Arbitrage Real Estate was instructed to assess the valuation of a 5,500m2 portfolio comprised of 2 office units located in the areas of Palaio Faliro and Piraeus. The adopted values had been the Market and the Fair Value , scoping respectively to refinancing negotiations and year-end IFRS reporting purposes. The first office unit is being owned and occupied by a major domestic insurance company, while the second one is being used as a head office by a major domestic bank business unit.
Arbitrage's valuation team carried out the onsite inspections, assessing compliance levels with the relevant planning regulation, as well as the quality level for the facilities maintenance. In addition, there has been covered a thorough market research, deriving to a qualitative and quantitative analysis of trustworthy comparable evidence. Main challenge of the valuation process had been the solid illustration of the cap rate used for these income generating properties, given a rather illiquid real estate market with poor office transaction levels during the last 12 months. The valuations had been performed with the combined use of the Comparative Method and the Income Approach, according to RICS Professional Valuation Standards, as complied with the International Valuation Standards.
