Developments in the sophistication of global real estate marketsmean that global real estate investment is now being executedprofessionally. Thanks to academic enquiry, professional analysisand entrepreneurial activity, backed by the globalisation of allinvestment activity, there is now an available body of materialwhich forms the basis of this scholarly but practical summary ofthe new state of this art. The measurement, benchmarking, forecasting and quantitativemanagement techniques applied to property investments are nowcompatible with those used in other asset classes, and advances inproperty research have at last put the ongoing debate about therole of real estate onto a footing of solid evidence. The truly global scope and authorship of this book is unique,and both authors here are singularly well qualified to summarisethe impact and likely future of global innovations in propertyresearch and fund management. Between them, they have experiencedthree real estate crashes, and have observed at first hand thecreation of the real estate debt and equity instruments that led tothe global crisis of 2008-9. Global Property Investment: strategies, structure,decisions offers a unique perspective of the international realestate investment industry with: * a close focus on solutions to real life investmentproblems * no excessive theoretical padding * a target of both students and professionals * highly qualified dual-nationality authorship With many cases, problems and solutions presented throughout thebook, and a companion website used for deeper analysis and slidespresentations (see below), this is a key text for higher-level realestate students on BSc, MSc, MPhil and MBA courses worldwide aswell as for practising property professionals worldwide in fundmanagement, investment and asset management, banking and realestate advisory firms.
Autorentext
Andrew Baum was appointed Professor of Land Management at the University of Reading, UK in 1989. He is now Professor of Real Estate Investment at the University of Cambridge and a Fellow of St John's College, Cambridge. He is former Head of Research, Prudential; CIO Property and Head, International Property, Henderson Global Investors, and has chaired the investment committee for the CBRE Global Investors Multi-Manager business since 2008.
David Hartzell is Steven D. Bell and Leonard W. Wood Distinguished Professor in Real Estate and Professor of Finance at the Kenan-Flagler Business School, University of North Carolina, USA. He is a former vice president at Salomon Brothers Inc. in New York and is now a board member with Highwoods Properties, a REIT.
Klappentext
Developments in the sophistication of global real estate markets mean that global real estate investment is now being executed professionally. Thanks to academic enquiry, professional analysis and entrepreneurial activity, backed by the globalisation of all investment activity, there is now an available body of material which forms the basis of this scholarly but practical summary of the new state of this art.
The measurement, benchmarking, forecasting and quantitative management techniques applied to property investments are now compatible with those used in other asset classes, and advances in property research have at last put the ongoing debate about the role of real estate onto a footing of solid evidence.
The truly global scope and authorship of this book is unique, and both authors here are singularly well qualified to summarise the impact and likely future of global innovations in property research and fund management. Between them, they have experienced three real estate crashes, and have observed at first hand the creation of the real estate debt and equity instruments that led to the global crisis of 2008-9.
Global Property Investment: strategies, structures, decisions offers a unique perspective of the international real estate investment industry with:
- a close focus on solutions to real life investment problems
- no excessive theoretical padding
- a target of both students and professionals
- highly qualified dual-nationality authorship
With many cases, problems and solutions presented throughout the book, and a companion website used for deeper analysis and slides presentations (see below), this is a key text for higher-level real estate students on BSc, MSc, MPhil and MBA courses worldwide as well as for practising property professionals worldwide in fund management, investment and asset management, banking and real estate advisory firms.
Website:
The companion website for this book at www.wiley.com/go/baumglobalpropertyinvestment offers freely downloadable resources:
- spreadsheets for deeper and fuller analysis (and sensitivity testing) of the cases and problems presented in the book
- PowerPoint slides for lecturers to accompany chapters
- related articles by the authors and others
- useful weblinks
Inhalt
Preface x
Acknowledgements xv
PART ONE REAL ESTATE AS AN INVESTMENT: AN INTRODUCTION 1
Chapter 1 Real estate the global asset 3
1.1 The global property investment universe 3
1.2 Market players 6
1.3 Property its character as an asset class 11
1.4 Conclusions 28
Chapter 2 Global property markets and real estate cycles 32
2.1 Introduction 32
2.2 The United States 34
2.3 The UK property market a performance history 67
2.4 Continental Europe 80
2.5 Asia 83
2.6 Conclusions 91
Chapter 3 Market fundamentals and rent 94
3.1 Introduction: the global property cycle 94
3.2 The economics of rent 95
3.3 Forecasting rents 109
3.4 Conclusions 116
Chapter 4 Asset pricing, portfolio theory and real estate 117
4.1 Risk, return and portfolio theory 117
4.2 A property appraisal model 124
4.3 The model components 132
4.4 The required return for property assets 140
4.5 Forecasting real estate returns 142
4.6 Conclusions: a simple way to think about real estate returns 151
PART TWO MAKING INVESTMENT DECISIONS AT THE PROPERTY LEVEL 155
Chapter 5 Basic valuation and investment analysis 157
5.1 Introduction 157
5.2 Estimating future cash flows 161
5.3 The discount rate 166
5.4 Conclusions 170
Chapter 6 Leasing 171
6.1 Introduction 171
6.2 Legal characteristics of leases 173
6.3 The leasing process 174
6.4 Important economic elements of a lease 174
6.5 Lease economics and effective rent 192
6.6 Conclusions 199
Chapter 7 Valuing commercial real estate: the unleveraged case 203
7.1 Introduction: the investment opportunity 203
7.2 Developing a pro-forma income statement 206
7.3 Valuation using the cap rate 210
7.4 Valuation using cash flows 212
7.5 Applying discounted cash flow to analyze investment feasibility 219
7.6 Conclusions 221
Chapter 8 Mortgages: an introduction 222
8.1 Introduction 222
8.2 What is a mortgage? 223
8.3 The risks and returns of mortgage investment 225
8.4 The fi nancial components of a mortgage 226
8.5 The mortgage menu 229
8.6 An introduction to mortgage mathematics 231
8.7 Conclusions 247
Chapter 9 Commercial mortgage underwriting and leveraged feasibility analysis 248
9.1 Introduction 248
9.2 The mortgage underwriting process 248
9.3 Investment feasibility with leverage: before-tax analysis 256
9.4 Investment feasibility with leverage: after-tax analys…