Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2016. / Cataloged from PDF version of thesis. / Includes bibliographical references (page 65). / Real estate development in China is a fast-paced business. Volatile market conditions have prompted Chinese developers to build and sell quickly in an attempt to mitigate market fluctuation risk, especially when the real estate market is hot. But are they leaving money on the table? We've conducted a rigorous quantitative analysis of Dushi Huayuan-a large-scale residential project in the fictitious city of Gangkou Shi-from the standpoint of its developer Acumen Properties. The thesis takes the form of a traditional business case study: we first crafted the story based on actual events, then built a Monte Carlo simulation model using Excel to test the value of flexibility specifically the value of dividing the project into multiple phases-at Dushi Huayuan, and finally designed three exercises for students to learn not only the technical aspects of modeling, but also the business concepts related to working in the Chinese real estate market. The exercises will walk students through the following: (1) build a simulation process to reflect the crucial exogenous dynamic economic variables that largely determine the project's financial outcome; (2) expand upon this model by introducing phases in the project to understand how this new flexibility can affect expected net present value; and (3) employ the use of a waterfall analysis to examine fairness from an investment perspective between joint venture partners using standard-market terms. Chinese developers-along with most developers worldwide-typically make decisions based on their experiences and intuition but without the use of detailed quantitative analysis. Our thesis ultimately seeks to change generally accepted industry practice by creating a pedagogical tool to help future real estate leaders better understand the advantages of using quantitative methods to inform rational business decisions. / by Qing Ye and Eric Mo. / S.M. in Real Estate Development

Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2017. / This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections. / Cataloged from student-submitted PDF version of thesis. / Includes bibliographical references (page 59). / Since 2013, investors from the People's Republic of China (PRC) have made significant strides in the global real estate market, especially in developed regions such as North America, Australia, and Western Europe. From 2014 to 2016, this trend became stronger, and by 2016 Q3, China became the top cross-border real estate investment country by transaction volume. We ask the following question: After the prosperity of the last three years, will the global investment trends of PRC investors remain steady or not? This thesis first reviews the progress made by PRC investors in recent years and the key reasons for it. It then discusses PRC investors investment preferences and strategies. The discussion then focuses on includes pragmatic considerations of tax matters and domestic regulatory problems in the PRC. The thesis concludes by exploring new trends in the market and speculating about the future of cross-border real estate investments by PRC citizens. / by Qing Wang. / S.M. in Real Estate Development

Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate , 2010. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 141-142). / Real estate investment firms have the ever increasing need for understanding their firm's strengths and weaknesses, their performance relative to their peers and competitors, and for developing assessment tools for facilitating more informed investment and management decisions. One potentially very useful tool to further these objectives, a tool that is so far underutilized and underappreciated, is investment performance attribution analysis. Such performance attribution may be broadly characterized as the partitioning of the total investment return of a particular manager or portfolio in order to quantify and help to understand and assess the components and determinants of the overall investment performance. Traditional investment attribution analysis, adopted from the securities investment industry, has focused primarily on the portfolio level, where property selection and allocation factors are the two primary attributes of total return that can be parsed and benchmarked. In the case of real estate investments, property-level investment functions such as operational management and asset transaction execution, which are not captured by a traditional attribution analysis, also play a major role in the overall investment returns. During the past two decades a system to drill the investment performance attribution down to a deeper level, separating the asset "selection" component into further breakouts, including income return and components of the capital return (cash flow change and yield change), have been propounded by influential firms such as the Investment Property Databank (IPD) based in the UK. In a 2003 article David Geltner proposed a system for property-level performance attribution (PPA) based on the since-inception IRR of each individual property investment. This thesis furthered Geltner's work on PPA by an in depth exploration of the application of the IRR-Based Property-Level Performance Attribution analysis based on a large-scale, real-world-based case study of a complete set of actual core-asset round-trip transactions completed by several internally managed funds in the institutional investment industry. Furthermore, this thesis explored the use of PPA for organizational management diagnostics, and thereby demonstrated the potential of using the PPA analysis as an investigative tool for developing plausible hypotheses about a firm's investment management strengths and weaknesses. / by Tony Feng. / S.M.in Real Estate Development

Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate, 2012. / Cataloged from department-submitted PDF version of thesis. This electronic version was submitted and approved by the author's academic department as part of an electronic thesis pilot project. The certified thesis is available in the Institute Archives and Special Collections. / Includes bibliographical references (p. 83). / Housing unit prices differ among 75 street blocks per time period in Chengdu, China. Housing unit price's appreciation also moves differently in the 75 street blocks between 2005 and 2010. With solid transaction data acquired from Chengdu Housing Administration Department, two regression models, Level Model and Change Model are exercised to explore two questions: What are determinants of cross-section housing unit price difference and what are determinants of housing unit price movement in time? The findings are consistent with urban economic theory and actual practice in the market. In conjunction with physical attributes and locational features, the thesis found from the Level Model that economic and demographic characteristics, which are representations of urban economic growth, industrial restructuring and demographic transformation, are also significant determinants that have been capitalized into housing unit price at various levels. In a rapid developing city like Chengdu, the thesis found from the Change Model that instead of the change of various factors, inherent locational features and the initial price per street block play significant roles moving unit price upward in both short-term (1-year) and relatively long-term (5-year). Such finding exhibits consistent market anticipation that housing and amenity demand constantly outpace its supply in Chengdu. Additional Level Models defined by unit size reveal differentiated capitalization effects from same group of locational features. The result ties various sizes of units with corresponding housing products. Subsequently it proves that demographic structure is a significant determinant of housing price dynamics. Field trip and interview are conducted to bridge academic analysis with real market. The findings from qualitative research contribute valuable inputs to improve the models. Understanding determinants that are capitalized into price and move price appreciation is useful to household to guide wise investment. The research is also referable to developer who can make sound assessment on developable land with better understanding of its potential value. The more inclusive analysis of spatial housing price dynamics will assist policy maker to establish proper urban policy in the effort to balance urban structure between housing and jobs. / by Jin Chen. / S.M.in Real Estate Development

Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate, 2012. / Cataloged from department-submitted PDF version of thesis. This electronic version was submitted and approved by the author's academic department as part of an electronic thesis pilot project. The certified thesis is available in the Institute Archives and Special Collections. / Includes bibliographical references (p. 85-87). / Real estate is often considered an asset to provide long term value enhancement and to protect institutional investors against inflation risk. It is a typical real asset due to the physical form and fixed geographic location with a steady return. However, real estate has its limitations. Risks associated with it such as lack of trading flexibility, special property management expertise required, and a growth prospect not always applicable towards the short term favor have impeded certain institutional investors from allocating major investment in real estate. In management of a dynamic investment portfolio, how institutional investors look at certain real assets is the key issue discussed in this thesis. Infrastructure, for instance, which can refer to roll roads, shipping or railways, is a comparable asset with real estate as it demonstrates a term with physical form and stable income stream. There are other types of real assets such as commodity, regulated utilities, and maritime assets which are also studied. This thesis delves into the dynamic structure of an institutional investment portfolio and targets to explore the following questions: What do real assets contribute to institutional investors' traditional stock-and-bond portfolio? What kinds of correlations do real assets have with typical equity and fix-income assets? How do institutional investors strategize their investment plan by allocating real assets in their global portfolio? The thesis is designed to study the underlying factors for determining the asset allocation framework from both a qualitative and a quantitative perspective. A quantitative analysis including mean-variance optimization, downside risk, correlations, risk parity and Value at Risk will test out how various asset allocation frameworks position real assets in a portfolio. The study also brings in selected real estate indexes to examine how different parings compare with each other and what impact does illiquidity exhibits on portfolio management. An interview-based research is designed to provide understanding of institutional investors' perspective on how they apply the theoretical framework to the real world practice and how they strategize the management of investment portfolios. / by Xiangyu Li. / S.M.in Real Estate Development

Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate, 2012. / Cataloged from department-submitted PDF version of thesis. This electronic version was submitted and approved by the author's academic department as part of an electronic thesis pilot project. The certified thesis is available in the Institute Archives and Special Collections. / Includes bibliographical references (p. 83-87). / Real estate investment is becoming increasingly international. As China's economy rises as a major force in the world, its continuous growth in fiscal surpluses and accumulation of wealth are making up an expanding segment of the capital market. Traditionally, state-owned enterprises (SOE) and banks were important sources of international real estate investment from China; more recently, increasing high-net-worth individuals and private real estate equity funds have merged and are seeking opportunities around the world. This paper identifies the important policy indicators that are pertinent to Chinese private investors' activities in the U.S. real estate market, examines the investment landscape in both countries, gives particular attention to associated challenges, barriers and risks, and finally explores the potential business opportunities that can be recognized and turned into meaningful strategies. / by Ya Wang. / S.M.in Real Estate Development

This study offers an interpretive assessment of how a land feasibility acquisition analysis might be performed. A discussion of the process which was utilized in presenting a "data packet" of all relevant information for developing a proposed site is provided. Additionally, a discussion of possible development scenarios and several methods of valuation of the subject site was performed. Finally, an analysis and feasibility of the most likely development occurrence for the subject site is included. / Master of Architecture

Since there is segmentation and homogeneity among the real estate securities market that almost parallels that of the traditional financial capital markets, investing globally now adds new venues and outlets that were once very scarce or nonexistent to private investors less than a few decades ago. This paper will examine the various outlets that are now available to both domestic and international investors, the relationship that exists among those securities, and the present and future implications of such opportunities. The results imply that there are both strong and weak relationships across various countries in regards to their correlations, as some countries have positive and negative correlations with other various nations giving way to diversification possibilities. This information is useful to investors that wish to look beyond the borders of their nation for greater returns and diversification.

This thesis will examine the mechanisms of the protection and legal challenges of public property development within Iranian legal system. These mechanisms may be used to assist in compliance with international obligations, but the primary focus has been on domestic law, in particular the Iranian Civil Code and the Constitution. The author has investigated the various issues within the Iranian property law system from the perspective of preserving public property. By definition, public property covers a broad area, and therefore, this thesis has explored the challenges of public property in a variety of contexts and situations. Each chapter explores various legal challenges and legal cases from a unique perspective, while providing suggestion for the legislator. In many cases, the ambiguities and inefficiencies have been highlighted. In other cases, a solution is provided for the legislator to deal with a specific issue. The author has also gathered and examined various cases from Iranian Supreme Court and other legal authorities in order to study them from the perspective of public property development. This thesis has three chapters. The first chapter explores the Iranian property law system and its taxonomy and examines the classifications of property in the Iranian Civil Code. The second chapter exclusively deals with the concept of Mobahaat in the Iranian legal system and its relation to public property protection. Finally, chapter three examines public property from the perspective of Iranian Constitution law, (specifically principles 44, 45 and 49) and a few specific provisions of the Civil Code.

published_or_final_version / abstract / Real Estate and Construction / Doctoral / Doctor of Philosophy