Arbitrage Real Estate was instructed to assess the Fair Value of mixed used portfolio of total surface c.9,600m². The portfolio consisted of 2 office buildings, with ground floor retail spaces,1 land plot and 1 detached house. Since the purpose of the valuation was for year-end accounts, under the context of International Financial Reporting Standards (IFRS), the adopted basis of value was the Fair Value as defined by the International Accounting Standards Board (IASB).
The instruction for the project was received by a leading Greek dealership in the supply of automotive parts and luxury cars.
Arbitrage valuation team was responsible for the onsite inspections of the properties and the assessment of their maintenance status and their compliance with the relevant planning regulations. Following the onsite inspections, the valuation surveyors conducted a thorough market research in order to collect reliable data that were used as inputs in the valuation models. According to the market research findings, there was a significant lack of sale transactions of completed properties. Hence, the valuation analysis had been based on asking sale prices and rents which were adjusted accordingly in order to reflect the specifics of each property. The most challenging issue faced by our surveyors, was the determination of the capitalization rate used in valuation calculations considering the scarcity of relevant market derived data. The valuations had been performed with the combined use of the Comparative Method and the Income Approach, according to RICS Professional Valuation Standards, in compliance with the International Valuation Standards.
