Real estate development investment requires a large capital funding but it has slow payback with many risks and uncertainties in the investment. The current approach by using NPV to evaluate this type of investment is not adequate anymore. This is because NPV does not thoroughly capture the uncertainties in the investment and the method ignores the management flexibility whether to postpone or abandon the project in the future. An alternative approach that addresses these issues is to use real options to evaluate this type of investment. The thesis uses the real option model that was proposed by McDonald and Siegel (1986) to evaluate real estate development investment. The model captures value and cost uncertainty in the investment and considers that managements have the flexibility to defer the investment into the future. The thesis analyzes the model critically by sensitivity analyses and shows that using the model requires the input parameters to be carefully determined, especially the ones that relate to unit rental rate.  Furthermore, the paper uses Monte Carlo simulation to determine the optimal ratio between value and cost which suggests that the investment should be deferred or invested now. The result shows that, in general, a real estate project should be invested when the value of the project doubles the cost. Also, the result from the simulation allows investors to adjust the ratio according to their risk behavior. Lastly, the thesis performs another Monte Carlo simulation in order to quantitatively identify the effect of the real option model on the investment decision. The result shows that using only the traditional NPV to evaluate the investment can lead to the wrong investment decision more than 90% of the time. Therefore, using both real options and NPV together can improve investment decisions on the real estate development project.

While there is considerable academic research on the intersection of comprehensive plans, finance policies, zoning policies and how these factors influence real estate developers' choice of what land to develop and what buildings to construct on that land, little is understood about whether these three variables promote or hinder real estate developers' choice of whether to build communities that promote healthy living. Using urban planning theory as the foundation, the purpose of this correlational study was to determine how real estate developers' decisions are made to support healthy New Urbanism development in the United States. Secondary data from the Urban Land Institute were used for this multiple regression study that explored the degree to which comprehensive plans, finance, and zoning policies predict the likelihood that real estate developers will build New Urbanism communities in the United States. Findings indicated that comprehensive plans, finance policies, and zoning policies had a statistically significant influence on real estate developers' decisions on the types of communities to build in the United States by 53.6%, 46.8%, and 71.6% respectively p < .05. The information presented in this study is important to urban planners/designers, health care professionals, and municipal officials because of the intra and interdisciplinary approach of the built environment as a nonmedical determinant of health. Cultivating public and private collaboration to develop public policy could affect social change by directly affect the alterations and improvements in the built environment health that either promote or impede healthy outcomes.

Projects in real estate development are commonly associated with failures in attaining clients’ expectations in terms of time, cost and quality. At the same time, the real estate and construction industry in Sweden is recognized as traditional and sometimes characterized by few and dominant actors leading to low competitiveness. The project based environment often results in temporary business agreements creating exposure for opportunistic behavior between actors. Also, growing complexity and occurring economic uncertainty make the capital intensive property development sector exposed to high risk. These challenges create a demand for new business strategies and deeper collaborations among actors. Further, research has suggested joint ventures as a strategy to enhance project performance and solve adversarial relationships. The thesis aims to give an amended knowledge of vertical joint ventures application in the real estate and construction industry in Sweden. This includes examining the current use, identifying motives and analyzing the potential application to explore organizational and market implications of joint ventures. Therefore, the research utilized a qualitative method where different actors from various perspectives was interviewed. Results show that a typical vertical joint venture formation is a separated equity entity, consisting of two parent firms, often between a property manager and a property developer, with equal ownership and decision making. The study indicates that the most common motives to form a vertical joint venture are risk sharing, financial purposes and accessing competencies and resources. Findings implicate that financial purposes are usually associated with property developers and complementary competencies are often the primary motive for property managers. However, for a vertical joint venture to be successful, mutual trust and joint primary goals between joint venture parents are decisive. In addition, a suitable vertical joint venture project has to be of large scope in terms of risk, complexity, size, duration or cost, to compensate for administrative costs the structure induces. Further, findings show that vertical joint ventures can be an efficient business formation to align incentives and decrease opportunism as well as it can enable firms to undertake projects beyond their financial capacity and competencies. / Fastighetsutvecklingsprojekt misslyckas ofta motsvara beställarens förväntningar vad gäller tid, kostnad och kvalitet. Samtidigt betraktas den svenska bygg och fastighetssektorn som konservativ där få och stora aktörer ofta dominerar marknaden vilket gör det svårt för mindre aktörer att konkurrera. Projekt regleras ofta av tillfälliga avtal där aktörer riskeras att utsättas för opportunism. Dessutom medför en ökande komplexitet och en osäkerhet på marknaden en hög risk för den kapitalkrävande bygg och fastighetssektorn. Dessa utmaningar ställer krav på nya affärsstrategier och fördjupade samarbeten hos aktörer. Forskning menar att joint venture kan användas för att förbättra projektresultat samt motverka kontradiktoriska förhållanden. Syftet med detta arbete är att ge en ökad kunskap om hur vertikala joint ventures kan tillämpas i bygg- och fastighetsbranschen i Sverige. Studien utreder därför användningen av vertikala joint ventures, vanliga motiv samt dess möjliga tillämpning för att utforska hur användandet kan påverka organisatorer och marknader. En kvalitativ metod har använts där aktörer med olika perspektiv har intervjuats. Resultatet indikerar att den vanligaste formen av vertikala joint ventures är när två parter investerar eget kapital i ett nytt gemensamt bolag, där ena parten är en fastighetsförvaltare och den andra parten en fastighetsutvecklare som båda har en lika stor del i ägande och beslutsfattande. Studien visar att de vanligaste motiven till att bilda ett joint venture är att dela på risk, få tillgång till finansiering och komplettera med kompetens och resurser. Resultatet visar att fastighetsutvecklare vanligen har finansiella motiv medan fastighetsförvaltare ofta bildar ett joint venture med primära syftet att komplettera med kompetens. För att ett joint venture ska kunna uppfylla sitt syfte krävs förtroende och att parterna har ett gemensamt huvudmål. Därutöver behöver ett projekt vara av större omfattning utifrån antingen risk, komplexitet, storlek, varaktighet eller kostnad för att kompensera för de administrativa kostnader som följer bildande av ett joint venture. Slutligen fastställs att joint ventures kan användas som en effektiv affärsstrategi för att skapa gemensamma incitament, minska opportunism samt möjliggöra för företag att utföra projekt som de inte kan utföra med interna resurser.

The thesis examines technology adoption within the real estate development industry, an industry that has historically lagged the adoption rate of innovations compared to industrial counterparts. The study finds that the favorable market conditions for real estate as an asset class following the debt crisis in 2008 may have been a significant denominator in slowing down the technology adoption within the industry when several industries at the same time have faced fundamental industrial disruption. The absence of vertical integration within the industry decreases the transparency and complicates the emergence of innovative solutions as technology developers continuously fail to identify what features and functionalities that are desired by industry practitioners. The study finds that the higher the observability of the innovation, the higher is the probability of technology adoption within an organization. In addition, organizations are heavily dependent on having the facilitating conditions in-place internally to enable an effective technology adoption and implementation. / Avhandlingen granskar teknikupptagning inom fastighetsutvecklingsbranschen, en bransch som historiskt sett har haft en lägre adoptionsgrad av innovationer jämfört med industriella motsvarigheter. Studien konstaterar att de gynnsamma marknadsförhållandena för fastigheter som tillgångsslag efter finanskrisen 2008 kan ha varit en betydande nämnare för att hålla tillbaka teknikutvecklingen i industrin när flera industrier samtidigt har genomgått fundamental förändring. Frånvaron av vertikal integration inom branschen minskar insynen och komplicerar framväxten av innovativa lösningar, eftersom teknikutvecklare kontinuerligt har misslyckats att identifiera de funktioner och funktionaliteter som önskas av professionella inom branschen. Studien konstaterar att ju högre möjligheten att observera innovationens kapacitet är, desto högre är sannolikheten för teknisk adoption inom en organisation. Dessutom konstateras att organisationer är starkt beroende av att stödjande infrastruktur finns på plats internt för att möjliggöra en effektiv teknikupptagning och implementation.

South African law treats planning and the environment separately, causing considerable problems when developing land. Concerns in this regard are worldwide and various approaches have been adopted to solve them. This research seeks to explore what legal solutions can be provided using some international examples, fitting them within the unique governance, historical and legal context of South Africa. / Jurisprudence / LLM

Thesis (MBA)--Stellenbosch University, 2000. / ENGLISH ABSTRACT: It is estimated that at present South Africa has a backlog in spending on infrastructure, amounting to R170 billion. The state does not have the necessary funds to rectify the situation. This problem is not unique to South Africa and across the world countries are considering whether private sector enterprises should not be rendering the services and constructing the infrastructure which the state had traditionally done. One of the most successful ways of doing this is to make use of public-private partnerships (PPP's). A PPP is a joint effort by the state and the private sector party to execute a major product, whereby the resources and abilities of the two parties are combined. The risks and responsibilities of the project are allocated to the parties in an optimal manner. The efficient and effective application of the PPP mechanism poses a challenge to the Western Cape Province as it is an excellent way to improve the utilisation of state property within the Province and construct new facilities. The Elsenburg vineyard and cellar project, a PPP project in the Western Cape Province, is therefore critically assessed in terms of key success factors in the implementation of PPP's. Furthermore recommendations regarding the future utilisation of PPP's within the Province are made. A dedicated PPP unit, which will be responsible for investigating the value for money, affordability, allocation of risks and recourse requirements of projects, should be formed within the Province. Members of the unit will also handle the management of PPP projects. It is important that officials who will be involved with PPP's are trained in the theory and practise thereof. Other important aspects are that all groups who have an interest in a PPP project be identified, that attempts are not made to transfer all risks to the private sector partner and that the standardisation of steps that are common to all projects be investigated. Property projects that are suitable for the application of PPP's must be identified as it can provide momentum to the economy of the Western Cape and can also contribute towards the erasing of the backlog in the construction and maintenance of infrastructure. / AFRIKAANSE OPSOMMING: Dit word beraam dat Suid-Afrika tans 'n agterstand in besteding op infrastruktuur het wat R170 biljoen beloop. Die staat beskik nie oor genoeg fondse om die probleem aan te spreek nie. Regerings die wêreld oor ondervind soortgelyke probleme en is besig om te besin of die oprigting van infrastruktuur en die lewering van dienste wat tradisioneel deur die staat hanteer is, nie eerder aan die privaatsektor oorgelaat moet word nie. Een van die suksesvolste maniere om dit te bewerkstellig is deur die gebruik van obenbare sektor-private sektor venootskappe (OPV's). 'n OPV is 'n gesamentlike poging deur die staat en 'n privaatsektorvennoot om 'n groot projek uit te voer, waardeur die hulpbronne, sterkpunte en vermoëns van die twee partye gekombineer word. Die risiko's en verantwoordelikhede wat aan die projek verbonde is, word op optimale wyse aan die partye tot die OPV toegedeel. Die doeltreffende en doelmatige aanwending van die OPV meganisme is 'n groot uitdaging vir die Wes-Kaapse Provinsie, aangesien dit 'n uitstekende manier is om benutting van staatseiendom binne die Provinsie te verbeter en nuwe fasiliteite op te rig. Die Elsenburg wingerd- en kelderprojek, 'n OPV-projek binne die Wes-Kaapse Provinsie, word derhalwe krities geëvalueer op grond van sleutelsuksesfaktore vir die implementering van OPV's. Verder word aanbevelings rakende die toekomstige aanwending van OPV's binne die Provinsie gemaak. 'n Spesialis OPV eenheid, wat verantwoordelik sal wees om die waarde vir geld, bekostigbaarheid, toedeling van risiko's en hulpbronbenodighede van projekte te ondersoek, moet binne die Provinsie gestig word. Die bestuur van OPV projekte sal ook deur lede van die eenheid hanteer word. Dit is belangrik dat amptenare wat by OPV's betrokke sal wees, opgelei word in die teorie en praktyk daarvan. Ander belangrike aspekte is dat alle groepe wat 'n belang by 'n OPV projek het, geïdentifiseer moet word, dat daar nie gepoog word om alle risiko's na die privaatsektorvennoot oor te dra nie en dat die standardisering van stappe wat gemeenskaplik is aan alle projekte ondersoek moet word. Eiendomsprojekte wat geskik is vir die aanwending van OPV's moet geïdentifiseer word, aangesien dit as inspuiting vir die Wes-Kaapse ekonomie kan dien en kan bydra tot die uitwissing van die agterstand in die oprigting en instandhouding van infrastruktuur.

published_or_final_version / Urban Planning / Master / Master of Science in Urban Planning

Made available in DSpace on 2015-12-03T18:33:09Z (GMT). No. of bitstreams: 1 Luciana_Maia_Campos_Machado.pdf: 1574359 bytes, checksum: cabec8c037b6327cf603054ec242e15d (MD5) Previous issue date: 2014-06-24 / When compared to other Brazilian companies traded at BOVESPA, real estate listed companies, in the period 2005-2013, had a sharp drop in market value. In this period, the years of 2006 and 2007 were marked by particularly strong concentration of IPOs in the Brazilian market, and in the same way that other companies, real estate companies turned to the stock market in an unusual high frequency to finance their operations. Specifically in the real estate industry, a high percentage of companies went public in these two years: 60% of all companies in the sector. Studies on the annomalies due to IPOs usually address the undervaluation of the issuing companies, the concentrated emission at hot market times (Market Timing) and the poor performance of stocks and operations of these companies in the long run. Thus, this work aimed to investigate whether there was a relationship between the poor performance of the real estate industry in the Brazilian market and the significant number of IPOs that companies of this sector performed. For this purpose, non-financial companies from all sectors traded at BOVESPA were studied, comparing the market value divided by total assets of the companies that went public in the period with companies that was already traded. Furthermore, the behavior of the same indicator for real estate developers was contrasted with other sectors. In order to isolate any other incident effects on the test variable, different panel data regressions were estimated, controlling for risk, size, profitability, growth, years and sectors. Empirical evidence suggests that the poor performance observed in the real estate developers would be linked to the unusually high incidence of IPOs in the sector in the period, not to any particularities of these companies, directing the results primarily to issues of Market Timing in the IPO market timing, not to any operational difficulties in the real statebusiness. / When compared to other Brazilian companies traded at BOVESPA, real estate listed companies, in the period 2005-2013, had a sharp drop in market value. In this period, the years of 2006 and 2007 were marked by particularly strong concentration of IPOs in the Brazilian market, and in the same way that other companies, real estate companies turned to the stock market in an unusual high frequency to finance their operations. Specifically in the real estate industry, a high percentage of companies went public in these two years: 60% of all companies in the sector. Studies on the annomalies due to IPOs usually address the undervaluation of the issuing companies, the concentrated emission at hot market times (Market Timing) and the poor performance of stocks and operations of these companies in the long run. Thus, this work aimed to investigate whether there was a relationship between the poor performance of the real estate industry in the Brazilian market and the significant number of IPOs that companies of this sector performed. For this purpose, non-financial companies from all sectors traded at BOVESPA were studied, comparing the market value divided by total assets of the companies that went public in the period with companies that was already traded. Furthermore, the behavior of the same indicator for real estate developers was contrasted with other sectors. In order to isolate any other incident effects on the test variable, different panel data regressions were estimated, controlling for risk, size, profitability, growth, years and sectors. Empirical evidence suggests that the poor performance observed in the real estate developers would be linked to the unusually high incidence of IPOs in the sector in the period, not to any particularities of these companies, directing the results primarily to issues of Market Timing in the IPO market timing, not to any operational difficulties in the real statebusiness. / Quando comparadas ??s demais empresas brasileiras de capital aberto negociadas na BOVESPA, as incorporadoras imobili??rias apresentaram, no per??odo de 2005 a 2013, acentuada queda no valor de mercado. Neste intervalo, os anos de 2006 e 2007 foram notadamente marcados por forte concentra????o de IPOs no mercado brasileiro, e da mesma forma que outras empresas, as incorporadoras imobili??rias recorreram com frequ??ncia pouco usual ao mercado acion??rio para financiamento de suas opera????es. Especificamente no setor de incorpora????o imobili??ria, um percentual elevado de empresas abriu capital nestes dois anos: 60% do total de empresas do setor listadas na BOVESPA. Estudos sobre anomalias decorrentes da abertura de capital costumam abordar a subavalia????o das empresas emissoras, a concentra????o das emiss??es em momentos de alta (Market Timing) e o fraco desempenho das a????es e opera????es destas empresas no longo prazo. Assim, esta disserta????o teve como objetivo principal investigar se houve rela????o entre o fraco desempenho do setor de incorpora????o imobili??ria no mercado acion??rio brasileiro com a expressiva quantidade de IPOs que as empresas que comp??em o setor realizaram. Com este objetivo, foram estudadas empresas n??o financeiras de todos os setores negociadas na BOVESPA, comparando-se o valor de mercado sobre ativo total das empresas que abriram capital no per??odo com o de empresas que j?? possu??am capital aberto. Ademais, verificou-se o comportamento do mesmo indicador para incorporadoras imobili??rias, contrastando-as com empresas de outros setores. Com a finalidade de isolar outros efeitos incidentes sobre a vari??vel de teste, diferentes regress??es com dados em painel foram estimadas, controlando-se risco, tamanho, rentabilidade, crescimento, anos e setores. Os resultados encontrados sugerem que, em m??dia, as empresas que recorreram ao mercado acion??rio, realizando IPOs entre 2005 e 2013, iniciaram o per??odo sobrevalorizadas, ou seja, com valor de mercado sobre ativo total superior ??s demais, sendo que esse valor teve forte decr??scimo nos anos seguintes. As evid??ncias emp??ricas sugerem que o fraco desempenho observado nas incorporadoras imobili??rias estaria ligado ?? anormalmente elevada incid??ncia de IPOs no setor no per??odo, e n??o a particularidades destas empresas, direcionando os resultados principalmente para quest??es de Market Timing nos IPOs, e n??o a eventuais dificuldades operacionais no ramo de atividade de incorpora????o imobili??ria.

Essa tese de doutorado tem como principal objetivo verificar em que medida o desenho dos edifícios de apartamentos paulistanos e a ação de agentes imobiliários oriundos de São Paulo constituem referência para a produção imobiliária de outras regiões do país e influenciam na verticalização urbana atual. Constatou-se tal referência de diversas formas: a presença de incorporadoras imobiliárias com matriz na capital paulista e filiais nas demais metrópoles consideradas, o protagonismo que essas empresas tiveram após a aproximação entre os mercados imobiliário e financeiro e após o intensivo aporte de capitais oriundos de fundos estatais para financiamento de moradias, a interferência dos agentes imobiliários mais influentes, política e economicamente, sobre o planejamento (público) urbano e habitacional, alterações na prática profissional dos arquitetos e a mudança de seu processo de criação e da produção dos projetos, etc.. Esse novo contexto do mercado imobiliário brasileiro que incorpora edifícios de apartamentos foi intensificado nos anos 2000 e influenciou decisivamente a formatação dos empreendimentos imobiliários, na definição das características arquitetônicas dos edifícios, na inserção urbana e na localização dessas edificações, na configuração de trechos da paisagem urbana, nos ritmos de produção dessa verticalização e de consumo dessas moradias, etc.. Os megaempreendimentos, com projetos altamente padronizados, baseados em um desatualizado modelo de planta, com apartamentos de áreas diminutas e localizados em regiões nas periferias, são um dos principais produtos imobiliários encontrados, consequências dessas questões. Foram estudadas cinco cidades brasileiras, importantes capitais de diferentes regiões geopolíticas: Recife (PE), Porto Alegre (RS), Belém (PA), Goiânia (GO), Belo Horizonte (MG). Esse trabalho inclui extensa pesquisa de campo e a realização de cinco viagens acadêmicas, com duração de dois meses cada, em todas as cidades mencionadas. Foram realizadas dezenas de visitas técnicas aos principais bairros verticalizados recentemente e foram observados centenas de empreendimentos imobiliários e milhares de edifícios de apartamentos. Também foram realizadas 79 entrevistas com incorporadores imobiliários, arquitetos de escritórios e pesquisadores acadêmicos, além de abrangente revisão bibliográfica. Esse quadro ajuda a explicar as consequências mais dramáticas da cultura capitalista no século XXI advindas de determinada produção imobiliária mercantil. Também situa mais precisamente o papel da arquitetura e do arquiteto na sociedade brasileira atualmente. / This thesis aims to examine how the paulistano apartment building design and the practice of real estate agents from São Paulo are reference for the housing production in other regions of the country and influence the urban verticalization. This reference happens in several ways: the presence of real estate companies headquartered in São Paulo and branch offices in other considered cities, the important role that this companies had after the intensive capital input from state funds to finance housing, the interference of the most influential real estate agents, politically and economically, on the public urban and housing planning, changes in the professional practice of architects, creative process and project production changes, etc.. This new context of the Brazilian real estate market that produces apartment buildings was intensified in the 2000 decade and decisively influenced the real estate project conceptions, in the architectural quality definition of apartment buildings, in the urban insertion and location of this buildings, in the configuration of urban landscape parts, in the increase production of this urban verticalization and increase acquisition of this apartments, etc.. Results of this context, the mega-projects are one of the most important real estate products found. Mega-projects are highly standardized designs, they use a outdated spatial configuration that organizes apartments with small areas and located in outskirt areas. Five Brazilian cities was studied, all of them important capitals of different geopolitical regions: Recife (PE), Porto Alegre (RS), Belém (PA), Goiânia (GO), Belo Horizonte (MG). This work has extensive field research with five academic trips, lasting two months each, in all mentioned cities. Dozens of academic visits to the main neighborhoods with recently verticalization were done, hundreds of real estate projects and thousands of apartment buildings was collected. 79 interviews with real estate agents, architects and academic researchers also were done. This context contributes to explain the most dramatic consequences of capitalist culture in the twenty-first century that come from particular real estate production. Also shows more precisely the role of the architecture and the architect in current Brazilian society.

published_or_final_version / Housing Management / Master / Master of Housing Management