Course syllabus

Course Plan - ACE220 Real estate finance (7.5 hp)

The course is offered by the department of Architecture and Civil Engineering

Content

The course integrates theoretical approaches with practical cases. Key concepts are:

  • Real estate finance
  • Real estate markets
  • Investments
  • Valuation
  • Profitability

The course focuses on how you should organize and lead real estate financing processes.

Contact Details

Examiner

Christian Koch, Professor, Dr. Construction Management (CK) - christian.koch@chalmers.se

Course leader

Christian Koch, Professor, Dr. Construction Management (CK) - christian.koch@chalmers.se

Course supervisor

Martin Öberg, Gothenburg University Business School (MÖ)

Consultant, Ph.D. Kim Jacobsen, K-Jacobsen A/S. (KJ) - kj@k-jacobsen.dk

Course coordinator

Oliver Disney, M.Sc. (OD) - oliver.disney@chalmers.se

Lecturers

Doctoral Student, Antoine Manes, ACE, Construction management, Chalmers (AM)

Senior Lecturer, Ph.D. Martine Buser (MB)

Guest lecturers: Rikard Ljunggren, Stig Westerdahl, Hans Lind and Birgitta Vitestam

Course purpose

Not only is most of the built environment in Sweden consisting of existing buildings, these buildings also are valuated at enormous financial sums. Designing and building real estate as well as managing it is an important part of the overall building process and the economics of real estate set important frames for design and building. Thus, understanding the dynamics and mechanisms in real estate economics is an important competence for the critical and skilled design and construction project management scholar.

The purpose of this course is to develop understanding and knowledge about basic concepts and tools within real estate economics and to position this competence within the design and construction project management scholarship through critical and interdisciplinary perspectives.

Schedule

The links to the scheduled Zoom sessions can be found here (if logged in):

Lectures and supervision will primarily occur on Monday afternoons 13.15-17.00 and Thursday mornings 09.00-11.45, from the 18th January to 12th March. Note that some sessions are obligatory.

Preliminary schedule:

Week number Date Event Teacher Notes
3

Monday 18th Jan

13.15-17.00

Obligatory

Introduction and group formation MÖ/CK/KJ
3

Thursday 21st Jan

09.00-11.45

Real estate finance, investors and stakeholders Rikard Ljunggren/MÖ Guest lecture
4

Monday 25th Jan

13.15-17.00

Symbolic value CK
4

Thursday 28th Jan

09.00-11.45

Obligatory

Residential markets in Sweden & assignment 1 introduction
5

Monday 1st Feb

13.15-17.00

Obligatory

Real estate investment analysis  Stig Westerdahl Guest lecture
5

Thursday 4th Feb

09.00-11.45

Obligatory

Public housing in Sweden Hans Lind Guest lecture
6

Monday 8th Feb

13.15-17.00

Obligatory

Assignment 1 supervision KJ/MÖ/CK/OD/AM Attend at your group's scheduled time slot
6

Thursday 11th Feb

09.00-09.30

09.30-11.00

Digitization in Real Estate (recorded)

Q&A

Facility management

AM

AM

KJ

Watch before this date

Q&A - Digitization in RE

FM lecture followed

7

Monday 15th Feb

09.00

Deadline assignment 1
7

Monday 15th Feb

13.15-17.00

Obligatory

Commercial Buildings in Sweden & assignment 2 introduction
7

Thursday 18th Feb

09.00-11.45

Obligatory

Property procurement – patterns of practices and decision making Birgitta Vitestam Guest lecture
8

Monday 22nd Feb

13.15-17.00

Obligatory

Assignment 1 presentations, approval of case objects for assignment 2 KJ/MÖ/CK/OD
8

Thursday 25th Feb

09.00-10.00

The role of sustainability in real estate (recorded)

Q&A

MB

OD

Watch before this date

Q&A session regarding the lecture

9 Monday 1st March Group work - assignment 2
9

Thursday 4th March

09.00-11.45

Obligatory

Supervision of assignment 2 KJ/MÖ/CK/OD Attend at your group's scheduled time slot
10 Monday 8th March Group work - assignment 2
10

Thursday 11th March

17.00

Deadline assignment 2
11 Monday 15th March Group work - preparation of assignment 2 presentations / opposition
11

Thursday 18th March

08.00-11.45

Obligatory

Presentations of assignment 2 / Opposition KJ/MÖ/CK/OD

Course literature

25th January

Berg P.O. and Kreiner K. (1990): Corporate Architecture. Turning Physical Settings into Symbolic Resources. In Gagliardi, P. (Ed.), Symbols and artifacts. views of the Corporate Landscape. Berlin: de Gruyter Pp. 41-67.

Callon M and Muniesa F (2005): Economic Markets as Calculative Collective Devices. Organisation Studies. 26(8): 1229–1250.

 

1st February

Öhman, P.; Söderberg, B.; Westerdahl, S. (2013): Property investor behaviour: qualitative analysis of a very large transaction. Journal of Property Investment & Finance, Vol. 31 Issue 6, p522-544, 23p.

 

4th February

Lind H (2012): Pricing principles and incentives for energy efficiency investments in multi-family rental housing: The case of Sweden. Energy Policy, Vol.49, p.528.

 

18th February

Vitestam-Blomqvist B. (2014) My home and my economy- a theoretical approach to the use of accounting and valuation when purchasing a cooperative flat. Conference Edinburgh.

 

Extra text

Lekander J. (2017) How do institutional pension managers consider real estate: A perspective from Sweden and Finland, Journal of Property Investment & Finance, Vol. 35 Issue: 1, pp.26-43

 

Course design

The course is online (through Zoom) and includes lectures, exercises, tests, student-led presentations and seminars.

Learning objectives and syllabus

The overall learning outcome is to possess a basic understanding of real estate financing, economics and facility management.

On the completion of this course participants will be able to:

  • Understand and apply theories, concepts and techniques on real estate finance. This competence includes
  • Ability to identify and select proper concepts, theories and approaches to handling development and financing processes, organisation and management challenges, such as the complexity in coordinating the resources involved.
  • Understand basic dynamics of the real estate market.
  • Ability to use a series of tools and concepts of real estate economics

Competences and skills include the ability to apply tools for calculation of valuation and profitability of real estate investments and to be able to scrutinize, valuate and critically reflects upon the academic systematic knowledge on real estate investments.

Examination

Examination according to learning outcome goals by two assignments:

Assignment 1, a group work, literature seminar 35%.

Assignment 2, a group report on a case study 50%.

Participation in obligatory course elements 15%

Assignment 1 and 2 involves handing in a written note and obligatory presentation.

The obligatory lectures are listed in the schedule.

Course summary:

Date Details Due