{"id":3994,"date":"2024-01-05T05:20:05","date_gmt":"2024-01-04T21:20:05","guid":{"rendered":"http:\/\/www.gssinst.org\/irer\/?p=3994"},"modified":"2025-12-03T02:24:38","modified_gmt":"2025-12-02T18:24:38","slug":"a-real-option-analysis-of-the-flats-for-land-system-an-idiosyncratic-equity-financing-mechanism-on-real-estate-investments","status":"publish","type":"post","link":"https:\/\/www.gssinst.org\/irer\/2024\/01\/05\/a-real-option-analysis-of-the-flats-for-land-system-an-idiosyncratic-equity-financing-mechanism-on-real-estate-investments\/","title":{"rendered":"A Real Option Analysis of the \u201cFlats for Land\u201d System &#8211; an Idiosyncratic Equity Financing Mechanism on Real Estate Investments"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"3994\" class=\"elementor elementor-3994\" data-elementor-settings=\"[]\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6b084dbc elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6b084dbc\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-47d15be8\" data-id=\"47d15be8\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-73767d13 elementor-widget elementor-widget-text-editor\" data-id=\"73767d13\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\"><div class=\"article_label\">Article<\/div><p class=\"article_title\">A Real Option Analysis of the &#8220;Flats for Land&#8221; System &#8211; an Idiosyncratic Equity Financing Mechanism on Real Estate Investments<\/p><div><p class=\"title_label_large\">Author<\/p><p class=\"title_label_large\">Start Page \/ End Page<\/p><p class=\"title_label\">Volume<\/p><p class=\"title_label\">Issue Number<\/p><p class=\"title_label\">Year<\/p><p class=\"title_label_large\">Publication<\/p><\/div><div><p><!-- Author \/ StartEndPage \/ Volume \/ IssueNumber \/ Year \/ Publication --><\/p><p class=\"title_text_large\">Panagiotis Petris<\/p><p class=\"title_text_large\">551 \/ 568<\/p><p class=\"title_text\">26<\/p><p class=\"title_text\">4<\/p><p class=\"title_text\">2023<\/p><p class=\"title_text_large\">International Real Estate Review<\/p><\/div><div class=\"empty\">\u00a0<\/div><p class=\"abstract_label\">Abstract<\/p><p>A typical real estate development project encounters an entr\u00e9e capital expense for land purchase that is not immediately recovered until the allocated capital for the land acquisition is replaced with new capital that converts the land to a rentable building space. This article presents an idiosyncratic equity financing scheme that eliminates the sunk cost for a land purchase over a real estate development, within a real options framework. The study provides a model solution, numerical results of the option value, and the optimal investment threshold of a real estate development that is initiated through the &#8220;flats for land&#8221; scheme.<\/p><p>\u00a0<\/p><p><!-- PDF DownloadLink --><\/p><p class=\"download\"><a href=\"http:\/\/www.gssinst.org\/irer\/wp-content\/uploads\/2024\/07\/vol26-no4_4-Real-Option-Analysis-of-Flats-Petris.pdf\" target=\"_blank\"><strong>View PDF -https:\/\/doi.org\/10.53383\/100373<\/strong><\/a><\/p><div>\u00a0<\/div><div>\u00a0<\/div><div><p class=\"abstract_label\">Keywords<\/p><p>Real options, Real estate assets, Housing finance<\/p><\/div><div>\u00a0<\/div><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Article A Real Option Analysis of the &#8220;Flats for Land&#8221; System &#8211; an Idiosyncratic Equity Financing Mechanism on Real Estate&hellip;<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"article-template.php","format":"standard","meta":[],"categories":[265,264],"tags":[],"_links":{"self":[{"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/posts\/3994"}],"collection":[{"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/comments?post=3994"}],"version-history":[{"count":6,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/posts\/3994\/revisions"}],"predecessor-version":[{"id":4639,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/posts\/3994\/revisions\/4639"}],"wp:attachment":[{"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/media?parent=3994"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/categories?post=3994"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/tags?post=3994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}