Syllabus 2007/2008 VFR120

Syllabus academic year 2007/2008

REAL ESTATE FINANCE

VFR120

Higher education credits: 7,5. Grading scale: TH. Level: A (Second level). Language of instruction: The course will be given in Swedish. Optional for: L4fa, L4fr, L4fu, V4fu. Course coordinator: Professor Ulf Jensen, ulf.jensen@lantm.lth.se, Fastighetsvetenskap. Prerequisites: L: VFR140 Introductory law and real estate law; VFT045 Real Estate Economy; and VFT085 Spatial Planning. V: GEMF10 Law for technicians and VBE013 Construction Process and Business Administration. The course might be cancelled if the numer of applicants is less than 10. Assessment: Participation in project works and a final examination. Further information: The course is taught in Swedish and may be cancelled if fewer than 10 students apply. Home page: http://www.lantm.lth.se.

Aim
The objective of this course is to examine financing and security interests arising when developing real estate. The course is to provide knowledge and skills concerning the perspectives of both lenders and debtors.

Knowledge and understanding
For a passing grade the student must

Have mastered the different security interests possible for a company to provide in the real estate market;
Be able to determine the financial condition of a company;
Be able to determine the financial status of a company from its yearly financial records; and
Understand how lending institutions acquire capital for loans within the real estate sector, including the techniques for securing such loans as well as securitization.

Skills and abilities
For a passing grade the student must

Be able to:

Draft a credit application with a proposal as to security for a limited project within the real estate market; and
Assess a credit application within the real estate market, particularly with respect to security requirements.

Contents
Knowledge as to financing issues is becoming increasingly important, particularly as alternative forms of financing are generated. This course primarily addresses financing and credit issues with a specific focus on different types of real estate credit and the financing of real estate projects. Current credit forms as to financing and the real estate market are analyzed and compared. Credit security is necessary in this context and in line with the significant societal interest that exists in real estate financing, the course has a particular focus on these.

Mortgaging deeds are extensively addressed as well as alternative security forms - such as floating charges and sureties. The methods used by credit institutions for assessments as to credit are addressed. The method used by the credit market to acquire capital - such as the issuance of bonds and securitization - are important components in the course. The project work consists of a credit application to be drafted in a group. The assessment of the application is also a group task.

Literature
Tegin, Kredithandboken, article collection and relevant statutes