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PFI721S - PROPERTY FINANCE AND INVESTMENT - 2ND OPP - DEC 2025 |
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J
n Am I BI A u n IV ERs ITY
OF SCI En CE Ano TECH n OLOGY
FACULTY OF ENGINEERING AND THE BUILT ENVIRONMENT
DEPARTMENT OF LAND AND SPATIAL SCIENCES
QUALIFICATION{S): BACHELOR OF PROPERTY STUDIES
BACHELOR OF LAND ADMINISTRATION
QUALIFICATION{S) CODE: 08BOPS -
0BLAM
--
NQF LEVEL: 7
COURSE CODE: PFl721S
COURSE NAME: PROPERTY FINANCE AND INVESTMENT
EXAMS SESSION: DECEMBER 2025
PAPER:
THEORY
DURATION: 2 HOURS
MARKS:
100
SECOND OPPORTUNITY /SUPPLEMENTARY EXAMINATION QUESTION PAPER
EXAMINER{S) MR VERINJAERAKO KANGOTUE
MODERATOR: MR AMIN A. ISSA
INSTRUCTIONS
1. Read the entire question paper before answering the Questions.
2. Please write clearly and legibly!
3. Please START EACH QUESTION ON A FRESH PAGE.
4 . The question paper contains a total of 4 questions.
5. You must answer ALL QUESTIONS.
6. Make sure your Student Number is on the EXAMINATION BOOK(S).
PERMISSIBLE MATERIALS
1. Non-programmable Scientific Calculator
THIS QUESTION PAPER CONSISTS OF 4 PAGES (Including this front page)
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Property Finance and Investment
PFl721S
Question 1
Assuming you are the Property Investment Manager at ABC Bank of Namibia. New Horizon Ltd, a property
development company based in Windhoek is seeking to arrive at a quick decision as to which two sources
of financial vehicle to use. May it be Debt or Equity? And which is the best way to access capital to finance
its internal project of 20 storey headquarters in Windhoek? Briefly, explain how you would advise the
Board of Directors (Shareholders) of New Horizon Ltd on the source of finance?
{25)
[25)
Question 2
Explain the following terms as used in property finance.
2.1 Syndicated loans
(5)
2.2 Real options
(5)
2.3 Mezzanine finance
(5)
2.4 Recourse loan
(5)
2.5 Sale and leaseback
(5)
[25)
Question 3
3.1 Discuss the term bridging finance as used in financing of property development projects.
(6)
3.2 With the aid of valid examples, demonstrate how lenders may use bridging finance to assist investors
~ during a period of economic recession.
(12)
3.3 What criteria would lenders in three (3) (b) above use in approving a bridging loan?
(7)
[25)
Second Opportunity/supplementary Question Paper Page 2 of 4
December 2025
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Property Finance and Investment
Question 4
PFl721S
4.1 The table below shows the types and sources of property finance. Complete the table by filling in the
missing period and sources information.
(10)
Finance
Period - years
LONG TERM
Ordinary
share
i)
capital
Debentures
10~20- -
Mortgage loans
iii)
Lease backs
iv)
Medium Term
Redeemable
preference shares
5-10
Leasing
3 -10
Suspensive sa le
3 -10
Term loans
vii)
SHORT TERM
Overdraft
viii)
Acceptances local
90-120 days
Acceptances foreign 180 days
- Debtor factoring
- x)
Source
Institutions, private invest ors
ii)
Trust companies, banks
v)
Banks
vi)
Banks
Banks
Commercial banks
Merchant banks
ix)
Banks; Finance companies -
4.2 Mr Issa wanted to raise N$ 10 000 000.00 for construction of the Department of Lands and Property
Sciences new office building. He was t hinking of raising the amount needed through capital market,
Second Opportunity/supplementary Question Paper Page 3 of 4
December 2025
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Property Finance and Investment
PFl7215
which is used mainly for raising of long-term finance. With examples describe three (3) capital markets
sources Mr. Issa could have used?
(9)
4.3 If the monthly rental of a project is estimated at N$ 10 000.00, with a yield of 12%, what w ill be the
project value?
(3)
4.4 Differentiate between Forward sale and Participation loans.
(3)
(25)
Second Opportunity/supplementary Question Paper Page 4 of 4
December 2025