Continued growth in the listed property sector through acquisitions and listings will place an even sharper focus on the integrity and market relativity of valuations, says Trevor King, manager of the valuation and professional services division of Old Mutual Properties.

“A key contributor to investor confidence is their understanding of listed companies’ valuation processes and related disclosure,“ says King.

“Having property valuation as a contentious issue is to be welcomed. The market has moved dramatically in the last year. Valuers need to be on their toes and to recognize that their skill and knowledge base is being rigorously tested. “

King says comprehensive valuation practice has been elevated from a grudge to an essential provider of comfort to managers and investors.

Len van Niekerk, property analyst at Andisa Securities, confirmed the importance of independent valuations.

“There is real pressure from investors to ensure that all aspects of the industry, including valuations, are conducted at the highest levels of integrity, transparency and accountability.”

Listed funds, property unit trusts and property loan stock companies, that produced inaccurate valuations or supplied data to valuers in such a manner that inhibited their ability to produce accurate results would  be brought to task. The Arnold Properties saga was a case in point.

Old Mutual Properties which annually values more than R10 billion of property for a variety of owners, including Old Mutual, has recently been appointed to independently value portfolios of listed companies.

Recent appointments include valuations for Redefine Income Fund of a portfolio of 35 buildings in Gauteng, Durban, Bloemonfein and Cape Town with a combined capital value of over R750 million , and a portfolio of 10 buildings for Growthpoint Properties managed by Investec Property Group.

Old Mutual Properties has also recently valued land for the Airports Company and the Emira Property Fund of RMB Properties, and buildings for Ambit Properties , SA Retail Properties and Mutual and Federal Insurance Company.

The division has also completed another independent valuation of Cape Town’s landmark Victoria & Alfred Waterfront. The waterfront valuation covered more than 90 income-producing buildings and 250 000m² of unutilised bulk. Appointed by the V&A Waterfront, Old Mutual Properties has also completed various independent rental determinations relating to rent reviews and lease renewals of prominent tenants in the waterfront.

King says Old Mutual Properties has built an extensive database of valuation evidence which promotes valuation confidence and credibility through effective benchmarking.

ends

ISSUED FOR Old Mutual Properties
BY  Michael Kerkhoff & Associates
INQUIRIES

Trevor King 021-530-4539
Len van Niekerk 011-374-255
Mike Kerkhoff 021-424-5280