Arbitrage Real Estate was instructed to assess the Fair Value of mixed used portfolio of total surface 38,000m². The portfolio consisted of 2 industrial complexes,1 land plot and 3 residential units. 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 portfolio’s Fair Value was determined for both 2013 and 2015.
The project instructor was a world leading plastic and building material production company, actively involved in distribution resale, compounding and recycling services for plastic and elastomeric raw materials.
The valuation team consisted of 4 chartered valuation surveyors, who were responsible for the onsite inspections and control of each property’s conformity with the relevant building and planning regulations. During inspections, there was conducted an assessment of each property’s maintenance status, as well an identification of all the established uses. The valuation team conducted an extensive market research and collected data related both to latest transactions and current asking sale prices of comparable properties, that were used as inputs our Fair Value calculations.
Having taken into consideration the specific asset classes, the maintenance status of the building components and the findings of the market research, the examined portfolio’s Fair Value had been determined with the combined use of the Comparative Method and the Income Approach.