Portfolio Valuation

Case Study: Portfolio Valuations – Michaels Terrace (Cherry Capital)

December 20, 2019 3:00 pm Published by

The Case

Commercial Surveyors Direct is the lead surveying practice and panel manager undertaking portfolio valuations for Cherry Capital, a company producing innovative ways to help first time buyers onto the housing ladder.

CSD has conducted several valuations for Cherry in the last year, providing figures for portfolio purchases and for individual properties. A good example of this is the site at Michaels Terrace, Hadley, Telford – a new-build terrace of five two-bed houses purchased as a portfolio with the intention of creating co-buy opportunities for first time buyers.

Portfolio Valuations

Single Valuations vs Portfolio Valuations

The principal difference between a valuation of a single property and a portfolio of properties lies in the RICS Red Book definition of market value.

The RICS definition of market value is “the estimated amount for which an asset or liability should exchange on the valuation date between a willing seller in an arm’s length transaction, after proper marketing where the parties had each acted knowledgeably, prudently and without compulsion.”

Market value is understood as the value of an asset or liability estimated without regard to costs of sale or purchase, and without offset for any associate taxes. This infers that the hypothetical purchaser of a group of properties is not the same as the hypothetical purchaser of a single house. Buyers of multiple properties in one portfolio would demand and usually receive, a discount for quantum.

Our experience in this market means that we have a wealth of information on the levels of discount that can be obtained for portfolio purchases of residential property.

Contact Us

If you require portfolio valuations for your commercial property, our team have a broad range of knowledge and experience in the health, retail and leisure sectors. We’d be more than happy to discuss your individual requirements and offer our professional advice on the best course of action.

Please call us on 0808 169 8881 or via email at information@commercialsurveyorsdirect.co.uk.

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This post was written by James Powell