Task
An office building with mixed use in Luxembourg City was to be assessed in the context of a pending change of ownership. Client: the current owner; the report was to provide the negotiation basis between the two parties. Requirement: a robust report within three weeks, accepted as independent by both sides.
Approach
On site: walkthrough with condition recording, let-able areas, common areas, technical condition, wear. Review of leases and rent records of the past three years, analysis of service-charge statements, research of comparable lease conclusions in the city area. Two valuation methods applied in parallel: cost approach (land value, construction value minus depreciation) and income approach (capitalisation of net income from running leases). Market value was set at the average of the two.
Outcome
The 38-page report was delivered within three weeks of commission. Both methods returned a comparable market value; the average was accepted by both negotiating parties as the basis. The change of ownership was completed within the following two months.