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PFI721S - PROPERTY FINANCE AND INVESTMENT - 1ST OPP - NOV 2025 |
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n Am I BI A u n IVER s 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: NOVEMBER 2025
PAPER:
THEORY
DURATION: 2 HOURS
MARKS:
100
EXAMINER(S)
FIRST OPPORTUNITY EXAMINATION QUESTION PAPER
MR VERINJAERAKO KANGOTUE
MODERATOR: MR AMIN A. !SSA
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
QUESTION 1
PFl721S
1.1 Newly formed corporations are always challenged with the financial management decisions associated
with proper choice of a right mix of debt and equity capitals that meets the investment requirements of
their organisation. Identify and explain the four (4) strategic issues which can be used to address these
challenges.
(5)
1.2 Oryx Properties Limited is one of the firms that are well positioned when it comes to sources of cash
that is available to form corporate financial structure. Based on your skills and expertise in corporate
finance, identify and explain the basic sources of cash that are likely to form the main sources of
funding for this company.
(8)
1.3 Many developers and homeowners rely on mortgages to finance housing development.
a) Explain the meaning of a mortgage.
b) List the actors in a mortgage approval process.
(3.5)
(2.5)
1.4 A property investor who uses debt finance cannot avoid amortization . With an example, explain the
meaning of this statement.
(6)
[25]
QUESTION 2
2.1 Highlight any four (4) types of the following sources of funding as used in property finance.
a) Equity finance
(4)
b) Debt finance
(4)
2.2 Your client is hoping to finance a speculative entertainment project through a mortgage loan, subject
to the lender inserting favourable clauses in the mortgage bond. Briefly-examine any six (6) clauses
(including borrower's right to reinstatement) that such a mortgage bond should contain .
(17)
[25]
First Opportunity Question Paper
Page 2 of 4
November 2025
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Property Finance and Investment
PFl7215
QUESTION 3
Table 1 contains a Cash Flow Statement for Oshakati Properties CC
Income
Minimum rent
Overage (5% of gross sales)
Tenant reimbursements
Real estate taxes
Common area maintenance
Utilities
Insurance
Gross-potentia 1-income
Less Vacancy allowance
Total Income
Amounts N$
1,749,000
124,800
-
143,000
400,400
382,200
34,320
2,833,720
141,686
2,692,034
Expenses
Management and leasing fees
General and administrative
Rea I estate taxes
Common area maintenance
Utilities
Insurance
Other
Total expenses
Net operating Income
Less: Debt service
Before tax cash flow (BTCF)
Total Project Cost
Total Equity Needed
93,690
80,080
143,000
400,400
312,312
34,320
28,600
1,092,402
1,599,632
1,137,661
461,971
11,982,286
2,980,872
3.1 Use table 1 above and your skills in project financial analysis to determine the following ratios.
(Show your workings)
(15)
a) Operating expenses
b) Debt coverage ratio
c) Free and clear return
d) Return on equity
e) Vacancy collection loss
f) Break-even occupancy rate
First Opportunity Question Paper
Page 3 of 4
November 2025
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Property Finance and Investment
3.2 Differentiate between Forward sale and Participation loans.
3.3 Distinguish between Securitisation of mortgage and Sales and lease back.
PFl721S
(4)
(6)
[25]
QUESTION 4
4.1 Define and discuss Bridging finance.
(6)
zr:-2- A- 6riaging loan 1s a sfiort=term loan usecfuntil a person or company secures permanent financing or
removes an existing obligation. This type of financing allows the user to meet current obligations by
providing immediate cash flow. Explain how bridging finance as one (1) of the sources of finance be of
assistance to new and upcoming Namibian investors during economic recession.
(12)
4.3 There are seven (7) criteria that banks use when approving bridging loans, Highlight those criteria. (7)
[25]
First Opportunity Question Paper
Page 4 of 4
November 2025