Advanced Valuation II

At the end of this course, students should be able to: 1. undertake Valuation of any proprietary interest in land and buildings, plant and machinery and landed property for all purposes and advising on their respective value; 2. advise on the acquisition of land by compulsory purchase and or revocation of rights; 3. prepare claims, settlement of terms with acquiring authorities; 4. present expert evidence on value; 5. offer advice on the value of damages to the environment; and 6. undertake damage assessment valuation for compensation.

Site analysis and site valuation. Capitalization of income from freehold interests in property including DCF approach. Capitalization of income from leasehold property. Dual rate adjusted for tax. Single rate valuation of leasehold interests in property. Categories of leasehold investment and valuation approaches. Valuation of leasehold investment; variable profit rents. Calculation of premiums. Renewal and extension of lease. Cost-in-the market area analysis. Effect of planning, current economic conditions and legislation on value of property. Developmental valuation. Mineral valuations; capital, budgeting, cash flow. Residual techniques of valuation. Valuation of specialized properties including petrol filling stations, hotels. Contemporary methods of valuation: capital asset pricing model (CAPM), real value approach, natural model, modified national model. Valuation of special properties: filling stations, hotels, recreational properties like stadia, privately owned schools, hospitals, and other property equipped for business to earn profit. Issues in mineral, plant and machinery valuations. Insurance valuations. Contemporary methods of income property valuation: historical background, real value approach, equated yield approach, real value/equated yield hybrid approach, capital asset pricing model (CAPM) approach, Arbitrage valuation model, Hedonic Valuation model. Environmental valuations. Compulsory land acquisition and compensation valuation: The Land Use Act and pre-land use Act legislations, severance and injurious affection, disturbance. Agricultural and cultural artefacts valuations. The Estate Surveyor and Valuer as an expert witness. Identifications and definitions of plant, machinery, equipment and industrial buildings/premises in their categories. Survey, inspection and determination of functional and economic lives and efficiency of plant, machinery and equipment. Theories of depreciation and methods of ascertaining accrued depreciation. Various purposes for which plant machinery, equipment and industrial premises may be valued. Different methods of valuing plants, machinery and equipment