My Examples Flashcards
Talk me through your valuation in Southwark/Farringdon…
I received instructions from client to undertake a valuation for agency purposes, I checked my competence to undertake the work and confirmed that there were no conflicts of interest.
I then issued terms of engagement to the client which they signed and returned.
As I had recently let the building I had a good knowledge of the property and the surrounding area. I gathered the necessary information and undertook due diligence before inspecting the property and the surrounding area.
We already had a measured survey having just let the property and I had a good idea of market rents however I complied further comparables having regard to the hierarchy of evidence and confirmed that the property was rack rented.
I therefore decided to use the conventional investment method capitalising the rent using an appropriate yield which I adjusted suitably to establish the market value.
What due diligence did you undertake for the valuation you undertook in Southwark?
Asbestos register Environmental matters Flooding Fire safety compliance Health and safety compliance Highways Title and tenure Planning
In your valuation in Southwark/Faringdon, how did you reflect the five year term certain within your valuation?
I looked at comparable evidence to establish an appropriate yield and adjusted it accordingly to reflect the term.
Talk me through your valuation on Basinghall Street, from start to finish.
I received instructions from my client to undertake an investment appraisal for agency purposes, to establish the potential market value of the property. I first checked my competence to undertake the work before confirming there were no conflicts of interest or personal interests. I then issued terms of engagement to the client. Having received signed terms of engagement from the client, I gathered information and undertook due diligence. I then inspected the property and the surrounding area. The building already had a current measured survey undertaken by a 3rd party. I then gathered market comparables having regard to the hierarchy of evidence and discovered that a number of floors in the building were reversionary, I decided to use the investment method to establish the value using a DCF.
Can you run me through your development appraisal in Whitechapel?
I undertook a development appraisal to advise client on the potential acquisition of a commercial office development opportunity in Whitechapel.
I assessed the GDV of the site by sourcing comparables from the surrounding area making sure to confer with agents to verify my evidence.
I then used my clients inputs to inform my total development costs including build costs, professional fees and profit and was able to establish the potential site value.
I worked as part of a team of expert consultants including a planning consultant, an architect who established a potential scheme and building surveyors, so I knew my inputs would be of high quality.
I tested the sensitivities of a number of key variables and scenarios, and on the majority of appraisals the IRR projections came in below my clients target rate of of return.
From this, I advised my client of the potential risks of the development and they decided not to pursue the opportunity.
Can you talk me through your development appraisal on Turner Street?
I undertook a development appraisal to establish the likely value of the site.
The property consisted of an existing pub but with potential for a 3 story extension for residential use.
For my build costs and measurement, I relied upon information given to me by 3rd parties. I then consulted a retail specialist to establish the ERV’s for the retail space and consulted residential specialists and databases for potential capital values of the residential flats.
Using the inputs established from the retail consultant I was able to calculate the capital value of the pub. I then summed this up with the Capital values of the residential values to find the GDV.
My client had not costed the scheme, so I consulted 3rd parties to establish likely development costs.
I took the GDV (less purchaser’s costs to establish the NDV) and deducted the total development costs and the Developers profits to establish the likely value of the site.
I ran a number of appraisals to test the sensitivity of key inputs.
This property has recently been given planning permission to proceed however my client has put a potential sale on hold.
How else could you have valued the pub in your Turner Street example?
I valued the pub using the investment method, based on the income being received.
However, I could have used the profits method.
Can you talk me through your development appraisal on Greville Street?
I undertook a development appraisal to provide advice to a developer client on the potential viability of the site as a development.
The property was a multi let office building, the possibility for additional massing and a change of use on the ground floor to A1, Subject to planning.
I ran a number of appraisals for different scenarios.
For most of my inputs including build costs, professional fees and measurement, I relied upon information given to me by my client and the vendor. I then established ERV’s for the office space and consulted a third party retail specialist for potential ERVs of retail space.
Using a market derived yield I was able to establish the GDV.
Unfortunately due to the relevant timescales and potential costs associated with the a number of leases having security of tenure, the investment was not viable for my client as it did not achieve their target IRR.
Can you talk me through your development appraisal on Cannon Street?
I undertook a development appraisal to provide advice to a developer client on the potential bid level for the site.
The property consisted of mainly office space which was vacant with retail at ground floor level with a rent review upcoming.
I ran a number of appraisals for different scenarios and sensitivities.
For most of my inputs including build costs, professional fees and measurement, I relied upon information given to me either by the vendor or by my client. I then established ERV’s for the office space and consulted a third party retail specialist for potential ERVs of retail space on review.
Using a market derived yield I was able to establish the GDV.
I provided advice to the client on a competitive bid level taking into a count their aspirations for developers profit and their target IRR. Unfortunately the bid was not successful on this occasion.
Can you talk me through your development appraisal on settles Street?
I undertook a development appraisal to establish the likely value of the site using Microsoft Excel.
The property comprised entirely of b1 office space and there was potential for a 4 story extension to the back of the building.
I ran a number of appraisals to test the sensitivity of certain variables including ERV’s and exit yields.
For my build costs and measurement, I relied upon information given to me by 3rd parties. I then established ERV’s for the office space.
Using a market derived yield, I was able to calculate the GDV. I was then able to find the Residual value of the property.
This property has recently been given planning permission to proceed and we have been instructed to provide advice on the sale of the property.
Can you run me through your freehold acquisition on Hatton Garden?
I acted on behalf of an institutional developer fund to acquire a multi-tenanted office building on Hatton Garden.
Prior to introducing the property to my client, I made sure to check my competence and ensure there were no conflicts. I then issued Terms of Engagement which the client returned signed. I then undertook simple due diligence with regards to money laundering as they were a listed company before proceeding to gather information on the property and undertake statutory due-diligence gathering information such as the asbestos report, leases and covenant information. I also advised on potential asset management initiatives for refurbishment and reletting the space that was potentially due to become vacant.
I then inspected the property before proceeding to assemble market evidence in order to advise the client on the value of the property in order to ascertain a suitable bid.
The vendor used the Formal Tender method of sale so we only had one chance to bid. On this occasion my clients bid was successful. I aided through to completion where possible.
Can you talk me through your freehold disposal in Tookes Court?
I received instructions from a private landlord to dispose of their freehold interest in Tookes Court.
Before accepting the instruction I checked my competence to undertake the work and ensured there were no conflicts of interest before issuing our agency instruction agreement to the client which they returned signed.
I then undertook the necessary money laundering checks before proceeding to gather information on the property and undertake due diligence, also checking the VAT position for the sale of the property.
I then inspected the property and commissioned a third-party measurement survey.
I then compiled and analysed comparable evidence in order to ascertain the market value of the property.
I then produced a marketing report setting out our advice on marketing and a disposal strategy.
Prior to the marketing campaign I helped to produce a marketing brochure and obtained my clients written approval of its contents.
After a period of marketing, we established a number of interested parties and proceeded to invite bids using the informal tender method.
I helped to run 2 rounds of bids before making recommendations to my client on which bid to accept.
We then proceeded to negotiate as agree HOTs with the chosen party before instructing solicitors. I aided through to completion where possible.
Can you talk me through your disposal on Great Turnstile Street?
I received instructions from a client to dispose of their freehold interest on Great Turnstile Street by way of a sale and leaseback agreement.
Before accepting the instruction I checked my competence to undertake the work and ensured there were no conflicts of interest before issuing our agency instruction agreement to the client which they returned signed.
I then undertook the necessary money laundering checks before proceeding to gather information on the property and undertake due diligence, also checking the VAT position for the sale of the property.
I then inspected the property and commissioned a third-party measurement survey.
I then compiled and analysed comparable evidence in order to ascertain the market value of the property.
I then produced a marketing report setting out our advice on marketing and a disposal strategy.
Prior to the marketing campaign I helped to produce a marketing brochure and obtained my clients written approval of its contents.
After a 4 week period of marketing, we established a number of interested parties and proceeded to invite bids using the formal tender method.
Having received bids I ran cash flows for each bid to ascertain which created the greatest net gain for my client before making recommendations to my client on which bid to accept.
We then proceeded to agree HOTs with the chosen party before instructing solicitors. I aided through to completion where possible.
How did you establish a value for your client on Hatton Garden?
I undertook a DCF Valuation.
How did you establish the value for Tooks Court?
As the property was heavily reversionary I undertook a term and reversion valuation to calculate the value.
