AI2147 Commercial Real Estate Investments 7.5 credits
This course has been discontinued.
Last planned examination: Spring 2016
Decision to discontinue this course:
No information inserted
Content and learning outcomes
Course contents
Real estate investment evaluation process; Market analysis; Real estate as an asset class; Measuring Real estate returns; Cash flow proformas and discount rates; Financial leverage in real estate; Alternative sources of financial and non-financial resources; After-tax investment analysis; Real estate investment capital structure; Real options and land value; Real estate development investment analysis; Excel modelling of real estate investments.
Intended learning outcomes
The overall aim of this course is to provide students with good working and theoretical knowledge of the art and science of commercial real estate investment decisions. Students should after this course be able evalute investments of existing income-producing commercial properties, as well as how to analyze real estate development projects and investments in land.
By the end of this course, students should be able to answer and analyze questions like:
- What investments should the investor make (the investor’s investment decision)?
- How do investors determine the price they are willing to pay for a commercial property (estimating the investment value)?
- How should the investors finance the real estate investment (The financing decision)?
- How should a good investment evaluation report be structured?
Students should also be able to develop real estate investment evaluation models in Excel.
Literature and preparations
Specific prerequisites
For single course students:
180 credits in Engineering or Economics/Business Administration/Finance including at least 30 credits in Business Administration, or equivalent.
Documented proficiency in English B or equivalent (TOEFL, IELTS e g).
For students in the master programme Real Estate Development and Financial Services:
AI2135 Financial Investments.
Recommended prerequisites
Equipment
Literature
Commercial Real Estate - Analysis and Investments: Latest International Edition
By Geltner, Miller, Clayton and Eichholtz
Articles published in academic journals (Free download from KTH library) and other articles that can be downloaded for free.
Examination and completion
If the course is discontinued, students may request to be examined during the following two academic years.
Grading scale
Examination
- LAB1 - Laboration, 2.5 credits, grading scale: P, F
- TEN1 - Examination, 4.0 credits, grading scale: A, B, C, D, E, FX, F
- ÖVN1 - Assignment, 1.0 credits, grading scale: P, F
Based on recommendation from KTH’s coordinator for disabilities, the examiner will decide how to adapt an examination for students with documented disability.
The examiner may apply another examination format when re-examining individual students.
Opportunity to complete the requirements via supplementary examination
Opportunity to raise an approved grade via renewed examination
Examiner
Ethical approach
- All members of a group are responsible for the group's work.
- In any assessment, every student shall honestly disclose any help received and sources used.
- In an oral assessment, every student shall be able to present and answer questions about the entire assignment and solution.