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Executive Summary Here provide a brief summary of your report. It should also present findings. Introduction Here you provide a rationale of why you are preparing this report and other background information you consider important. This report is being prepared for Manville Hurst who is interested in the value of Ceaseless Place. He has specified that two valuation methods be used to find out which has the more accurate valuation. Ceaseless Place is located in Melbourne CB on the corner of Lemonade Street and Spring Street.
There are 40 levels above ground as well as another three below ground. Valuation Details Here insert specific details of the client, the purpose of the report, date of valuation, date of inspection, interest held, interest being valued and registered proprietors. This report is being prepared for Manville Hurst as part of the second assignment in AMP Property Investment. The purpose of this report is to produce a commercial property market valuation report with use of two different valuation methods for the one building. Firstly it will be valued using the capitalization methodology and then allowed by the discounted cash flow valuation.
The building was inspected on 17th of May 2012 and valued as at 17th of May 2012. There is no interest held in the building by the creators of the report other than producing accurate information that can assist and detail on the value of Ceaseless Place. Property overview It was constructed in 1992 with 40 floors entirely for office use and three levels below ground. At the beginning the building was meant to have a spire on the top, however plans fell through. Without the spire the building still stands at mm high (Walking Melbourne 2012).
At the base there is a large podium that the building sits upon to be in line with planning policies in the sass’s. The architecture was done by Hassle Pity Ltd and constructed by the Australian Construction Services (Emperors 2012). Financial Details Here include specific (summarized) financial detail of the subject property Net Lease I $23џ10,oho I Gross Lease | | current Rent I $425/t-no or $365-$465/t-no Net Income I $24џ44,570 1 Major Issues Here include anything the client needs to be aware that impact on their decision. You may wish refer to your assignment 1 for information.
The global economy may not be n the up as much as everybody thought it was as the Rezone is still causing problems, the Australian dollar has been affected in recent weeks but staying around parity with the United States. Melbourne property market is fighting through all of it, in the office sector sales were down in 2011 compared with 2010 but both saw a larger volume of cash spent on the sales. International investors are very keen to get a piece of the steady growth that Melbourne market has had and is predicted to continue in the coming months and year.
Basis of valuation Here the definition of the interest you are valuing (if market value then VISA function) and the standards you are following. “Market valuation is the estimated amount for which an asset should exchange on the date of the valuation between a willing buyer and a willing seller in an arm’s length transaction wherein the parties had each acted knowledgeably, prudently and without compulsion” (VISA). “This valuation may only be relied upon by the party to whom it is addressed and no liability to any third party will be accepted for the whole or any part of the contents”.
Assumptions and Risk Profile Here you briefly detail all assumptions you have made in producing the report and he potential impact of risk that may affect the client and property. For example consider market risk and how the property may be affected by market downturn. Other risks such as Asset, scofflaws, economic and management should also be considered. Tim Valuation Summary and Valuation Here you should include summarized details of yields etc. And your opinion of value Applying the cap rate valuation methodology the market value for the subject building is $226,054,000 while the DC method showed a value of $229,000,000.
We have considered comparable sales of 1 Spring Street, 15 William Street and 303 Collins Street. These are all A Grade buildings like Ceaseless Place. Assumptions have had to be made as these buildings are not quite as large as Ceaseless Place but are of the same era especially 1 Spring Street. The yield for 1 Spring Street is only 7. 77% where compared to the DC valuation the target yield is 10%. Ceaseless Place has a lower rate per mm of ANAL of $3,864 that is lower than 1 Spring Street that has an ANAL of $4,231 ran.
Title and legal details Here include relevant legal information including planning Lot/Plan or Crown Description: I Lot 1 PS446765 1 Planning Lone: capital y Lone – scandals I Schedule to the Capital City Zone – Schedule 1 Planning Overlays: I Design and Development Overlay (DO)I I Design and Development Overlay – Schedule (Area 2)(DODD-AH) I I Heritage Overlay (HO) I I Heritage Overlay Schedule (HA) I Location Here include all details necessary to fully describe the location property. Ceaseless Place is located on 2 Lemonade Street, Melbourne 3000.
It is also on the corner of Spring Street, which meaner it is right in the middle of the Central Business District. Across the road is Parliament Gardens and further down is State Parliament House. There is easy access for cars via Victoria Street or for commuters by train Parliament Station is Just a short down Spring Street. Site Particulars Here describe the site and surrounding particulars The building has a large undercover outdoor area prior to the doors at the entrance. The doors face south, straight to the corner of Lemonade and Spring Street. There is parking out the front of the building in the middle of Lemonade Street.
The first eight levels form a large podium that the remaining 31 levels sit upon. Floor to floor height in Ceaseless Place is 3. Mm. Improvements Here provide a description of all improvements. The outside of the building is made features curtain walled surfaces and solid stone- like concrete with window motifs. Ceaseless Place is an A Grade building in great condition considering it was built 20 years ago. There are 43 levels, which include three below the ground, with the first eight levels being a large size before the remaining 32 levels create the upper tower. There is 61 ,mommy of office space to be leased.
Ranges of different companies currently occupy the building from Dwyer ; Co Solicitors to CUBS Trustee Office even Education Services Australia. Utilities: 0 Rural Water Business: Southern Rural Water Metro Water Business: City West Water Melbourne Water: inside drainage boundary power Distributor: CITROEN 2012) Tenancy details Here describe tenancy information. Cubs Trustee Office Level 28 Dwyer ; Co Solicitors Level 20 United Group Services Level 30 Education Services Australia Level 5 Royal Humane collect AT Australia Level Market commentary Here describe a brief overview of the current market conditions.
This will be a brief extract/summary from your assignment 1 The office market in the CB of Melbourne as a little slow with no new buildings completed in the latter half of 2011 (Mortar, 2012, p. 1). This will change with seven buildings, which also includes a couple refurbishments, are due for completion in 2012, adding 135,381 mm of office space, of which 70% is already pre-committed. It’s also expected that a number of projects will be completed throughout 2013 adding an additional 134,mommy where 80% of the new space is pre-committed.