Summary of Experience

Question 1

What is the following for the industrial building in Birmingham that you valued?

• site coverage
• property size
• site area
• market rent
• assumed rent incentives and term
• market rent psf
• fair value
• NEY
• rate psf extra land
• assumed void

Answer 1

15% site cover
17,700 sf GIA
2.4 acres land
- £6.00 psf warehouse
- £25k per acre rent
MR of £144,000
assumed 5 year term and 3 months rent free

• cap value of £73 psf
• land per acre £288k
  NEY of 7.6%
  FV of £1.55m
  assumed 12 month void

Question 2

Tell me about the industrial building in Birmingham you valued, and how you valued it?

Answer 2

It’s an owner-occupied site in Halesowen.
Located in a residential/industrial area.
1980’s building.
Cavity brick office construction.
Sheet cladding and steel portal frame.
Valued using the comparable method as owner occupied. Capitalised the MR by NEY based on comps to get FV.
Fair value as for financial statements!

Question 3

What is the following for the former dental practice in Worcester that you valued?

• property size
• market rent
• assumed rent incentives and term
• market rent psf
• market value
• assumed void

Answer 3

1,600 sf NIA
£10 psf
MR of £14,000
12 months void, 3 months rent free

MV of £150,000
£96 psf cap value
7.75% NEY
(also £150k)

Question 4

Tell me about the former dental practice in Worcester you valued, and how you valued it?

Answer 4

Valued for accounts to FV.
Vacant. Previously owner-occupied
Conservation area.
Comparable method.
Cross checked with investment method.
Limited parking, adjoining substation. Built pre-1900’s

Question 5

What is the following for the industrial building in Swadlincote that you valued?

• site coverage
• property size
• site area
• market rent
• assumed rent incentives and term
• market rent psf
• market value
• rate psf extra land
• assumed void

Answer 5

14% site cover
- 48,500 sf total, 3 buildings

MR of £170,000 p.a.
10 year assumed term
£31,000 per acre.
£3.50 psf

MV of £1.85m
£38 psf
£340,000 per acre
Assumed 12 months void

Question 6

Tell me about the industrial building in Swadlincote you valued, and how you valued it? What advice did you give?

Answer 6

Special assumption that buildings were wind and water tight.
14% site cover!
Limitation of H&S risks when inspecting some buildings.
Solid brick buildings.
Hardcore surface.

Question 7

What is the following for the retail trade park in Coventry that you valued?

• Passing rent
• WAULT
• property size
• acres of site
• market rent
• assumed rent incentives and term
• market rent psf
• Fair value
• expiry void and rent free!!

Answer 7

Passing rent of £350k
3.6 years WAULTB

Sizes range from 1,500 sf to 5,500 sf
2 acres
31,000 sf total

MR of £374,000
£10-12psf

NEY of 5.73%
FV of £6m

Expiry void 12 months
Rent free 9 months

Question 8

Tell me about the retail trade park in Coventry you valued, and how you valued it? What advice did you give?

Answer 8

Valued for financial statements - MR and FAIR VALUE.
Built 2016
Conservation area
14 trade counters on 4 terraces.
Steel profile and composite metal cladding.
Fully let!!
EPC’s of B and solar panels!
Concrete yard, tarmac car park.
25-45% increase for outstanding RR.
Strong covenants = 2 x 5A2. 2 x 5A1.

Question 9

What is the following for the loan security valuation of multi-let industrial estate in Wellingborough?

• property size
• market rent
• assumed rent incentives and term
• market rent psf
• market value
• unexpired term
• NEY used
• rate psf extra land
• vp value

Answer 9

WAULTB 2 years
13 tenants, 3k to 13k sf units
Passing rent of £490,000
- Assumed 5 yr term, 3 months rent free
- Small units £7.5, med £7, big £6
TOTAL MR = £680k p.a.

Expected 12 mnths to sell
NEY 7.24%
MV = £8.3m

VP = staggered voids 6-18 months
7.74% NEY
VP = £6.95m

Question 10

Tell me about your loan security valuation of a multi-let industrial estate in Wellingborough and how you valued it?

Answer 10

Capitalised income by NEY.
95% occupied by area
EPC’s E-C
1 vacant unit
44% site cover
Unit sizes 3-12,500 sf
Long leasehold
WAULTB 2 years

Short WAULT
Impending breaks
Reversionary rents

Question 11

What is the following for the loan security valuation of retail and resi in Wolverhampton?
- property size
- market rent
- assumed rent incentives and term
- market rent psf
- market value
- unexpired term
- NEY used
- rate psf extra land
- vp value

Answer 11

3 retail, 24 resi
3.3 years WAULTB

MR = £280k
£11 psf
25,000 sf

6.47% NEY
£3.25m

£3.37m VP value

Question 12

Tell me about your loan security valuation of retail and resi in Wolverhampton and how you valued it?

Answer 12

Secondary retail pitch
Limitation that not inspected

Reported on lettability and saleability
Higher value if sold off individually

Question 13

What is the following for the loan security valuation of cash and carry industrial in Worcester?
- property size
- market rent
- assumed rent incentives and term
- market rent psf
- market value
- unexpired term
- NEY used
- rate psf extra land
- vp value

Question 14

Tell me about your loan security valuation of industrial in Worcester and how you valued it?

Question 15

What is the following for the loan security valuation of multi-let industrial in Stourbridge?
- property size
- market rent
- assumed rent incentives and term
- market rent psf
- market value
- unexpired term
- blended yield used
- rate psf extra land
- vp value

Answer 15

2.4 years WAULT

16 market rent categories
£750,000 p.a. MR

6.96% NIY
9.25% NEY
MV = £6.7m

VP = £5.6m

Question 16

Tell me about your loan security valuation of multi-let industrial in Stourbridge and how you valued it?

Answer 16

Proposal by borrower to refinance properties
Non-compliant EPC’s

Question 17

Manchester - responsibility issue regarding a roof leak

What type of lease was it?
Who’s responsibility was it?
Did your client have to pay anything?
Did the client make an accrual?

Answer 17

Internal repairing lease
LL responsibility to repair leak
An apportionment for cost under service charge provision
Client made an accrual once budget cost for works received from LL

Question 18

Darwen - responsibility issue regarding overgrown vegetation

Who’s responsibility was it?
What did you check?
Where did you get liable party contact details from?
What did you do with this info?

Answer 18

Checked lease.
Ensured within demise.
Responsibility of neighbour - not under service charge (not in common parts of demise).
HM Land Registry.
Requested vegetation be cut in letter.

Question 19

Burnley - licence for EV charging points

What did client ask?
What did you advise?
Did client need to pay for LL costs under cost provision?
Did you check anything with project manager?
What did you do with licence?

Answer 19

If licence required for works.
I advised yes, required. Fully qualified alterations clause.
Client would be responsible for LL costs for application for consent under cost provision.
Checked that drawings could be met.
Filed it with deeds for the property.

Question 20

Leeds - increased rent demand

Why did it get flagged?
What did you do with the information?
What did you recommend to the client?
What did you tell the accounts team?
What does the lease state about RR memorandums?

Answer 20

Accounts team didn’t recognise amount demanded, I investigated.
RPI indexed RR.
Calculated in line with lease. Recommended client adjust rent on accounting system.
Amount matched calculations - I told accounts team to approve payment.
Memo not required, LL refused to sign.