VALUATION REPORT
Property known as: “Wagtail Park” Stockdill Drive Belconnen ACT 2616
Prepared for: G.J. & G.M. TREVASKIS 170 Osburn Drive Macgregor ACT 2615
Purpose: Evidence of Value of the whole and a number of parts of the property and compensation for a proposed easement.
Date of Valuation: 21 September 2015
“Wagtail Park”, Stockdill Drive Belconnen ACT, 2616 21 September 2015
Shearing Shed on the property
Typical Landform view to south east from centre of block
2 SVS “Wagtail Park”, Stockdill Drive Belconnen ACT, 2616 21 September 2015
Contents
Page
1. EXECUTIVE SUMMARY ...... 4
2. INTRODUCTION ...... 6
3. LAND DETAILS ...... 8
4. TOWN PLANNING ...... 10
5. SITE DETAILS ...... 11
6. IMPROVEMENT DETAILS ...... 14
7. SALES EVIDENCE ...... 16
8. MARKET OVERVIEW ...... 21
9. VALUATION ...... 22
10. Contact Details ...... 37
Assumptions, Disclaimers, Limitations & Qualifications ...... 38
Annexures
Annexure I Instruction Annexure 2 Crown Lease Annexure 3 Location Map Annexure 4 Certificate of Title
Annexure 5 Aerial Photograph
Annexure 6 Block 1601 Consolidation Plan
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1. EXECUTIVE SUMMARY
Instructing Party: G.J & G.M TREVASKIS.
170 Osburn Drive Macgregor ACT 2615.
Property Address: “Wagtail Park”, Stockdill Drive Belconnen ACT
Legal Description: Blocks 1601 & 1602 District of Belconnen
Property Description: ACT Rural Leasehold property situated on the western fringe of Belconnen close to the Molonglo Water Treatment Works. Improved with a three stand Shearing Shed and farm/horse buildings and improvements. Property is developed for sheep and cattle grazing.
Site Area: 327.28 hectares
Date of Inspection: 21 September 2015
Significant Issues: • Rural ACT location
• Proximity to Canberra CBD
• Basic Farm improvements
• No residence but single dwelling right
Valuation Approach: Direct Comparison with sales.
Date of Assessment: 21 September 2015
Valuations:
1. Switching Station Site $190,000
2. Water Reservoir Site $130,000
3. Easement for Power Lines $268,500
4. Whole 327.28 ha $2,460,000
5. Block 1602 – 12.98 ha $195,000
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6. Pt 1602 – 6,000 sqm site $25,000
NB: The above assessments are GST exclusive.
D.P.LOVELL F.A.P.I. CPV B.A, B.Bus. NSW Reg. Valuer No. 474
“Liability limited by a scheme approved under Professional Standards Legislation”
Specialised Valuation Services Pty Ltd ACN 138601279 PO Box 206 Hall ACT 2618 Tel: 0408624020 Fax: 0262302003
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2. INTRODUCTION
2.1 Instructions We refer to email instructions received from Tom Gordon of the Land Development Agency (LDA) dated 19 October 2015 to provide a valuation report for the property known as “Wagtail Park” 1601 Stockdill Drive Belconnen ACT. The LDA proposes to acquire a number of interests in the land up to and including the whole. These interests are summarised below.
The report is to be comprised of a number of separate valuations as follows:
1. Land for a Switching Station Site- 4 ha;
2. Land for a Water Reservoir Site – 2 ha;
3. An Easement for Powerlines – Plans to be provided, area subject to survey, estimated 6 ha;
4. The whole of the property i.e. Blocks 1601 & 1602 – 327.28 ha;
5. Land being Block 1602 – 12.98 ha vacant block;
6. Land being Part Block 1602 – 6,000 square metre site for dog kennels;
NB: the assessments are to exclude all items of stock and plant situated on the property and deemed to be removable.
In respect of the assessments we are specifically instructed to have regard to the compensation principles set out in Part 5 of the Lands Acquisition Act 1994 and other Sections as applicable to ensure that all Landowner entitlements are accounted for. We are further instructed to assume an acquisition by agreement in terms of Section 32 of the Act.
A copy of the email Instruction is included at Annexure 1
We confirm that Specialised Valuation Services has undertaken the assessment based on the assumptions outlined, and our inspection of the property.
2.2 Date of Inspection and Valuation 21 September 2015
2.3 Market value definition Market Value is defined by the International Valuation Standards Council as follows:
“Market value is the estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing, wherin the parties had each acted knowledgeably, prudently and without compulsion.”
This is the definition adopted by the Australian Property Institute.
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Within the Lands Acquisition Act 1994 it is defined at Section 46 as follows:
For this division, the market value of an interest in land at a particular time is the amount that would have been paid for the interest if it had been sold at that time by a willing but not anxious seller to a willing but not anxious buyer.
The definitions are consistent with each other.
2.4 Valuers Certification The Valuer undertaking this valuation certifies that he is authorised under law to do so and further confirms that he has no past present or future contemplated interest in the property which would conflict with its proper assessment in the terms of the instructions. The valuation has been prepared in accordance with Australian Property Institute standards.
2.5 Extension of Liability and Third Party Reliance This report is only for the party to whom it is addressed and for the purpose outlined in the instruction. Use or reliance on the report by third parties is not authorised and Specialised Valuation Services is not liable for any loss arising from such unauthorised use or reliance . Under no circumstances is the report to be used for mortgage security purposes .
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3. LAND DETAILS
3.1 Legal Details
Crown Lease granted pursuant to the provisions of the Land (Planning and Environment) Act 1991 and Regulations thereunder. Sections 167 & 186 C & D of the Land Act apply.
Real Property Description (Leasehold)
Blocks 1601 and 1602 District of Belconnen
Site Area
Block 1601 314.30 hectares
Block 1602 12.98 hectares
Total 327.28 hectares
Registered Proprietors (Crown Lessee)
Graeme John and Glenis Margaret Trevaskis.
As joint tenants
Unexpired Term
As 87 years of an original 99 year term commencing on 10 th November 2003.
Purpose Clause
To use the premises only for the purpose of agriculture not including the agistment of horses and ancillary thereto keeping a maximum of eight (8) horses for personal use and one (1) dwelling.
No building shall be erected within the Lower Molonglo Water Quality Control Centre 1 kilometre clearance zone.
Annual rent
5 cents per annum if and when demanded.
We have been provided with a Title Search of the property and the Crown Lease and have also relied upon information sourced from Local Authority databases.
A copy of the Certificate of Title (Annexure 4) and Crown Lease (Annexure 2) are attached.
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3.2 Encumbrances The following notations appear on the Certificate of Title as at 22/10/2015:
• Original title is Volume 1680 Folio 9
• Purpose Clause : Refer Crown Lease
• Easement in Crown Lease: Current
• S.167(5) Land Act 1991: REFER 3(B) OF CROWN LEASE
• S.186C & D Land Act 1991: Applies for Term of Lease
• EASEMENT IN GROSS: Created by TG 1193041
• Easement in Gross (continued by S.91A/91B/91C Land Titles Act 1925)
• Mortgage to COMMONWEALTH BANK OF AUSTRALIA (continued by S.91A/91B/91C Land Titles Act 1925)
Our valuation ignores any mortgages or other financial charges which may affect the land. To the extent that any leases, easements or covenants impact on the land they have been considered in the valuation.
Sections 186C & D relate to the management of and dealing with rural leases. Section 167 (5) relates to the eligibility to hold rural leases. We note that the “windfall gains” requirements associated with the granting of 99 year rural leases no longer apply to the property.
We note that under Deposited Plan 9609 & 9992 there is a 15.61 metre wide and variable width easement for access and maintenance through the centre of Block 1601. There is also a proposed easement for powerlines under DP6946 91.5 metres wide for transmission line. (See Consolidated Block Plan for block 1601 at Annexure 6
3.3 Territory Owned Improvements The Crown Lease identifies that the Territory owned improvements of timber treatment apply on the hachured section of the land shown on the Crown Lease. This comprises around 32.52 hectares and is of practical consequence only in the event of compulsory acquisition of the land.
We note that the whole of Block 1602 (12.98 ha) is so affected.
3.4 Statutory Assessment Unimproved Value as at 1 January 2015: $391,000.
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4. TOWN PLANNING
4.1 Zoning Town Planning in the ACT is governed by the National Capital Plan, the Territory Plan, the Crown Lease Purpose Clause, and /or Draft Plan variations that are the instruments of change.
Under the Territory plan the subject land is situated in various “zones” as follows:
Block 1601: NUZ3 Hills Ridges and Buffer Zone.
Block 1602: NUZ4 – River Corridor Zone.
In respect of these zonings the Territory Plan provides as follows:
NUZ3 – Hills, Ridges and Buffer Zone
a) Conserve the environmental integrity of the hill system as a visual backdrop and a unified landscape setting for Canberra b) Provide opportunities for appropriate recreational uses c) Conserve the significant cultural and natural heritage resources and a diversity of natural habitats and wildlife corridors d) Provide predominantly open buffer spaces for the visual separation of towns and to provide residents with easy access to hills, ridges and buffer areas and associated recreation facilities e) Provide opportunities for appropriate environmental education and scientific research activities
NUZ4 – River Corridor Zone
Zone Objectives a) Conserve the ecological and cultural values of the ACT’s major river corridors b) Protect stream flow, water quality and flood plains from adverse impacts c) Ensure that the type and intensity of development is sustainable d) Provide opportunities for a range of ecologically sensitive water and land based recreational activities e) Ensure compatibility between land uses, water uses and the general character of the rivers f) Provide opportunities for appropriate environmental education and scientific research activities g) Prevent development that would significantly increase fire hazard
In addition both blocks are affected by Overlays in respect of Nature Reserve (Pc Overlay) and Public Land (PUBLAN) on block 1601 only.
The subject property is developed with a shearing shed, miscellaneous farm buildings, specialised horse improvements and farm improvements. There is no residence on the land. These uses are permitted under the Crown Lease Purpose Clause. We have adopted the current use as the highest and best (optimum) use in our report including a single residential right.
To vary the Purpose clause to include any other use would result in a Lease variation charge being payable. It is possible that a further “residential right” could be added to the Crown Lease, albeit at a cost.
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5. SITE DETAILS
5.1 Location The subject property is situated on the western fringe of the ACT. Civic is approximately 16 kilometres to the east and Belconnen Town Centre is 7 kilometres to the north east. The West Belconnen residential area incorporating the Kippax Shopping Centre is within 3 kilometres.
A location Map is attached at Annexure 3.
The surrounding development comprises mostly rural properties, the Lower Molonglo Water Quality Treatment Plant, the Woodstock Nature Reserve and large farms. Improved properties in the locality range in value from $450,000 for houses in West Belconnen to $3,000,000 for rural properties. The subject property is considered to be average for the area.
5.2 Description Subject to a geophysical report to the contrary, the land appears to be good building land suitable for development in accordance with the requirements of the Local Authorities. Our inspection did not reveal any obvious drainage or water run-off problems on the site and from our enquiries with the local authorities the site is not situated in a flood prone area.
The block has access off Stockdill Drive and is irregular in shape with the Lower Molonglo Nature Reserve Corridor forming its southern and western boundary. The land is of predominantly granite formation with areas of exposed stone particularly on the steeper sections of the block. There is approx. 25 ha of timbered land on the eastern end of the block.
On inspection we noted an “Access Drive” in use by the ACT government through the centre of the block. We are advised that this drive is used by ICON Water to access an underground water pipeline on the property. There is an easement in Gross for the access to the pipeline noted on the Title.
In addition High Voltage Powerlines traverse the block from its north western end in a generally southerly direction along the western edge of the central hill, before exiting the block at the southern boundary. There are 5 steel fabric towers across the block apparently contained within a 91.5 metre wide proposed easement. This easement is not noted on the title but is noted on the consolidated block plan DP 9609. Our enquiries with Transgrid indicate that a 60 metre wide easement in Gross is being effected over the length of the line through the block.
5.3 Topography The property is of generally undulating to steeper terrain generally falling to the south towards the Molonglo River Corridor which effectively forms its southern boundary.
The central section of the property is dominated by a steep ridge of cleared grazing hill (approx. 75 ha) rising from 560 metres to 650 metres ASL. A semi timbered steep stoney hill at the north eastern corner (approx. 60 ha) rises from 540 metres to 640 metres. This latter hill is to be the site of the proposed water reservoir.
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The balance of the block is gently undulating cleared pasture improvable lands ranging from 530 metres to 580 metres ASL. We note that parts of this area have been pasture improved by the current Crown Lessee.
Significantly the moderately sloping steeper sections of the land are of lighter soils and are subject to potential erosion if cultivated.
We have classified the land as follows:
Cleared Pasture Improvable Slopes 192 ha
Steeper Grazing Hills Pt Timbered 135 ha
Total 327 ha
5.4 Carrying Capacity At the date of inspection the property was being run as a sheep/wool enterprise with mainly Merino sheep. A small number of cattle are carried on an opportunistic basis. The property is also developed for horse stud and breeding with a number of brood mares held on site.
Carrying at inspection was:
350 Merino Ewes
400 Wethers
200 Younger Cross Bred Ewes and Wethers
20 Cows/calves
6 Bulls
8 Horses
This level of carrying is conservative and reflects the use of the property for mixed grazing and breeding purposes.
5.5 Contamination On instruction we were not provided with any reports in respect of the property in relation to soils, pollution, contamination, or compliance with Environment Protection and Regulation requirements. There is no publicly accessible Environmental Contaminate Register within the ACT although a register is maintained by the Government and this can be accessed by the landowner for payment of a fee.
Our valuation is therefore subject to there being no surface or subsurface problems including, but not limited to, toxic or hazardous waste, building material hazards (eg asbestos), in or on the property that would adversely affect its existing or potential use and/or its marketability for sale.
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Should any matter arise or be known we request that this valuation be referred back to us for comment and alteration if necessary.
5.6 Area of Property 327.28 hectares
5.7 Services Stockdill Drive is of two lane bitumen seal formation. Rural electricity and telephone are not connected but are capable of extension to the subject. Water supply is by roof catchment and Town Water is connected and is reticulated directly to troughs in the smaller horse paddocks around the buildings. Secondary treated “grey water” is available and connected to the land. No other municipal services are available to the land.
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6. IMPROVEMENT DETAILS
6.1 Property Description The subject property comprises a rural property developed with modest farm buildings and horse improvements but no residence.
6.2 Farm Buildings Farm buildings identified on inspection include:
• Steel frame Colorbond and clad and roofed Shearing Shed with raised shearing platform floor and equipped with three stand overhead Lister shearing units. (Area: 137 sqm); ramp to adjoining steel and timber sheep yards comprising 6 pens.
• Steel cattle yards about 25 panels with loading ramp (parts in need of repair)
• Generator shed concrete floor (14 sqm);
• Colorbond clad garage / vehicle shed with concrete and earth floor; Part fully enclosed having twin roller door access and part concrete floor. (140 sqm)
• Steel frame metal clad Hayshed/vehicle shed earth floor enclosed 3 sides – High clearance 55 sqm; low clearance 35 sqm;
• Steel frame colorbond clad Workshop fully enclosed sliding door access earth floor (198 sqm);
• Horse stables/yard boxes (4) in paddocks around buildings (15 sqm each).
• Stable/Feed shed half concrete floor (35 sqm)
• Feed Shed with concrete floor (5 sqm)
6.3 Farm Improvements • Domestic water supply is by roof catchment. Two troughs service the small horse paddocks, and 5 service other paddocks. All are connected to Town water. There are four earthen wall dams on the block and a number of semi-permanent springs. Overall the property is adequately watered
• Pastures are predominantly native species. Parts of the property has been sown down in the past but have reverted. Weeds are well controlled. There has been little recent fertiliser history on the block.
• Fencing: the block is fenced into about 6 main paddocks. There are several small paddocks each with shelters in close proximity to the buildings. There is a laneway system through the centre of the block which is used by ICON water to service a pipeline. Fences are predominantly hingejoint and are in good stockproof condition.
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• Clearing: the block is optimum cleared for current pursuits. A portion of the property has previously been cultivated and we note the area around the existing buildings has been pasture improved. Timber treatment is the property of the Lessee apart from approximately 32 ha hachured on the Crown Lease. Original timber includes Red and Yellow Box and Red Gum.
6.4 Condition of Buildings On inspection the buildings on the property were presented in good condition commensurate with age and use. Farm improvements are of a modest standard commensurate with the use of the property with three large sheds providing secure storage.
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7. SALES EVIDENCE
In assessing the value of the subject property we have researched recent sales of comparable properties within the ACT. We have listed below the sales considered to be most comparable and have analysed each to derive levels of value applicable to the subject.
ACT Rural and Urban Leases
Sale 1.
Address: “Glenlyle”, Majura Lane Majura ACT
Contract Date: March 2011
Price: $3,400,000
Comments: Area 131.66 ha. Private sale through an agent. Property comprises steeper undulating country mostly cleared for grazing and with a 99 year lease attached. Improved with a 532 sqm Taglietti designed residence, tennis court, in ground pool and extensive mature grounds. Situated 15kms from the CBD. Sale reflects $11,089/ha land value.
Sale 2.
Address: Block 680, Oaks Estate Road Majura
Contract Date: July 2011
Price: $1,400,000
Comments: 101 ha block with several sheds and yards but no residence, electricity and telephone to homesite. Molonglo River frontage. Land is mostly gently undulating pasture improvable slopes but is severely affected by high voltage power lines. Located adjacent to the East Queanbeyan industrial area. Reflects $12,871/ha land value for land situated 10 kms from the CBD.
Sale 3.
Address: “Wells Station” 2-4 Adder Street Harrison
Contract Date: March 2012
Price: $1,650,000
Comments: 36.77 ha block with 99 year lease and two dwelling rights. Sale included 562.7 ha of short term (20 year) leasehold grazing land. Residences were in poor order as were the other improvements. All town services available. Situated 13 kms from the CBD.
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Inferior property.
Sale 4.
Address: “Rose Glen”, 250 Woods Lane Jerrabomberra
Contract Date: June 2012
Price: $2,325,000
Comments: Area 107.4 ha. Property improved with three houses and extensive horse agistment improvements including 12 stables. 99 year lease commenced in 2005 so windfall gains paid by vendor. Located adjoining HMAS Harman. Purpose clause provided for horse agistment for up to 10 horses, which is a positive. Situated 10 kms from the CBD.
Sale 5.
Address: 325 Kambah Pool Road Tuggeranong
Contract Date: October 2012
Price: $1,477,000
Comments: Area 105.2 ha. Property effectively vacant with only buildings being cattle yards and a shed (est. $30,000). Purpose clause provided for a residence to be built on the land but no horse agistment. Situated 19 kms from the CBD. Reflects a land value of $13,754/ha for similar land to the better sections of the subject but a smaller block.
Sale 6.
Address: “Kooringal” 149 Wallaroo Road Wallaroo
Contract Date: February 2014
Price: $2,725,000
Comments: Area 122.6 ha. Property improved with a substantial modern residence (c.2011. 274 sqm) 5 bedrooms, two bathrooms double garage and perimeter verandah. Farm buildings included shearing shed, silo, hayshed and cattle yards. Purpose clause provided for a single residence to be built on the land but no horse agistment. Situated 19 kms from the CBD. Sold under the hammer at auction. Reflects a land value of $16,313/ha for
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superior land to the subject and a smaller block.
Sale 7.
Address: “Melrose Valley” 174 Old Tuggeranong Road Tuggeranong
Contract Date: April 2014
Price: $2,200,000
Comments: Area 239.16 ha. Sold after passing in at auction in November 2013. Property improved with two residences and extensive farm buildings. Situated 21 kms from the CBD. Reflects a land value of $6,900/ha for inferior land to the subject and a smaller inferior located block.
Sale 8.
Address: “Riverview” 1283 Cotter Road Stromlo
Contract Date: February 2014
Price: $2,525,000
Comments: Area 250.187 ha. Property improved with a substantial modern residence (c.1970’s 365 sqm) 5 bedrooms, two bathrooms large carport and good grounds. Farm buildings included specialised horse improvements, stabling and second cottage (transportable). Purpose Clause allowed for a single residence and horse agistment up to 90 horses which produced a significant income. Sold inclusive of business. Situated 20 kms from the CBD. Reflects a land value of $6,894/ha for similar land to the subject but a smaller block and with higher order uses.
We are aware of a reported sale in Kathner Street Chapman ACT in June 2014 for a 238.5 ha specialised horse agistment property for a price in the region of $10,500,000 plus a separate consideration for the business. This is the highest price, by a substantial percentage, ever paid for an ACT Rural lease. We are unable to report on the conditions of the sale but confirm that the property was not actively marketed prior to sale. It appears to have been purchased by a developer as a potential “land bank” and in our view is not reflective of current market values.
We also understand that a nearby property, “Glenloch”, was purchased by the ACT Government in 2014 for around $9.25M. This property was not openly marketed and we are unable to verify any sales details. The property included some immediate development potential and reflects a substantial premium over “Rural Lease” value.
Similarly the ACT Government has been in private negotiations in 2015 with the Crown lessees of the property “Lands End”, a 337 ha property which is situated 2 kms east of the subject. The details of this transaction which was agreed in July 2015, are not yet in the public domain but are believed
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to be in the vicinity of $3,000,000. This would indicate a land value for the property excluding buildings of $7,717/ha. overall.
NSW Freehold Lands
We have also researched sales within the surrounding area within NSW to provide further evidence of the likely value of the subject property. We summarise the most recent sales in the table below:
Sale Land Value Address Suburb Sale Date Price Area(ha) No $/ha 1 273 Casuarina Lane JEIR 17/08/12 $1,300,000 78.99 $11,394 2 745 Kaveneys Rd JEIR 12/09/12 $520,000 88.708 $5,862 3 570 Kaveneys Rd JEIR 7/11/12 $800,000 49.38 $13,163 4 109 Spring Range Rd WALLAROO 23/11/12 $1,710,000 115.3 $13,964 5 Gounyan Rd MURRUMBATEMAN 13/06/13 $2,200,000 333.77 $6,591 6 134 Casuarina Lane JEIR 1/04/2014 $1,000,000 48 $20,833 7 396 Oakey Creek Road WALLAROO 1/06/2014 $2,225,000 200.09 $10,620 8 338 Gounyan Road MURRUMBATEMAN 7/10/2014 $1,700,000 245.7 $6,105 9 76 Kiaora Lane SUTTON 14/10/2014 $1,200,000 142.8 $7,878 10 613 Tallaganda Lane SUTTON 10/11/2014 $1,000,000 105.6 $9,233 11 354 Kaveney's Road JEIR 13/06/2015 $1,690,000 98.94 $13,038 12 109 Springrange Road HALL 1/10/2015 $1,650,000 115.3 $13,010
Sales 2, 4/7, 9, 10 & 12 are for effectively vacant blocks and indicate land values, excluding buildings, of between $5,862/ha and $20,833/ha.
Other recent NSW sales of larger properties include:
1. “Bongalabi” via Lake Bathurst, sold June 2015 for an undisclosed figure believed to be around $3.0M. 458 ha block improved with a substantial 8 bedroom Victorian Homestead (c.1883), two other cottages and extensive farm buildings. Indicates a land value of around $4,367/ha.
2. “Kullingrah”, Taylors Creek Road via Tarago. 1264 ha property improved with 3 houses extensive sheds and 12 wind turbines providing around $127,000 pa income. Passed in at auction May 2015 and reportedly sold after for around $5.0M to overseas interests. Allowing for turbine income and buildings sale reflects $2,318/ha land value and $347/DSE.
3. “Clear Hills” Jerrawa. Sold April 2015 for an undisclosed figure in the region of $3.0M. 1019 ha of remote grazing country 28kms south of Captains Flat. Modest cottage and farm buildings. Badly affected by Serrated Tussock. Reflects a land value of $2,748/ha and $400/DSE.
4. “Drummoyne” Yass. Sold September 2015 for $2,250,000. This is a 303 ha property situated 6 kms north of Yass improved with an older style 5 bedroom federation homestead 4 stand
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shearing shed yards and farm buildings. Carrying 3000 DSE. Reflects a land value of $6,105/ha and $616/DSE. Inferior location compared to the subject.
5. “Dowan Hill” 198 Connell’s Lane Murrumbateman sold October 2015 for $5,000,000. 1183 ha property improved with an older style renovated homestead, good farm buildings and considered to have a capacity of 9,000 DSE.
These sales whilst not directly comparable provide market evidence for “going concern” grazing properties with substantial homesteads in the region.
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8. MARKET OVERVIEW
8.1 Market Review Our research indicates that the market for rural property in the ACT has been strong over the past 5 years. The market is underpinned by the ACT residential market, and provides an easy commute for landowners working in the capital. Historically the market in this area follows the Canberra market although it lags in price gains and leads in price falls. A major feature of the market has been the “expiry” of the 10 year quarantine on windfall gains under most leases which has resulted in more properties coming into the market.
Our research indicates that the Canberra residential market has remained strong over the past 5-10 years with consistent growth in values. A shortage of land supply has led to a surge in prices. The opening up of the Molonglo Valley, and Gungahlin areas has seen record land prices achieved emphasising the underlying level of value in established housing. Over the same time the demand for rural residential land has grown although it has eased significantly over the past 2 years as prices have stagnated and demand has fallen. There is currently an oversupply of rural residential property for sale around the ACT but ACT rural leasehold blocks are in strong demand.
Major factors influencing the market for rural property over the period include:
• The Global Financial Crisis which impacted on the availability of finance
• Increasing supply of residential land
• Slowdown in the “premium” end of the Canberra residential market
• Continuing low interest rates from major lending institutions
8.2 Subject Property The subject property is a 327.28 ha rural property situated 16 kms west of Canberra’s CBD and in close proximity to the Belconnen Town Centre. The property is improved with modest farm improvements associated with its use as a sheep/cattle grazing and horse breeding operation. The lack of electricity connection and a residence are negatives however we note multiple good homesites on the block with expansive district views. Our research indicates that similar properties within the ACT and surrounding NSW, attain premiums in the market.
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9. VALUATION
We are instructed to provide a number of valuations over parts of the property. We summarise the interests to be valued below:
1. Land for a Switching Station Site- 4 ha;
2. Land for a Water Reservoir Site – 2 ha;
3. An Easement for Powerlines – Plans to be provided, area subject to survey, estimated 6 ha;
4. The whole of the property i.e. Blocks 1601 & 1602 – 327.28 ha;
5. Land being Block 1602 – 12.98 ha vacant block;
6. Land being Part Block 1602 – 6,000 square metre site for dog kennels
We set out our individual assessments of these parts in the sections following.
9.1 Basis of Assessment The interests in the land are being purchased by the Land Development Agency (LDA) for the purposes of infrastructure as part of the proposed joint venture development at West Belconnen with the Riverview Group. The LDA is an ACT Government agency within the Economic Development Unit and has the commission to develop and sell land on behalf of the government. As the LDA, through its association with Government, has access to compulsory acquisition powers, the subject transactions should be treated as acquisitions by agreement under the Act. These are our instructions in relation to interests 1, 2, 3, 5 & 6. The market value of the whole, item 4, is to be market value only.
In undertaking the assessments we have therefore had regard to the provisions of the Lands Acquisition Act 1994 which sets out the matters to be considered in acquisitions of this type. In particular Section 32 which states:
Acquisition by agreement (1) The Executive may authorise the acquisition under this Act by agreement of an interest in land other than land in a public park , by an acquiring authority for a public purpose.
(2) The acquiring authority may then enter into an agreement for the acquisition of the interest if—
(a) a pre-acquisition declaration in relation to the acquisition has become absolute and is in force; or
(b) the Executive has given a certificate under section 21 in respect of the acquisition; or
(c) the interest is owned by the Territory or a Territory authority.
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(3) The Executive shall cause to be laid before the Legislative Assembly, within 15 sitting days of the Assembly after the agreement is entered into, a statement describing—
(a) the interest; and
(b) the situation of the land; and
(c) the price at which the interest is being, or has been, acquired; and
(d) the public purpose for which the interest is being, or has been, acquired.
(4) Failure to comply with subsection (3) in relation to an acquisition does not invalidate the acquisition.
(5) In this section:
"public park" means land that, under a Territory law, is dedicated or reserved, or is vested in trustees, as a public park or national park or otherwise is for the purposes of public recreation.
The Act then prescribes at section 45 what can be considered in assessing compensation for the dispossessed owner.
Section 45
Amount of compensation—general principles
(1) The amount of compensation to which a person is entitled under this part in respect of the acquisition of an interest in land is such amount as, having regard to all relevant matters, will justly compensate the person for the acquisition.
(2) In assessing the amount of compensation to which the person is entitled, regard shall be had to all relevant matters, including—
(a) except in a case to which paragraph (b) applies—
(i) the market value of the interest on the day of the acquisition; and
(ii) the value, on the day of the acquisition, of any financial advantage, additional to market value, to the person incidental to the person's ownership of the interest; and
(iii) any reduction in the market value of any other interest in land held by the person that is caused by the severance by the acquisition of the acquired interest from the other interest; and
(iv) where the acquisition has the effect of severing the acquired interest from another interest—any increase or decrease in the market value of the interest still held by the person resulting from the nature of, or the carrying out of, the purpose for which the acquired interest was acquired; and
(b) if—
(i) the interest acquired from the person did not previously exist as such in relation to the land; and
(ii) the person's interest in the land was diminished, but not extinguished, by the acquisition; and the loss suffered by the person because of the diminution of the person's interest in the land; and
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(c) any loss, injury or damage suffered, or expense reasonably incurred, by the person that was, having regard to all relevant considerations, including any circumstances peculiar to the person, suffered or incurred by the person as a direct, natural and reasonable consequence of—
(i) the acquisition of the interest; or
(ii) the making or giving of the pre-acquisition declaration or certificate under section 21 in relation to the acquisition of the interest;
other than any such loss, injury, damage or expense in respect of which compensation is payable under part 7; and
(d) subject to section 50, if the interest is limited as to time or may be terminated by another person—the likelihood of the continuation or renewal of the interest and the likely terms and conditions on which any continuation or renewal would be granted; and
(e) any legal or other professional costs reasonably incurred by the person in relation to the acquisition, including the costs of—
(i) obtaining advice in relation to the acquisition, the entitlement of the person to compensation or the amount of compensation; and
(ii) executing, producing or surrendering such documents, and making out and providing such abstracts and attested copies, as the director-general, the solicitor-general, the chief solicitor or a person authorised under the Law Officers Act 2011 , section 29 (1) (Person authorised by chief solicitor) requires.
In our view the matters to be considered in this case can be summarised as follows:
• S45(a)(i) – Market value of the land (interest) taken;
• S45(a)(ii) – Special value of any financial advantage of the land to the owner;
• S45(a)(iii) – Severance from other lands;
• S45(a)(iv) – Diminution in value of residual lands;
• S45(c)(i) – Loss damage or expenses incurred by the landowner arising from the acquisition;
• S45(e) – Legal and professional costs incurred.
We have assumed that costs incurred by the landowner which would be compensable under Sections 45 (c)(i) & 45 (e) will be indemnified by the LDA.
We also note that there is no Special Value (S45(a)(ii)) & Severance (S45(a)(iii)) matters to be applied to the assessments.
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9.2 Switching Station Site (4 hectares) This site is to be located towards the north western corner of Block 1601 in the vicinity of the existing high voltage powerlines that currently traverse the property. We note that the land proposed to be acquired adjoins an existing Transmission Line, and that the lines owner Transgrid is in the process of obtaining an “easement in gross” over a 60 metres width of land under it. We note that the land is 93% outside the easement area.
The plan below shows the indicative location and dimensions and is subject to survey.
NB: Plan shows original proposed 91.5 metre wide easement.
The current Crown Lease Purpose Clause does not permit the use of the land for Major Utility Installations uses. The Territory Plan does however provide for “Major Utility Installations” within the NUZ3 Hills Ridges and Buffer Zone as a merit track minimum assessment development. In our view the purpose clause could be easily varied to permit such a use at minimal cost.
We are aware of a similar situation at Block 1653 Tuggeranong District in 2009 where a 10.89 ha site was excised from a Crown Lease for a Transgrid substation at a “betterment” cost of around $34,500 which was 75% of an agreed value of $46,000. Significantly this figure was based on a value of $220,000 for the substation site ($20,000/ha) less a 10% allowance for loss in value to the residual
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lands by virtue of its presence on the land. This is the same approach as is required for the subject property in considering acquisition by agreement under the Act.
In assessing the value of the switching station site we have also researched sales of similar sites in NSW.
1. 656 Tarago Road Bungendore sold January 2010 for $133,500. This is a 2.34 ha site purchased by Council for a water treatment plant. Reflects $57,051/ha. Sale was for part of a site only.
2. Pt 1/1186544 Bungonia Road Marulan sold in December 2013 for $65,000. 2.955 ha vacant block 55% affected by powerlines. Purchased by Essential Energy (adjoining owner) for expansion of substation site. Reflects $21,997/ha. Sale was for part of a site only.
3. 31 Cedric Street Junee sold February 2014 for $185,000. This is a vacant 4.047 ha block adjoining the existing Junee substation. Zoned for rural residential use. Reflects $45,713/ha
4. Pt Lot 863 Kidman Way Griffith sold July 2014 for $363,000. Vacant 10.23 ha block situated adjoining the sewerage treatment works and the existing sub-station in West Griffith. Zoned SP2 Infrastructure. Reflects $35,484/ha. Sale was for part of a site only.
5. Cnr Princes Highway and Hector McWilliam Drive Tuross Head. Unreported sale of 1.25 ha site for future expansion of the substation for $130,000. Reflects $104,000/ha and appears a high sale. Sale was for part of a site only.
6. 1/1120270 Canyonleigh Road Marulan sold April 2010 for $375,000. This is a vacant 7.512 ha block purchased by Transgrid to regularise some environmental works associated with their existing adjoining sub-station. Reflects $49,920/ha and is considered a high sale. Sale was for part of a site only.
The sales reflect land values ranging from $21,997/ha to $104,000/ha and $65,000 ((2.955ha) to $375,000 (7.512 ha) per site. These sites are all located in lower value markets compared to the subject and are to that extent inferior lands.
We note also that in the majority of the above purchases the acquiring party paid for all survey and registration costs associated with creating the blocks. The prices agreed, where the blocks were only parts of existing holdings, also reflect the diminution in value to residual lands arising from the proposed works. The proposed site will not be visible from the existing structures on the land which mitigates against visual blight considerations.
Based on the above sales we have adopted a land value of $60,000/ha or $240,000 for the site. This value assumes that the purpose clause permitted the use and that the block was subdivided and separately saleable. It also includes consideration of the diminution in value to the residual lands arising from the works.
We have made an allowance of $50,000 for the landowner to vary the lease purpose clause to allow the use and so derive a value “as is” of $190,000.
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9.3 Water Reservoir Site – 2 hectares This site is to be located towards the north eastern corner of Block 1601 in an elevated location. The plan below shows the indicative reservoir location (yellow) and the likely access right of way (red) and is subject to survey.
The current crown Lease Purpose Clause does not permit the use of the land for such uses. The Territory Plan does however provide for “Major Utility Installations” within the NUZ3 Hills Ridges and Buffer Zone as a merit track minimum assessment development. In our view the purpose clause could be easily varied to permit such a use at minimal cost. Historically in the ACT such sites have been obtained by ACTEW (now ICON Water) at nominal cost from the ACT Government as an adjunct to residential developments.
Private developers do not have such recourse and must meet with market forces and induce potential vendors to sell. Alternatively the developer must forego an area of development land
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within their own development to accommodate the necessary structures, assuming suitable land is available. This also comes at a cost of the occupied land as well as potentially diminishing the value of the adjoining subdivided blocks.
In assessing the value of the reservoir site we have considered the sales included at 9.2 in relation to the substation site.
Based on these sales we have adopted a land value of $60,000/ha or $120,000 for the site. This value assumes that the purpose clause permitted the use and that the block was subdivided and separately saleable. It also includes consideration of the diminution in value to the residual lands arising from the works.
We note that the site will need to be serviced by an access right of way for around 300 metres from Stockdill Drive. We have assumed that this will not be fenced but is a further intrusion on the land for which the landowner should be compensated. We have allowed a single “one off” payment of $10,000 to compensate for the encumbrance.
As we have allowed for the Lease purpose clause variation in the previous section it does not need to be allowed here.
Total compensation for this item is therefore $130,000.
9.4 Easement for Powerlines The acquisition of an easement for powerlines differs from an acquisition of land insofar as the landowner retains use of the lands, albeit for a restricted number of potential uses. The landowner also has the impact of the structures and “Blot on Title” arising from the ceding of the interest. The extent of the loss to the landowner arising from such acquisitions has been the subject of many Court cases.
PRECEDENTS
Court cases give guidance but are rarely directly applicable. We have reviewed a number of cases in our assessment including but not limited to:
Mobbs v the Minister (1960) TLE 15m wide
Loss in land value of affected land assessed at 50% for an orchard block with subdivisional potential. 5% loss applied to 2 x 5 acre residential blocks affected on their edge by the easement.
State of Tasmania v Effingham (2005)- Gas pipeline
Injurious Affection (ie total compensation including the land taken) for a pipeline assessed at 5% for a line which included a valve site and Cathodic Protection boxes along the line that would necessitate 36 inspections per year. The loss of privacy and visual amenity seems to have been a major factor in the Courts deliberations.
Arrow v Electricity Commission (1994)
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Court allowed 3% diminution in the land value after allowing for the easement area and loss in value to the improvements. This was a 500 kV powerline easement through a rural property which had ongoing visual blight.
Kater v Electricity Commission (1996)
10% Injurious affection to the residual land value for a 500 kV powerline through a prestige property near Oberon. Diminution in value to some of the improvements was dealt with separately.
Longeranong Pty Ltd v Electricity Trust (SA) (1990)
Impact of easement is to be determined separately on the various components of the property and not the whole where the impact may be so slight as to be unnoticed.
Conclusion: All of the above give guidance but each case must be viewed on its merits.
The statement by Staple.J. in the matter Joyce v Northern Electric Authority of Queensland (1974) summarises the valuer’s job as follows :
“The principles to be applied in the taking of an easement are no different from those applying when the full fee simple is taken. This Court must restore, as best it may, the claimant, in money form, to the position which he enjoyed prior to the taking of the easement. For practical purposes it becomes a matter of assessing the extent to which he has been disadvantaged as the natural and reasonable consequence of the taking of the easement.
The test is the attitude of the hypothetical prudent purchaser and the extent to which in the opinion of such a person the claimant has suffered diminution in the value of the property resulting from the erection of the transmission line over his land, the creation of the easement including where appropriate severance and injurious affection damage .”
We have had regard to these cases and the provisions of the Lands Acquisition Act 1994 as summarised at 9.1.
The area of land affected by the proposed 60 metre wide easement is 6 ha and is shown as the yellow line in the plan below.
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The new easement traverses the northern boundary of the land from the north eastern corner to the proposed substation site (shown as the shaded box). The realignment of the powerline in this way allows for improved development outcomes on the lands to the north of the subject. We note that the property is already affected by a major transmission line through the centre of the block.
The effect of the easement on the land is twofold:
(i) the affection to the land burdened by the easement (approx. 6 ha);
(ii) the diminution in value to the residue of the land by the existence of the easement and line;
The land affected is mostly steeper grazing hills cleared for grazing and is about the average for the whole of the block. The line is to be situated at the front of the block and will have a significant visual impact on the property.
We set out our calculations of value as follows:
(i) Market value of affected land (S45(a)(i)).
Allow 50% loss of land value. Land still useable for grazing enterprise.
6 ha @ $7,500/ha x 50% loss = $22,500.
(ii) Loss in value of residual lands (S45(a)(iv)).
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The line is to be situated at the front of the block and will be a significant visual blight to the land. We note however that the block is already affected by a proposed 91.5 metre wide easement for a steel lattice tower Transgrid transmission line which traverses the block north – south through the centre. This interest is not noted on the title.
We have considered the impact of the substation site on the residue of the land in the assessment of its value (see 9.2). As the proposed easement and the substation site are related items we have considered the previous switching station allowance in making an allowance for the easement. We have made a 10% allowance to reflect the high visual impact of the line on the residue. We set out our calculations as follows:
Value of whole 327.28 ha = $2,460,000
Percentage affectation = 10%
Compensation Assessed = $246,000
Total compensation is therefore $268,500
9.5 The whole of the property i.e. Blocks 1601 & 1602 – 327.28 ha.
In assessing the current market value of the property we have had regard to its position and potentials. In particular we note the impact of planning restrictions relating to the nearby Lower Molonglo Water Treatment Plant as well as the prime location of the block to Canberra’s CBD.
Reconciling the sales:
Sale No Property Area(ha) Anal. LV CBD kms 1 "Glenlyle" Majura Road 131.66 $11,089 15 2 680 Oaks Estate Road 101 $12,871 10 3 "Wells Station" Adder Street 36.77 $24,476 13 4 "Rose Glen", 250 Woods Lane 107.4 $16,061 10 5 325 Kambah Pool Road 105.2 $13,754 19 6 "Kooringal" Wallaroo Road 122.6 $16,313 19 7 "Melrose Valley" Tuggeranong 239.16 $6,900 21 8 "Riverview" Cotter Road 250.187 $6,894 20
The most comparable sale is of “Lands End” which has a modest house, is located close to the subject and the City and is affected by powerlines and easements. This sale indicates a land value excluding buildings of $7,717/ha for superior land and location compared to the subject.
Significantly the only ACT sale to exceed $3.0M was that of Glenlyle (Sale 1 - $11,089/ha LV) which was a unique block with a substantial residence. This property took nearly 12 months to sell.
The other recent sale of “Melrose Valley” (Sale 7 - $6,900/ha LV) shows a lesser demand for properties which are “bona fide” enterprises requiring more landowner involvement. There is
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however continued strong interest in ACT rural leasehold properties for primarily residential purposes.
The NSW sales indicate land values, excluding buildings, of between $6,591/ha and $20,833/ha. The recent larger NSW property sales analysed land values range from $2,318/ha to $4,367/ha.
In our view the subject property, would be in demand by virtue of its size and value plus the potential for a purchaser to build a home to their liking.
In arriving at the adopted land values for the subject property we have had regard to the following unique features:
• Location close to Canberra’s CBD;
• No existing residence on the block;
• Good Farm buildings and improvements;
In our view these features will result in the subject property selling for a premium price if it were offered into the market.
Based on the above sales we have adopted a land value, excluding buildings, of $8,500/ha for the pasture improvable land and $4,500/ha for the steeper grazing land on the subject property.
We set out our calculations of value of the subject property as follows:
Land:
Pasture Imp. Slopes 192 ha x $8,500/ha =$1,632,000
Steeper Grazing Land 135 ha x $4,500/ha =$ 607,500
$2,239.500 ($6,848/ha)
Plus: Buildings (added value) =$ 220,000
Total =$2,459,500
Which we round to $2,460,000
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9.6 Block 1602 – 12.98 hectares This block is located at the north western corner of the property within 300 metres of the Lower Molonglo Water Treatment Plant. The block is within an area classified as RC1 which permits a range of uses. These are:
Development is compatible with the treatment plant, subject to the objectives and controls in the relevant zone. Note: Appropriate compatible uses may include the following: a) Ancillary use b) Agriculture c) Communications Facility d) Land management facility e) MAJOR UTILITY INSTALLATION f) Minor use g) Nature conservation area h) Parkland i) Road j) Rural business k) Scientific research establishment l) Temporary use m) Woodlot or other uses permitted under the relevant land use policy provided the uses do not provide for on-going habitation by people.
The land is also designated PD2 and MT1 under the Belconnen District Precinct Code as per the map below.
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The MT1 designation is generally specific to the Treatment Plant whilst the PD2 zoning relates to other uses. The code provides as follows: Table 1 – Additional prohibited development
Additional prohibited development
Suburb Precinct map label Zone Development
PD1 NUZ3 NUZ4 ancillary RESIDENTIAL USE outdoor recreation facility PD2 NUZ4 ancillary RESIDENTIAL USE
In our view the use of the block for any residential purposes would not be permitted. This limits the value of the land to rural uses.
In assessing the value of the property we have researched sales of rural blocks without building entitlements in the region. The following sales are considered to provide market evidence:
1. 390 Old Federal Highway Sutton sold 05/11 for $218,000. 6.33ha vacant site. Open cleared land and a good horse paddock. Reflects $34,439/ha. 2. 616 Kaveneys Rd Jeir sold 10/10 for $195,000. 9.87ha vacant site. Cut by gully and partly steep in contour. Reflects $19,757/ha. 3. 4/733897 Monaro Highway Michelago sold 08/12 for $250,000. 27.91 ha lightly timbered block. Reflects $8,957/ha. 4. 254 Hadlow Drive off Federal Hwy Sutton sold 12/13 for $225,000. 6.157ha cleared lot suited to horse paddock use with shed erected . Reflects $32,483/ha. 5. Lots 109/110 DP754911 Yass River Rd Murrumbateman sold 3/08 for $110,000. 36.46ha block in a remote locality. Reflects $3,017/ha rural value only. 6. 1474 Federal Hwy Service Rd Sutton sold 05/11 for $100,000. 12.56ha vacant lot. Reflects $7,962/ha. 7. Lot 114 DP754899 Butts Road Murrumbateman sold 08/07 for $175,000. 6.88 ha block improved with a metal clad “weekender” and having power connected. Reflects $21,802/ha.
Based on the above sales we consider that the subject site would attract a premium price in excess of its rural value, notwithstanding the fact that it cannot be used for residential purposes.
We set out our assessment of value for the site as follows:
12.98 ha @ $15,000/ha = $194,700 Rounded to $195,000.
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9.7 Land being Part Block 1602 – 6,000 square metre site for dog kennels This piece of land is situated at the north eastern corner of Block 1602. It is all undulating cleared land which has been historically grazed and pasture improved. The location of the site is shown edged yellow on the plan below.
Photo courtesy ACTMAPI
The proposal is that the land be developed as a commercial Dog Kennels and Cattery and will incorporate a single ancillary residence. The current purpose clause does not permit this use and it is unlikely that it could be varied to accommodate it.
We note that the site is within 300 metres of the Lower Molonglo Water Treatment Plant which appears to be within the one kilometre “residential exclusion zone” required by that facility and by the Crown Lease. We note also that the land is designated RC1 under the Belconnen District Precinct Code in the Territory Plan which states that residential use as well as “ancillary residential use” is prohibited. Subdivision of the lease is also prohibited but subleasing of part of the land would be permitted. The lease provides for up to 8 horses to be agisted on the land “for personal use’ and this provides an opportunity value to the subject land.
On this basis the land has rural value only. We note the strong demand for “horse paddocks” and horse agistment in the ACT and surrounding areas. Typical paddock agistment rates are $25-30 per
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week for a horse which equates to around $1,500 p.a. assuming the subject block could accommodate a single animal.
On the adopted rural land value basis of $8,500/ha the subject land has only a nominal value of say $5,000. As a horse paddock it has the potential to provide an income of $1500 pa which would give it an underlying value of $30,000 assuming a 5% yield.
We have assessed the value of the site at $25,000 however note that the greater loss arises from the noise associated with the future use of the land and its impact on the quiet amenity of the site.
As a site for dog kennels and cattery including a caretakers residence its value would be substantially higher.
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10. Contact Details
Denis Lovell M 0408 624 020 www.specialisedvaluations.com.au
Specialised Valuation Services Pty Ltd ACN 138601279 PO Box 206 Hall ACT 2618 Tel: 0408624020 Fax: 0262302003 Email: [email protected] “Liability limited by a scheme approved under Professional Standards Legislation”
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Assumptions, Disclaimers, Limitations & Qualifications
Valuation Subject Real Estate markets vary from time to time in response to changing market circumstances and it should, therefore, be noted that this valuation is based on available information To Change: as at the date of assessment. No warranty can be given as to the maintenance of this assessment into the future. It is, therefore, recommended that the assessment be reviewed as necessary.
Our This assessment is conducted on the basis that we are not engaged to carry out all possible investigations in relation to the property. We have identified certain limitations to our Investigations: investigations to enable you to instruct further investigations if you consider this appropriate. Specialised Valuation Services is not liable for any loss occasioned by a decision not to instruct further investigations.
Assumptions: Specialised Valuation Services adopts assumptions because some matters are not capable of accurate calculation or fall outside the scope of our expertise, or our instructions. Assumptions adopted by Specialised Valuation Services will be formulated on the basis that they could reasonably be expected from a professional and experienced valuer undertaking a similar assessment. However the risk that any of the assumptions adopted in this document may be incorrect should be taken into account.
Information This document contains information which is derived from other sources. Unless otherwise specifically instructed by you, we have only independently verified that information to Supplied By the extent that such verification would be reasonably expected from a professional and experienced valuer undertaking a similar assessment. Others:
Site Details: A current survey has not been provided. This assessment is made on the basis that there are no encroachments by or upon the property and this should be confirmed by obtaining a current survey report and/or advice from a registered surveyor. If any encroachments are noted by the survey report, we should be consulted to reassess any effect on the costs stated.
Property Title: We have assumed the property to be unencumbered. On instruction we were provided with copies of title searches for the property . We have assumed no further encumbrances or easements not disclosed by these searches. If such further searches reveal other encumbrances we reserve the right to review our assessment and change if necessary.
Environmental In the absence of an environmental site assessment relating to the subject property, we have assumed that the site is free of elevated levels of contaminants. Our visual Conditions: inspections of the subject property and immediately surrounding properties revealed no obvious signs of site contamination. Furthermore, we have made no allowance in our valuation for site remediation works. However, it is important to point out that our visual inspection is an inconclusive indicator of the actual condition of the site. We make no representation as to the actual environmental status of the subject property. We have also assumed that there are no existing or potential orders on the site by statutory authorities in relation to noxious weeds, or communicable stock diseases. If a test is undertaken at some time in the future to assess the degree, if any, of contamination of the site and this is found to be positive, we reserve the right to review our assessment.
Inclusions & Our assessment includes those items that form part of the building service installations such as heating and cooling equipment, lifts, sprinklers, lighting, etc., that would normally Exclusions: affix to the property, but excludes all items of plant, machinery, equipment, stock , crops, furniture and other such items which may be removable.
Floor Areas: We have calculated the floor areas in accordance with standard practice and they are a little more or less.. Should a survey be undertaken to determine the areas and there is a material variance, we reserve the right to review our assessment.
Condition & We have inspected the buildings, however we advise that we have not carried out a structural survey nor tested any of the services or facilities and are therefore unable to state Repair: that these are free from defect. We advise that we have not inspected unexposed or inaccessible portions of the building and are therefore unable to state that these are free from rot, infestation, asbestos or other hazardous material. We have, however, viewed the general state of repair of the property. Furthermore, the property appears to be in reasonable condition having regard to its age and use unless otherwise stated. Our assessment assumes that a detailed report of the structure and service installations of the building would not reveal any defects requiring significant expenditure. Additionally, we assume that the building complies with all relevant statutory requirements in respect of matters such as health, building and fire safety regulations. Valuation The primary valuation methodology used by Specialised Valuation Services in assessing the value of the subject property is the Direct Comparison with sales approach. The result Methodology is the best estimate of value SVS can produce, but it is not a guarantee or a prediction. A cross section of reviewed transactions are included in this report however other materials may have been used in the overall assessment Liability Liability limited by a scheme approved under Professional Standards Legislation. Disclaimer:
Extension of This report is only for the party to whom it is addressed and for the purpose outlined in the instruction. Use or reliance on the report by third parties is not authorised and Liability Specialised Valuation Services is not liable for any loss arising from such unauthorised use or reliance. Under no circumstances is the report to be used for mortgage security purposes
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ANNEXURES
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ANNEXURE 1 INSTRUCTION
Gordon, Tom
to Steven, me, David, gtrevaskis
Hello Steve and Denis,
As discussed last week, the following instruction is provided with respect to the valuation of the property at Blocks 1601 and 1602 Belconnen.
The Valuers are instructed to provide independent market advice having regard to the principals set out in Part 5 (S32) of the Lands Acquisition Act 1994. That is, that the dispossessed Crown Lessee is no worse off as a result of the acquisition.
The interests to be valued are as follows;
• The Value of the proposed Electrical Switching Station site of 4 ha (as identified on the plan provided).
• The value of the proposed Water Reservoir site of 2 ha
• The impact on value of the proposed Powerline Easement (length and width to be confirmed but as per plan)
• The Value of the whole property i.e. Block 1601 and 1602 (based on its current Crown Lease)
• The Land value of Block 1602 in isolation (based on its current Crown Lease)
• The value of a 6000 sqm portion Block 1602 (based on its current Crown Lease, assuming subdivided as per plan) Regards, Tom Tom Gordon | A/g Executive Director Land Development Agency Level 7 TransACT House, 470 Northbourne Avenue, Dickson ACT 2602 Phone: 02 62075553 | Fax: 02 62076110 | Mob: 0401133018 | Web: www.lda.act.gov.au Please consider the environment before printing this e-mail
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ANNEXURE 2 CROWN LEASE
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ANNEXURE 3 LOCATION MAP
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ANNEXURE 4 CERTIFICATE OF TITLE
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ANNEXURE 5 AERIAL PHOTOGRAPH
Photo courtesy Google
Subject property edged Yellow
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ANNEXURE 6 Block 1601 Consolidated Plan
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