Case Study

Question 1

What was the purpose of the valuation?

Answer 1

Financial Reporting purposes

Question 2

Given that you have been valuing for this client for some time, do you think that recommending a different firm carry out this valuation may have been appropriate?

Answer 2

RICS considers it good practice (however not mandatory) to rotate valuers at intervals not exceeding seven years; my firm has been providing the valuation services to the client for two years. And although the responsible valuer has stayed the same, I have led the valuation this year under the supervision.

Question 3

What was the construction type for the building and how did you identify this?

Answer 3

Reinforced concrete
Identified though exterior appearance

Building plans and specifications also can indicate the construction type of the building

Question 4

What condition aspects did you note down during your inspection?

Answer 4

Externally and internally the Property appeared to be in a good condition with no apparent defects. My area of expertise is limited to a visual inspection only.

Question 5

How did you calculate the WAULT?

Answer 5

Calculated remaining term for each tenant
Multiplied by rental income it generates
Sum the figures
divide by the total rental income

Question 6

How does this approach account for the various tenants, covenants, and income?

Answer 6

Modelled current passing rent based on tems from a head lease. Covenant is strong, but strategy of leasing individually would be more financially viable long term to bring the rents aligned with the market.

Question 7

What weight did you give to the Informal advice from your agency colleagues and why?

Answer 7

I considered the informal advice from agency colleagues as supportive insight when forming my view on the appropriate exit yield. While the primary evidence was drawn from past investment transactions , informal input helped to interpret those yields in the context of current buyer sentiment in this location, and the relative appeal of the property. I gave this informal advice limited but relevant weight, ensuring it aligned with an objective market data and was not used in isolation.