Summary of Experience Examples Flashcards
Leighton Buzzard - Industrial - Valuation
4.50%
Client asked about reinstatement cost
I requested information from BS due to not being competent enough.
Advised client of build cost per sq ft advised by BS.
What was the build cost psf?
£150 psf
60,000 sq. ft. x £170 psf = c.£10.000 M (exc VAT)
West London, Hayes - Retail Park - Disposal
6.00%
One of the potential purchasers asked for information on the current level of the bids – I said no
As this would have provided them with an unfair advantage.
Against the rules of conduct (1) Act with honesty and integrity
Corby - Retail Park - Disposal
7.25%
Provided my client with regular updates on interest schedule, viewings and feedback from clients
Check – measurements – measured the internal eave heights – compared and analysed variance.
Measure again if unsure about the variance
A variance between 1-5% is acceptable but depends from property to property
Enfield - Industrial - Loan Security Valuation
5.00%
Undertook a desktop risk assessment to establish risks – Took appropriate PPE – Had safety briefing
Established MR, MV and Vacant Possession – applied comparable method – verified by using investment method – applied discounted cap rate to address additional letting risk.
75 bps difference between vacant possession and tenanted
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Examples of special assumptions include vacant possession or sufficient marketing period
I took High vis, Steel toe capped boots, fully charged phone.
Safety briefing outlines risk of moving vehicles in the warehouse.
Sign in and out so that they are aware of my presence in the instance of an emergency.
Uxbridge - Retail Park - Disposal
5.25%
Inspected a vacant unit with client – Reflected in diary – Informed colleagues upon entry and exit
I did not inspect alone, with a colleague and client. I am not allowed to inspect alone as a grad.
Strand, London - High Street Retail - Valuation
7.00%
Contacted store manager to inform my visit – provided attendees names – Signed in – requested access to areas.
£200k in rent
c.£2.700 M
I used investment method to value the property.
Did not use zoning
Grays - Industrial - Valuation
5.00%
Undertook a desktop valuation – familiarised with local area – identified letting boards – called agents.
–
Obtain important information of the local area and the demand on the occupational side.
Islington - Foodstore - Acquisition
4.50%
Inspected – assessed condition of unit – noted that interior was in poor condition – also explored local area.
The client got advise on the estimated cost of refurbishment
Didn’t impact value significantly as the property’s value derived from its size and location more than anything else
St Albans - Retail Park - Acquisition
6.00%
Inspected – Identified surface water flooding – Investigated online – advised client to undertake environ report
In this instance I did not undertake a desktop due diligence and through this experience in practice I made sure to always undertake going forward.
Flood risk impacts the value as it could prevent secured lending by banks. It also leads to many buyers disregarding the asset due to this issue. Therefore the value gets impacted. There is a risk of potential damage to the property.
Orpington - Retail Park - Acquisition
7.50%
Check measurements – compared calculations to floorplans and existing measurements – analysed variance.
Typically acceptable variance is between 1-5% but this changes depending on the property.
Bishop Stortford - Retail Park - Valuation
6.75%
Formed my opinion of MR by analysing comparable evidence – overrented
Overrented around 10-15%
Used core and topslice method
Milton Keynes - Industrial - Valuation
5.00%
Requested all documentation before inspection – A unit on the scheme had recently been let – provided evidence on MR and rent free – carried out additional comparable evidence – investment method to get MV.
Evidence was showing around £10 psf
c. £10.000 M
Nottingham - Retail Park - Valuation
6.75%
Inspected property – Informed that a tenant is vacating – applied void period / rent free – to reflect tenant vacating – advised on MR and MV.
Established void period by looking at comparable evidence of lettings in the area
Crawley - Industrial - Valuation
6.25%
Inspected – noted all impacts on MV – Discovered one tenant had a bad FAME score – reflected this in the valuation – analysed comparable evidence – included SWOT – provided MV.
Bad tenant covenant impacted the value of the property as it presented uncertainty
Exeter - Foodstore - Acquisition
6.50%
Inspected – assessed all aspects which could impact value – produced report highlighting a SWOT, comparables and a market appraisal, accompanied by a market commentary on the food store market – helped with their bid.
Strong micro location
Limited competition
Weak covenant and tenure main factors
Market report highlighted the positive fundamentals of the foodstore sector
Institutional tenants
Tenant contentment
Lack of new developments
Limited asset management
Attractive rental reviews
Use large format stores as ‘distribution centres’
Less susceptible to economic / political influences
