Valuation Level 3 Flashcards
What example is PBSA Acquisition
Bristol (Gas Lane)
How was it in line with Red Book Global?
What is a special assumption?
A special assumption is a supposition that is taken to be true and accepted as fact even though it is not true
What is an assumption?
-Assumptions are made where it is reasonable for the valuer to accept that something is true without the need for specific investigation
If reporting a SA what must you do before the instruction?
Must be agreed with the client at the commencement of the instruction
How was the area not proven?
No other schemes and not close to a University
How did you decide on a £10-£15 discount?
- Comparables of schemes not in proven locations had similar discounts
- considered the specification and amenity too
What demographic advise did you give?
- Strong demand
- High rental growth
- Limited supply
- Tight planning = minimal development
- High unmet demand
What follow up advise would you give?
Once campus built rental tone would improve = proximity to campus
What yield did you use? How did that compare to BIC?
5.00%
BIC for super prime was 4.75%
Can you describe the residual method?
GDV - (development costs + profit)
What was the site value
£16.8m
Accounts Valuation PBSA, Nottingham
Guildhall
what is fair value?
The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date
What is Fair Value in accordance with?
IFRS 13 “Fair Value” of International Financial Reporting Standards
What makes a prime macro location?
- Good supply and demand dynamics
- Relatively tight planning
- 1 or 2 Universities
What makes a prime micro location?
Proximity to:
- unis (ideally both)
- amenities
- public transport
- city centre
Why were you at a discount to BIC?
- 100% studio led
- High operating costs
- some schemes even better micro location
What yield did you adopt?
5.25%
Why did you advise 100% studio would be softer yield?
- Wider mix = increased occupancy
- Mixed-use is preferable
- In a downturn they are likely to be harder to fill
- Increased operating costs
What was the Accounts Valuation Dublin?
Montrose
What value did you state?
Fair Value
What was the accounts valuation?
Quarterly valuation
Why was it in conjunction with Dublin?
They work in the local statue, we provide specialist PBSA knowledge.
Ensured we were competent
