Introduction
to the Module
The purpose of this module is to provide advanced training for
those with a background in property finance and funding. This
module explores the complex issues surrounding property finance
and funding. It aims to provide an understanding of the conditions
surrounding the provision and use of debt and equity in corporate
and project form at an advanced level. These themes are supported
by a case study approach and by computer analysis to explore the
quantitative analysis necessary to appreciate fully the risk/return
implications of different forms of finance.
Learning Aims and Objectives
The learning objective will be achieved by considering and defining
the various types and provision of property finance and funding.
In this context the concept of investment risk and return will
be considered.
The module will provide an overview of the current property finance
market for investment and development finance as well as the use
of finance techniques, the characteristics of the active players,
and the typical finance terms. Comparison of alternative approaches
applied across Europe and internationally will be included.
In this module you will consider:
· How to identify appropriate sources & types of finance
and funding
· The implications of leverage in a property investment
· The cash flow analysis of structured finance
· How the different forms of debt and finance affect investment
risk and return
· How to identify and measure the risks in a finance context
· The use of hedging techniques to limit interest and equity
risks
· Who are the principal lenders and what are the typical
finance terms
· The tax and accounting issues affecting property finance
Learning Outcomes
On completion of this module you will have an overview of the
current UK property finance market and you will be able to:
· Describe and define the various types of property finance
used by investors
· Appreciate the relative characteristics of debt &
equity and corporate & project finance
· Appreciate the impact of property finance on investment
risk and return
· Describe the risk-reduction techniques that can be applied
to property finance
· Explain the structuring of a finance arrangement
