abc bldg w options commercial property valuation sample

LaxmiNarasimhaa K. A. M.B.A. FIIV Engineer & Approved Valuer

Reg. No. CAT 1/F-2635/11

36, Puttanna Road, Basavanagudi, Bangalore-560 004 Ph: 98455 35438 email: [email protected]

www.IyengaarsRealtors.com

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VALUATION REPORT

1. Purpose of Valuation : For Internal xyz Purposes

2. Date of Valuation : January 29, 20XX

3. Name of the Owner/s : Abc Private Ltd

4. Photocopies of Documents Produced for Perusal

i. Sale Deed - Dated 14th

November 2xxx

Document No.xxxx/0x/xx

ii. Owners representatives declaration and

details provided about the property

iii. Recent Tax receipts

iv. Property measurement sheet & drawings

v. Khata Certificate

5. Furnish details such as Share of each owner if

under joint ownership/Co-ownership

: Company Owned

6. Location :

a) Number

b) Street

c) Survey No.

d) City/Town

e) Commercial/Residential Area

f) CLASSIFICATION - High/Middle/Poor

g) Coming under corporation Limit, Village

Panchayat / Municipality

h) The site is bounded by

East

West

North

South

i) Shape

j) Corner / Intermediate etc.

k) Percentage of Built-up area / floor space

index

l) Lease hold/free hold (if lease hold furnish

the name of the lessor / lessee, nature of

lease duration of lease and terms.

m) Unit Value of land with detailed

justification

n) Value of land (Undivided Share)

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ABC Chambers, # 65, abc Road,

-

-

Bangalore-560 0xx

Commercial

Medium

BBMP Limits

Private Property

ABC Prayer Hall

Abc Road

Private Property

Rectangular

Intermediate

Site Area : 7,262 Sft

Built-Up Area : in n 4 floors = 14,843 Sft

Basement : 2,202 Sft

Total Built Up Area: 17,045 Sft

Free hold

Rs. 10,000/- per sq ft (prevailing market rates)

7,262Sft x Rs. 10,000/- = Rs. 7,26,20,000/-


Reg. No. CAT 1/F-2635/11



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7. TECHNICAL DETAILS OF THE BUILDING

a) Type of building

(Residential/Commercial/Industrial)

b) Type of construction

(Load Bearing/R.C.C/Steel framed

structure)

c) Year of construction

d) Number of floors including basement if

any

e) Height of each floor

f) Plinth Area floor-wise

g) Specifications of Construction in respect

of

i. Foundation

ii. Walls (load bearing/Partitions)

iii. Doors and windows

iv. Flooring/Skirting/Dadoing

v. Special Features if any

h) Roofing including weather proof course

drainage etc

i) Architectural features

j) Compound wall - Height x Length

k) Type of construction

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Commercial Complex

RCC Structure with Steel Space Frame

Aprox. 13 years old

Basement + Mezzanine + 3 upper floors

12 feet

Super Built Up Area of 17,045 Sft

RCC Column Footing

9/ 4 Hollow Blocks and Brick Masonry

Wooden Doors & Aluminum Windows

Granite and Vitrified flooring

3rd

floor cafeteria and rest rooms etc.

RCC roofing

Architect Designed

5 height all around

Good

8. ELECTRICAL INSTALLATIONS

Type of Wiring

Class of Fittings

Superior/ Ordinary/ Poor

Number of light points

Fan Points

Spare plug points

:

:

:

:

:

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Internal Concealed Wiring

Good

Superior

100

AC & Fans Provided

40

9. PLUMBING INSTALLATIONS

No. of water Closets and their type No. of wash basins

No. of Urinals

No. of Bath Tubs

Water meter/taps etc

:

:

:

:

:

Western Commodes and Washbasins

5

10

NA

Provided

10. Overhead Water tank, capacity and condition: 10,000 ltrs RCC Tank

11. Equipment and Accessory schedule with necessary details

Other item of built in furniture

Kitchen Cabinets

Telephone Conduits

Air Conditioner/Generator

Solar Water heater

:

:

:

:

:

NA

NA

NA

Provision for AC, Space for Generator

NA

12. General Narrative description Covering remaining

points if any

: NA


Reg. No. CAT 1/F-2635/11



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13. CONDITIONS EXTERIOR

(Excellent/Good/Normal/ Poor)

CONDITIONS INTERIOR

(Excellent/Good/Normal/ Poor)

:

:

Good

Good

14. Are repairs and/or reconditions necessary (if so

what are they? What is the Probable Cost)

: No

15. Value of Land : Rs. 7,26,20,000/-

15A. Value of the Building before depreciation : 2,67,25,800.00

16. Depreciation rate allowed : 1.5% x 13 years = i.e., Rs. 52,11,531.00

17. Value of the main buildings - Depreciation : 2,67,25,800.00 52,11,531.00

Rs. 2,15,14,269.00

18. Value of other structures like portico, garages,

Servant Quarters, compound walls gates, wells

drive ways, culverts, external Service connections

etc.

: NA

19. Total Value of Property : Rs. 7,26,20,000 + 2,15,14,269.00

Rs. 9,41,34,269.00

20 Development of surrounding area Well Developed Commercial Hub in close proximity

to xyz Railway Station and other major commercial

areas. It is tenanted by abc Motors and partly

owner occupied in a prime commercial locality.

The property is at a distance of about x kms from

Vidhana Soudha and about y Kms from M G Road.


Reg. No. CAT 1/F-2635/11



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CONCLUSION As a result of the property survey and valuation of the Commercial property in the name of

Abc Private Ltd, located at ABC Chambers, # XX, abc Road,

Bangalore-560 0xx and subsequent appraisal and analysis, it is my considered opinion that the

Fair and Reasonable Market Value of the property mentioned above as on January 29, 2012 is

Rs. 9,41,34,269.00 (Rupees Nine Crore Forty One Lakh Thirty Four Thousand Two Hundred

Sixty Nine and Paise Nil Only)

VALUATION CERTIFICATE The property is an intermediate property and has water, sanitary, electrical connection and tar

road. It is a Landmark building and is very well known in the area. It is close to State Bank of

Mysores Headquarters as well as the regional offices of many other well known PSU Banks.

The property is in close proximity to the Central Business Areas of Bangalore. This

property has good market potential and its fair value can be assessed at Rs. 9,41,34,269.00

(Rupees Nine Crore Forty One Lakh Thirty Four Thousand Two Hundred Sixty Nine and Paise

Nil Only) Dated : January 30th, 2012 Place : Bangalore

LaxmiNarasimhaa K. A. M.B.A. FIIV Approved Property Valuer

Reg. No. CAT 1/F-2635/11

Engineer & Approved Valuer

DECLARATION I, hereby declare that

(a) The information furnished above is true and correct to the best of my Knowledge and belief; (b) I have no direct or indirect interest in the property valued; I/We have only perused the

photocopies of the above documents and a lawyer should check the authenticity of the documents.

(c) I and or my assistants have personally inspected the property on January 4th, 2012 and on subsequent dates.

(d) Value varies with purpose & this report should be used only for the purpose mentioned. (e) Our fee/s for analysis and preparation of this report are not contingent upon any conclusions

being reached and/or results being achieved. These fees do not include expert witness testimony or deposition fees for presenting or supporting the conclusions reached in this report.

(f) I/we are not required to give testimony in court, or be in attendance during any hearings or depositions, with reference to the property being valued, unless previous arrangements have been made.

Dated : January 30th, 2012 Place : Bangalore


Reg. No. CAT 1/F-2635/11



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We have provided the best ideas and suggestions for maximizing returns on the property-for Abc Private Ltd, located at ABC Chambers, # XX, ABC Road, Bangalore-560 0XX below: 1. Keep rental properties in great condition so that they are attractive to potential

tenants 2. Ensure that everything works correctly including Elevators, smoke detectors, lighting,

emergency exits, fire safety systems etc 3. Find tenants through referrals or advertisements and keeps vacancies low 4. Hire a good property manager who will help find high quality tenants and will also

manage your properties efficiently

Additional options which should be explored include:

1. Business Center-with conference facilities etc, short and long term availability

2. Short Term Lease vs Rent to increase and generate maximum cash flow

3. Long term rent/lease agreement with companies at competitive rates

4. In our opinion, if an investment has to be sold, it is not worth the investment.

5. Mobile Tower option on top floor if not present already to generate cash flow.

6. Possibility of building more floors can be explored as per new CDP

7. Possibility of building more floors can be explored by buying TDRs

8. Consider any renovations which will maximize your return.

9. Asset Optimization program to protect and enhance the physical asset value of commercial real estate should be explored and considered

seriously.

10. Space Optimization to be considered for Operational Efficiency and

for Facilities Management. Space optimization is a process for identifying properties that can be vacated by moving the operations

and assets within those properties to other properties that have suitable excess space. This will help meet your goal of achieving

lease expense savings or ownership expense and increase revenue in Tens of Lakhs of Rupees/year. Normally, the objective is to minimize

lease/ownership expense by combining facilities. This can be accomplished by moving the operations and contents out of some

facilities and then vacating them. As a result owned facilities can be sold or leased to another tenant, resulting in increased cash flow for the owner/company.


Reg. No. CAT 1/F-2635/11



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11. A proper Vastu Check is recommended and should be done for the whole property and the building and suitable corrections carried out

to avoid future calamity.

12. Building may be suitable for other purposes also like Serviced apartments, High end lodging and so on.

Advantages and Disadvantages of the ABC property

# Notes & Remarks Advantage Disadvantage

1 Located close to ABC

Railway Station

Locational

advantage, good for high end lodges

Due to this one side of

the road/pavement is not a

commercial/shopping area leading to lower rents due to less foot falls.

2 Commercial XZY showroom in GF

Gives a very good brand value and is

a land mark

building

None, if the rent realized is in line with

market reality

3 All other floors are

occupied by ABC Group companies

Gives a corporate

address for all group companies

Shared accommodation

in 1 or 2 floors during lean seasons should be

considered with a long term perspective, this

can be changed again depending on future

growth projections

4 Individual occupants/group

companies to justify or put up monthly rents to

a central pool account

It will be crystal clear to the

directors of the company

Creates unnecessary pressure on individual

company members but will be good in the long

term

5 Petrol pump in NE

corner

As this leads to

open NE and also

less weight in that side, this is very good for the property

To check whether the

NE of the pump has

the under ground petrol storage tank