One of the specialized areas of our activity is provision of professional services in property valuation.
Solid experience in valuation of any type of property enables us to ensure the most objective reflection of all factors influencing the market price, the most effective use of the object characteristics that significantly influence the result of valuation for different purposes.
In valuation of property, projects and different types of real estate properties the Scot Holland company relies on its detailed knowledge of the market and the unique experience gained in the lease / sale of commercial real estate, as well as managing various real estate assets.
For your convenience, please see answers to the frequently asked questions.
IN SIMPLE WORDS ABOUT THE MAIN
1. What is the purpose of property valuation?
Valuation performed by our team, can be used for the following purposes:
- to determine the collateral value for lending purposes;
- for inclusion in the charter capital;
- for sale transactions;
- for managerial decision-making;
- for the purposes of raising finance;
- the revaluation of fixed assets;
- the initial public offering (IPO);
- for the purpose of insurance;
- in order to rent;
- to optimize taxation;
- for company restructuring;
- for the purposes of legal proceedings;
- for the purpose of property division, etc.
2. What can you valuate?
Our company performs valuation on the basis of the State license № ЮЛ-00781-(90747-1910-ТОО) dated December 04, 2008, issued by the Ministry of Justice of the Republic of Kazakhstan and the State license No. ЮЛ-00872-(90747-1910-ТОО) dated January 25, 2010 issued by the Ministry of Justice of the Republic of Kazakhstan, which allow us to evaluate all types of property:
- Residential and commercial real estate;
- Machinery and equipment;
- Business Valuation (shares)
- Valuation of assets for financial statements
- Valuation of land plots and construction in progress
- Valuation of Investment Projects
- Valuation of Investment Projects
3. What is required for valuation?
According to the Law of the RK "On valuation activities in the Republic of Kazakhstan», No. N-109-II dated November 30, 2000 the basis for valuation is an agreement on rendering valuation services, signed by the Customer and the Appraiser.
To execute valuation it is required to provide entitling documents for the property being evaluated.
For example, copies of the following documents are required for a real estate valuation:
- Document of origin of the possession right: a sales (privatization, exchange, donation, etc.) contract or in operation acceptance act;
- Technical certificate
- Ownership Act (if any).
Lists of documents required for valuation of other types of property can be provided by our experts on your request.
In addition to the documents, it is required to provide access for inspection and photographing of the property under valuation.
4. Cost and timing
The cost of valuation services depends on the type of property and purpose of the valuation.
To know the exact cost of our services on valuation of a particular property, you can simply send a message to our e-mail: Almaty@shre.kz stating the subject of the mail "Property Valuation.
We would like to note that the Scot Holland appraisers follow up the valuation report till its acceptance in accordance with the purpose of valuation, for example by banks or accounting firms.
5. How will our property be valued?
Appraiser may use three main approaches to the valuation: Cost approach, Sales comparison approach and Income approach.
Cost approach - is based on the determination of the costs required to restore or replace the property under valuation, subject to its depreciation. In other words, we will calculate the cost needed to create an analogue of the property under valuation.
Typically, this approach is applied in the valuation of property that is not sold on the open market, or there is no widely available information about transactions with this type of property.
Sales comparison approach - is based on comparison of the property being evaluated with other similar properties available for sale. We will study the market, chose analogs comparable to your property in terms of main characteristics, and based on their prices will derive the value of the property under valuation. Certainly, it is not always possible to choose comparable property, which fully coincides with the property under valuation. In these cases, the Appraiser will apply adjustment to the price of the analogs, taking into account the differences between them and the valued property.
Income approach - is applicable to a property and property rights, which provide, or can provide income to the owner in the future. We will calculate potential future income and reduce it to the current value of your property using the appropriate rates (capitalization or discount rate).
The choice of approach will depend on the property and purpose of valuation, and will be discussed in details with the Customer before preparation of the valuation report
On request, we can apply any of the valuation approaches described above, unless it is contrary to the requirements of the International Valuation Standards (IVS) or the necessary information is missing. For example, the sales comparison approach is impossible if similar property is not available for sale on the market. The cost approach cannot be applied if it is impossible to calculate the cost of creating an analog (land plot valuation). The income approach is not advisable for valuation of property, which is not intended for use as a source of profit.
6. What are the advantages of the Scot Holland valuation?
Being a part of the global network of CBRE we use the experience of the most leading international company for owners and investors operating in the markets of residential, commercial and industrial real estate, as well as attract foreign experts to provide services in the region of the Central Asia and the Caucasus, if it is required according to the project of the Customer.
Wide experience in realization of projects for major international developers, investors, banks and construction companies is based on a clear understanding of the Customer requirements and the specifics of each project and property.
Thanks to the experience and reference list of Scot Holland, our company is the sole provider of professional services in the region of the Central Asia and the Caucasus, which produces Valuation Reports officially accepted during the Initial Public Offering (IPO) on the London Stock Exchange.
All valuation reports are prepared in accordance with the Law "On valuation activities in the Republic of Kazakhstan», No. 109-II dated 30 November 2000 and the International Valuation Standards (Eighth Edition, 2007), approved for use in the Republic of Kazakhstan.
In addition, all work is done in accordance with the Practical Guide on Valuation, published by the Royal Institute of Chartered Surveyors (RICS, 7th edition) except for the cases where they conflict with the local laws and business ethics, and the International Quality Standards (IVSC, , 2007).
Our professional liability is insured under the Voluntary Insurance Contract (VIC) for the valuation activities, VIC No. 216-2/URP dated 02.02.2011.
Scot Holland Appraisers are members of the Self-Regulated Chamber of the Kazakhstan Association of Valuers (SRC KAV).
8. What is the purpose of the business valuation?
Business valuation – is the definition of market or other value of the enterprise, or share in the company's share capital, based on data about assets, and analyses of the business activity results.
Usually the business valuation is required:
- For management decision when selling or buying a company or a stake in the charter capital
- For the owner to get an independent opinion on the market value of the company
- For investment planning;
- In case of liquidation or reorganization.
9. What is the purpose of the valuation of an investment project?
Valuation of investment projects is one of the areas of specialty of our business. Most often, it is a valuation of land where profitable real estate is planned to be built or other large-scale project.
The main purpose of the valuation is to define market value or investment value in order to attract investment or to make managerial decisions (e g, the appropriateness of the acquisition of shares or investments in an existing property).
The extensive experience of our company in the valuation of such projects, both large-scale and regional, inspires confidence and attracts local and foreign investors.
10. Who can recommend you?
Scot Holland successfully cooperates with most commercial banks of Kazakhstan, the Eurasian Bank for Reconstruction and Development in London, and has among its Customers major international and local companies, including:
“Kazakhstan Kagazy” JSC, “Caspian Group” JSC, “Kazphosphate” LLP, “Holding Kazexportastyk” JSC, Ahsel Holding, “Arsellor Mittal Temirtau” JSC, Metro Cash & Carry, “KazPost” JSC, Hertz, “South Oil” LLP, “ASTEL” JSC, etc.
You can see Letters of Recommendation from our Customers here.
11. What are the benefits of valuation of assets for the purpose of preparation of financial statements under IFRS?
IFRS are the standards established for the unification of financial reporting from all over the world. Statements prepared in accordance with the IFRS, facilitate dialogue with foreign companies and investors, which provides access to international markets.
International accounting standards focus on the reflection of objective information about the current state of the company. In other words, they are built on the principle of transparency. Therefore, they are based on data about the fair (market) value of assets and liabilities.
These data are needed both for the preparation of initial accounting balance sheet (to change to IFRS), as well as to reflect the major financial transactions in the company's activities, such as purchase / sale of assets, assessment of their fair value taking into account renting and leasing, making the choice of accounting model etc.
The fair value of assets is fundamental for increase of transparency of the company to investors and shareholders.
Reports prepared by our experts with the purpose of financial statements fully comply with the International Valuation Standards.