ||||||
| TITLE | Investment Management and Development Appraisal (The Income Approach) | ||||||
| UM LEVEL | 05 - Postgraduate Modular Diploma or Degree Course | ||||||
| MQF LEVEL | 7 | ||||||
| ECTS CREDITS | 5 | ||||||
| DEPARTMENT | Insurance and Risk Management | ||||||
| DESCRIPTION | This study-unit will offer a more comprehensive exploration of appraisals within the property process. The discussion will centre on Commercial Real Estate (CRE) compared to specialized properties, trade-related assets, and investment properties. The study-unit will cover the income approach and fundamental financial concepts related to the income approach, such as the time value of money. The study-unit of study will cover the topic of cash flows as well as the CAP approach and discounted cash flow method. Training will encourage students to analyze the valuation of leasehold properties for both freeholders and leaseholders, considering factors such as perpetual and temporary leases, short and long durations, and fixed and variable profit rents. This study-unit will also discuss concepts like CAPM, WACC, EBITDA, GOP, FMOP, and revenue. The students will be able to focus on assessing the worth of enterprises and properties involved in trade. Study-Unit Aims: Fundamentally, the aim is to appraise property development within the assessment of the economic viability of real estate ventures. The process entails the examination of multiple aspects, including land costs, construction expenditures, financing alternatives, market circumstances, and possible earnings, in order to ascertain the feasibility and profitability of the development endeavor. The study unit aims to facilitate the prospective profitability of a project through the estimation of the prospective worth of the fully developed project and its subsequent comparison to the whole costs incurred in the acquisition and development of the property. The appraisal process will assist students in assessing the financial feasibility of a project and determining its alignment with their investment objectives. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: - Evaluate development properties, the development timeline and process; - Discuss the construction sector, its industry and market; - Explain the Cost approach; - Distinguish condition, D&O, maintenance, restoration and refurbishment, lifecycle costs, CapEx, depreciation allowance; - Explain the traditional residual method; - Analyse residual DCF and phased developments; - Explain development appraisal and development risk; - Distinguish between feasibility versus viability. 2. Skills: By the end of the study-unit the student will be able to: - Discuss the characteristics of development, including its properties, schedule, and procedural aspects. - Provide a concise overview of the construction sector, encompassing its industry dynamics and market conditions. - Explain the Cost approach, a method employed in valuation and appraisal processes to estimate the worth of a property based on its construction expenses. Main Text/s and any supplementary readings: Main Texts: - Isaac, D., O'Leary, J., Daley, M., (2016) Property Development: Appraisal and Finance, Red Globe Press Supplementary Readings: - Byrne, P. (1996) Risk, Uncertainty and Decision-Making in Property, Taylor and Francis. |
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| STUDY-UNIT TYPE | Lecture and Tutorial | ||||||
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
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