Real Estate & Property – Valuation and Investment Appraisal


You are acting for a client who wishes to acquire a single property as an investment.
You are required to select a suitable commercial property and produce a valuation report advising the client on the capital and rental value of the property, assessing its suitability as an investment. You should append a fully annotated investment valuation to your report showing how you arrived at your capital valuation.
The property is intended to be a real property but you are not required to carry out an inspection nor should you seek to gain access to the property or the agents, occupiers, owners etc. You will need to make any appropriate assumptions and these should be stated in the report.
You may use a property that is currently on the market for sale and in this case you should advise on the appropriateness of the current asking price.
You will be required to submit outline details of your chosen property for approval by the tutor by week 4. This is to ensure that the chosen property is suitable for the exercise. The property you select should conform to the following criteria:
•It should be commercial i.e. not domestic. A mixed property with a minority domestic proportion may be acceptable.
•The property should be capable of being sold as an investment in other words it should either have an existing tenant or be capable of being let to a tenant.
•Please avoid derelict properties or other development opportunities as it is unlikely that the investment method of valuation is appropriate in these circumstances.
•It is recommended that you choose a freehold or long leasehold property.
•Avoid complex leases or properties with large numbers of existing tenants.