PROP 10002 Introduction to Property Assignment 3 Brief 2025 | Melbourne

PROP 10002 Objectives: 

The purpose of this assignment is to provide students with knowledge and understanding across the following areas: 

1. The relationship between ESG and property 
2. The implications of ESG considerations for institutional investors

This is a group assignment, with a suggested group size of 3 (with a minimum of two and a maximum of four, if a group of three is not possible). Individual submissions are not possible (please refer to the subject handbook). The groups will be formed within your tutorial class. Cross-tutorial groups are not allowed.

PROP 10002 Assignment Instructions:

The outcome of your assignment is a report due for submission via the Assignment tool in Canvas on Monday, 9th of June by 5:00 p.m. AEST (please note extended deadline. This overrides the deadline mentioned in the subject guide on Canvas). You would be in the property investment department of an Australian superannuation fund, BDes Super. Your manager has formed a Deal team comprising your group. For the next Investment Board meeting, your manager has asked your Deal team to prepare a property investment strategy report in light of the regulations on ESG compliance for institutional investors in Australia.

To prepare for the report, you may start by doing the following:

1. Research and review NABERS (National Australian Built Environment Rating System) and Green Star rating guidelines, with a focus on the implications for institutional investors. Review APRA's prudential practical guide SPG 530 (available on Canvas) regarding ESG requirements for investment by superannuation funds. 
2. Ask a Generative AI (Gen AI) tool to generate an investment portfolio consisting of 10 Australian property assets worth at least $500 million. Request that the AI explain the rationale behind its portfolio choice.
3. Critically review the AI-constructed portfolio and critically evaluate its investment strategy in light of your understanding of NABERS, Green Star of APRA SPG 530. Suggest alternative property investment options should the AI-constructed portfolio be improved. If you agree with the AI-generated portfolio, present seasoned arguments on how it meets the investment requirements of your fund.

Your report should include the sections: 

1.An introduction - Explain the purpose of the report and your approach.

2.A Review of NABERS and Green Star Ratings Guidelines. Critically analyse the implications of ESG investment considerations on institutional investors, especially in the property investment sector. Explain APRA SPG 530 guidelines for property investments by super funds. 

3.Gen AI Portfolio Brief, which should specify: 

• The Gen AI that was adopted for this report.
• The command/prompt you provided to the Gen AI 
• Criteria for selection of property assets for the portfolio that is compliant with ESG and APRA SPG 530. 
• The Australian ESG property investment portfolio suggested by the Gen AI (This may be presented in a table format) 
• The rationale of the Gen AI Australian ESG property investment portfolio (summarised in your own language) 
  4.An investment recommendation, which should include: 
• Critical evaluation of the Gen AI Australian ESG property investment portfolio and its investment strategy 
• Your suggestions on whether the Gen AI portfolio should be adopted 
• If you suggest improvements/adjustments for the Gen AI portfolio, describe the finalised investment portfolio and explain the rationale behind the portfolio design 

5.Recommend the finalised portfolio from Part 4 to the Board at BDes Super and explain why they should continue hiring you as an investment manager instead of adopting Gen AI for your role. Ensure that you clearly explain any assumptions made and specify the source of all data used. Ensure that you have appropriately labelled relevant figures and tables. There is no minimum or maximum number of tables/figures that you can include, but these would be counted on an equivalent word count basis.

Format:

The format of your submission should be a formal report. Include subheadings and labelled pictures where relevant. Word limit is 1600 per person, meaning 4800 for a group of three. This does not include the reference section. Each table would be counted as equivalent to 250 words, and each figure is also equivalent to 250 words. Use them judiciously. The report is to be in 11- or 12-point font (spreadsheets, if used, not less than 12 point), and to be as concise as possible. Use line spacing of 1.5. Written report assignments must NOT be emailed or handed directly to the teaching staff. The report must be submitted via the LMS by the due date. This report requires the use of APA referencing styles. Please refer to Recite for guidance on referencing.