REST0004 Property Investment and Finance Term 1 2024

REST0004: Property Finance & Investment [1] Assignment 1 – 2024
Assignment 1
Due Date: Friday 15th MARCH 2024
Individual assignment Assignment assessment weighting: 40%
Assignment Topic
You have recently commenced a new role as Head of Acquisitions at a large institutional property fund manager (the “Fund”). Your CEO has decided that your immediate task is to make a significant real estate acquisition.
The acquisition is to meet the Fund’s investment objectives broadly:
The CE and the Board of Directors will review and approve any acquisition.
You are required to prepare a submission for the Board and CEO’s approval, outlining the acquisition and the Fund’s objectives.
REST0004
Property Investment and Finance
Term 1 2024
a) Property acquisition can be an existing income producing asset.
b) The Fund can invest into the major property sectors being office, retail, industrial, residential / multi-family and industrial.
c) Maximum purchase price of $500M
d) The Fund itself has some equity funding, but underlying asset finance might be required.
e) Geographic restriction is to the major cities of the east coast of Australia.
f) Investment time frame of 5 years is to be assumed
g) Income producing assets are to generate a total return (IRR) of 7% p.a.
h) Asset quality is important for the Fund – commercial properties should be a minimum quality including NABERs, Green Star and A-Grade. Sustainability credentials should be considered as part of the acquisition.
REST0004: Property Finance & Investment [2] Assignment 1 – 2024
Assignment Type: Market Report
Content
Your Report needs to discuss and evaluate the following:
a) Property Characteristics
The underlying property acquisition must be consistent with the Fund’s objectives below. You must clearly articulate the type of property being acquired, i.e., an income-producing property.
It would be best if you highlighted the key characteristics of the property, including
– Location
– Asset type
– Lease and tenancy profile (if applicable)
– Purchase price and acquisition costs
– Condition and age of property
– Anticipated returns and risks
b) Property Market
Discuss the performance of the real estate market in the last 7-10 years. You must compare and contrast investment returns across the core property sector markets of retail, office, industrial and residential. You should highlight key drivers of investment performance.
You should give a description/analysis of the property market. This would include items such as vacancy rates and demand, rental and incentives and investment activity and yields.
c) Outlook of the selected market
You must undertake a further assessment of the selected market being acquired and your expectations of the future performance of that specific market. You will need to discuss how and why you intend to invest in this sector and highlight the key risks, mitigants and likely returns.
d) Conclusions and Recommendations
Your recommendations in terms of this sector, this investment and how this investment would have an impact on the Fund should also be provided.
You are not expected to explain how to finance this strategy in this Assessment. You do not need to address any tax implications.
Submission requirements
• Your paper should be set out in an easy-to-read, conversational style.
• You may use headings, bullet points, tables or charts to highlight points.
REST0004: Property Finance & Investment [3] Assignment 1 – 2024
• Sources should be referenced as per UNSW standards.
• The written assignment is on a Microsoft Word Document and submitted via the appropriate Turnitin link on Moodle.
• Use Harvard referencing and citations—minimum of 5 references in this submission.
• The maximum word limit is 3, 000 words excluding tables, graphs, appendices.
• A cover page has been provided (see following).
• Assignments that do not include the standard university plagiarism declaration will not be marked until this is supplied.
Submission Due Date
• (Market Report): Due date: Friday, 15th March 2024, 11:30pm
• Please submit your assignment electronically via the course’s Moodle platform (Turnitin). Other forms of submission or submission records, for example, via email or WhatsApp, are NOT acceptable.
• Late submission: 10 out of 100% per day late (including Saturday and Sunday)
• Deadline for absolute fail: by the due dates (after which the assignment will not be assessed)
• Extensions for submission: Any extensions must be requested in writing to the lecturer via email before the due date, with a valid reason and a medical certificate or other supporting documents.
REST0004: Property Finance & Investment [4] Assignment 1 – 2024
The University of New South Wales
School of the Built Environment
REST0004 T1 2024 – Property Finance & Investment ASSIGNMENT 1 COVERSHEET
DUE DATE: FRIDAY 15th MARCH 2024
STUDENT CHECK LIST (please tick)
 Coversheet
 plagiarism declaration
 Discussion paper (Arial, Times New Roman or Verdana fonts only)
STUDENT NAME AND NUMBER:
Item
Mark
Value
Property Characteristics
10%
Property Market
30%
Outlook of the Market
10%
Conclusions and Recommendations
10%
Paper presentation and style
10%
Use of literature and referencing in the report
10%
Use of tables, charts or data to support points
10%
Report structure
10%
TOTAL MARK
/100%
Marker’s Comments:
REST0004: Property Finance & Investment [5] Assignment 1 – 2024