Valuation

Question 1

How many valuation methods are outlined by the Red Book?

Answer 1

“5 main valuation methodologies
- Investment methods (which includes DCF and Trad Val) &raquo_space; DCF pg 190 Red, the forecasted cash flow is discounted back to the valuation date , resulting in a present value of the asset (explicit) /apc success - used when there is an income stream, then capitalised the rental income to produce a capital value&raquo_space; Income cap is calculating the value of an asset using the terminal value with no explicit projection period&raquo_space;

• Comparable method ( Market approach) - since when it changes? - published on latest edition of IVS International Valuation Standards on 31 Jan 2024 (effective from 31 Jan 2025)
• Profit methods
• Residual methods
• Depreciated replacement costs

https://ww3.rics.org/uk/en/journals/property-journal/apc-5-valuation-methods.html”

Question 2

walk me through the process of valuation

Answer 2

rcctgdirvrcsria

Question 3

difference between netherlands and uk logistics valuation

Answer 3

Netherlands - under opex include property tax (3.158% of MR) and water tax (0.324% of MR), insurance , management, sewage charge
Stampy duty 10.4% of purchase price for assets value €50m
agent fee 0.8% of purchase price
Legal fee 0.2% of purchase price

UK logistics -
40% of MR for empty rates
void costs (£2- £5psf) (void costs for office £12psf)