Valuation report of tangible assets Land under constructions of

Transcription

‫רוטקס )‪ (1980‬בע"מ‬
‫דוח תקופתי לשנת ‪2012‬‬
‫נספח א' – חוות הדעת השמאית‬
‫‪ 27‬במרץ ‪2013‬‬
Cluj-Napoca: Str. Nicolae Cristea Nr. 25, 400184, Tel/Fax: 0264 438.03.33
Bucureşti: Str. Radu Vodă, Nr. 17, et. 2, 040273, Tel/Fax: 021 312.27.86
[email protected]; www.darian.ro
DRS NO. 475/18-01-2013
Valuation report
of tangible assets
Land under constructions of 13,726 sqm
Located in Bucharest, 220 Calea Serban Voda, District 4
in property of
S.C. ADESGO S.A.
All data and information contained in this material are confidential and will not be disclosed or copied,
partially or totally, without the prior written consent and approval of SC DARIAN DRS SA and the client SC
ADESGO S.A.
January 2013
Darian DRS S.A.
Nr. Registrul Com erţului: J12/595/1991 | Cod unic de înregistrare: RO201020
Cod IBAN: RO24 BACX 0000 0001 3929 6250| Banca BANCA ROMANEASCA | Capital social 150.000 RON
SC DARIAN DRS SA
valuation report of tangible assets “land under constructions” – SC ADESGO S.A
To: SC ADESGO S.A.
Dear Sirs,
Following your request, we have analysed the “plot of land under constructions of 13,726 sqm” within
the built up area of Bucharest, located in 220 Calea Serban Voda, District 4, with the purpose of financial
reporting.
It was subjected to valuation the integral ownership of SC ADESGO S.A. on tangible assets, subjected to
analysis in the present valuation report.
The ownership is considered full, valid, marketable, and unaffected by charges, unless otherwise specified.
The present report is intended for SC ADESGO S.A. as client and addressee.
The present report will be used for registration in the client’s financial reports.
At the base of this valuation stood information regarding prices corresponding to January 2013. The date
when all assumptions and estimated values are considered valid by the valuer (valuation date) is January
01, 2013.
The estimation was made in January 2013.
The valuer is not to be held responsible under any circumstance for misleading information, false or
incomplete, made available by the owner/client.
The report was structured as follows: (1) General aspects – that include the object of valuation as well as
the main elements defining the valuation methods (2) – The data description – description of the valued
asset (3) Property valuation – the applying of the valuation methods (4) Annexes – containing the elements
that sustain the presented proofs.
The following valuation report presents the basis on which the valuer’s opinion was established.
The report was prepared in accordance with applicable laws.
The values estimated for each position were established on the basis of International Valuation Standards
(IVS), which are in correlation with International Accounting Standards (IAS), and methodology
recommended by ANEVAR (The National Association of Romanian Valuers).
Thus, in the valuer’s opinion, taking into account the purposes of this valuation, the market value of the
real estate property “plot of land under constructions of 13,726 sqm” valued under the assumption that
it is vacant of constructions (considered the best alternative use) as it is presented at the valuation date
January 01, 2013 is:
12,451,000 EUR
55,141,744 RON
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The reasons the valuer opinion is based on and the considerations of the value are as follows:
⇒ The value is valid under the conditions and assumptions presented in this report (see appendices)
⇒ value does not take into account the environmental responsibilities and costs of compliance to legal
requirements;
⇒ the value is subjective;
⇒ the valuation is an opinion of a value;
⇒ the value does not include VAT;
⇒ The final opinion was expressed in strong currency at the currency exchange rate valid at 01st January
2013: 4.4287 RON /1 EURO;
Sincerely,
DARIAN DRS SA
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1.1
Certification
We hereby certify, to our best knowledge and belief that the facts contained in this report are true
and correct. The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and is our personal, unbiased professional analyses, opinions, and
conclusions. We also certify that we have no present or prospective interest in the property that is the
subject of this report, and we have no personal interest or bias with respect to the parties involved.
Our compensation is not contingent upon the reporting of a predetermined value or direction in
value that favours the cause of the client, the amount of the value estimate, the attainment of a stimulated
result, or the occurrence of a subsequent event. Our analyses, opinions and conclusions were developed,
and this report has been prepared in conformity with the standards and methodology recommended by
UNEAR (National Association of Romanian Appraisers).
The valuer inspected the property personally. At the moment of drawing up the present report the
valuers, who undersign this report did not get significant assistance from the side of other persons.
The present report is subject to the standards and may be expertise (at demand, with the written and
preliminary consent of the valuer) and verified, in conformity with the International Standard of Practice in
Valuation GE1 – Valuation Verifying.
The present report is subject to UNEAR norms and can be, on request, reviewed by its specially
authorised members.
At the time when this report was drawn, the undersigned are UNEAR members, have completed the
continuous professional training program of UNEAR and have necessary competence for such work.
DARIAN DRS SA and its team are insured for professional responsibility with ALLIANZ – TIRIAC
ASIGURARI S.A.
Daniel Ceafalan,
Real estate valuer
Member of UNEAR
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CUPRINS
1. INTRODUCERE
1.1
2
GENERAL ASPECTS ................................................................................................................................. 6
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
2.12
3
OBJECT OF VALUATION ............................................................................................................................ 6
VALUED OWNERSHIP................................................................................................................................ 6
PURPOSE OF VALUATION. CLIENT AND USE OF THE VALUATION .................................................................... 6
VALUATION DATE. DATE OF THE REPORT ................................................................................................... 6
DATE OF THE PROPERTY INSPECTION ........................................................................................................ 6
BASE OF VALUATION. TYPE OF VALUE ........................................................................................................ 6
CURRENCY OF THE REPORT ..................................................................................................................... 8
INFORMATION USED AND SOURCES OF INFORMATION .................................................................................. 8
RESPONSIBILITY TOWARDS THIRD PARTIES ................................................................................................ 8
UNPUBLISHING CLAUSE ........................................................................................................................ 9
SPECIAL ASSUMPTIONS AND LIMITING CONDITIONS .................................................................................. 9
ASSUMPTIONS AND LIMITING CONDITIONS............................................................................................... 9
DATA DESCRIPTION ............................................................................................................................... 11
3.1
3.2
3.3
3.3
4
CERTIFICATION ....................................................................................................................................... 4
GENERAL PRESENTATION ...................................................................................................................... 11
LEGAL PRESENTATION ........................................................................................................................... 12
URBANISM PLANNING CERTIFICATES ........................................................................................................ 12
INFORMATION ABOUT REAL-ESTATE MARKET ............................................................................................ 12
PROPERTY VALUATION ......................................................................................................................... 17
4.1 STAGES PERFORMED ............................................................................................................................. 17
4.2 THE METODOLOGY APPLIED IN ESTIMATING THE MARKET VALUE ................................................ 17
4.2.1 The highest and best use of the land ...................................................................................... 17
4.2.2 Sales comparison approach .................................................................................................... 18
4.2.3 Residual technique ................................................................................................................... 22
4.2.4 The Reconciliation of results ................................................................................................... 26
5
ANEXES .................................................................................................................................................... 27
5.1
5.2
5.3
PICTURES ......................................................................................................................................... 27
LAND COMPARABLES ............................................................................................................................. 28
DOCUMENTS RECEIVED FROM THE CLIENT ............................................................................................... 33
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2 GENERAL ASPECTS
2.1 Object of valuation
The object of valuation consists in tangible assets of real-estate nature “plot of land under constructions of
13,726 sqm ” in property of SC ADESGO SA, located in 220 Calea Serban Voda, District 4, Bucharest.
2.2 Valued ownership
The subject of valuation consists of the full ownership of SC ADESGO S.A. over tangible assets subjected
to valuation.
2.3 Purpose of valuation. Client and use of the valuation
The purpose of valuation is estimating the market value of tangible assets in property of SC ADESGO
S.A. for use in client’s financial reporting.
The present report is intended to SC ADESGO S.A. as client and addressee.
The headquarter of SC ADESGO S.A. is in 220 Calea Serban Voda, District 4, Bucharest. The company is
registered at Trade Register under no. J40/5892/1991, unique recording code (CUI) RO 367911.
2.4 Valuation date. Date of the report
01, 2013.
The estimation was made in January 2013. The date of the report is January 01, 2013.
2.5 Date of the property inspection
The valuer, Daniel Ceafalan, carried out the inspection of the real estate property on November, 2012.
The inspection consisted in identifying location and taking some general photographs of the location.
There were no inspections regarding the possible presence of contamination of the land of vicinity areas.
2.6 Base of valuation. Type of value
Considering the purpose and use of the valuation, we have followed the recommendations:
IVA 300 “Valuation for financial reporting”.
IVS - Framework
The classification of assets determines which IAS or IFRS applies.
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The valuation is used for IAS 16 (property, Plant & Equipment) under IAS 36 (Impairment of assets).
IAS 16 requires non-current property and plant assets held for the production or supply of goods or
services to be recognised initially in the balance sheet at cost and thereafter carried in accordance with
either the cost model or fair value model.
Financial statements are produced on the assumption that the entity is a going concern unless
management either intends to liquidate the entity or cease trading, or has no realistic alternative but to do
so. (IAS 1, para. 23). This assumption therefore underlies the application of fair value to property plant and
equipment, except in cases where it is clear that there is either an intention to dispose of a particular asset
or that option of disposal has to be considered, e.g. when undertaking an impairment review.
When an entity adopts the fair value revaluation option under IAS16, the assets are included in the
balance sheet at their fair value as follows:
(a) “The fair value of land and buildings is usually determined from market-based evidence by
appraisal that is normally undertaken by professionally qualified valuers. The fair value of items of plant
and equipment is usually their market value determined by appraisal” (IAS 16, para. 32).
(b) “If there is no market-based evidence of fair value because of the specialised nature of the item
of property, plant and equipment and the item is rarely sold, except as a part of a continuing business, an
entity may need to estimate fair value using an income or a depreciated replacement cost approach” (IAS
16, para. 33).
IAS 36 (Impairment of assets).
Impairment arises where the carrying amount of an asset exceeds the amount that can be recovered from
either its continued use and/or the sale of the asset. Under IAS 36 Impairment of Assets, an entity is
required to review certain categories of asset at the date of each statement of financial position to
determine whether there is any indication that an asset may be impaired. Impairment might be indicated by
a reduction in the value of the asset because of market or technological changes, obsolescence of the
asset, asset underperformance in comparison to the expected return, or an intention to discontinue or
restructure operations.
According to IVS chapter 6.0“Discussion” 6.3 Alternative Use Value: “If an owner-occupied property
has potential for an alternative use, which would result in its value in isolation from the business being
higher than its value as part of the cash-generating unit to which it belongs, the Valuer shall report the
Market Value for that alternative use.”
Please note that the value for alternative use takes into account the demolition cost needed to achieve this
alternative use.
The value for the alternative use takes no account of another possible associated costs of issues such as
business closure or disruption that would be incurred in achieving the alternative use, and that these
should be considered by the entity when deciding the appropriate amount to adopt as fair value.
Therefore, in the present report, we followed an estimation of:
market value of land under the assumption of being vacant (considered the best alternative use);
as it is described in IVS - Framework the defintion of market value is:
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o Market value: The estimated amount for which an asset should exchange on
the valuation date between a willing buyer and a willing seller in an arm’s
length transaction, after proper marketing and where the parties had each
acted knowledgeably, prudently and without compulsion.
Please be advised that the current land real estate market is not a normal market – limited liquidity,
very little transactions.
We mention the atypical period through which we are passing, through the point of view of real estate
market and type of property subjected to valuation.
In fact, it is about:
The limiting of the number of transactions in the market.
Decreasing of the investing interest (of solvent demand) with all the consequences arising from
this point of view of market quotations.
2.7 Currency of the report
The value is expressed in Eur and Ron and does not contain VAT .
2.8 Information used and sources of information
The information used was:
⇒ The situation of the subject property (site address, area, etc);
⇒ Papers that attest ownership;
⇒ Cadastral documentation;
⇒ Information about certificates and the potential urbanity development of the land
The information from above was taken from the client, this being responsible for their veridicity and
fairness.
⇒
⇒
⇒
⇒
⇒
The physical identification on the land was conducted with responsible persons from the company;
Information regarding the local real estate market ;
Other necessary information existing in specialised bibliography;
International Valuation Standards (IVS 2011);
Database of the valuer with confidential character;
2.9 Responsibility towards third parties
This report is based on the information furnished by the management of SC ADESGO S.A. In conformity
with the usages in Romania, the estimated values are valid at the date stated in the report and a limited
interval of time after that date, in which the specific conditions of the market do not undergo significant
changes affecting estimated opinions.
This report is designated for the purpose and use of the addressees mentioned at 2.3. The report is
confidential, strictly for the addressees and the valuer does not accept responsibility towards any third
party, in any circumstance.
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2.10 Unpublishing clause
This report or any reference to it cannot be published or included into a document, which will be published
without prior written approval of the appraiser, specifying the form in which it will appear. Partial or integral
publishing or use of the report for other purposes than those stated at 2.3. leads to a cease of contract
obligations.
2.11 Special assumptions and limiting conditions
The valuer is not a topographer/topometrist/geodesist and he does not have the due qualification
to measure and guarantee that the property location and boundaries as they have been pointed out by the
owner at the time of the inspection and described in the report correspond to those written down in the
property/cadastral documents.
This report is meant to develop a value of the property identified and described in the report
provided that it corresponds to the one written down in the property documents. Any discordance between
the identified property and the one written down in the property documents invalidates the correspondance
between the estimated property and the property certified by the property documents, but the estimated
value remains valid for the property identified in the report.
2.12 Assumptions and limiting conditions
The main assumptions and limiting conditions, which were considered in this report, are presented below:
1. Assumptions:
⇒ Legal aspects are entirely based on information and documents provided by SC ADESGO S.A. and
were presented without any further verification or investigations. Title to the property is assumed to be
good and marketable, unless otherwise stated.
⇒ The information furnished by others is believed to be reliable, but no warranty is given for its accuracy.
⇒ It is assumed that there are no hidden or non-apparent conditions of the property, soil or building
structure (hidden parts) which would influence the value of the property. No responsibility is assumed
for such conditions or for any expertise or engineering knowledge required to discover this;
⇒ The present situation of the property and the purpose of the present valuation were the basis in
selecting and applying the valuation method, so that the resulted values will lead to the most probable
estimate of the value, considering the selected value type, resented at point 2.5.
⇒ We suppose that there are no type of contaminants, and the cost of decontamination does not affect
the value; we were not informed of any inspection or report that would indicate the presence of the
contaminants or other dangerous materials;
⇒ In order to carry out the valuation, were taken into consideration all the factors that have influence over
the value of the investment property subjected to valuation and were not omitted in a deliberate way
no other kind of information that could have importance over the valuation and which, in our knowledge
are correct and reasonable in the elaboration at the present report.
⇒ The valuer considers himself relived from the responsibility of existence of any hidden vices of any
type on the subject of valuation, environmental factors, etc., which could influence in any way the value
of the goods in case, for this reason the valuer cannot present any guarantee referring to their
technical and economical state, after the valuation.
⇒ The estimated value is valid at the valuation date. Whereas the market, market conditions may change,
the estimated value may be incorrect or inappropriate at another time
⇒ We assumed that the current legislation will remain the same and were not taken into account any
changes that may occur in the following period.
⇒ The valuer believes that the assumptions made at the application of the methods of valuation were
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reasonable in light of facts that are available at the valuation date.
⇒ When estimating the value the valuer used only information available at disposal at the time of drawing
the report and it is possible that there were other information unknown to the valuer.
⇒ It is assumed that the client –SC ADESGO SA- has an integral property right over the subject property.
⇒ The client did not put at valuer’s disposal an valid urbanism planning certificate for the subject
land. It is assumed that the vacant land could be developed in compliance with General Urban
Plan’s stipulations (PUG) for at least G+4F building without any urbanism restrictions.
2. Limiting conditions:
⇒ The estimated value is valid only for the subject plot of land considered buildable (under the
assumption that the land will be cleared and will become and be sold as vacant land);
⇒ Any value estimates provided in the report apply to the entire property and any proration or division of
the total into fractional interests will invalidate the estimated value, unless such proration or division of
interests has been set forth in the report.
⇒ any allocation of component values is valid only if presented in the report using. Assigned separate
values should not be used in connection with another valuation and are invalid if so used.
⇒ obtaining one copy of this valuation report does not imply also publication rights;
⇒ the valuer, through the nature of its work, is not forced to offer further counselling or to testify in court
regarding the object of the report, unless prior agreements have been signed with the client;
⇒ nor the present report ,nor parts of it (especially the conclusions regarding the market value, the
valuer’s identity) must not be made public without the valuer’s prior agreement; the valuation report is
valid in the economical, fiscal, legal and political conditions from its date of preparation. If these conditions
will modify the conclusions of this report may loose their validity.
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3 DATA DESCRIPTION
3.1 General Presentation
The object of valuation consists in tangible assets of real-estate nature “plot of land under constructions of
13,726 sqm ” in property of SC ADESGO SA, located in 220 Calea Serban Voda, District 4, Bucharest.
The subject property consists in a plot of land under constructions with a total surface of 13,726 sqm
(according cadastral measurements).
The subject property is a plot of land under industrial constructions, located in a semicentral area of the
city – Tineretului area - with direct access from Serban Voda st. It has an irregular shape with an app. 100
m frontage to the Serban Voda and another frontage to Nicolae Haralambie st.
The access to the property is made from Serban Voda st.
We did not have at our disposal tha cadastral documentation of the property. We conducted the valuation
based on the sketches of the property put at our disposal by the client.
The area where the land is located is mostly residential with houses/villas or buildings G+1-2-3-4 F and
blocks of flats G+4-10F. Also there are commercial buildings and public institutions (hospitals) in the area.
Close to the property there are houses/villas on the northern and western side and an hospital on the
eastern side.
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On the site there are erected industrial and administrative buildings on reinforced concrete frames
structure with mainsonery, metallic industrial warehouses (annexes) and underground constructions (tanks
and reservoirs). These construction are used for production and supply of goods.
The built area of the all buildings erected on the land is 9,189 sqm and the gross built area is
19,585 sqm according to the available sketches. The property benefits of all utilities.
The occupancy rate of the land is rather high at the present moment (app. 65%).
The property benefits by all available city utilities: electricity, water, sewerage, gas network.
3.2 Legal presentation
The subject property belongs to SC ADESGO S.A., according to the proof of registration at the land
registry office no. 245/1999.
The property has cadastral no. 128 submitted in Land register book - District 4, Bucharest.
Charges:
We did not have a valid land register book excerpt of the subject property.
The valuation is made under the assumption that the property is free of any charges.
It has been valued the integral property right of the real estate property subject of present
valuation, considered free, valid and marketable being property of S.C. ADESGO S.A.
3.3 Urbanism planning certificates
According to the General Urban Plan the area where the land is located is considered subzone M3- mixt
area situated outside protected area with G+4F buildings. For the subzone M3 is also recommended a
POT (land occupancy percentage) of 60% having the possibility of 75% covering the rest of the plot with
maximum 2 levels buildings and a CUT (land use coefficient) of maximum 2.5.
3.3
Information about real-estate market
General information
The real estate market is defined as a group of persons or firms which enter in contact with the purpose of
making real estate transactions. The participans in this market change property rights over some goods, ie
money. A series of special characteristics differs the real estate market from markets of goods and
services. Each property is unique and its site is fixed. The real estate market is not an efficient one: the
number of buyers and sellers that are acting is relatively small, the real estate properties have high values
which need a large power of purchase, which makes these markets to be sensible to the income stability,
to change in the level of salaries, number of work places and also a financing level, etc. Generally, the
real-estate properties are not bought with cash and if there are no favorable conditions of financing the
transaction are endangered.
The real estate properties are durable and can be looked at as investments. Are not liquid and the sellpurchase process is long. Due to all this factors the behavior of the real-estate market can be difficult to
estimate.
Land real estate market in Romania
In the first half of 2012, the land demand was oriented to large surfaces for construction of hypermarkets
and supermarkets, plots located in areas with high visibility and accessibility in terms of public transport
and car access.
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On the residential segment, the developers have looked for land plots with all the valid planning permits
while for the office sector the target was plots with easy access to public transportation and shopping
areas.
For the industrial sector the high demand has been recorded by companies which have already
manufacturing or logistics parks in Romania and want to expand these industrial parks.
Despite from the beginnings of real estate crisis in Romania the land prices have fallen in some cases
even by 90% and this year the properties with the highest depreciation proved to be again the land.
Such land has declined by about 4% compared to S2 2011 and 9% compared to S1 2011. Reported in
national currency the decline was lower by approximately 1% compared to S2 2011 and respectively 4% to
S1 2011.
An argument in favor of continuing decline of land prices, was the fact that unlike the housing market which
has been supported by the “First House” program, for the land there was no leverage to maintain the price.
Also, the margin of negotiation for land is higher than for housing.
The evolution of land prices in the 27 cities covered by this analysis are presented in the tables below:
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Land real estate market in Bucharest
Residential Market
In Bucharest the average unit price of old apartments in S1 2012 was around 968 euros / sqm, down about
1.6% approximately compared with S2 2011 and 4% approximately compared with S1 2011.
In terms of new apartments, average unit price in S1 2012 was around 1,157 euros / sqm, down about
3.8% of S2 2011 and S1 2011 approximately 5%.
In Bucharest both old and new apartments have continued to be the most expensive in the country, the
capital being only city in Romania with prices over 1000 euros per built sqm (new apartments).
Land Market
As the land market, prices fell by about 2% in S1 2012 compared to S2 2011, and 5% respectively
compared with S1 2011.
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Land real estate market. Analysis of semicentral and central areas of Bucharest.
In what follows is an extract from existing offers on land market of Bucharest:
Location
Surface
(sqm)
Frontage
(sq m)
13 Septembrie
Reper: Central
50,000
200
Bucuresti, zona
Vacaresti Pridvorului
7,500
80
Barbu Vacarescu
stradal
9,000
225
Unirii
3,042
30
Timpuri Noi
2,873
81
Obor
1,600
28
Pta Muncii - Mihai
Bravu deschidere
7,300
70
Splaiul Unirii
5,000
40
Nicolae Caramfil
3,822
-
Unirii
Reper: Timpuri
Noi
7,940
100
Calea Victoriei
Reper: Victoriei
3,518
23
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Description
Central - locatie deosebita, 50.000 mp parcelabil in 2 loturi de 25.000 mp,
constructii demolabile cu deschidere la doua strazi principale. PUZ aprobat
rezidential/comercial/birouri, CUT= 5.5. Pret: 700 E/mp + TVA.
Alte detalii: Parcul Tineretului, teren 7500 mp, deschidere la 3 strazi; 83/77/21.
PUZ aprobat pentru, POT 70%, CUT 3,6, Hmax P+14. Pozitie foarte buna,
amplasat chiar in parc cu acces din Str Pridvorului.
Alte detalii preţ: se poate negocia putin pretul
Teren 9000mp cu deschidere la una din cele mai importante artere ale capitalei
Barbu Vacarescu. Terenul dispune de un P.U.D. aprobat cu urmatorii indicatori de
urbanism: CUT=2,8, POT=30%, Rhmax=3S+P+14. Proiect si autorizatie de
constructie pentru 25000mp de spatiu pentru birouri si 500 locuri de parcare....
Vanzare tereb zona ultracentral in apropiere de Piata Unirii. Imobilul este format din
teren si cladire S+P+4 cu structura de rezistenta din beton plansee din beton ziduri
din caramida pentru care exista Certificat de Urbanism pentru demolare. Terenul
este cu deschidere dubla la 2 strazi.
POT : 80 %
CUT : 3,5
P+3
regim de inaltime : 45 %
POT : 70
curent electric 220V, apa, canalizare, gaze, telefon, mijloace de transport
• destinatii: rezidenta, comercial
Terenul se afla in zona Bucur-Obor la doua minute de statia de metrou, are PUZ
aprobat pentru 2S+P+11 suprafata construita desfasurata este 9.000mp plus
3.200mp = 2 Subsoluri. Terenul este ideal pentru locuinte clasa medie cu spatii
comerciale la parter. Pret 1000euro/mp + TVA
Suprafata mare a terenului si dubla deschidere (70 m la B-dul Mihai Bravu si 70 m
la Intrarea Sectorului) recomanda terenul pentru o dezvoltare importanta pe
segmentul rezidential, office sau comercial.
Certificat de urbanism; POT: 75.00; CUT: 2,5
In conformitate cu PUG terenul se incadreaza partial in zona V4(subzona spatiilor
verzi pentru protectia cursurilor de apa), POT 15%, CUT 0,2, si partial zona M3zona mixta cu regim de construire continuu sau discontinuu, POT 60%, CUT 2,5.
Propunere:
-Construire ansamblu rezidential 2S+P+4E+M compus din 3 cladiri
multifunctionale: locuinte, comert, birouri, hotel, imprejmuire, organizare santier,
operatiuni notariale.
Alte detalii: Vanzare teren Nicolae Caramfil, suprafata 3822 mp, deschidere la
doua strazi. Terenul are proiect rezidential si autorizatie de constructie pentru 85
apartamente, aria desfasurata 15207 mp, regim de inaltime S+P+4+5R. Alte detalii
preţ: se poate negocia putin pretul
Vanzare teren Nerva Traian - Timpuri Noi , Bucuresti, in suprafata de 7940 mp,
avand deschiderea de 100 ml la 2 fronturi. Terenul prezinta urmatorii indicatori
urbanistici: POT 35 %, CUT 6 , regim de inaltime 72m . Terenul se preteaza pentru
construirea unui imobil rezidential / office / comercial /etc cu o amprenta maxima
de 2779 mp si suprafata totala de 47640 mp. Terenul de vanzare se afla localizat
in zona Nerva Traian in apropiere de Timpuri Noi. Pret negociabil.
Vanzare teren Calea Victoriei , Bucuresti, in suprafata de 3518 mp, avand
deschiderea stradala de 23 ml la 1 front/uri. Conform , terenul se afla situat in UTR
si are urmatorii indicatori urbanistici: POT 65 %, CUT 3 , regim de inaltime P+5.
Recomandam acest teren pentru construirea unui imobil rezidential / office /
comercial, cu o amprenta maxima de 2287 mp si suprafata totala de maxim 10554
mp. Ca si localizare, terenul se afla in situat in zona Calea Victoriei in apropiere de
Piata Victoriei. Id intern: 3D2300501. Pentru oferta completa de vanzari terenuri
Bucuresti accesati www.3dproperties.ro
Price
eur/sqm
700
800
850
1,151
900
1,000
899
700
1,500
1,600
2,487
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OFFER
DEMAND
In Tineretului area the offer consists preponderant in small vacant plots of land and plots
of land occupied by old constructions destinated preponderant for residential purposes.
In Bucharest the number of big plots available for sale is decreasing year by year.
Taking into account the current financial crisis, the real estate blocking, the offer of this
kind of plots has been increasing lately.
Decreasing/Stagnation for plots of land for investment projects
SHORT
Due the financial and economic crisis the current market conditions do not correspond to
ANALYSIS
OF a real estate market which functions normally. The current conditions mean: limited
THE SPECIFIC liquidity, lack of financing, blockage of the acquisitions for most of the buyers.
MARKET
Taking into account the size of subject property we proceeded with an analysis of the
semicentral and central areas of Bucharest for the big plots of investment land. At this
moment in Bucharest the offer for big plots of land is limited, there are relatively a few
plots over 5000 sqm on the market for selling.
The offers for big plots of land in semicentral areas of Bucharest are situated between
700 – 1.600 EUR/sqm depending upon the location, destination (residential/commercial),
urbanism indicators (POT, CUT, height level) within the area and so on.
The higher prices correspond to these plots of land which are located in areas with very
few plots available to be sold and developed (rarity). For the areas with more vacant plots
of land the prices are lower.
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4 PROPERTY VALUATION
4.1 Stages performed
To estimate the values presented above we have covered the following stages:
• documentation, from a list of information required to the client – property deeds, cadastral
documentation
• field inspection and verification of compliance practice situation on the land with information
from furnished documents;
• establishing the limits and assumptions that stood at the base of the valuation report;
• selecting the type of estimated values in the present report;
• deduction and estimation of the limiting conditions specific to valued property;
• analysis of all data collected, interpretation of results from the valuation point of view;
• applying the methods of valuation considered appropriate for estimating the fair values that
characterises the property;
4.2 The METODOLOGY applied in ESTIMATING THE MARKET VALUE
The purpose of this valuation is to estimate the market value of the best alternative use of the property
land and construction: “factory of manufacturing underwear”. When establishing the best alternative use of
this property we take into consideration the location of the factory in the subject area. It’s about a
residential area and also a semicentral area of Bucharest. The value of alternative use –vacant land- in
isolation from the business is higher then the value of the real estate property land and construction:
“factory of manufacturing underwear” as an industrial property – production and supply of goods (on going
concern principle).
The estimation of the market value of the land was made taking into consideration the afferent surface of
land and its positioning, in concordance with information on market prices in neighbouring areas and/or
similar.
Taking into account the current situation of the land market, corresponding to big plots of land, we used
sales comparison approach for estimating the market value of the land and residual tehnique for
estimating the investment value of the subject land in order to verify the result provided by the
comparison approach.
4.2.1
The highest and best use of the land
The concept of the highest and best use is essential in the valuation process. Through highest
and best use analysis, the valuer interprets the market forces that influence the subject property and
identifies the use upon which the final value estimate is based.
The highest and best use is the alternative of using the property selected from different possible
variants, which will be starting basis and will generate the valuation assumption necessary in applying the
valuation methods and approaches in the following chapters.
The highest and best use of the space is defined as follows:
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The most probable use of a property which is physically possible, appropriately justified, legally
permissible, financially feasible, and which results in the highest value of the property being valued.
The value of the property land and construction: “factory of manufacturing underwear”– current
use
Income method:
Construction
1 Corp fabricatie tricotat
2 Corp fabricatie confectii
3 Corp finisaj chimic
4 Corp fabricatie blana
5 Corp adm
6 Magazin
7 demolished
8 Ateliere
9 Centrala termica
10 Remiza PSI
11 Incarcat acumulatori
12 statie pompe rezervor 200 mc
13 statie pompe rezervor 300 mc
14 magazie metalica
15 statie compresoare
16 statie reglare gaze
17 bordei
18 rezervor pacura
19 demolished
TOTAL
Gross built
Function
Built area-sqm- area -sqmwarehouse/production/of
fices
983
4,985
warehouse/production
1,050
3,210
production
814
1,280
production
2,659
5,730
offices
247
323
offices and retail spaces
production
-
-
240
385
343
297
265
108
100
240
1680
45
27
75
16
670
413
275
131
100
240
1680
45
27
75
16
9,189
19,585
EFFECTIVE
Gross built
Useful area - month rent POTENTIAL
less vacancy and GROSS INCOME - capitalization Income
area -sqmsqmeyro/sqm GROSS INCOME collection loss
eurrate
value -eurwarehouse/production
14,892
11,169
5
670,140
10%
603,126
10%
6,031,000
offices
1,470
1,103
9
119,070
10%
107,163
10%
1,072,000
16,362
12,272
710,289
7,103,000
Income value_current use: 7,103,000 eur.
Therefore the highest and best use of the property is vacant land (which represents the best alternative
use of the property). Although the client did not put at valuer’s disposal an valid urbanism planning
certificate or other urbanism projects for the subject land it is assumed that the vacant land could be
developed in compliance with General Urban Plan’s stipulations (PUG) for at least G+4F building without
any urbanism restrictions.
4.2.2 Sales comparison approach
The sales comparison approach has its basis in market analysis and uses the comparative analysis,
respectively the estimate of the value is done through a market analysis to find similar properties,
comparing these properties with the one “to be valuated”.
The major premise of the method is that the market value of a real estate property is in direct relation with
the transaction prices (offer) of comparable and competitive properties. The comparative analysis is based
on the similarities and differences in properties between the elements that influence transaction prices.
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For estimating the value of the property through this method the valuer took into consideration the
information he had at his disposal.
Nr crt. Elements of comparison
0
Type of comparable
1
2
3
4
property titles transmitted
financing conditions
Sale conditions
market conditions
5
location
6
physical characteristics
area (sq m):
7
8
Subject property
no restrictions
normal
normal
january 2013
Serban Voda - Tineretului
Park
Comparable properties
B
C
offer
offer
offer Colliers
3D Properties Group real estate
agency
agent Marinas Marius
phone number: 0735527017
no restrictions
no restrictions
no restrictions
similar
similar
similar
normal
normal
normal
november 2012
similar
similar
Barbu Vacarescu -str Gara Mihalache Avenue - Victoriei
Nerva Traian - Timpuri Noi - mixt
Herastrau - commercial
area - Ciresarilor Park area
area
residential area
A
transaction
bought by Skanska
company
13,726
15,000
27,464.78
irregular shape with an app.
app. rectangular
The plot is composed from
shape 100 m frontage to the Serban
app. rectangular geometrical
Voda, two frontages
shapes, three frontages
100
n/k; suitable for commercial
50/40/139
frontage/acces
development
topoghraphy
plane
plane
plane
public utilities
all utilities
all utilities
all utilities
subzone M3- mixt area with CUT = 3.5 commercial
Zonal Urban Plan (2006),
G+4F buildings /for higher
M3 area/ CUT=3/ G+4-6F,
buildings G+10-14E is
residential
highest and best use
necessary a Zonal Urban
Plan / commercial/CUT=2.5
total price(EURO)
unit price / sq m (EURO)
13,800,000
920
7,940
irregular shape, three frontages
(acceses)
100
plane
all utilities
Zonal Urban Plan , 3B+G+18F /
mixt/CUT=6
27,464,780
1,000
12,704,000
1,600
Market data grid for paired data:
Elements of comparison
0
1
2
3
Identification
date of valuation
area (sq m)
SALE PRICE (EUR)
sale price (EUR/sq m) element of comparison
TYPE OF COMPARABLE
type of the comparable
property
unit or % adjustment
total adjustment
adjusted price (Eur/sq m)
PROPERTY RIGHTS
property rights transmitted
total adjustment
FINANCING RESTRICTIONS
financing restrictions
total adjustment
SALE CONDITIONS
sale conditions
DARIAN DRS SA
Subject Property
Comparable A
Barbu Vacarescu -str
Gara Herastrau commercial area
november 2012
15,000
13,800,000
Comparable B
Mihalache Avenue Victoriei area - Ciresarilor
Park - residential area
similar
27,465
27,464,780
€ 920.00
€ 1,000.00
€ 1,600.00
transaction
offer
offer
0.0%
0.00
920.00
10.0%
-100.00
900.00
20.0%
-320.00
1,280.00
no restrictions
no restrictions
0
€ 0.00
€ 920.00
no restrictions
0
€ 0.00
€ 900.00
no restrictions
0
€ 0.00
€ 1,280.00
normal
similar
similar
similar
€ 0.00
€ 920.00
€ 0.00
€ 900.00
€ 0.00
€ 1,280.00
normal
normal
normal
Serban Voda Tineretului Park
january 2013
13,726
normal
Comparable C
Nerva Traian - Timpuri
Noi - mixt area
similar
7,940
12,704,000
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SC DARIAN DRS SA
4
5
6
a
b
total adjustment
MARKET CONDITIONS
market conditions
total adjustment
LOCATION
location
total adjustment
PHYSICAL FEATURES
dimension
total adjustment
shape and frontage
january 2013
Serban Voda Tineretului Park
c
7
8
total adjustment
adjusted price (EUR/sq m)
adjusted price (Eur/sq n)
total net adjustment
total gross adjustment
area (sq m)
Opinion (Eur/sq m)
Estimated value_vacant
land _Euro
DARIAN DRS SA
€ 0.00
€ 900.00
€ 0.00
€ 1,280.00
november 2012
0%
€ 0.00
€ 920.00
similar
0%
€ 0.00
€ 900.00
similar
0%
€ 0.00
€ 1,280.00
Barbu Vacarescu -str
Gara Herastrau commercial area
30%
€ 276.00
€ 1,196.00
Mihalache Avenue Victoriei area - Ciresarilor
Park - residential area
10.0%
€ 90.00
€ 990.00
Nerva Traian - Timpuri
Noi - mixt area
0%
€ 0.00
€ 1,280.00
13,726
15,000
0.0%
€ 0.00
irregular shape with an
app. 100 m frontage to
the Serban Voda, two
frontages
100
total adjustment
topoghraphy
total adjustment
AVAILABLE PUBLIC
UTILITIES
utilities
total adjustment
HIGHEST AND BEST USE
€ 0.00
€ 920.00
plane
all utilities
subzone M3- mixt area
with G+4F buildings
/for higher buildings
G+10-14E is
necessary a Zonal
Urban Plan /
commercial/CUT=2.5
(absolute)
(%)
(absolute)
(%)
13,726
€ 950
app. rectangular
n/k; suitable for
commercial development
0.0%
€ 0.00
plane
0.0%
€ 0.00
€ 1,196.00
all utilities
27,465
0%
€ 0.00
The plot is composed from
app. rectangular
geometrical shapes, three
frontages
irregular shape, three
frontages (acceses)
50/40/139
0%
€ 0.00
plane
0%
€ 0.00
€ 990.00
100
0%
€ 0.00
plane
0%
€ 0.00
€ 1,280.00
all utilities
0.0%
€ 0.00
€ 1,196
0.0%
€ 0.00
€ 990
CUT = 3.5 commercial
-15.0%
-€ 179.40
€ 1,016.60
€ 1,017
€ 96.60
11%
€ 455.40
50%
Zonal Urban Plan (2006),
M3 area/ CUT=3/ G+4-6F,
residential
-4.0%
-€ 40.00
€ 950.00
€ 950
€ 50.00
6%
€ 130.00
14%
7,940
0%
€ 0.00
all utilities
0.0%
€ 0.00
€ 1,280
Zonal Urban Plan ,
3B+G+18F /
mixt/CUT=6
-25.0%
-€ 320.00
€ 960.00
€ 960
-€ 320.00
-25%
€ 320.00
25%
13,040,000
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SC DARIAN DRS SA
Vland
13,726 eur
industrial constructions with armed concrete frame
structure
17,905 sqm
metallic constructions
1,680 sqm
demolishing ex penses for clearing the land of
industrial constructions with armed concrete frame
structure
demolition cost (round)
15* eur/built sqm
270,000 eur
€ 930
costs to sell
2.5%
costs to sell
319,250 eur
Comparison value
Comparison value
Comparison value
12,451,000 eur
907 eur/sq m
55,141,744 ron
exchange rate
4.4287
valuation date
01.01.2013
*for big surfaces the demolition cost is within the range 15 - 20 eur/built sqm
Explanations of the grid:
Type of comparables
The considered level of the discount is the one frequently used in our practice in this period, based on our
observations and information obtained from the ones direct involved in market transactions (brokers). The
discount is different from owner to owner, as at the base of its variation are standing the psychological
indicators hard to quantify, as the negotiation abilities of the parts involved directly in the transaction
process.
Therefore we applied corrections of 10%-20% to outline the negotiation degree for the offer comparables
on the market - larger negative corrections than in the active market – the discount percent has increased
comparing to the period when the market was active, when it had values around 5% up to maximum 10%.
For the comparable C we applied the maximum percentage taking into account that it is a land plot for
sale over the last years.
Market conditions
We applied no corrections for the “market conditions” taking into account that there are updated offers and
transactions.
Location
Comparable no. 1 is located in a less good area compared to the subject area – Barbu Vacarescu and
therefore we applied corrections of +30% for it. Barbu Vacarescu area is located to a greater distance from
the downtown.
Comp no 2 is located in a similar area with the subject one (Mihalache area) in terms of distance but in a
residential perimeter with narrow streets. Therefore we applied corrections of +10% for it.
Comp no 3 is located relatively in the same perimeter and with the same position in the area and we
considered the corrections were not necessary.
Physical Features – size/shape/frontage
These kind of plots - investment plots of medium and large size over 3,000 sqm- are rare. Therefore it is
not necessary to make corrections for the size. There is a low variation of price depending on the plots
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size.
All the comparables used are plots with suitable frontages for future developing and moreover with urban
plans approved or in the process of being approved.
Highest and Best Use
the value of the land is directly influenced by the urbanism planning certificates or other projects that
the land have.
Practically, between two similar lands on the same specific market, the market recognises a difference
of positive value in favour of the plot that can be built at a more superior CUT. It is normal, in the
CMBU spirit and an attached residual analysis to be this way (the larger CUT uses better the land – it
offers it a better value)
Comparing to the active market period when this coefficient was followed and paid by investors, in this
context of market the magnitude of the corrections of this nature are diminished to decreasing ( as the
implementation of new projects is limited).
We applied negative corrections for A, B and C, bringing them to the level of the subject property (-15% for
comp A, -4% for comp B and -25% for comp C). For the comparable B the adjustment bases on the size
of CUT (3) which is better than 2.5 CUT but taking into account a percentage of app 1% representing the
potential value of Zonal Urban Plan (comparable B benefits of this plan compared with the subject land).
Therefore we estimated -5% for the difference of CUT to which we add app 1% for the urban plan resulting
app -4% adjustment.
4.2.3 Residual technique
With a character of reviewing and verification the valuer applied also a residual technique, attached to the
developing potential of the land, mentioning also that the calculation variables are hard to control at this
moment and that the result is sensible to them.
The method is for information and as a verification of the comparison approach.
For the valuation of the subject property it was applied a variant of residual technique through which is
outlined the contribution of the land in the value of the investment after the development that a medium
owner proposes, in the base of an zonal urban plan which could be developed in the future.
The stages for the determination of the value in this form were:
A. The determination of the value of the property by selling the spaces developed under the
assumption of the highest and best use according to the General Urban Plan.
B. The estimation of the costs to bring the property in the “highest and best use” variant;
C. The deduction of the investment costs from the value of the property in order to determine the
value of the property at the present stage (vacant land).
Using this method supposes that an average investor plans to earn revenues from the selling of the
residential spaces developed.
Please note that this represents a simplified calculation scenario of investment value (with the
necessary assumptions) taking into account the lack of developing project of the vacant land.
It is assumed that the vacant land could be developed in compliance with General Urban Plan’s
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stipulations (PUG) for at least G+4F building without any urbanism restrictions at a land use coefficient of
2.5 and land occupancy percentage of 60%.
The calculation is based only on the residential use of the land not taking into account the commercial
potential of the land.
The calculation is presented in the following table:
land area
13,726 sqm
Estimated construction period
3 years
36 months
landscaped green areas
building area
roads area
20%
60%
20%
100%
land occupancy percentage POT
land use coefficient CUT
maximum height
60%
2.5
built area underground
built area above ground
total gross built area
parking
residential units - blocks
useful area
estimates no ap
70% x built area above ground
average 90 sqm / 1 apartment
number of parking place
2,745
8,236
2,745
13,726
sqm
sqm
sqm
sqm
8,236 sqm
34,315 sqm
4.2 levels
16,471 built sqm
34,315 built sqm
50,786 built sqm
24,021 sqm
267
329
HARD COSTS
building G+4F
Interior roads
landscaping
site preparation works**
400
40
40
20,314,480
109,808
109,808
270,000
20,804,096
eur
eur
eur
eur
eur
design fees
building permit
contingency
marketing
project management
1.5%
1.5%
3.0%
1.5%
1.5%
9.0%
312,061
312,061
624,123
312,061
312,061
1,872,369
eur
eur
eur
eur
eur
eur
TOTAL HARD COSTS
SOFT COSTS
TOTAL SOFT COSTS
TOTAL HARD AND SOFT COSTS
TOTAL HARD AND SOFT COSTS
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22,676,465 eur
447 eur/ built sqm
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SC DARIAN DRS SA
Year 1
Year 2
stages of construction by year
Hard and soft costs
Cost to be financed
x40%
Financing cost @ debt service estimated
Long term interest rate
Sales forecast
Sales forecast useful area bove grounds
sqm
app no ap
per year
app no ap
per month
Sales forecast parking place underground
Selling price apartments
eur/1 useful sqm
20%
4,535,293
1,814,117
90,706*
5.00%
10%
2,402
27
2
33
1,500
Selling price apartments
Total costs
Revenues
Developer profit
eur/1 pp
eur
eur
15,000
4,625,999
4,098,075
81,962
Net cash flow
Discount rate
Discount factor
eur/year
%
2.0%
-609,885
9.0%
0.92
Present value
Total present value
eur
-559,528
eur
12,523,000
eur/sqm
912
*it is assumed: financing cost year n =financing cost year n-1 + 5% x cost to be financed
built sqm
underground
above ground
cost eur/sqm
16,471
34,315
50,786
No of
Area
room
Budapesta – Marasesti
Asmita
Regina Maria - Marasesti
Parcul Carol - complex Marasesti
11 iunie - Parc Carol
zona Parcul Carol
Marasesti - Camera de Comert
zona Marasesti
Year 4
Year 5
60%
13,605,879
5,442,352
453,529*
5.00%
20.0%
4,804
53
4
66
1,600
7%
15,000
14,059,408
8,676,560
173,531
0%
0
0
453,529*
5.00%
30.0%
7,206
80
7
99
1,700
6%
15,000
453,529
13,735,455
274,709
0%
0
0
100%
22,676,465
9,070,586
1,179,176
30.0%
7,206
80
7
99
1,700
0%
15,000
0
13,735,455
274,709
100%
24,021
267
-700,591
-5,556,379
13,007,217
13,460,746
0.84
0.77
0.71
0.65
-589,674
-4,290,544
9,214,640
8,748,561
cost eur
350
500
1
1
2
2
2
3
3
4
4
4
Year 3
20%
4,535,293
1,814,117
181,412*
5.00%
10.0%
2,402
27
2
33
1,500
0%
15,000
4,716,705
4,098,075
81,962
330
886,872
cost eur/sqm
5,764,920
17,157,500
22,922,420
451
Useful
Construction Prices
Eur/useful
surface -sqm- year
(eur)
area
38
2012
50,500
1,323
32
2008
58,000
1,813
48
2012
83,000
1,729
80
2009
104,838
1,310
70
2009
100,806
1,440
111
2009
145,161
1,308
90
2012
159,000
1,767
180
2008
270,000
1,500
123
2008
265,000
2,154
139
2009
200,000
1,439
91
average
1,578
average
-5%
1,499
Using this method supposes that an average investor plans to earn revenues from the selling of the
residential spaces developed.
General assumptions:
- the calculation has been made according to the land use coefficient (CUT) of 2.5.
- at the present time the opportunity of developing such project is not adequate sustained as the
potential demand is lower at the moment. The method presents a scenario that is useful for
sustaining the value, if taken into consideration some working assumptions and the fact that the
project has to be developed on a larger period of time. The improvement regarding the economical
situation on the future is finally the common assumption of all methods used.
- The period of developing the residential units and retail spaces, as well as the improvements has
DARIAN DRS SA
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SC DARIAN DRS SA
-
been estimated at 3 years.
The period of selling the developed spaces is considered at 5 years (i.e. the sales start with the
construction and last still 2 years after finalizing).
We considered a financing of 40% from the project resulting an interest for financing amount of
5%.
The entrepreneurial profit considered at aprox. 2% to the annual revenues. The return on an
investment (yield) compensates the investor (developer) for foregoing present benefits and
accepting future benefits and risks. An investor seeks a total return that exceeds the amount
invested. Although the actual yield on an investment cannot be calculated until the investment is
sold, an investor may set a target yield for the investment before or during ownership. Analysing
the current expectations of market participants we settled a cost of capital for the subject project of
9%.
http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&language=en&pcode=tei
3.02%
1.00%
9.21%
1.14
0.0%
12.1%
Risk-free rate euro
inflation Germany
(Rm-Rf) = equity risk premium
Beta
α
Expected return on investment = Rf + (Rm-Rf) x beta + α
mf050&plugin=1
Damodaran - emerging markets - Real Estate Development
Unlevered Beta
Debt/Equity
Tax rate
Relevered Beta
0.75 Damodaran Real Estate Development
61.68% Damodaran Real Estate Development
16.00%
1.14 Relevered Beta = Unlevered Beta x [(1 + (1- tax rate) (Debt/Equity Ratio))]
Base risk premium for mature capital market
Country risk premium
Equity risk premium
6.00% source: http://pages.stern.nyu.edu/~adamodar/
D/E
0.6168
ccpr = ROE
E / (D+E)
rd
D / (D + E)
imp / p
wacc
DARIAN DRS SA
12.06%
61.85%
4.15%
38.15%
16%
8.79%
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4.2.4 The Reconciliation of results
We obtained the following results:
- Vcomparison = 12,451,000 eur
-
Vinvestment =
12,523,000 eur
Following the analysis of the adequacy, accuracy and quantity of information for all methods, in actual
market conditions (to january 2012), we consider that the comparison approach is more relevant, even if
this moment is one with a small number of transactions for the big plots of land and with a low absorption
rate.
In fact, residual technique introduces a number of supplementary uncertainties, and therefore a result with
corresponding reserves.
real estate property “plot of land under constructions of 13,726 sqm considered vacant” as it is presented
at the valuation date is:
12,451,000 EUR
55,141,744 RON
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5 ANNEXES
5.1
PICTURES
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5.2
Land comparables
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5.3
Documents received from the client
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Cluj-Napoca: Str. Nicolae Cristea Nr. 25, 400184, Tel/Fax: 0264 438.03.33
Bucureşti: Str. Radu Vodă, Nr. 17, et. 2, 040273, Tel/Fax: 021 312.27.86
[email protected]; www.darian.ro
DRS NO. 476/18-01-2013
Valuation report
of tangible assets
land considered vacant of 3,006 sqm
Located in Bucharest, 46 Imparatul Traian st, District 4
in property of
S.C. ADESGO S.A.
All data and information contained in this material are confidential and will not be disclosed or copied,
partially or totally, without the prior written consent and approval of SC DARIAN DRS SA and the client SC
ADESGO S.A.
January 2013
Darian DRS S.A.
Nr. Registrul Com erţului: J12/595/1991 | Cod unic de înregistrare: RO201020
Cod IBAN: RO24 BACX 0000 0001 3929 6250| Banca BANCA ROMANEASCA | Capital social 150.000 RON
SC DARIAN DRS SA
valuation report of tangible assets – SC ADESGO S.A
To: SC ADESGO S.A.
Dear Sirs,
Following your request, we have analysed the “plot of land considered vacant of 3,006 sqm” within the
built up area of Bucharest, located in 46 Imparatul Traian st, District 4, with the purpose of financial
reporting.
It was subjected to valuation the integral ownership of SC ADESGO S.A. on tangible assets, subjected to
analysis in the present valuation report.
The present report is intended for SC ADESGO S.A. as client and addressee.
The present report will be used for registration in the client’s financial reports.
01, 2013.
The estimation was made in January 2013.
The valuer is not to be held responsible under any circumstance for misleading information, false or
incomplete, made available by the owner/client.
The report was structured as follows: (1) General aspects – that include the object of valuation as well as
the main elements defining the valuation methods (2) – The data description – description of the valued
asset (3) Property valuation – the applying of the valuation methods (4) Annexes – containing the elements
that sustain the presented proofs.
The following valuation report presents the basis on which the valuer’s opinion was established.
The report was prepared in accordance with applicable laws.
The values estimated for each position were established on the basis of International Valuation Standards
(IVS), which are in correlation with International Accounting Standards (IAS), and methodology
recommended by ANEVAR (The National Association of Romanian Valuers).
real estate property “plot of land considered vacant of 3,006 sqm” as it is presented at the valuation
date is:
1,054,000 EUR
4,667,850 RON
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The reasons the valuer opinion is based on and the considerations of the value are as follows:
⇒ The value is valid under the conditions and assumptions presented in this report (see appendices)
⇒ value does not take into account the environmental responsibilities and costs of compliance to legal
requirements;
⇒ the value is subjective;
⇒ the valuation is an opinion of a value;
⇒ the value does not include VAT;
⇒ The final opinion was expressed in strong currency at the currency exchange rate valid at 01st January
2013: 4.4287 RON /1 EURO;
Sincerely,
DARIAN DRS SA
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1.1
Certification
We hereby certify, to our best knowledge and belief that the facts contained in this report are true
and correct. The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and is our personal, unbiased professional analyses, opinions, and
conclusions. We also certify that we have no present or prospective interest in the property that is the
subject of this report, and we have no personal interest or bias with respect to the parties involved.
Our compensation is not contingent upon the reporting of a predetermined value or direction in
value that favours the cause of the client, the amount of the value estimate, the attainment of a stimulated
result, or the occurrence of a subsequent event. Our analyses, opinions and conclusions were developed,
and this report has been prepared in conformity with the standards and methodology recommended by
UNEAR (National Association of Romanian Appraisers).
The valuer inspected the property personally. At the moment of drawing up the present report the
valuers, who undersign this report did not get significant assistance from the side of other persons.
The present report is subject to the standards and may be expertise (at demand, with the written and
preliminary consent of the valuer) and verified, in conformity with the International Standard of Practice in
Valuation GE1 – Valuation Verifying.
The present report is subject to UNEAR norms and can be, on request, reviewed by its specially
authorised members.
At the time when this report was drawn, the undersigned are UNEAR members, have completed the
continuous professional training program of UNEAR and have necessary competence for such work.
DARIAN DRS SA and its team are insured for professional responsibility with ALLIANZ – TIRIAC
ASIGURARI S.A.
Daniel Ceafalan,
Real estate valuer
Member of UNEAR
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CUPRINS
1. INTRODUCERE
1.1
2
GENERAL ASPECTS ................................................................................................................................. 6
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
3
OBJECT OF VALUATION ............................................................................................................................ 6
VALUED OWNERSHIP................................................................................................................................ 6
PURPOSE OF VALUATION. CLIENT AND USE OF THE VALUATION .................................................................... 6
VALUATION DATE. DATE OF THE REPORT ................................................................................................... 6
DATE OF THE PROPERTY INSPECTION ........................................................................................................ 6
BASE OF VALUATION. TYPE OF VALUE ........................................................................................................ 6
CURRENCY OF THE REPORT ..................................................................................................................... 8
INFORMATION USED AND SOURCES OF INFORMATION .................................................................................. 8
RESPONSIBILITY TOWARDS THIRD PARTIES ................................................................................................ 8
UNPUBLISHING CLAUSE ........................................................................................................................ 8
ASSUMPTIONS AND LIMITING CONDITIONS............................................................................................... 8
DATA DESCRIPTION ............................................................................................................................... 11
3.1
3.2
3.3
3.3
4
CERTIFICATION ....................................................................................................................................... 4
GENERAL PRESENTATION ...................................................................................................................... 11
LEGAL PRESENTATION ........................................................................................................................... 12
URBANISM PLANNING CERTIFICATES ........................................................................................................ 12
INFORMATION ABOUT REAL-ESTATE MARKET ............................................................................................ 13
PROPERTY VALUATION ......................................................................................................................... 17
4.1 STAGES PERFORMED ............................................................................................................................. 17
4.2 THE METODOLOGY APPLIED IN ESTIMATING THE MARKET VALUE ................................................ 17
4.2.1 The highest and best use of the land ...................................................................................... 17
4.2.2 Sales comparison approach .................................................................................................... 18
4.2.3 The Reconciliation of results ................................................................................................... 21
5
ANEXES .................................................................................................................................................... 22
5.1
5.2
5.3
PICTURES ......................................................................................................................................... 22
LAND COMPARABLES ............................................................................................................................. 23
DOCUMENTS RECEIVED FROM THE CLIENT ............................................................................................... 26
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2 GENERAL ASPECTS
2.1 Object of valuation
The object of valuation consists in tangible assets of real-estate nature “plot of land considered vacant
of 3,006 sqm ” in property of SC ADESGO SA, located in 46 Imparatul Traian st, District 4, Bucharest.
2.2 Valued ownership
The subject of valuation consists of the full ownership of SC ADESGO S.A. over tangible assets subjected
to valuation.
2.3 Purpose of valuation. Client and use of the valuation
The purpose of valuation is estimating the market value of tangible assets in property of SC ADESGO
S.A. for use in client’s financial reporting.
The present report is intended to SC ADESGO S.A. as client and addressee.
The headquarter of SC ADESGO S.A. is in 220 Calea Serban Voda, District 4, Bucharest. The company is
registered at Trade Register under no. J40/5892/1991, unique recording code (CUI) RO 367911.
2.4 Valuation date. Date of the report
01, 2013.
The estimation was made in January 2013. The date of the report is January 01, 2013.
2.5 Date of the property inspection
The valuer, Daniel Ceafalan, carried out the inspection of the real estate property on the November, 2012.
The inspection consisted in identifying location and taking some general photographs of the location.
There were no inspections regarding the possible presence of contamination of the land of vicinity areas.
2.6 Base of valuation. Type of value
Considering the purpose and use of the valuation, we have followed the recommendations:
IVA 300 “Valuation for financial reporting”.
IVS - Framework
The classification of assets determines which IAS or IFRS applies.
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The valuation is used for IAS 16 (property, Plant & Equipment) under IAS 36 (Impairment of assets).
IAS 16 requires non-current property and plant assets held for the production or supply of goods or
services to be recognised initially in the balance sheet at cost and thereafter carried in accordance with
either the cost model or fair value model.
Financial statements are produced on the assumption that the entity is a going concern unless
management either intends to liquidate the entity or cease trading, or has no realistic alternative but to do
so. (IAS 1, para. 23). This assumption therefore underlies the application of fair value to property plant and
equipment, except in cases where it is clear that there is either an intention to dispose of a particular asset
or that option of disposal has to be considered, e.g. when undertaking an impairment review.
When an entity adopts the fair value revaluation option under IAS16, the assets are included in the
balance sheet at their fair value as follows:
(a) “The fair value of land and buildings is usually determined from market-based evidence by
appraisal that is normally undertaken by professionally qualified valuers. The fair value of items of plant
and equipment is usually their market value determined by appraisal” (IAS 16, para. 32).
(b) “If there is no market-based evidence of fair value because of the specialised nature of the item
of property, plant and equipment and the item is rarely sold, except as a part of a continuing business, an
entity may need to estimate fair value using an income or a depreciated replacement cost approach” (IAS
16, para. 33).
IAS 36 (Impairment of assets).
Impairment arises where the carrying amount of an asset exceeds the amount that can be recovered from
either its continued use and/or the sale of the asset. Under IAS 36 Impaiment of Assets, an entity is
required to review certain categories of asset at the date of each statement of financial position to
determine whether there is any indication that an asset may be impaired. Impairment might be indicated by
a reduction in the value of the asset because of market or technological changes, obsolescence of the
asset, asset underperformance in comparison to the expected return, or an intention to discontinue or
restructure operations.
Therefore, in the present report, we followed an estimation of:
market value of land under the assumption of being vacant (considered the best alternative use);
as it is described in IVS Framework the defintion of market value is:
o Market value: The estimated amount for which an asset should exchange on
the valuation date between a willing buyer and a willing seller in an arm’s
length transaction, after proper marketing and where the parties had each
acted knowledgeably, prudently and without compulsion.
Please be advised that the current land real estate market is not a normal market – limited liquidity,
very little transactions.
We mention the atypical period through which we are passing, through the point of view of real estate
market and type of property subjected to valuation.
In fact, it is about:
The limiting of the number of transactions in the market.
Decreasing of the investing interest (of solvent demand) with all the consequences arising from
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this point of view of market quotations.
2.7 Currency of the report
The value is expressed in Eur and Ron and does not contain VAT .
2.8 Information used and sources of information
The information used was:
⇒ The situation of the subject property (site address, area, etc);
⇒ Papers that attest ownership;
⇒ Cadastral documentation;
⇒ Information about certificates and the potential urbanity development of the land
The information from above was taken from the client, this being responsible for their veridicity and
fairness.
⇒
⇒
⇒
⇒
⇒
The physical identification on the land was conducted with responsible persons from the company;
Information regarding the local real estate market ;
Other necessary information existing in specialised bibliography;
International Valuation Standards (IVS 2011);
Database of the valuer with confidential character;
2.9 Responsibility towards third parties
This report is based on the information furnished by the management of SC ADESGO S.A. In conformity
with the usages in Romania, the estimated values are valid at the date stated in the report and a limited
interval of time after that date, in which the specific conditions of the market do not undergo significant
changes affecting estimated opinions.
This report is designated for the purpose and use of the addressees mentioned at 2.3. The report is
confidential, strictly for the addressees and the valuer does not accept responsibility towards any third
party, in any circumstance.
2.10 Unpublishing clause
This report or any reference to it cannot be published or included into a document, which will be published
without prior written approval of the appraiser, specifying the form in which it will appear. Partial or integral
publishing or use of the report for other purposes than those stated at 2.3. leads to a cease of contract
obligations.
2.11 Special assumption and limiting conditions
The valuer is not a topographer/topometrist/geodesist and he does not have the due qualification
to measure and guarantee that the property location and boundaries as they have been pointed out by the
owner at the time of the inspection and described in the report correspond to those written down in the
property/cadastral documents.
This report is meant to develop a value of the property identified and described in the report
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provided that it corresponds to the one written down in the property documents. Any discordance between
the identified property and the one written down in the property documents invalidates the correspondance
between the estimated property and the property certified by the property documents, but the estimated
value remains valid for the property identified in the report.
2.12 Assumptions and limiting conditions
The main assumptions and limiting conditions, which were considered in this report, are presented below:
1. Assumptions:
⇒ Legal aspects are entirely based on information and documents provided by SC ADESGO S.A. and
were presented without any further verification or investigations. Title to the property is assumed to be
good and marketable, unless otherwise stated
⇒ The information furnished by others is believed to be reliable, but no warranty is given for its accuracy.
⇒ It is assumed that there are no hidden or non-apparent conditions of the property, soil or building
structure (hidden parts) which would influence the value of the property. No responsibility is assumed
for such conditions or for any expertise or engineering knowledge required to discover this;
⇒ The present situation of the property and the purpose of the present valuation were the basis in
selecting and applying the valuation method, so that the resulted values will lead to the most probable
estimate of the value, considering the selected value type, resented at point 2.5.
⇒ We suppose that there are no type of contaminants, and the cost of decontamination does not affect
the value; we were not informed of any inspection or report that would indicate the presence of the
contaminants or other dangerous materials;
⇒ In order to carry out the valuation, were taken into consideration all the factors that have influence over
the value of the investment property subjected to valuation and were not omitted in a deliberate way
no other kind of information that could have importance over the valuation and which, in our knowledge
are correct and reasonable in the elaboration at the present report.
⇒ The valuer considers himself relived from the responsibility of existence of any hidden vices of any
type on the subject of valuation, environmental factors, etc., which could influence in any way the value
of the goods in case, for this reason the valuer cannot present any guarantee referring to their
technical and economical state, after the valuation.
⇒ The estimated value is valid at the valuation date. Whereas the market, market conditions may change,
the estimated value may be incorrect or inappropriate at another time
⇒ We assumed that the current legislation will remain the same and were not taken into account any
changes that may occur in the following period.
⇒ The valuer believes that the assumptions made at the application of the methods of valuation were
reasonable in light of facts that are available at the valuation date.
⇒ When estimating the value the valuer used only information available at disposal at the time of drawing
the report and it is possible that there were other information unknown to the valuer.
⇒ The client did not put at valuer’s disposal an valid urbanism planning certificate for the subject land. It
is assumed that the vacant land (valuation subject) could be developed in compliance with General
Urban Plan’s stipulations (PUG) for at least G+14F building without any urbanism restrictions.
⇒ We considered that the client has an integral property right over the plot of land under kindergarten.
2. Limiting conditions:
⇒ The estimated value is valid only for the subject plot of land considered buildable (under the
assumption that the land will be cleared and will become and be sold as vacant land);
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⇒ Any value estimates provided in the report apply to the entire property and any proration or division of
the total into fractional interests will invalidate the estimated value, unless such proration or division of
interests has been set forth in the report.
⇒ any allocation of component values is valid only if presented in the report using. Assigned separate
values should not be used in connection with another valuation and are invalid if so used.
⇒ obtaining one copy of this valuation report does not imply also publication rights;
⇒ the valuer, through the nature of its work, is not forced to offer further counselling or to testify in court
regarding the object of the report, unless prior agreements have been signed with the client;
⇒ nor the present report ,nor parts of it (especially the conclusions regarding the market value, the
valuer’s identity) must not be made public without the valuer’s prior agreement; the valuation report is
valid in the economical, fiscal, legal and political conditions from its date of preparation. If these conditions
will modify the conclusions of this report may loose their validity.
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3 DATA DESCRIPTION
3.1 General Presentation
The object of valuation consists in tangible assets of real-estate nature “plot of land considered vacant
of 3,006 sqm” in property of SC ADESGO SA, located in 46 Imparatul Traian st, District 4, Bucharest.
The subject property is a plot within the built-up area of District 4, located in the south side of
Bucharest – Brancoveanu area - with direct access from Imparatul Traian st, Eroii Neamului st and
Alpinesti st.
The area where the land is located is mostly residential with G+1-2-3 F houses/villas and blocks of
flats G+10F.
According to property deeds the total surface of land is 4,495 sqm. On the site there are erected
two buildings: a G+1F residential building of 140 built sqm, identified as “Guests House” and a G building
of 668 built sqm, identified as “Kindergarten”.
The both buildings are erected on reinforced concrete frames structure with mainsonery. The
property benefits of all utilities.
According to the information given by the owner’s representative, the “Kindergarten”
building does not belong to SC ADESGO SA (only the building). We did not have documents at our
disposal about this issue. We considered that the client has an integral property right over this plot
of land (land under kindergarten).
According to the civil sentence no. 77A/2009 the client is legally obliged to surrender a plot of land
of 1,488.9 sqm (from the entire plot of land of 4,495 sqm).
Therefore, at the request of client , we valued the plot of land of 3,006.1 sqm, resulting from
the total area of 4,495 sqm descreased it with 1,488.9 sqm. We did not have at our disposal the
cadastral documentation of the subject land of 3,006.1 sqm. We conducted the valuation based on only
the sketches of the property put at our disposal by the client.
The land has been valued under the assumption that is vacant of constructions.
The plot of land - subject of the present valuation - has 3,006.1 sqm and a rectangular shape with
frontages to three streets.
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Kindergarten
The property benefits by all available city utilities: electricity, water, sewerage, gas network.
3.2 Legal presentation
The subject property belongs to SC ADESGO S.A., according to Property Title series M03 no 0381 and
deed civil decision 774/2009.
Charges:
We did not have a valid land register book excerpt of the subject property.
The valuation is made under the assumption that the property is free of any charges.
It has been valued the integral property right of the real estate property subject of present valuation,
considered free, valid and marketable being property of S.C. ADESGO S.A.
3.3 Urbanism planning certificates
According to the General Urban Plan the area where the land is located is considered subzone M2- mixt
area situated outside protected area with maximum G+14F buildings. For the subzone M2 is also
recommended a POT (land occupancy percentage) of 70% having the possibility of 75% covering the rest
of the plot with maximum 2 levels buildings and a CUT (land use coefficient) of maximum 3.
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3.3
Information about real-estate market
General information
The real estate market is defined as a group of persons or firms which enter in contact with the purpose of
making real estate transactions. The participans in this market change property rights over some goods, ie
money. A series of special characteristics differs the real estate market from markets of goods and
services. Each property is unique and its site is fixed. The real estate market is not an efficient one: the
number of buyers and sellers that are acting is relatively small, the real estate properties have high values
which need a large power of purchase, which makes these markets to be sensible to the income stability,
to change in the level of salaries, number of work places and also a financing level, etc. Generally, the
real-estate properties are not bought with cash and if there are no favorable conditions of financing the
transaction are endangered.
The real estate properties are durable and can be looked at as investments. Are not liquid and the sellpurchase process is long. Due to all this factors the behavior of the real-estate market can be difficult to
estimate.
Land real estate market in Romania
In the first half of 2012, the land demand was oriented to large surfaces for construction of hypermarkets
and supermarkets, plots located in areas with high visibility and accessibility in terms of public transport
and car access.
On the residential segment, the developers have looked for land plots with all the valid planning permits
while for the office sector the target was plots with easy access to public transportation and shopping
areas.
For the industrial sector the high demand has been recorded by companies which have already
manufacturing or logistics parks in Romania and want to expand these industrial parks.
Despite from the beginnings of real estate crisis in Romania the land prices have fallen in some cases
even by 90% and this year the properties with the highest depreciation proved to be again the land.
Such land has declined by about 4% compared to S2 2011 and 9% compared to S1 2011. Reported in
national currency the decline was lower by approximately 1% compared to S2 2011 and respectively 4% to
S1 2011.
An argument in favor of continuing decline of land prices, was the fact that unlike the housing market which
has been supported by the “First House” program, for the land there was no leverage to maintain the price.
Also, the margin of negotiation for land is higher than for housing.
The evolution of land prices in the 27 cities covered by this analysis are presented in the tables below:
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Land real estate market in Bucharest
Residential Market
In Bucharest the average unit price of old apartments in S1 2012 was around 968 euros / sqm, down about
1.6% approximately compared with S2 2011 and 4% approximately compared with S1 2011.
In terms of new apartments, average unit price in S1 2012 was around 1,157 euros / sqm, down about
3.8% of S2 2011 and S1 2011 approximately 5%.
In Bucharest both old and new apartments have continued to be the most expensive in the country, the
capital being only city in Romania with prices over 1000 euros per built sqm (new apartments).
Land Market
As the land market, prices fell by about 2% in S1 2012 compared to S2 2011, and 5% respectively
compared with S1 2011.
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Analysis of Brancoveanu area
In what follows is an extract from existing offers on market in the subject area:
Location
Area
(sqm)
Frontage
(m)
Description
Price
eur/sqm
300
439
Brancoveanu Luica
1,500
86
Vanzare teren intravilan, construibil amplasat in zona Brancoveanu.Suprafata
terenului este de 1500 mp, are forma trapezoidala ( aproape dreptunghiulara ) cu
laturi de 57,35 m; 56,41 m; 29,14 m; 24,21 m.Are certificat de urbanism valabil pana
in iulie 2013 cu specificatiile : P+3E, CUT max 3, POT max 70%. Dispune de
cadastru si este intabulat.
Stoian Militaru Oltenitei
1,026
26
fara constructii pe teren, rezidential; 0728.995.899, EUROTOP INVEST
Berceni
Brancoveanu
865
-
SOS.
GIURGIULUI,
CITYMALL,
STRADAL,
1,400
25
Brancoveanu Uioara
1,500
57
Brancoveanu
Reper:
Brancoveanu
Luica
1,500
50
Gradistei -Uioara
1,500
50
Lacul Vacaresti str Ionescu Florea
- Oltenitei
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4,970
147
Vanzare teren intravilan Berceni Brancoveanu, suprafata 865 mp, dubla deschidere,
imobile demolabile, toate utilitatile, strada asfaltata si linistita in cartier de case si
vile, intabulare, pretabil rezidential, sediu firma, gradinita,
Teren ideal pentru investitii, ansambluri rezidentiale, birouri, clinici s.a.m.d.
Pozitionare extrem de avantajoasa, stradal, pe soseua Giurgiului, apropiere City
Mall. Forma geometrica armonioasa, dreptunghi aproape perfect cu deschidere
dubla, 25 ml pe soseaua Giurgiului si 56ml pe o strada adiacenta.
Vanzare teren Brancoveanu.Teren,1500mp,cu toate utilitatile si certificat de
urbanism (informativ)situat in apropierea Bulevardului Brancoveanu,pretabil
constructiei de locuinte sau spatiu comercial.
P+3E rezidential
Teren intravilan de vanzare in zona Brancoveanu Luica. Terenul se intinde pe o
suprafata de 1500 mp si are o deschidere de 50ml. Regimul de inaltime este P+11 si
dispune de toate utilitatile. Se afla intr-o zona excelenta cu acces la mijloacele de
transport in comun si in apropierea centrelor comerciale ca Carrefour Grand Arena
Selgros sau Metro.
BERCENI HUEDIN CENTER teren in suprafata de 1500 mp avid dubla deschidere
de 30 /50 ml . Terenul este pretabil pentru un imobil cu dubla destinatie rezidentiala
si comerciala avind pot de 60 % cut de 2.5.
SUDULUI, OLTENITEI, IONESCU FLOREA, LACUL VACARESTI, vanzare teren
intravilan, suprafata 4.970 mp. stradal, pret 450 EUR/mp,
sudului, oltenitei, str ionescu florea 44-46, 4. 970 mp, puz probat pentru 2s+p+12e,
cut 4, pot 35%, deschidere 147 m, certificat urbanism, unic proprietar, marginea
lacului vacaresti
350
280
333
300
300
450
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OFFER
DEMAND
In Brancoveanu area the offer consists preponderant in small vacant plots of land and
plots of land occupied by old constructions destinated preponderent for residential
purposes. Taking into account the current financial crisis, the real estate blocking, the
offer of this kind of plots has been increasing lately.
Decreasing/Stagnation
SHORT
Due the financial and economic crisis the current market conditions do not correspond to
ANALYSIS
OF a real estate market which functions normally. The current conditions mean: limited
THE SPECIFIC liquidity, lack of financing, blockage of the acquisitions for most of the buyers.
MARKET
The offers for small and medium plots of land in the Brancoveanu area are situated
between 280–450 EUR/sqm depending preponderant upon the location and the
development potential (urbanism indicators).
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4 PROPERTY VALUATION
4.1 Stages performed
To estimate the values presented above we have covered the following stages:
• documentation, from a list of information required to the client – property deeds, cadastral
documentation
• field inspection and verification of compliance practice situation on the land with information
from furnished documents;
• establishing the limits and assumptions that stood at the base of the valuation report;
• selecting the type of estimated values in the present report;
• deduction and estimation of the limiting conditions specific to valued property;
• analysis of all data collected, interpretation of results from the valuation point of view;
• applying the methods of valuation considered appropriate for estimating the fair values that
characterises the property;
4.2 The METODOLOGY applied in ESTIMATING THE MARKET VALUE
The purpose of this valuation is to estimate the market value of the plot of land considered vacant of 3,006
sqm.
The estimation of the market value of the land was made taking into consideration the afferent surface of
land and its positioning, in concordance with information on market prices in neighbouring areas and/or
similar.
Taking into account the current situation of the land market, corresponding to medium plots of land, we
used sales comparison approach for estimating the market value of the land.
4.2.1
The highest and best use of the land
The concept of the highest and best use is essential in the valuation process. Through highest
and best use analysis, the valuer interprets the market forces that influence the subject property and
identifies the use upon which the final value estimate is based.
The highest and best use is the alternative of using the property selected from different possible
variants, which will be starting basis and will generate the valuation assumption necessary in applying the
valuation methods and approaches in the following chapters.
The highest and best use of the space is defined as follows:
The most probable use of a property which is physically possible, appropriately justified, legally
permissible, financially feasible, and which results in the highest value of the property being valued.
Therefore the highest and best use of the property is vacant land (which represents the best alternative
use of the property). Although the client did not put at valuer’s disposal an valid urbanism planning
certificate for the subject land it is assumed that the vacant land (valuation subject) could be developed in
compliance with General Urban Plan’s stipulations (PUG) for at G+14F building without any urbanism
restrictions.
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4.2.2 Sales comparison approach
The sales comparison approach has its basis in market analysis and uses the comparative analysis,
respectively the estimate of the value is done through a market analysis to find similar properties,
comparing these properties with the one “to be valuated”.
The major premise of the method is that the market value of a real estate property is in direct relation with
the transaction prices (offer) of comparable and competitive properties. The comparative analysis is based
on the similarities and differences in properties between the elements that influence transaction prices.
For estimating the value of the property through this method the valuer took into consideration the
information he had at his disposal.
Nr crt.
0
1
2
3
4
Subject property
Type of comparable
property titles transmitted
financing conditions
Sale conditions
market conditions
location
no restrictions
normal
normal
january 2013
Oltenitei - Brancoveanu
5
6 physical characteristics
area (sq m):
shape
3,006.10
rectangular shape with 3
openings
70
plane
all utilities
frontage/acces
topoghraphy
7 public utilities
subzone M2- mixt area situated
outside protected area outside of
A
offer
no restrictions
similar
normal
similar
Brancoveanu Luica
Comparable properties
B
C
offer
offer
no restrictions
no restrictions
similar
similar
normal
normal
similar
similar
Brancoveanu
Stoian Militaru Reper: Brancoveanu
Oltenitei
Luica
D
offer
no restrictions
similar
normal
similar
Lacul Vacaresti - str
Ionescu Florea Oltenitei
1,500
app. rectangular,
1,500
app. rectangular,
86
plane
all utilities
residential CUT=3
50
plane
all utilities
max G+11F residential
26
plane
all utilities
residential, without
urban certificate, P+12E
147
plane
all utilities
Zonal Urban Plan
2B+G+12F,
residential, CUT=4
450,000
300
450,000
300
450,414
439
2,236,500
450
protected zone with max G+14F
1,026
app. rectangular
4,970
app. rectangular
buildings # POT of 70% # CUT of
maximum 3
8
total price(EURO)
unit price / sq m (EURO)
Market data grid for paired data:
0
1
2
Identification
date of valuation
area (sq m)
SALE PRICE (EUR)
sale price (EUR/sq m) element of comparison
TYPE OF COMPARABLE
type of the comparable
property
total adjustment
PROPERTY RIGHTS
property rights transmitted
total adjustment
FINANCING RESTRICTIONS
financing restrictions
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Subject Property
Comparable A
Oltenitei Brancoveanu
Brancoveanu Luica
present
3,006
similar
1,500
450,000
Comparable B
Brancoveanu
Reper:
Brancoveanu
Luica
similar
1,500
450,000
€ 300.00
Comparable C
similar
1,026
450,414
Comparable D
Lacul Vacaresti
- str Ionescu
Florea Oltenitei
similar
4970
2,236,500
€ 300.00
€ 439.00
€ 450.00
offer
offer
offer
offer
15%
-50.00
250.00
15%
-50.00
250.00
20%
-90.00
349.00
15%
-70.00
380.00
no restrictions
no restrictions
0
€ 0.00
€ 250.00
no restrictions
0
€ 0.00
€ 250.00
no restrictions
0
€ 0.00
€ 349.00
no restrictions
0
€ 0.00
€ 380.00
normal
similar
similar
similar
similar
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3
4
5
6
a
b
c
7
8
total adjustment
SALE CONDITIONS
sale conditions
total adjustment
MARKET CONDITIONS
market conditions
total adjustment
LOCATION
location
total adjustment
PHYSICAL FEATURES
dimension
total adjustment
shape and frontage
total adjustment
topoghraphy
total adjustment
AVAILABLE PUBLIC
UTILITIES
utilities
total adjustment
HIGHEST AND BEST USE
total adjustment
adjusted price (Eur/sq n)
total neto adjustment
total gross adjustment
area (sq m)
Opinion (Eur/sq m)
Estimated value _Euro
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normal
january 2013
Oltenitei Brancoveanu
3,006
rectangular shape with
3 openings
70
plane
all utilities
subzone M2- mixt area
situated outside
protected area outside
of protected zone with
max G+14F buildings
# POT of 70% # CUT
of maximum 3
(absolute)
(%)
(absolute)
(%)
3006.10
€ 361
1,085,000
€ 0.00
€ 250.00
€ 0.00
€ 250.00
€ 0.00
€ 349.00
€ 0.00
€ 380.00
normal
normal
normal
normal
€ 0.00
€ 250.00
€ 0.00
€ 250.00
€ 0.00
€ 349.00
€ 0.00
€ 380.00
similar
0%
€ 0.00
€ 250.00
similar
0%
€ 0.00
€ 250.00
similar
0%
€ 0.00
€ 349.00
similar
0%
€ 0.00
€ 380.00
Brancoveanu Luica
45%
€ 112.50
€ 362.50
Brancoveanu
Reper:
Brancoveanu
Luica
45%
€ 112.50
€ 362.50
0%
€ 0.00
€ 349.00
Lacul Vacaresti
- str Ionescu
Florea Oltenitei
0%
€ 0.00
€ 380.00
1,500
0.0%
€ 0.00
1,500
0%
€ 0.00
app. rectangular,
86
0.0%
€ 0.00
plane
0.0%
€ 0.00
€ 362.50
app. rectangular,
50
0%
€ 0.00
plane
0%
€ 0.00
€ 362.50
all utilities
0.0%
€ 0.00
€ 363
all utilities
0.0%
€ 0.00
€ 363
residential
CUT=3
0.0%
€ 0.00
€ 362.50
€ 363
€ 112.50
45%
€ 112.50
45%
max G+11F
residential
0.0%
€ 0.00
€ 362.50
€ 363
€ 112.50
45%
€ 112.50
45%
1,026
0%
€ 0.00
app. rectangular
26
0%
€ 0.00
plane
0%
€ 0.00
€ 349.00
all utilities
0.0%
€ 0.00
€ 349
residential, without
urban certificate,
P+1-2E
5.0%
€ 17.45
€ 366.45
€ 366
€ 17.45
5%
€ 17.45
5%
4,970
0%
€ 0.00
app.
rectangular
147
0%
€ 0.00
plane
0%
€ 0.00
€ 380.00
all utilities
0.0%
€ 0.00
€ 380
Zonal Urban
Plan
2B+G+12F,
residential,
CUT=4
-5.0%
-€ 19.00
€ 361.00
€ 361
-€ 19.00
-5%
€ 19.00
5%
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Vland
3,006 eur
guests house
demolition cost for clearing the guests house
construction
140 sqm
30 eur/built sqm
demolition cost
4,000 eur
costs to sell
2.5%
27,025 eur
Comparison value (round)
1,054,000 eur
351 eur/sq m
Comparison value
Comparison value
exchange rate
valuation date
4,667,850 ron
4.4287
1-Jan-13
Explanations of the grid:
Type of comparables
The considered level of the discount is the one frequently used in our practice in this period, based on our
observations and information obtained from the ones direct involved in market transactions (brokers). The
discount is different from owner to owner, as at the base of its variation are standing the psychological
indicators hard to quantify, as the negotiation abilities of the parts involved directly in the transaction
process.
Therefore we applied corrections of 10-20% to outline the negotiation degree for the offer comparables on
the market - larger negative corrections than in the active market – the discount percent has increased
comparing to the period when the market was active, when it had values around 5% up to maximum 10%.
For the comparable C we applied the maximum percentage taking into account that it is a land plot for
sale over the last years.
Market conditions
We applied no corrections for the “market conditions” taking into account that there are updated offers.
Location
Comparable no. A and B is situated in less good area compared to the subject one and therefore we
applied corrections of +45% for them.
Comp no C is located relatively in the same perimeter and with the same position in the area and we
considered the corrections were not necessary. Comp no D is located in a relatively similar area –
residential with potential for the high buildings.
Highest and Best Use
the value of the land is directly influenced by the urbanism planning certificates or other projects that
the land have.
Practically, between two similar lands on the same specific market, the market recognises a difference
of positive value in favour of the plot that can be built at a more superior CUT. It is normal, in the
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CMBU spirit and an attached residual analysis to be this way (the larger CUT uses better the land – it
offers it a better value)
Comparing to the active market period when this coefficient was followed and paid by investors, in this
context of market the magnitude of the corrections of this nature are diminished to decreasing ( as the
implementation of new projects is limited).
Practically between C and D the difference is round 10%. Therefore we applied corrections of +5% for C
and -5% for D bringing them to the level of subject property (which is land potentially destinated to max
G+14F but without a zonal urban plan approved certifying that potential).
The corrections were not necessary, all the comparables have app. the same CUT (land use coefficient).
4.2.3 The Reconciliation of results
real estate property “plot of land considered vacant of 3,006 sqm” as it is presented at the valuation
date is:
1,054,000 EUR
4,667,850 RON
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5 ANEXES
5.1
PICTURES
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5.2
Land comparables
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5.3
Documents received from the client
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Valuation report of tangible assets Land under constructions of

Transcription

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