Valuation Report
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Valuation Report Project Calvino Office Portfolio Bank of America Merrill Lynch June 2014 Contents Valuation Letter ................................................................................................................................................. 4 1.1 Introduction and Scope of Work ........................................................................................................................... 4 1.2 Basis of the Valuation ........................................................................................................................................... 5 1.3 Special Assumptions ............................................................................................................................................. 5 1.4 Valuation Date ..................................................................................................................................................... 5 1.5 Valuation Purpose ................................................................................................................................................ 5 1.6 The Portfolio ........................................................................................................................................................ 6 1.7 Compliance ........................................................................................................................................................... 6 1.1 Conduct of the Assignment ................................................................................................................................... 6 1.8 Professional Indemnity Insurance Cover and Liability ........................................................................................ 6 1.9 Reliance ................................................................................................................................................................ 7 1.10 Warranty ........................................................................................................................................................... 7 1.11 Market Rents ..................................................................................................................................................... 7 1.12 Market Values ................................................................................................................................................... 8 2 General Principles ................................................................................................................................... 10 2.1 Sources of Information ....................................................................................................................................... 10 2.2 Measurements and Areas ................................................................................................................................... 11 2.3 Titles ................................................................................................................................................................... 12 2.4 Town Planning and Other Statutory Regulations ............................................................................................... 12 2.5 Site Visits ............................................................................................................................................................ 12 2.6 Structural Survey ................................................................................................................................................ 12 2.7 Deleterious materials and Pollution ................................................................................................................... 12 2.8 Environmental Contamination ........................................................................................................................... 13 2.9 Disposal Costs and Liabilities ............................................................................................................................ 13 3 Valuation Approach and Assumptions .................................................................................................... 14 3.1 Valuation Approach ........................................................................................................................................... 14 3.2 Building Reinstatement Cost .............................................................................................................................. 14 1.13 General Valuation Assumptions ...................................................................................................................... 14 3.3 Tax Matters ........................................................................................................................................................ 15 4 Market Overview ..................................................................................................................................... 16 4.1 Economy ............................................................................................................................................................. 16 4.2 Real Estate Office Market Overview of Milan .................................................................................................... 16 4.3 Real Estate Office Market Overview of Rome .................................................................................................... 20 4.4 Real Estate Office Market Overview of Turin .................................................................................................... 24 4.5 Real Estate Office Market Overview Regional Markets ..................................................................................... 25 5 Rome, Via Pianciani 26 ........................................................................................................................... 28 5.1 Location .............................................................................................................................................................. 28 5.2 Accessibility ........................................................................................................................................................ 28 5.3 Site and Property Description ............................................................................................................................ 29 5.4 State of Repairs .................................................................................................................................................. 30 5.5 Accommodation .................................................................................................................................................. 30 5.6 Environmental Aspects ....................................................................................................................................... 32 5.7 Cadastral Data ................................................................................................................................................... 33 5.8 Town Planning Data .......................................................................................................................................... 34 5.9 Building Certifications ....................................................................................................................................... 34 5.10 Annual Non-Recoverable Costs ....................................................................................................................... 35 5.11 Tenure ............................................................................................................................................................. 36 5.12 Tenancy ........................................................................................................................................................... 37 5.13 Letting and Investment Transactions .............................................................................................................. 38 5.14 Market Rent ..................................................................................................................................................... 38 1 5.15 Future Income Performance ........................................................................................................................... 39 5.16 Valuation Data ................................................................................................................................................ 40 5.17 SWOT ANALYSIS ............................................................................................................................................ 41 5.18 Alternative use ................................................................................................................................................. 41 5.19 Saleability ........................................................................................................................................................ 41 5.20 Indication on the Building Reinstatement Cost ............................................................................................... 41 5.21 Market Rent ..................................................................................................................................................... 42 5.22 Market Value ..................................................................................................................................................