The Real Estate Finance track provides you with an in-depth understanding of real estate in the context of international finance.
Evaluating property investments against equity, fixed income and other financial derivative-types lies at the core of real estate finance and investment management. In this track you learn to understand the financial and economic aspects of commercial real estate assets for both individual and institutional investors.
During the Real Estate Finance track you will acquire the quantitative and conceptual skill-set to make the complex decisions required in modern real estate finance and investment.
If you have ambitions in real estate, this track is for you.
This track consists almost completely of compulsory courses only, to provide a solid grounding in all aspects of the discipline.
In this course you will focus on private markets for commercial real estate. First we will introduce real estate as an investment class and will explain relevant market indicators. After this, you will discuss important topics such as:
In this course you will cover the basic methods to value real estate objects (the DC and DCF method). You will discuss how and when to use the right method and how to get the information (parameters) necessary to do an appraisal. You will learn how to use these methods through several practical case assignments and exercises.
This course builds on the knowledge and skills from the Real Estate Valuation course. You will discuss valuations from an investment perspective and will explore topics such as retail valuation, land valuation, the cost approach, the sales comparison approach and automated valuation models of residential properties. You will participate in practical valuation case assignments and a computer workshop. Further topics include confirmation bias in valuation, and advanced DFC analysis.
This course elaborates on your knowledge acquired in Real Estate Markets and Analysis 1. You will discuss concepts and analyse tools in more detail and will study the private investment markets, primary mortgage markets and markets for residential and retail properties.
An important and exciting part of this course is the real estate group assignment. You will perform your own real-life market research and construct an investment advice that you will present to a jury of investment practitioners.
In this course you will deep-dive into the financing choice for (international) real estate assets. You will gain the necessary tools to analyse the different funding structures and their market pricing and relative risk. Also, you will learn to analyse financing instruments and markets, with particular focus on mortgages and mortgage-backed securities. Finally, you will learn a real option approach to value real estate developments.
Choose 1 out of 2 electives:
How do you determine the market value of an office building, in this case the Leeuwenburg building in Amsterdam (picture)?
You will visit the office, get information about rents, and have to write a valuation report. This report is presented and evaluated under the supervision of Cushman & Wakefield.
How do you determine the market value of a retail building? You will get detailed information about floorplans, rental agreements, and will have to write a valuation report. This report is presented and evaluated under the supervision of CBRE.
Real estate is a very specific heterogeneous asset class. How do you incorporate that when constructing an asset portfolio? You will apply the theory and techniques (Markowitz portfolio optimization) on portfolio construction to real-life data from the perspective of a Dutch or American pension fund, and/or British and Dutch institutional investors. This case is provided by Ortec Finance.
Real estate is typically bought using external financing. In this case you need to discuss the ins and outs of financing the Blackstone (wisdom) portfolio, the Bajeskwartier (has sustainability goals), and a residential portfolio held by DM equities. This case is being lead by ABN AMRO which is part of the financing of these real estate transactions.
Graduates of the Master's in Finance/Real Estate Finance track have excellent job prospects for positions as asset manager, securitisation specialist or international property broker. You may also choose a career in stock analysis, acquisitions or credit management, or become an appraiser, consultant or project manager at Dutch or international companies, such as:
Real Estate Finance is one of 7 tracks you can opt for in our MSc Finance. If you are more interested in another field of Finance, read the info on one or more of the other tracks.