Arbitrage Real Estate was instructed to assess the valuation of a 9,700m² portfolio of 7 office units, 1 commercial warehouse, 2 residential apartments, 2 retail stores, 3 storages and 3 parking facilities, located in the areas of Glyfada, Palaio Faliro, Piraeus, Markopoulo, Syngrou Avenue and Thessaloniki. The adopted value had been the Fair Value, scoping to refinancing negotiations and year-end IFRS reporting purposes respectively.
The portfolio owner is a major domestic insurance company. One of the office units is used as head office, while two parking facilities, one office unit and one retail store are currently vacant. The rest of the properties are leased to various tenants.
Arbitrage's valuation team carried out onsite inspections, assessed compliance levels with the relevant planning regulation and the quality level of the facilities maintenance. In addition, our team conducted a thorough market research and a qualitative and quantitative analysis of trustworthy comparable evidence. Main challenge of the valuation process was the solid illustration of cap rates used for the commercial properties, given a rather illiquid real estate market with poor commercial (lease and sale) transaction levels during the last 12 months. The valuations were 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.
