Valuation & advice

Case: Publicly quoted companies in the EU are required to report in accordance with the International Financial Reporting Standards (IFRS). This accounting standard for annual reports requires Regulated Property Companies (RPC) to value their property portfolio on a quarterly basis.

The Job: Stadim carried out the periodical valuations of the office buildings of an investor (RPC) in the context of a long-term cooperation agreement.

The Stadim Approach: We adapted the necessary financial and economic parameters and updated the current rental contracts taking into account renovation works and analysing the market. A concise report was supplied on this basis and the new figures were added to the customer dashboard

Case: A PME wished to contribute its logistics site to a company at very short notice.

The Job: The firm was thus obliged to have its property valued and called in Stadim.

The Stadim Approach: One of our experts visited the premises immediately after the offer had been accepted and submitted the required concise valuation report very shortly afterwards.

Case: A well-known investor in Belgian student housing was unexpectedly given the chance to buy a large student home close to a Dutch university.

The Job: To be sure of his investment decision and to improve his negotiating position, the investor asked Stadim for a specialized valuation. There was a need for speed as there were several potential competitors in the offing.

The Stadim Approach: We scheduled an on-the-spot visit and collected all the information needed for an accurate calculation (DCF method). With the help of our report and our pointers regarding the nuances and sensitivities of the Dutch market, the investor was able to start negotiations with the confidence of being fully informed.

Case: A promising jewellery designer wanted to open her first shop and invest in property as well. She had found stylish commercial premises in the centre of town with imposing features that perfectly matched her jewellery brand. The retail unit on the ground floor was offered for sale together with the upper floors, which were ready for renovation.

The Job: As it was her first venture in the property market, she approached Stadim for an opinion.

The Stadim Approach: We visited the premises and looked at the project from a rational point  of view. The commercial location was assessed, as well as the spaces themselves and the possibilities for further development. Stadim brought the limitations and possibilities of the bigger parts into focus and closely examined the development potential of the upper floors. We made a simulation of the total investment costs, including a budget for the renovations, looking at it both as an investment and as a place of business. After studying the entire file the jewellery designer had enough information to make a considered decision and to start seeking funding. The extensive valuation report met the bank’s requirement for use in the application for funding.

Case: A private individual inherited a house from her grandfather. She wanted to renovate it so she and her husband could live there as well as using it as the premises for their business start-up.

The Job: Her accountant asked for an estimate of the right in rem for which the couple turned to Stadim.

The Stadim Approach: After a visit to the premises we drew up a valuation report  that complied with the requirements of the Flemish Tax Service (Vlabel). The report also contained a budget simulation with a valuation of the  property both before and after the works, taking both the private and professional use of the property into consideration. We then calculated the value of the usufruct for the professional use of the property and that of the bare ownership.

Case: An accountant had to give an opinion on the establishment of a right in rem in the context  of the reorganization of a group of residential care centres  in Wallonia.

The Job: He asked Stadim to make a fully argued valuation of a long-term tenancy over a period of 27 years, including the calculation of the annual “canon” (emphyteutic rent).

The Stadim Approach: The valuation of a residential care centre is carried out on the basis of an analysis of the EBITDAR of the operation. This allows Stadim to estimate the rent which the operator can afford to pay in the long term. During our visit to the premises we collected all the required information such as the daily rates, the contributions paid by the RIZIV, the occupancy rate, an overview of the operational costs  and so forth. In addition to this we carried out a sensitivity analysis to determine the impact on the value in the event of changes to the fundamental parameters such as inflation, daily rates, operating costs, etc. We drew up a concise valuation report that provided a summary of the basic characteristics, a detailed overview of the calculations, the methodology used and a sensitivity analysis for the key parameters used in the calculation.

Case: After acquiring a new residential care centre an RPC had to determine whether the property had to be regarded as a  property investment or a financial lease.

The Job: To comply with its accounting and reporting obligations the RPC called upon Stadim to give an opinion.

The Stadim Approach: We examined the sensitivity of a number of parameters, such as the duration of the rental agreement, the economic life-span, the rent payable on the open market, inflation, the financial return, etc. and made a variety of calculations to determine their impact on the value. Using this analysis the customer was able to determine whether the residential care centre had to be regarded as a property investment or otherwise.