Architecture (Conservation)

FRANCESCO TAJANI

The course aims to provide the evaluative knowledge for the use of tools to support investment decisions - public and/or private - aimed at the enhancement of disused or under-utilised property assets of historical and architectural value. The competences acquired will allow to carry out consultancy activities also in the framework of public-private partnership procedures, where it is mandatory to identify compromise solutions between the preservation of the historical and architectural features of the property asset to be enhanced and the convenience of the initiative for the investor, in order to guarantee the effectiveness of the intervention also in terms of social, economic and environmental impacts on the territorial context of reference.

The course aims to provide the basic tools for assessing the economic-financial feasibility and sustainability of cultural heritage enhancement investments. The techniques learned concern (i) break-even evaluation in public-private partnership investments, (ii) multi-criteria evaluation, also considering the effects of the project on the local communities involved.

Knowledge of basic economic principles (demand, supply, market, revenues, costs).

CONCEPTS OF MICROECONOMICS

● Basic definitions.
● The theory of the consumer.
● The theory of the firm.
● Market and exchange: demand, supply, price formation.
● The main market forms.


CONCEPTS OF FINANCIAL MATHEMATICS

● Basic definitions.
● The transfer of capital over time.
● The accumulation of financial amounts.


PROFESSIONAL SKILLS OF THE VALUER

● International Valuation Standards.
● The estimative postulates.
● Basis of value, economic aspects and estimative criteria.
● Estimative and cost effectiveness judgments.
● Evaluative approaches.
● The sources of data.
● Break-Even Analysis in real estate investments.


EVALUATION OF PROJECTS

● The concept of project in the economic sector.
● The allocation of the resources.
● Technical, economic and financial feasibility.
● Ex ante, ongoing, ex post valuations and corresponding purposes.
● Valuations under risk and under uncertainty.
● Sensitivity analysis.
● Performance criteria of the investments.
● Verification of the financial feasibility of an investment through the Discounted Cash Flow Analysis.

The main references will be indicated during the lessons.
In particular:
RICS (2024), RICS Valuation – Global Standards, RICS, London.

Lind, H., & Nordlund, B. (2021). Advanced issues in property valuation. John Wiley & Sons.

RICS (2024), RICS Valuation – Global Standards, RICS, London.
Lind, H., & Nordlund, B. (2021). Advanced issues in property valuation. John Wiley & Sons.
Damodaran, A. (2012). Investment valuation: Tools and techniques for determining the value of any asset. John Wiley & Sons.

Lessons in the classroom

The lectures are in presence.

Oral exam: discussion on the explained methodologies and the case study to be developed.

Application of break-even analysis.

Implementation of multi-criteria techniques.

What evaluation techniques in public-private partnership.