Modern Methods of Valuation

Shapiro, Eric; Davies, Keith; Mackmin, David

doi:10.4324/9780080937564

Cited by 39 publications

(45 citation statements)

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“…Alias and Daud [46] indicate the goal of compensation as an attempt to reinstate the affected person to his/her former station prior to the acquisition if not better. Financial compensation is the payment of the monetary equivalent of the property lost, as well as the other associated losses, to the affected persons [47]. Financial compensation and resettlement is combined in some cases as the form of compensation [9].…”

Section: Resettlement From Compulsory Land Acquisitionmentioning

confidence: 99%

In the Land of the Dammed: Assessing Governance in Resettlement of Ghana’s Bui Dam Project

Asiama

Lengoiboni

Molen

2017

Land

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Resettlement resulting from dam construction has raised several concerns due to the negative aftermath impacts. In Ghana, the construction of three hydroelectric dams resulted in large-scale resettlements. Given the little experience that Ghana has in resettlements, it is necessary for a robust monitoring structure for resettlements. However, this was not available in the last resettlement undertaken for the Bui Dam Project. This paper aims at developing an assessment framework for monitoring resettlement activities on customary lands from a good governance perspective. Based on four good governance principles, transparency, public participation and inclusiveness, equity and rule of law and accountability, a good governance assessment framework is built and applied to the Bui Dam Project using a case study approach. Data were collected through interviews and focus group discussion with the key actors of the resettlement project. It was first found that the planning stage of the resettlement came out with a robust plan that was to prevent the impoverishment of the affected persons. However, in the implementation of the resettlement, not all good governance principles were adhered to. In conclusion, it was found that by deconstructing the resettlement process with a good governance framework, the problematic areas of the resettlement can be effectively differentiated between the planning and implementation phases.

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Section: Resettlement From Compulsory Land Acquisitionmentioning

confidence: 99%

In the Land of the Dammed: Assessing Governance in Resettlement of Ghana’s Bui Dam Project

Asiama

Lengoiboni

Molen

2017

Land

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“…In one of the traditional valuation approaches (investment/income method), the YP [Single rate] and YP [Dual rate] models are often used to value freehold and leasehold interests respectively. As aptly noted by Shapiro et al (2013), in comparison to a freehold interest, a leasehold interest is a wasting asset in that it will terminate sometime in the future. Thus, the adoption of the YP [Dual Rate] model for leasehold valuation is premised on the assumption that the leasehold purchaser will set aside a sum out of profit rent, which is then invested in an annual sinking fund (ASF) to recoup the leasehold interest purchase price at the end of the term.…”

Section: Introductionmentioning

confidence: 99%

“…In the UK, however, leaseholds are traditionally valued using the YP [Dual Rate] model (Chan and Harker, 2012, p.107) and indeed, the authors' interaction with some UK real estate industry practitioners in recent times confirms the observation of Chan and Harker. As Baum et al (2011) and Mackmin (2008) aptly note, in the UK and the followers of UK practice, there has been and continues to be a battle between people wedded to the dual rate principle [see for example, Shapiro et al (2013) and Johnson et al (2000)] and those wedded to the single rate principle [see for example, Mackmin (2008) and Baum et al (2006)]. …”

Section: Introductionmentioning

confidence: 99%

“…These purposes include: (i) statutory -taxation/rating, compulsory purchase and compensation, aspects of commercial leases arising from landlord and tenant legislation, and fair rent for dwellings; and (ii) non-statutory -purchase or disposal of property, rental valuation, reinstatement cost for insurance, mortgage valuations and valuation for company accounts (Shapiro et al, 2013;Isaac and O' Leary, 2012).…”

Section: Introductionmentioning

confidence: 99%

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Relevance of the use of YP[Dual Rate] in the Valuation of Leasehold Interests in Contemporary English Practice

T¹,

Owusu‐Ansah²,

Subroweit³

et al. 2013

Proceedings of the 20th Annual European Real Estate Society Conference - Vienna, Austria

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The purpose of this paper is to: (i) empirically investigate the extent to which the use of the YP [Dual rate] model for leasehold valuation actually reflects market agents' behaviour in England; and (ii) systematically examine its impact on leasehold valuations. The qualitative research methodology was adopted where interviews were conducted face-to-face and via phone with 105 purchasers of leasehold interests in Cressington Heath neighbourhood of Liverpool in 2012. QSR NVIVO 10 was used to code the data for analysis. It has been established that purchasers of leasehold interests do not make provision for an ASF in practice. Indeed, the method adopted is the direct opposite of what the model positspurchasers use debt capital to procure property after which they commence amortising the loan periodically. There are also other approaches that can be used to make provision for a future expense and it is surprising the focus is on only the ASF method. Using the model to value, particularly, short leases leads to significant undervaluation, especially, when taxation is introduced. For very long leases, however, it does not actually matter whether it is YP [Perpetuity] , YP [Single rate] , YP [Dual rate] or YP [Dual rate adjusted for tax] that is used as the resultant valuation will be the same.

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“…whether the building can be transformed from a single-to a multi-tenant building. In real estate investment analysis, which is mainly done with discounted cash flow (DCF) valuation method (KTI & IPD, 2012;Shapiro, Mackmin, & Sams, 2013), these factors are used as input parameters for predicting cash flows into the future. These cash flows are then discounted to the present value using an appropriate discount rate.…”

Section: Introductionmentioning

confidence: 99%

Theory of valuing building life-cycle investments

Vimpari

Junnila

2015

Building Research & Information

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The physical adaptability of buildings is very important in today's fast-changing business environment. The actors who invest in long-term adaptability are positioned better to the changes during the life cycle of a building. This conceptual paper argues that the current dominating real estate (property) investment analysis theories do not accommodate enough building design-related information (i.e. physical asset characteristics), which results in long-term loss of competitiveness and unsustainable use of built environment resources. It is demonstrated that physical asset characteristics can create valuable real options that should be acknowledged in real estate investment analysis and management. The real estate investment literature has not so far been able to produce a widely accepted financial model for justifying life-cycle investments. A theory is proposed here that can be used to value life-cycle investments in buildings. This new theory combines of real options valuation, investment analysis and building component life-cycle design. These themes are used to formulate a conceptual framework for valuing life-cycle investments. The framework is intuitive and transparent, and it can be easily added to current spreadsheet investment analysis tools.

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Modern Methods of Valuation

Cited by 39 publications

References 0 publications

In the Land of the Dammed: Assessing Governance in Resettlement of Ghana’s Bui Dam Project

In the Land of the Dammed: Assessing Governance in Resettlement of Ghana’s Bui Dam Project

Relevance of the use of YP[Dual Rate] in the Valuation of Leasehold Interests in Contemporary English Practice

Theory of valuing building life-cycle investments

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