Special Value Flashcards
1
Q
How does the Red Book Global define a Special Purchaser?
A
A particular buyer for who a particular asset has special value because of advantages arising from its ownership that would not be available to other buyers in a market
2
Q
How does the Red Book Global define Special Value?
A
An amount that reflects particular attributes of an asset that are only of value to a special purchaser
3
Q
Provide examples of when a Special Purchaser would arise?
A
- Tenant purchasing the freehold interest
- Association with the property e.g. owning an adjacent property
4
Q
How does Market Value reflect Special Value?
A
Ignores any price distortions caused by Special Value
