Deloitte 
    Valuation 
    Conference
    Real Estate 
    valuation
           January 2015
    2June 2016
    ©© 2016  2015 DDeleloioitttte Te Taxax  &&  CConsonsululttiingng
    Real estate valuation
    Overview – Global real estate market
                             Real estate market key issues in 2016 (% of resp.)
                    68%
                         30% 27%                                      31%
                                   16% 16% 10% 8% 8% 6% 6%
       Sources: Preqin
    © 2016 Deloitte Tax & Consulting                                                  2
     Real estate valuation
     Valuation techniques, value drivers and usual traps
                                                Purpose of the valuation
                                                       (RICS VPS 1)
                   “Purpose for which the valuation assignment is being prepared shall be clearly stated” (RICS)
             Loan security                               Investor reporting
                                                                                        Tax assessment
                                      Financial 
                                      reporting
                                                             Dispute resolution              Transaction
            Investment decision
                                                CIK                                   …
                            The purpose of valuation will determine the basis of value
     © 2016 Deloitte Tax & Consulting                                                                             3
      Real estate valuation
      Valuation techniques, value drivers and usual traps
                                                             Valuation approaches
                            Market approach                     Income approach                      Cost approach
                on    Method                              Methods                             Method
                i
                t  )
                ua S  Comparison of identical or          •  Discounted Cash Flow             •  Depreciated replacement 
                l  V
                a  I
                 V  ( similar asset transactions for         method (“DCF”)                      cost
                l  ds which price information is 
                   r  available                           •  Residual method                  (used in specific 
                ona
                i                                                                             circumstances)
                t  nda                                    •  Direct income 
                   a
                na t                                         capitalisation
                r  S
                e
                nt                                        •  Term & Reversion
                I
                                                          •  …
      © 2016 Deloitte Tax & Consulting                                                                                                     4