The Development Process

Course Code

DEV813

Program or Programs for which course is part

Master in Real Estate (MRE) Executive Master in Real Estate (E-MRE) Master in Real Estate and Finance (MRE(Fin)) Executive Master in Real Estate and Finance (E-MRE(Fin)) Master in Real Estate and Finance (MRE (Fin)) Semester Abroad Master in Real Estate and International Business Master in Real Estate and Marketing Master in Real Estate and Project Management

Level (I, H, or M)

M

Number of Credits

This course carries a weight of 20 credits of the Homburg Academy, which is equal to 10 ECTS (European Credit Transfer System credits).

Learning Time This course requires approximately 200 hours of learning time. This includes all taught and supervised classes and all private study and research.

Stage (I or II, where applicable)

Stage I

Is this Course Core, Specialist or Elective

Core for MRE and E-MRE Core for MRE(Fin) and E-MRE(Fin) Core for MRE (Int-Bus) Core for MRE-Mkt Core for MRE-PM

Courses that are pre-requisite or co-requisite

None

Name of Course Convenor

Dr Georgia Warren-Myers

Position

Adjunct Professor

Email address

g.warrenmyers@deakin.edu.au

Brief Course Summary The purpose of this module is to enable students to gain an advanced understanding of the development process and have a working knowledge of both the development process and market and financial analysis from the perspective of the Real Estate entrepreneur. This course therefore aims to provide students with an advanced understanding of:

1. The phases of development as an evolutionary cycle, from the initial concept, to 'siting', land planning, through to the budgeting, financing, and construction;

2. An awareness of the strategic decision making, legal, financial, business planning, land planning, and ethical aspects of development;

3. Skills and knowledge required to operate as a professional in the area of real estate

development

Course Objectives The intended learning outcomes of this course are as follows:

1. Have a sound knowledge and understanding, appropriate to the level of Master of Real Estate,

in the process of development; 2. The understanding and skills to operate as a professional in the area of development from

inception, site investigation, planning and environmental considerations, and financial and risk analysis;

3. Critical analysis of markets and the use of problem solving and creative thinking to identify solutions in the different forms of property development;

4. Understanding and appreciation of the intuitive real estate development environment from both a local and global perspective.

These specific learning outcomes contribute to achieving the learning outcomes of the relevant programs by demonstrating knowledge of the following (mapped to the Program Specification): A. Advanced knowledge and understanding of: 12.A.3 The need for sustainable development and the means of gaining sustainability throughout the process of development from planning to design; B. Intellectual skills: 12.B.1: Develop general research skills, especially bibliographic and computing skills in finding, selecting, and analysing materials for the independent project;

12.B.2: Learn to gather, organise and deploy evidence, data and information from a variety of secondary and some primary sources; 12.B.4: Learn to identify, investigate, analyse, formulate and advocate solutions to problems; 12.B.5: Develop problem solving skills, including the ability to identify and define problems, and to establish strategies for dealing with them including criteria for success, mapping optimum and alternative solutions, and exercising critical judgement to discriminate between the ranges of alternatives; 12.B.6: Synthesise relevant information and exercise critical judgement in the development of reasoned arguments; 12.B.7: Enable students to reflect upon and manage their own learning, and seek to make use of constructive feedback from staff and peers to enhance their performance and personal skills. C. Subject-Specific Skills 12.C.2 Understand the development process as one that is inherently interdisciplinary, and draws, in different stages of the development process, or cycle in the business strategy, on different kinds of knowledge and understanding and different forms of subject specific skills; 12.C.3: Be able to discriminate between forms of knowledge and be able to draw selectively and appropriately on them;

12.C.4: Develop good understanding of the ethical issues in the Real Estate industry, including issues of sustainability, and environmental responsibility;

D. Transferable skills: 12.D.1: Develop autonomy in learning, work independently demonstrating initiative and self organisation; 12.D.2:. Work co-operatively on group tasks, understand how groups function, collaborate with others and contribute effectively to the achievement of common goals; 12.D.3: Use communication and information technology for the retrieval and presentation of information, in the form of prose or numeracy as appropriate; 12.D.4: Develop communication skills, both orally and in writing. Communicate clear, succinct, analytical ideas; 12.D.5: Prepare and deliver oral presentations individually and as part of a group.

List of Lecture Topics This course includes training in the analysis of:

1. Introduction: The concept of real estate development

2. Development Inception and market analysis

3. Project applicability and marketability

4. Planning

5. Sustainability and environmental issues in development

6. Development execution

7. The finance and economics of development

8. Investment decision techniques

9. Risk assessment and mitigation

10. International Practice

Learning and Teaching Methods Achievement of learning outcomes: the learning outcomes for this course are achieved through student participation in lectures (compulsory), in their active participation in seminars (compulsory), and in their fulfilment of the assessed elements (compulsory). This is a ten week course that is offered entirely online. In each week there is a lecture presentation for approximately one hour, plus an interactive seminar discussion for approximately one hour. Lecture presentations led by the course professor. The lectures are designed to introduce key theories, practices, and methods in real estate development, and to guide students through an understanding of their rationale, their uses, and their limitations, so that students may both understand and reflect critically upon the techniques in the appraisal of real estate. The lectures contribute to the achievement of learning outcomes by guiding students through the main theories, concepts, and debates in the scholarly literature, as well as the contested concepts and methods. Seminar Discussions are led by students under guidance of the course professor. The seminar is the opportunity for students to gain clarification of the lecture material and the reading materials. Also, through these guided discussions, it is intended that students will gain a comprehensive understanding by linking lectures, independent reading and class discussion, enabling students to apply concepts, theories, and methods to the practice of real estate development. Through dialogue, interaction, cooperation, and confrontation, students learn to formulate, structure, and defend their perspectives. Independent Study: students are expected to read the stipulated text for each lecture and seminar session, as well as to read more widely in recommended texts for this course. Additionally, students are expected to conduct independent research for their contribution to seminar discussions, and for their research project. Learning outcomes for independent study are achieved through students’ own reading, research and preparation, seminar presentations, and in their research project.

Indicative Reading List Havard, T. (2008) Contemporary Property Development, (2nd Ed), RIBA Publishing , London. Wilkinson, S., Reed, R., Cadman, D., (2008) Property Development (5th Ed), Routledge, London

Method of Assessment (and how the chosen method of assessment is related to learning outcomes) Assessment 1: Development Strategy and Site identification 30% Assessment 1 comprises of several sections aimed at incorporating the theoretical objectives developed during the lecture & tutorial series and allowing students to apply this theory in practice in their own regions. The sections provide the outline for the written report which will be submitted online in either a Microsoft Word or PDF document. This should be in the order of 2,500 – 3,000 words a) Area identification for investigation b) Market and demographic analysis c) Strategy development d) Marketability analysis (Competitor mapping & analysis) e) Site identification and inspection f) Evaluation of planning, environmental and heritage issues g) Proposal for the highest and best use for the site Assessment 2: Risk Analysis and Feasibility Study 30% This assessment focuses on the financial element involved in assessing the viability of a proposed development. Building on the student’s first assessment task they are now to undertake a feasibility analysis for their proposal, considering 2 -3 variations on their proposal. The output for this assessment task is in the provision of two formats.

a) Feasibility assessment report 1,000 – 1,500 words b) Videoed presentation proposing the recommended development option and risk analysis (5 – 10

minutes) Assessment 3: Online Tests (x2) 40% This assessment task comprises two online tests, each worth 20%, to be held in Week 6 and Week 10 .

Summary of Assessed Elements, and Percentage Weight of Each Element Assessment 1: Development Strategy and Site Identification report 30% Assessment 2: Risk analysis and feasibility study report and presentation 30% Assessment 3: Online tests – comprising two tests (each worth 20%) total 40%