Valuation Report of Lomalagi Resort (Fiji) Ltd

NORTHERN PROPERTY VALUATION & CONSULTANT LIMITED
NORTHERN BRANCH -27 JADURAM STREET P.O.BOX 2686 LABASA PHONE/FAX: 8812 566/9922566
WESTERN BRANCH –19 NAVITI ST. LEES BLDG P.O.BOX 4476, LAUTOKA PHONE/FAX 666 2596
CENTRAL BRANCH – 38 MARKS STREET KWONG TIY PLAZA. P.O. BOX 17575, SUVA PHONE/FAX: 3319789
Valuation Report of
Lomalagi Resort (Fiji) Ltd,
Savusavu, Fiji Islands, Fiji.
Prepare by
NORTHERN PROPERTY VALUATION & CONSULTANT LIMITED
NORTHERN BRANCH -27 JADURAM STREET P.O.BOX 2686 LABASA PHONE/FAX: 8812 566/9922566
WESTERN BRANCH –19 NAVITI ST. LEES BLDG P.O.BOX 4476, LAUTOKA PHONE/FAX 666 2596
CENTRAL BRANCH – 38 MARKS STREET KWONG TIY PLAZA. P.O. BOX 17575, SUVA PHONE/FAX: 3319789
27 Jaduram Street
G.P O Box 2686
Labasa, Fiji Islands.
voice + 679 / 8812566
facsimile + 679 / 8812566
mobile + 679 / 9922566
18th July, 2013
Mesrss Andrea Grad
As requested, we have conducted the inspections, investigations, and analyses necessary to value
the Lomalagi Resort (Fiji) Limited, located on the Island of Vanua Levu, Fiji Islands. Lomalagi is 29
kilometers from Savusavu airport which is 1 ½ hour flight from the international airport in Nadi
(on Fiji’s largest island, Viti Levu) Savusavu is a quiet little waterfront town of about 5,000 people
with shops, restaurants, post office, hardware stores, public market and commercial activities. The
road to Lomalagi from Savusavu airport is sealed for 20 kilometers, while the remaining road will
be sealed before end of this year. Work is actively ongoing to widen and extend the road paving
past the turnoff to Lomalagi, the widening has been completed. It takes less than 30 minutes to
reach the airport. Lomalagi is 3 kilometers off the main road, via Salt Lake Road.
The subject property herein is registered as Lot 2 on Deposited Plan No. 6511 Certificate of Title No.
25878 known as “ Navakavua” and containing 9 hectares and nine Thousand four hundred and
twenty nine square meters (24.56 acres). It was originally owned by John Cox and Debroah Cox. In
the year 1989, the property was bought by George Caldwell Tomlinson and Karen Klussman
Tomlinson. They sold it to Collin Grad Mckenny and Spencer Frank Ison in 1996.It was sold to its
current owner Lomalagi Resort (Fiji) Ltd in 2008. The shareholders of Lomalagi Resort (Fiji) Ltd are
Richard N, Speer and the Estate of Collin Grad Mckenny. Ms Mckenny died in May 2013, prompting
this new valuation. Ms Mckenny’s sister Andrea Grad, will be the Administrator of the Estate.
The property is preciously situated along the bottom part of Natewa Bay in Vanua Levu, Fiji’s
second largest island renowned for its spectacular natural beauty with excellent view of the Ocean
and the virgin forest. Natewa Bay is a world class scuba diving and snorkeling destination. It is
also famously home to several resident pods of friendly spinner dolphins.
The purpose of this report is to determine the subject’s current open market value on the basis that
the highest and best use as a private home and sustainable tourism development on a private
land. The valuation includes all structural development, freehold land value, potential
developments available on the sites. The intended use or function of the valuation assignment is
for Sales Purpose and to advise the owner of the current market value. This report is intended
for use only by the client, the owner of the property. Use of this report by others is not intended
by the valuer.
This valuation is considered to be a Limited valuation assignment in a Restricted
report.
This report was Limited in conformity with requirements of the International Valuation Standards.
NORTHERN PROPERTY VALUATION & CONSULTANT LIMITED
NORTHERN BRANCH -27 JADURAM STREET P.O.BOX 2686 LABASA PHONE/FAX: 8812 566/9922566
WESTERN BRANCH –19 NAVITI ST. LEES BLDG P.O.BOX 4476, LAUTOKA PHONE/FAX 666 2596
CENTRAL BRANCH – 38 MARKS STREET KWONG TIY PLAZA. P.O. BOX 17575, SUVA PHONE/FAX: 3319789
Attention is directed to the section entitled “Underlying Assumptions and Limiting Conditions” which
provides the basis for all conclusions and the final value estimates, including consideration of
environmental hazards. This valuation assignment was not made, nor was the valuation rendered
on the basis of a requested minimum valuation, specific valuation, or an amount which would result
in approval of a loan. It is for the determination of open market value on as is where basis is.
As a result of our analysis, we have formed an opinion that the open market values (as defined in
the Report),subject to the definitions, certifications, extraordinary assumptions, hypothetical
conditions, and limiting conditions set forth in the attached Report, as of Date of Value, was
US $4,452,000.00 (FOUR MILLION FOUR HUNDRED AND FIFTY TWO THOUSAND
AMERICAN DOLLARS).
The above opinions of value are linked to an exposure period of 12 months.
THIS LETTER MUST REMAIN ATTACHED TO THE REPORT, WHICH CONTAINS 28 PAGES PLUS
RELATED EXHIBITS, IN ORDER FOR THE VALUE OPINIONS SET FORTH ABOVE TO BE
CONSIDERED VALID.
Based on the enclosed data and analysis, it is our opinion that “as is” freehold value (of the
subject property as of 18th July, 2013 was:
FOUR MILLION, FOUR HUNDRED AND FIFTY TWO THOUSAND AMERICAN DOLLARS
$4,452,000.00 (USD)
N O R T H E R N P R O P E R T Y VA L U A T I O N S & CONSULTANT LIMITED
p Northern Property Valuation & Consultants Ltd, Labasa, Fiji
Islands
NORTHERN PROPERTY VALUATION & CONSULTANT LIMITED
NORTHERN BRANCH -27 JADURAM STREET P.O.BOX 2686 LABASA PHONE/FAX: 8812 566/9922566
WESTERN BRANCH –19 NAVITI ST. LEES BLDG P.O.BOX 4476, LAUTOKA PHONE/FAX 666 2596
CENTRAL BRANCH – 38 MARKS STREET KWONG TIY PLAZA. P.O. BOX 17575, SUVA PHONE/FAX: 3319789
V ALU A TIO N
C E R T IFI CATI O N
Northern Property Valuation & Consultants, certify that to the best of our knowledge
and belief:

the statements of fact contained in this valuation report are true and
correct;

the reported valuation analyses, opinions and conclusions are limited
only by the reported assumptions and limiting conditions and are our
personal, unbiased, professional analyses, opinions and conclusions;

we have no present or prospective interest in the valued 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 stipulated
result, or the occurrence of a subsequent event.

this valuation assignment was not based on a requested minimum or
maximum valuation, a specific valuation, but fair determination of
current market value

the valuation analyses, opinions and conclusions were developed and this
report has been prepared in conformance with the requirements of the
International Valuation Standards;

the subject property was personally inspected by S.K. Toronibau,
Registered Valuer, No 12 MIV (EST MGMT) FIJI .

We do not authorize the out‐of‐context quoting from or partial reprinting of
this valuation report. Further, neither all nor any part of this valuation report
shall be disseminated to the general public by the use of media for public
communication without the prior written consent of the valuer signing this
valuation report.
p Northern Property Valuation & Consultants Ltd, Labasa, Fiji
Islands
NORTHERN PROPERTY VALUATION & CONSULTANT LIMITED
NORTHERN BRANCH -27 JADURAM STREET P.O.BOX 2686 LABASA PHONE/FAX: 8812 566/9922566
WESTERN BRANCH –19 NAVITI ST. LEES BLDG P.O.BOX 4476, LAUTOKA PHONE/FAX 666 2596
CENTRAL BRANCH – 38 MARKS STREET KWONG TIY PLAZA. P.O. BOX 17575, SUVA PHONE/FAX: 3319789
T A B LE
O F
C O N T E N TS
Page
PURPOSE, USE, SCOPE & ASSUMPTIONS .............................................. ..1
Purpose........................................................................................................... 1
Purpose.....................................................................................................1
Valuation Dates .......................................................................................1
Property History .....................................................................................1
Lomalagi Resort …………………………………………………………….
Definitions................................................................................................2
Use ...............................................................................................................2
Intended Use............................................................................................2
Scope.............................................................................................................. .3
Report Type / Departures Identified ....................................................3
Scope of the Valuation............................................................................3
Assumptions & Limiting Conditions ........................................................... 4
Special Assumptions ................................................................................4
General Assumptions .............................................................................4
Limiting Conditions ...............................................................................5
PROPERTY IDENTIFICATION ..........................................................................6
About Fiji................................................................................................. ......6
Its Population ......................................................................................... ......6
Its Location ......................................................................................................6
Lomalagi Resort..................................................................................................7
Lomalagi Resort Map......................................................................................8
Soils Condition ………………………………………………………...........9
Utilities……………………………………………………………………… 9
Impovements......................................................................................................10
Lomalagi
………. ................................................................................10
Subject photos.................................................................................................11
VALUATION........................................................................................................12
Cost Approach........................................................................................12
Land Valuation.......................................................................................12
Analysis of Current Market Value…………………………………...12
Cost Estimate ...........................................................................................12
Valuation………………………………………………………………..14
ADDENDA ...........................................................................................................15
p Northern Property Valuation & Consultants Ltd, Labasa, Fiji
Islands
P U R P O S E,
U S E,
S C O PE
&
A S S U M P T I O NS
P U R P O SE
PURPOSE
The purpose of this report was to determine the open market value on the subject’s
freehold interest on the highest and best use basis.
V A L U A T I O N D ATES
The subject site was inspected by S.K. Toronibau, Registered Valuer, No 12 MIV
(EST MGMT) FIJI on 11th June, 2013, which is also the valuation date. The report
date is 11th June, 2013.
P R O P ERTY H I S T O R Y
Lomalagi Resort (Fiji) Ltd
The property is registered as CT 25878 Lot 2 on Deposited Plan No 6511
containing 9.9429ha(24.57 acres known as “Navakavua” in the district of
Savusavu, Vanua Levu Island, Fiji.
It was originally owned by John Cox and Debroah Cox. In the year 1989, the
property was bought by George Caldwell Tomlinson and Karen Klussman
Tomlinson. They sold it to Collin Grad Mckenny and Spencer Frank Ison in 1996.It
was sold to its current owner Lomalagi Resort (Fiji) Ltd in 2008. The shareholders of
Lomalagi Resort (Fiji) Ltd are Richard N, Speer and the Estate of Collin Grad
Mckenny. Ms Mckenny died in May 2013, prompting this new valuation. Ms
Mckenny’s sister Andrea Grad, will be the Administrator of the Estate.
After taking into consideration all factors appertaining to the property, we form
the opinion that the Open Market Value is the sum of USD $4,452,000.00 (FOUR
MILLION FOUR HUNDRED AND FIFTY TWO THOUSAND AMERICAN
DOLLARS) vat exclusive as follows: ‐
Freehold Land Value
Value of Structural
Improvements
Value of Other Improvements
Value of chattel’s
Current Market Value
Forced Sale Value
Restatement Estimate
USD $1,989,000.00
USD $2,463,000.00
‐
‐
USD$4,452,000.00
USD $3,000,000
USD $3,500,000
This letter is part of the whole Valuation and should not be used or read
independently of the attached Valuation Report.
D E F I N I T I ONS
Current M A R K E T V A L U E 1
‘The current amount for which a property should exchange onthe date of valuation
between a willing buyer and a willing seller in an arm’s‐ length transaction after
proper marketing wherein the parties had each acted knowledgeably, prudently,
and without compulsion.’
FREEHOLD E S TAT E2
‘Freehold (real property), a term used in real estate, meaning land held in
fee simple. Fee simple ownership represents absolute ownership of real
property.
USE
INTENDE D U SE
The intended use or function is for the client. This report is intended for use only by
the client to advise the owner the current market value. Use of this report by others
is not intended by the valuer(s)
1 International Valuations Standard 2007
2 The dictionary of real estate appraisal, 3d., Appraisal Institute: Chicago, pg 204
S C O PE
R E P O R T T YP E / D E P A R T U R E S ID E N T I F I E D
This valuation is considered to be a Limited valuation assignment in a Restricted report.
This report was Limited in conformity with requirements of the International Valuation
Standards. As a Restricted Use Report, it is intended to provide information which would
be meaningful only to the addressee or client. The Restricted Use Appraisal Report is for
client use only, and the opinions and conclusions may not be understood properly
without additional information in the valuer’s work file.
S C OPE OF T HE VAL U A T I O N
The valuation process involves the collection, verification, and analysis of specific and general
data related to the subject property. The following steps were taken in the completion of this
report.

A preliminary inspection of the property was done to determine the current market
valuation in Fiji. The subject property was identified as Certificate of Title No. 25878,
Lot 2 DP 6511 on the island of Vanua Levu, Fiji.

The subject property was inspected to determine its physical characteristics,
including condition, topography, access, utilities, etc. The property inspection was
conducted on 11th June, 2013 by S.K. Toronibau, Registered Valuer, No 12, MIV (EST
MGMT) FIJI.

The surrounding area was investigated to determine the neighborhood boundaries
and recognize competitive facilities as appropriate.

Government records were researched to determine the planning status of the subject
property and surrounding land uses.

Sale comparables were obtained through searches of public records, interviews with
property professionals and published sources of real estate data. A search was made
throughout the area for sales of freehold properties in the immediate area in the past
years.
 The data was organized and the valuation report was prepared.
A S S U M P T I O N S & L I M ITIN G C O N D I T I O N S
S P E C I AL A S S U M P T I O NS
This valuation report has been made with the following special
assumptions:
1. That freehold proprietor is not in default of any payments, rates and premiums
as it is fee simple and out of the town boundary.
2. That the property’s valued freehold rights are fully transferable to a
third party buyer.
3. Although the valuer has not completed a highest and best use analysis, the
property has been valued based the specific assumption that the highest and
best use is Private home –business and sustainable tourism.
G E N E R A L A S S U M P T I O NS
This valuation report has been made with the following general
assumptions:
1. No responsibility is assumed for legal description provided or for matters
including legal or title considerations. Title to the property is assumed to be
good and marketable unless otherwise stated.
2. The property is valued free and clear of any or all liens or
encumbrances unless otherwise stated.
3. Responsible ownership and competent property management are
assumed.
4. The information furnished by others is believed to be reliable. However,
no warranty is given for its accuracy.
5. All engineering studies are assumed to be correct. The plot plan(s) and
illustrative materials in this report are included only to help the reader
visualize the property.
6. No engineering study has been made and the valuer is not to be held
responsible for any adverse condition that may be found in these
matters.
7. It is assumed that there are no hidden or unapparent conditions of
the property, subsoil, or structures that render it more or less valuable.
responsibility is assumed for such conditions or for obtaining for
engineering studies that may be required to discover them
No
8. It is assumed that there is full compliance with all applicable
environmental regulations and laws unless the lack of compliance is
stated, described, and considered in the valuation report.
9.
It is assumed that the property conforms to all applicable planning and
use regulations and restrictions unless a non‐conformity has been
identified, described and considered in the valuation report.
10. It is assumed that all required licenses, certificates of occupancy,
consents, or other legislative or administrative authority from any
government or private entity or organization have been or can be
obtained or renewed for any use on which the value estimate contained
in this report is based.
11. It is assumed that the use of the land and improvements is confined
within the boundaries or property lines of the property described and
that there is no encroachment or trespass unless noted in the report.
12. Unless otherwise stated in this report, the existence of hazardous
materials, which may or may not be present on the property, was not
observed by the valuer. The valuer has no knowledge of the existence of
such materials on or in the property. The valuer, however, is not
qualified to detect such substances. The presence of substances such as
asbestos, urea‐formaldehyde foam insulation, and other potentially
hazardous materials may affect the value of the property. The value
estimated is predicated on the assumption that there is no such materials
on or in the property that would cause a loss in value. No responsibility
is assumed for such conditions or for any expertise or engineering
knowledge required to discover them. The intended user is urged to
retain an expert in this field, if desired.
L I M I T I NG C O N D I T I O N S
This valuation report has been made with the following general limiting
conditions:
1. Any allocation of the total valuation in this report between land and
standing logs applies only under the stated program of utilization.
The separate values allocated to the land and standing logs must not
be used in conjunction with any other valuation and are invalid if so
used.
2. Possession of this report, or a copy thereof, does not carry with it the
right of publication.
3. The valuer, by reason of this report, is not required to give further
consultation, testimony, or be attendance in court with reference to the
property in question unless arrangements have been previously made.
4. Neither all nor any part of the contents of this report (especially any
conclusions as to value, the identity of the valuer, or the firm with which
the valuer is connected) shall be disseminated to the public through
advertising, public relations, news, sales, or other media without prior
written consent and approval of the valuer.
5. We do not have the required expertise for determining the presence of / or
absence of hazardous substances; defined as all hazardous or toxic
materials, wastes, pollutants, or contaminants (including, but limited to,
asbestos, PCB, UFFI, radon, lead based paints, or other raw materials,
chemicals, or gases) used in construction, or otherwise present on the
property. We assume no responsibility for the studies or analyses which
would be required to determine the presence or absence of such
substances. We do not assume responsibility for loss as a result of the
presence of such substances.
P R O P E R TY
I D E N T I F I C A T I ON
ABOUT F I J I
The Fiji Islands is an independent nation, the most diverse and multi‐
racial in the South Pacific.
1.
ITS POPU L A T ION
Fiji is a multicultural country with 57% of population of indigenous
(Melanesian) descendant, 37% of Indian descendant, and 5% other
(Rotuman, Chinese, European, other Pacific Islanders) with the total
approximating 800,000. The smiling face of Fiji really is a tourist
paradise. English is the official language and is spoken throughout the
islands.
2.
I TS LOC A T ION
Fiji Islands
It is about 2,100 kilometers north of Auckland, N.Z. It forms part of the
Melanesian cultural area. The archipelago consists of beautiful group of
322 islands located in the hub of the south pacific, consists of an
archipelago surrounding the Koro Sea in the South Pacific Ocean,
between longitudes 175deg East and 178deg West and latitudes 15deg
and 22deg South. Fiji has a relatively good education system, especially
for a developing country.
Lomalagi Resort (Fiji) Ltd
Lomalagi Resort (Fiji) Ltd is about 30 kilometers from Savusavu Airport.
Airport
Lomalagi Resort (Fiji) Ltd is currently the only development on the bay.
The villas a spread along a hillside above the beach. There is a central
dinning pavilion, a games pavilion and a large saltwater pool. The
property has plenty of expansion
expansion opportunities, both on land with room
for many more villas and as approved subdivision plan for the sale of
individual lots and potentially over‐water
over
villas.
S O I LS C O N D I T I O N
No soil reports have been provided. It is an assumption of this report that the soil
conditions are adequate to support uses. It is also assumed that no environmental
or health hazards are present on the surface, subsurface on / or surrounding the
subject site. No hazards were apparent during the valuer’s inspection of the
property.
UTILITIES
The subject properties are all located in rural areas and thus public utilities are
virtually limited to electricity provided by Generator. Transportation is by means
of air and sea, whilst the newly tar sealed main roads on the island. Water is
connected and sewerage disposal is by on‐site septic system.
IMPROVEMENTS
Lomalagi Resort (Fiji) Ltd
Six self‐contained Villas, fully insulated and constructed of local hardwoods, spread along 400 metres of
hillside, about 50’ above the beach. Each Villa has a 24’x32’ interior (768 sq.ft.), polished Fiji pine floors,
and a 12’x32’ partially covered treated pine deck. Open floor plan with a full kitchen in an “L.”. An 8’x8’
shower room with soaking tub adjoins the vanity area.
24’x31’ Office / gift shop – includes all equipment and inventory, including computer, printer/copier/fax,
scanner, and some software.
Approximately 1,500 sq.ft. hexagonal Dining Pavilion with bar and appliances; two bathrooms; 20’
ceiling with skylights & fans. Six tables seating 4 each with indoor/outdoor acrylic chairs.
20’x32’ Games Pavilion with regulation pool table & accessories; swap library & various games; two
bathrooms; some exercise equipment.
42’x24’ kitchen / laundry (kitchen = 24’x25’) including a gas stove, 1 cooler, 1 freezer, 1 refrigerator/freezer
& all small appliances, equipment & inventory. Laundry (17’x24’) includes U.S. washer & dryer & all
linens.
100,000‐gallon salt water pool – “S” shaped – two waterfalls – about 120’ long, if stretched out. Two
pumps; sand filter. Salt water chlorinator. Water pumped from the sea (pump and pump house located
near the beach). Chaise lounges; tables with outdoor chairs; small tables for chaise lounges; freestanding
shade cover.
Fresh water system (from an artesian spring – suitable for bottling, if someone wanted to get into that
business); pumped up from the spring into a 50,000 gallon concrete storage tank, then pumping into two
2,500 gallon fiberglass tanks. Two on‐demand water pumps with UV filter.
40’x120’ concrete block workshop with separate mechanical section, joinery & storage, including all
equipment & tools (except some owner’s items in storage).
20’x20’ concrete block generator bunker with two 20KVA diesel generators, which supply all of
Lomalagi’s electricity; fuel storage area; 3,000 gallon diesel storage tank (owned by BP Oil).
Solar power may be economically viable for Lomalagi today, given the decrease in solar costs. When
Lomalagi was constructed, solar power was still prohibitively expensive. And the island’s electrical
power grid is now approaching Lomalagi – it is currently within 2 kilometers of Salt Lake Road, and
continuing to move forward. It is possible that power could be extended up Salt Lake Road if Lomalagi’s
owner would pay a portion of the cost.
Staff housing: chef’s apartment, mechanic’s quarters & dorm room with kitchen. Foreman’s quarters: 2
bedrooms, kitchen, covered veranda.
One 18’ snorkel / fishing boat with 90hp Mercury motor & trailer. Two 18’ 2‐person sea kayaks. One 1996
4x4 7‐passenger diesel Toyota Land Cruiser.
Lomalagi is a working coconut plantation. The revenue from the coconuts benefits the nearby village.
Various groups (churches, rugby teams, etc.) take turns collecting the fallen coconuts and keep the money
they earn by processing the coconut meat.
Staff: The local staff comprises of an on site manager, mechanic, laborers, maids and cooks. Most of the
staff have been working on Lomalagi Resort ever since it was opened in 1997.
S U B J E CT P H O T O S
VALUATION
COST APPROACH
The Cost Approach is based on the ʺPrinciple of Substitutionʺ which states that no
rational person would pay more for a property than the amount for which he can
obtain, by purchase of a site and construction of improvements, without undue
delay, a property of equal desirability and utility. In the cost approach, the site
value as if vacant, the cost new of the improvements, and the depreciation are
typically estimated. Depreciation is deducted from the cost new to arrive at a
depreciated improvement value, to which the land value is added for a final value
estimate.
L A N D V A L U A T I ON
The subject is an extremely unique property in Fiji – first due its location along
the coastal Natewa Bay and site development of villas on the ridge top with
ocean view blessed by south easterly tropical winds all year round. As previously
noted, the property is being valued on the assumption that the highest and best
use is for Private home and Tourism.
To estimate the value, we have looked to recent land sales over similar type of
land and development in the vicinity.
We have identified some current sales as follows
1) Koro Sun - CT 29639 Same subdivision
‐ Lot 1 DP 7566
Area
- 2035 m²
Purchaser
- Anthony Lawrence Hunt
Vendor - Jeffery James Kank
Price
- US $276,000.00
Sale Date
- 20th October, 2011
Comment
- In 2002 it was listed for US $852,000.00.
In 2010 it was reduced to US $495,000.00, on 20th
October 2011 was finally sold at US $276,000.00
2) Vacant freehold block at Oneva in good locality with .4000ha area sold on
1st October 2011 at US $80,000.00.
3) Two freehold titles CT 31143 and CT 31160 at Oneva both .4ha each were
recently sold at US $200,000.00.
4) Lot 8 DP 9322 at Koro Sun a bigger area of .3751 Ha large double storey
house with swimming pool were still on sale at US $900,000.00.
We noted, that the subject property were bought vacant in 2005 at US
$125,000 and development of all improvements according to the approved
plan herein were estimated at around US$700,000 in 2006. Total US$
825,000.00.
Currently the market of freehold in Vanua Levu is affected by the
present economic climate and political situation. New decree for
capital gain tax on sales of property have impacted on the property
sales.
From the above sales analysis in US Dollars, we noted that vacant freehold blocks were sold
between US $160,000 to US$200,000 per ha .We adopted US$200,000 per ha
i.e 9.9429 x US 200,000 = $1,988,580 or say US $1,989,000.
As for all improvements we assessed at USD 2,463,000.00 Total $4,452,000.00.
Sales in Fiji Dollars of some comparable property in the area.
NO
1
2
3
Address/Locality
SAVUSAVU
BAY
Description
BUCA
Oneva/Savusavu
Oneva /Savusavu
Oneva/Savusavu
4
5
Matanikavika
Koro Sun
6
Oneva
CT 25954 LOT 12 DP 6302
AREA - .418 HA
ZONING – RES/SUBSISTENCE
PURCHASER
–
GEORGE
KENNETH REID & ROBIN GAI
REID
VENDOR – PHILIP JOHN EWEN
CT 31139 Lot 7 DP 7339
Area - .4487 Ha
Zoning – Res
Purchaser – Ronald Leslie
Lander you & Ana Lander you
Vendor – Prosperity Safe
Investment Ltd
CT 31137 Lot 5 DP 7339
Area - .4323 HA
Zoning – Res
Purchaser – Sara Harper
Polinskey
Vendor – Michael Jones & Sian
Eluined Jones
CT 25950 Lot 8 DP 6302
Area - .4
Purchaser-Lara Batles &
Marcus Hiugh Curry
Vendor- Dallas Keishi Watanabe
CT 29659 Lot 7 DP 7567
Area - .3782 Ha
Zoning – Res
Purchaser – Moon Bean
Investment Limited
Vendor – Koro Sun Limited
CT 31161 Lot 13 DP 7339
Area - .4001 Ha
Zoning – Res
Purchaser – Markus Albert
Resibtrin
Vendor – Leslie Wallace Gordon
Sale Price/Date
Remark
$674,567.00
Land & Building
18TH JAN, 2013
FJD$ 657,414.17
17th June, 2011
Land area is big and
located near coastal main
road
FJD$249,870.64
Vacant land
08th July, 2010
FJD$ 297,821.30
Vacant land
14th April, 2010
FJD $241,158.00
Vacant land
08th March, 2007
FJD$429,526.00
Big land area and located
near main coastal road
13th September, 2007
In the sales analysis we noted three vacant freehold sales at Oneva and Koro ( Matanikavika) they are
2,831 vacant land sales were between FJD to US per acres. In this case if we adopted FJD 152,740 per
acre ( i.e 24.57 acres x 152,740 = $3752,831. We assessed all improvements at $4,647,169.
Total FJD $380,000 or $8,400,000.00 or USD $4,452,000.00
Some Sales of freehold property within the same district are as follows:
1.
CT 2594 - Lot 12 DP 6302 – 4180 m² - Oneva stage I sold by Pete Sammons and Andrea McPeake of NZ at
USD $350,000.00.
2.
3.
CT 31137 – Lot 8 DP 6302 – 4556 m² - Oneva sold by Dallas (2010) at USD $134,100.
CT 31137 – Lot 5 DP 7339 – 4323 m² - Oneva Stage II sold by Mike Jones of Wales UK in 2010 at USD
$139,000.00
4.
CT 31139 Lot 7 DP 7339 – 4487 m² - Oneva Stage II sold by Dr. Mike Pickavance and family in 2011 at USD
$550,000.00.
5.
CT 31141 Lot 9 DP 7339 5305 m² - Oneva Stage II sold by sold by Bruce and Yoshiko Struthers of Boulder,
Colorado, USA in 2011 for USD $175,000.
Koro Sun(Matanikavika) where the subject herein is located on the hill up to 60 meter above sea level with
good view over the ocean and outlying reefs. The freehold owner have to pay quarterly levy for water,
electricity, road maintenance etc at FJD $1,530.00.
At Oneva there is no such levy and much better established Subdivision with minimum area of .4047 ha which
is a bigger area than Koro Sun.
Some Sales at Oneva:
1.
Stage 1 – Lot 12 DP 6302 (4180 square meters) CT 2594 directly opposite the beach (sold by Pete
Sammons and Andrea McPeake of NZ).
Modern style 2-bedroom, 2 bathroom concrete dwelling, tiled throughout, walk in wardrobe, in built
safe, a/c throughout, sold fully furnished and turn key with all white goods including large
automatic washing machine, clothes dryer, freezers, big 2-door refrigerator, 2 dishwashers, large
electric oven with range hood, imported custom built kitchen, large flat screen, TV and
entertainment system etc, separate garage and workshop. Concrete in ground swimming pool with
tiled surroundings, fully landscaped and terraced properly. Sold in September 2008 for USD
$350,000.
Stage 1 – Lot 8 DP 6302 (4556 square meters) CT 25950, directly opposite the beach (sold by
Dallas)Older style 3-bedroom, 1 bathroom timber house with outside deck on broad elevated site
with great sea views, separate caretakers cottage down below, separate guest cottage cum
workshop area. Fully landscaped and well maintained property. Sold in March 2010 for USD
$134,100.
Stage 2 – Lot 5 DP 7339 (4323 square meters) CT 31137 on elevated lot at head of cul-de sac,
with great views of Blue Lagoon and Koro Sea (sold by Mike Jones of Wales, UK)
Modern style 1-bedroom, 1 bathroom self contained timber with wide outside deck on 2 sides, sold
fully furnished and turn key, with washing machine, refrigerator, oven, outside and inside furniture,
built in cupboards etc. Also additional building platform on this lot with on driveway. Fully
landscaped and well maintained property. Sold in July 2010 for USD $139,000
Stage 2 - Lot 7 DP 7339 (4487 square meters) CT 31139 at head of cul-de-sac, with great views of
Blue Lagoon and Koro Sea. (sold by Prosperity Safe Investments Trust as for Dr Mike Pickavance
and family of Bendigo, Victoria, Australia)
Newly built large elevated 3‐bedroom, 2 bathroom concrete house with tiled concrete deck, and
separate self contained caretakers cottage, sold fully furnished and turn key, complete with quality
new furniture and white goods throughout. Garden fully landscaped and well maintained. Sold in
February 2011 for AUD $360,000
2.
3.
4.
5.
Stage 2 – Lot 9 DP 7339 (5305 square meters) CT 31141 in very private setting on large elevated lot
with excellent panoramic views of Koro Sea. (sold by Bruce and Yoshiko Struthers of Boulder,
Colorado, USA).
Modern style timber home built by Webster Construction, with large wide timber deck on three
sides. Polished and varnished natural timber floors, doors and windows, modern kitchen with high
quality cabinetry and all appliances and white goods, open plan sitting room and dinning area,
sleeping area downstairs and additional sleeping in open loft upstairs, separate bathroom and
toilet, laundry and built in linen cupboards; sold fully furnished and turn key including all garden
implements . Sold in April 2011 for USD$175,000.00.
Some Sales in Viti Levu & outlying islands.
Our valuation of the freehold interest in the land is based on the Market Approach whereby an
analysis of comparable sales evidence was carried out to deduce a rate applicable to the subject
property. Where appropriate, adjustments have been made to reflect comparability in land tenure,
location, time, size, aspect and the extent and value of improvements that have been included in
the sales. Previous sales in the subject and adjacent areas constituted the bulk of evidence
considered.
We note the sale of following hotel and resort sale around Fiji.
•
•
•
•
Pacific Safari Club
A 10 room motel with owners house and swimming pool was sold for $1,678,000 in November
2006. The site is situated in Section A of Pacific Harbour fronting onto River Drive and Atoll Place.
It has direct frontage to the Qaraniqio River and being around 100 meters from the ocean. The
surrounding of this site had commercial shops and service station, with the Pearl Hotel and Fiji
Palms on the opposite side of the road. The sale shows a rate of $152,545.45/unit, including the
owners house.
Ocean Pacific Resort
Sold for $2,300,000 in may 2005. This resort consisted of 4 duplex villas, and 1 self contained
residential unit together with central facilities, swimming pool, and staff houses on a total of 37
acres of freehold shore front site, around 3.5km from the Queen highway in Wainadoi, Navua.
Out of 37 acres, around 6 acres was the resort site while the remaining sites were residential lots,
subdivision with 11 separate titles. (Shows $255,555/unit, but account has to be taken of the
residential lots as well which has resulted in the high rate. We have assessed the market value of
the 8 rooms at $1,200,000 which indicates a per unit rate of $150,000).
Toberua Island Resort
A freehold Island resort containing 14 bures sold for $2 million in August, 2001. (Shows
$142,857.15/bure).
Lagoon Resort formerly Korean Village
The resort comprises 25 up market units including a three room penthouse on 7089 square
meters of freehold land in Pacific Harbour. The Resort sold for$3.5 million in 1999, but due to its
make and structure, the resort more looks like a Hotel with no beach for the next 2 kilometers. It
has water frontage, though, but not in usable manner (shows $134,615.39/unit).
•
Tabua Sands Resort
This is a 32 unit most of them duplex units on the Coral coast which was sold in 1998 for $1.1
million. (shows $34,375/unit).
The sales of Hotels and Resorts in Fiji range from $34,000 to $417,00 with an average of
$159,500 per room. The diverse range reflects the range of quality and services provided by
these facilities. Five of the local sales are nit genuine sales as they were under control of the
mortgagor or receiver. On the other hand, most of the sales are older.
•
•
Nadi Mocambo Hotel
Most recent sales in Nadi Mocambo Hotel is contained in a large native lease site (17.34 hectares)
situated on an elevated position and has a total of 128 rooms. Mocambo was reportedly sold for
FJ$14,000,000, which equates to $109,375 per room. However, to assume the value of excess /
surplus land at $3,000,000, gives an equated room rate of $85,940/room. Mocambo Hotel is far
superior than Motel 6 in terms of quality of accommodation and presentation.
Wailoaloa Beach Resort
A more comparable sale is that of Wailoaloa Beach Resort situated at Wailoaloa Beach Nadi. This
is a 20 room budget type accommodation on a 1.21 hectare freehold site and was sold for
$1,900,000 in early 2006. The sale equated to $95,000 per room.
For this approach the resort sales were considered and compared to other Island
resorts, which typically have higher sales rate.
For coastal resort, with less than 30 rooms, the following sales are noted:
• Seashell Cove
Seashell Cove for $3.2 million in June 2005. Seashell Cove has 8 family rooms, 7 duplex units, 3
suites and 16 lodges. Based on normal rooms the sale reflect a rate of $128,000 per room,
however, with the lodges a sales rate of $78,000 per room.
• Crusoe’s Retreat
Crusoe’s Retreat for $4.5 million in late 2005 and Wananvu Beach resort for $2,250,000 in July
2004. Crusoe’s retreat has 29 units and a sale of $155,172 pr room was archived in the sale.
• Wananavu Beach Resort
Wananavu Beach Resort has a sale rate of $150,000 per bure, is situated on the drier side of Viti
Levu and has better accommodation and mostly a scuba diving destination.
We must emphasize that the subject property has a board range of accommodation types and
difficult to peg a uniform sales rate. We have thus varied the sales rate.
MARKET COMMENTARY
The above sales are in Viti Levu and outlying islands in the Yasawas and Mamanuca groups.
The subject herein is unique in its locality and surrounding environment being on the isthmus section of
Vanua Levu along Natewa Bay Coastal frontage and about 500 meters to the popular and historic SaltLake of Vatudamu which opens up to Koro Sea.
The whole area of 9.1420 ha or 24.56 acres have already been approved for a proposed subdivision of
twenty two blocks (22) with area of 1,000 to 2,000 square meters. The balance area remains with the
Lomalagi Resort. Hypothetical sales based on sales analysis are as follows:
6 Bure x $300,000 x 6
16 Vacant land @ $100,000
=
=
$1,800,000.00
$1,600,000.00
$3,400,000.00
Balance area
-
$1,000,000.00
USD$4,400,000.00
ANALYSIS OF CURRENT MARKET VALUE
In assessing the current market value, we looked at the recent sales of comparable
properties in the same district along Buca Bay coastal road known as Hibiscus Highway.
The area covers Oneva and Koro Sun and subject herein where the current market as
indicated by the above sales.
Our analysis of vacant freehold properties sold were between USD$160,000 to
USD$200,000 ha. In this case $200,000 x 9.9429 ha= $1,988,580.00 or say $1,989,000.00.
As for all improvements we assessed at USD $2,463,000.00. Total $4,452,000.00
COST ESTIMATE
In this approach, the replacement costs new of the subject improvements are estimated,
depreciation is subtract, and land value added to arrive at a value estimate. Replacement
costs new are the cost of construction at current prices of a functionally similar property
using the current materials, construction standards, design, layout, and quality of
workmanship. Depreciation in the forms of physical deterioration as well as functional
and external obsolescence is then addressed. This also embodies all the deficiencies,
super‐adequacies, and obsolescence of the improvements.
To estimate the cost of the major improvements on the property, we have referred to the
Rawlinson’s Australian Construction andbook,6th (2008) edition. Although it is an
Australian edition, it also has an international section that specifically includes Fiji. To
adjust for time, we have increased the 2008 (Jan) cost by approximately 25% ‐ both for
typical inflation and some cost increases associated with the recent currency devaluation
which caused increases in imported building materials.
Thus giving further contributory value to those items but also considering the imprecise
nature of the property market for the subject property, we estimate the improvements have
a contributory value of USD$2,463,000.00.
VALUATION
Adding the contributory value of the improvements (US$2,463,000.00) to the
previously estimated land value of US$1,989,000.00, calculates an indicated
total open market value of the subject property at US$4,452,000.00 as shown
below.
CURRENT
Estimated Value
(FJD)
Estimated
Value (USD) $
$3,752,831.00
$4,647,169.00
$1,989,000.00
Estimated Land Current Value
Estimated Contributory Value of Improvements
$2,463,000.00
Estimated Final Value
$ 8,400,000.00
$4,452,000.00
The range above reflects what a willing buyer and willing seller would
complete a transaction at typical marketing time. As noted above, due to
the uniqueness of the subject and the extremely small market of true
willing buyers, along with current market conditions, the marketing time
to achieve the market value is estimated to be up to five years.
A D D E N DA
PROPOSED SUBDIVISION