GDA ŃSKA AGENCJA NIERUCHOMO ŚCI VALUATION SURVEY specifying market value of land property located in Gda ńsk in the area of streets: Benzynowa and Pło ńska, plots no. 147/1, 149/2, 148/3
Ordering Party: Gda ńska Agencja Rozwoju Gospodarczego Sp. z o.o., ul. Żaglowa 11, 80-560 Gda ńsk
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Aim of the valuation: determination of market value of the real estate for the purpose of making contribution in kind to the company
Prepared by: Beata Jezierska [signature] [oval stamp of the valuation assessor]
ul. Orfeusza 16/11, 80 - 299 Gda ńsk phone: 7628133, 0601 681268 1
ABSTRACT FROM VALUATION SURVEY
Object of the valuation survey: land property situated in Gda ńsk, in the area of streets: Benzynowa and Pło ńska, plots no. 147/1, 149/2, 148/3 of total area equalling 82536 m 2.
Aim of the valuation: determination of market value of the real estate for the purpose of making contribution in kind to the company
Subject with rights to the real estate: owner Municipal Commune of Gda ńsk
Type of determined value: market value
Date of valuation: 28.11.2013
Preparation of the survey: 27.11 -28.11.2013.
Estimated value: 7,315,200.00 PLN.
/seven million three hundred fifteen thousand two hundred PLN/
valuation survey prepared by: Beata Jezierska [signature] [oval stamp of the valuation assessor]
ul. Orfeusza 16/11, 80 - 299 Gda ńsk phone: 7628133, 0601 681268 2
LIST OF CONTENTS
I. GENERAL PART ...... 4 1.1 Formal regulatory information...... 4 1.2. Object of valuation ...... 4 1.3. Scope of valuation...... 4 1.4. Legal status of the object of valuation ...... 4 1.5. Aim of valuation ...... 5 1.5. Legal and methodological bases of valuation ...... 5 1.5.1. Formal issues against regulations in force...... 6 1.6. Documents and information used in the course of the valuation...... 6 1.7. Date of valuation ...... 7 1.8. Conditions and assumptions ...... 7 1.9. Type of determined value...... 7 1.10. Urban planning conditions...... 8
II. BASIC PART...... 11 2.1. Selection of approach, methodology ...... 11 2.2. Characteristics of local market ...... 11 2.3. Features of the real estate ...... 12 2.5. Economic analysis of the market...... 13 2.6. Analysis and characteristics of the real estate market in the scope relating to the aim and method of the valuation ………………………………………………………………14
III. DETERMINATION OF MARKET VALUE OF THE PROPERTY……………………. 18 3.1. Determination of real estate market value…………………………………………….18 3.2. Final determination of value of the real property……………………………………..18 4. Clauses and reservations………………………………………………………………….21
ul. Orfeusza 16/11, 80 - 299 Gda ńsk phone: 7628133, 0601 681268 3
I. General part
1.1. Formal-regulatory information
Ordering Party: Gda ńska Agencja Rozwoju Gospodarczego Sp. z o.o., ul. Żaglowa 11, 80-560 Gda ńsk
Mandatory: mgr in ż. Beata Jezierska Property assessor, license no. 2757 granted by the President of Housing and Urban Development Office, Gda ńska Agencja Nieruchomo ści, ul. Orfeusza 16/11, 80-299 Gda ńsk.
1.2. Object of valuation
The object of valuation consists of land property, plots no. 147/1, 149/2, 148/3 of total area 82536 m 2 located in Gda ńsk in the area of streets: Benzynowa and Pło ńska.
1.3. Scope of valuation
The scope of valuation includes the determination of the market value of this land property ownership.
1.4. Legal status of the object of valuation
Cadarstal particulars province: Pomerania cadastral unit- Gda ńsk precinct- 300S sheet 1 plot no. -147/1 area - 19123 m 2 cropland RIVb 0.8873 ha, RV 0.5200 ha, ŁIV 0.2600 ha, PSIII 0.1750 ha, W 0.0700 ha Real Estate Register [KW]- 82692 province: Pomerania cadastral unit- Gda ńsk precinct- 300S
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sheet 1 plot no. - 148/3 area - 28373 m 2 cropland RIVb 1.5734 ha, RV 0.7168 ha, ŁIII 0.3747 ha, W 0.1724 ha KW - 15267 province: Pomerania cadastral unit- Gda ńsk precinct - 300S sheet 1 plot no.- 149/2 area - 35040 m 2 cropland RIVb 2.9339 ha, ŁIV 0.3901 ha, W 0.1800 ha KW - 86637
In section I of Real Estate Register [KW] the plot no. 147/1 R is specified as cropland, area 1.9123 ha. The owner of the real estate is Municipal Commune of Gda ńsk, section III and IV of the Register are free from entries.
In section I of KW 15267, among others, the plot no. 148/3 is entered R-cropland, area 2.8373 ha. The owner of the real estate is Municipal Commune of Gda ńsk, section III and IV of the Register are free from entries.
In section I of KW 86637, among others, the plot no. 149/2 is entered R-cropland, area 3.5040 ha. The owner of the real estate is Municipal Commune of Gda ńsk, section III and IV of the Register are free from entries.
1.5. Aim of valuation
The aim of this valuation is determination of market value of the real estate for the purpose of making contribution in kind to the company.
1.5.1. Formal issues against regulations in force
The Act of 21 August 1997 on real estate management (Consolidated text, Journal of Laws of 2010 no. 102, item 651, as amended), This Act specified the principles for real estate valuation. The Provisions of this Act are applied to all sorts of real estates, regardless of type, location and designation, and also regardless of the ownership and aim of valuation, excluding the determination of real estate value for the purpose of realization of the Act on integration and replacement of land. The Act defines the notion of market value of the real estate and lists the methods of real estate value determination, constituting the approaches of the valuation. Real estate valuation is carried out by the property assessor, who is defined as
ul. Orfeusza 16/11, 80 - 299 Gda ńsk phone: 7628133, 0601 681268 5
a natural person with professional license in the scope of property valuation, granted in the mode provided in the aforementioned Act.
Resolution of the Council of Ministers of 21 September 2004 concerning real estate valuation and preparation of valuation survey (Journal of Laws of 2004, no. 207, item 2109, as amended). This Resolution determines the types of approaches, methods and techniques of valuation as well as manners of property value determination using particular approaches, methods and techniques of valuation. The Resolution includes manners of real estate valuation for various aims and purposes, depending on ownership and the designation of a given real estate. Chapter 4 of this Resolution includes the regulations concerning the management, form and contents of the valuation survey.
Professional Standards Property assessor is obliged to perform duties in accordance with the principles stemming from professional rights and standards, with due diligence proper for the character of activities and principles of professional ethics, observing the rule of impartiality in the valuation of the real estate (art. 175 point 1). Professional standards are determined by professional associations of property assessors in agreement with the proper minister for civil engineering, spatial and housing planning. The notice on the settlement of professional standards is included in the Law Gazette of the minister proper for civil engineering, spatial and housing planning (art. 175, point 6).
1.5.1. Formal issues against regulations in force
As a result of this valuation, the market value or replacement value is determined. Market value is determined for real estates which are or may be the subject of turnover (contrary to the replacement value, which is determined for real estates that due to their present use or designation cannot be subject to market turnover).
The binding definition of the market value of the real estate is included in art. 151 section 1 of the Act of 21 August 1997 on real estate management.
1.6. Documents and information used in the course of valuation
Documents and information provided by the Ordering Party: - order for valuation survey;
Sources of information: - Notarial deeds concerning the sale of comparative real estates –data from Geodetic Department in the Municipality of Gda ńsk,
ul. Orfeusza 16/11, 80 - 299 Gda ńsk phone: 7628133, 0601 681268 6
- real estate site inspection; - analyses and own sources of information.
1.7. Date of valuation Value of the subject of survey was determined as of 27.11.2013, prices as of 28.11.2013. Date of preparing valuation survey- 27-28.11.2013.
1.8. Conditions and assumptions 1. This valuation survey was prepared pursuant to regulations and professional standard in force. 2. The determined value does not include the amount of input needed for the repayment of possible financial liabilities burdening this real estate.
1.9. Type of determined value Market value is determined for real estate which is or can be subject to turnover. Market value is calculated as a market value as understood in the provisions of the Act on real estate management (art 151 section 1) Art. 151 Real estate market price is the most probable price to obtain on the market, determined taking into account transaction prices, making the following assumptions: 1) contractual parties were independent from one another, were not acting under duress and had absolute intention to conclude a contract, 2) the necessary time passed to exhibit the real estate on the market and negotiate contractual terms and conditions
At the determination of the real estate market value the following is taken into account: type of real estate, location, manner of use, designation, degree of equipping with technical infrastructure, condition of the real estate and current prices in real estate turnover.
- type of real property- land property, real estate- building, residential premise; - location- locality attractiveness- location in the town/ district, vicinity- aesthetics and neighbouring facilities, communication availability, distance from trade and service facilities, educational facilities, green areas, communication-related noise degree, etc.; - manner of use- function of the facilities located on the land property (office, warehousing, service, production, trade, residential function, etc.);
ul. Orfeusza 16/11, 80 - 299 Gda ńsk phone: 7628133, 0601 681268 7
- designation- determination of land designation, possibility of prospective development- town planning conditions, environment protection conditions, principles of infrastructure servicing; - degree of equipping with technical infrastructure- utility infrastructure of the land, service lines and connections; - real estate condition- degree of development, legal status, technical and utility condition, as well as the condition of the surrounding of real estate, character and urbanization degree of the town in which the real estate is situated; - prices in real estate turnover- transaction prices obtained on the market with following assumptions: independent character of the parties, acting without duress, absolute intention of concluding contract, necessary time lapse for the exhibition of the real estate on the market and negotiation on contractual terms; after the exclusion of the transactions under extraordinary conditions having impact on payment terms grossly differing from average prices obtained on the real estate market.
1.10. Urban planning conditions
Pursuant to the local spatial development plan no. 1507 the plots subject to valuation are located in the production and service area.
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AREA SHEET FOR THE LOCAL SPATIAL DEVELOPMENT PLAN GDA ŃSK-PŁONIA, in the area of streets: Naftowa, Benzynowa and Pło ńska in the city of Gda ńsk Reg. no. of the plan 1507
1. AREA SHEET NUMBER 001 2. AREA 83.90 ha 3. ZONE OR FUNCTION Zone no. 42 production and service zone [area] 4. EXCLUDED FUNCTIONS
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commercial facilities of sales area exceeding 2000 m 2, 5. EXISTING DEVELOPMENT PLAN REGARDED AS CONFORMING WITH THE PLAN existing agricultural sites, ______6. TOWN PLANNING CONDITIONS ______not determined ______7. PRINCIPLES OF DEVELOPMENT AND LANDSCAPE ARCHITECTURE ______not determined ______8. PARKING LOTS ______pursuant to § 4, ______9. PRINCIPLES OF SERVICING IN THE SCOPE OF TECHNICAL INFRASTRUCTURE ______1) road availability- from [street] ul. Benzynowa 026-82 (limited) and from ul. Benzynowej 017-81, 2) water supply- from water network or own water intake, 3) waste water drain- to sanitary sewage system, 4) rainwater drain, regulation of water levels- rainwater system or to surface waters, lowering the level of underground water by means of drainage ditches and rain and drainage system, 5) electric power supply- from power network, 6) gas supply - from gas pipeline or own wireless gas container, 7) heating supply- from heat distribution network or from low-emission local sources, 8) waste management - after waste segregation, disposal to the municipal waste dump. ______10. CONDITIONS STEMMING FROM CULTURAL ENVIRONMENT PROTECTION ______not determined, ______11. CONDITIONS STEMMING FROM NATURAL ENVIRONMENT PROTECTION ______1) location of the strip of high greenery, as in the drawing of the plan, from the street 026-82 and from 017-81, width minimum 15 m, 2) prohibition to drain untreated rainwater to the "B" drainage ditch, 12. DANGERS AND LIMITATIONS ______1) existing oil pipelines, 2) area with high level of underground water, 3) depression area, mechanically drained, 4) "B" drainage ditch goes though the area, ______13. TEMPORARY DEVELOPMENT MANNER ______not determined, ______14. ZONES OF ORGANIZED INVESTMENT ACTIVITY, REHABILITATION, CONVERSION OF DEVASTATED AREAS ______not determined, ______15. PERCENTAGE RATE ______0% ______16. PROVISIONS RESULTING FROM DETAILED REGULATIONS ______1) area within borders of protection zone of the oil refinery, 2) location of development constituents in the vicinity of flood-control wall pursuant to detailed regulations, 3) in case of erection of new buildings, the following regulations must be observed: regulations concerning technical conditions for liquid fuel stations and bases, long-range pipelines for ______transmission of oil and petroleum products; and location of these buildings. ______17. OTHER REGULATIONS IN FORCE ______1) the proper functioning of B drainage ditch must be maintained- permissible alteration of the route of this ditch with maximum preservation of its open channel, 2) in case of alteration of ditches and drainage channels it is required to present the comprehensive design for drainage in the scope of their existing activity, 3) along "B" drainage ditch, at the section perpendicular to the street: Benzynowa (in the vicinity of Rafineria Gda ńska [oil refinery] waste water treatment plant), the strip of land of 8.00m must be maintained for the existing access in the scope of engineering passage. ______18. RECOMMENDATIONS AND INFORMATION NOT CONSTITUTING THE BASIS FOR ADMINISTRATIVE DECISIONS
ul. Orfeusza 16/11, 80 - 299 Gda ńsk phone: 7628133, 0601 681268 9
1) long-distance pipelines for transmission of oil and petroleum products must be led in the technical infrastructure passage; - as in the drawing of the plan. Recommended to lift the area to the elevation of +1.00 m above the sea level, 2) recommended introduction of greenery in the form of trees and bushes in groups, 3) recommended separation of drainage system from the remaining draining ditch system for Przejazdowo polder. ______
ul. Orfeusza 16/11, 80 - 299 Gda ńsk phone: 7628133, 0601 681268 10
2. Basic part
2.1. Selection of approach, methodology
The selection of the proper valuation approach was made on the basis of art. 154 of the Act of 21 August 1997 on real estate management, taking into account the aim of the valuation, type and location of this land property, designation in the local spatial development plan, degree of equipping with technical infrastructure facilities and data available on prices and features of similar real estates. In order to specify market value the comparative or income-bearing approach is applied. Due to the existence of real estate transaction of the market for real estates of the same type, the application of a comparative approach for this valuation was possible and justifiable. In order to determine the value of this real estate the comparative approach was selected, method of average price correction.
While applying comparative approach it is necessary to be familiar with real estate transaction prices, similar to the real estate under valuation, as well as features of these real estates.
In case of average price correction method we take -for the purposes of comparison- at least a dozen real estates similar to the one under valuation (as far as location is concerned), which were subject to market turnover and in connection with which transaction prices are known, transaction conditions and real estate features are available. The value of the real estate under valuation is determined by means of average price correction of a similar real estate using correction coefficients, taking into account the difference in particular features of these real estates.
2.2. Characteristics of local market
2.2.1. Type and area of the market
It was assumed that the market used for the comparison and valuation is the land property market situated in the city of Gda ńsk. As a result of research and analyses, the market was limited to land properties with similar features to the plot under valuation, the scope of the market was widened.
2.2.2. Period of prices review
The market in the period from 2010 until the date of valuation.
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2.3. Features of the real estate
Designation of the real estate These plots are located in Gda ńsk, in north-eastern part of the city between streets: Benzynowa and Pło ńcka, in the district of Rudniki. Rudniki district is situated between "Dead Vistula River" and Motława river runoff, at the Vistula Fenland. Rozwójka channel goes through this area. In the north, through Dead Vistula River, Rudniki district borders with the Port Island. In the each Rudniki borders with the rural commune of Pruszcz Gda ński, and in the west- with Olszynka. Rafineria Gda ńska [oil refinery] and LOTOS Kolej, belonging to LOTOS SA Group. occupy the substantial part of this city area. State road no. 7 goes through the area as Elbl ąska street. "Sucharski route" under construction crosses this road perpendicularly, connecting Rudniki with the Port Island via "John Paul II" Bridge. These is also a cargo railway route no. 226 which leads through the area. Shunting yard of Rafineria Gda ńska is located there. In the area of the district there is a small amount of residential development- mainly single-family houses, gathered in the area of Miałki Szlak street. The remaining area constitutes of cropland and railway siding of Rafineria Gda ńska. Elbl ąska street is the main communication line in this part of the city, and is also the outlet route from the city in the direction of Warsaw.
The plots in total constitute the area of polygonal shape, land area amounts to 82536 m 2 including plot no. 147/ - 19123 m 2, plot no. 149/2 - 35040 m 2, plot no. 148/3 - 28373 m 2. In the direct vicinity of these plots there is undeveloped area, neighbouring with the territory of Rafineria Gda ńska. There is no designated access road to this real estate. The real estate is accessible from Pło ńska street.
Features: shape - total plot area is polygonal, rather regular, total area - 82536 m 2, development- plots area is not developed territorial development - none, no designated access road
Plot 147/1
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ul. Orfeusza 16/11, 80 - 299 Gda ńsk phone: 7628133, 0601 681268 12
Plot 149/2
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Plot 148/3
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2.5. Economic analysis of the market The city of Gda ńsk is the capital of Pomerania province. Gda ńsk has the population of 456,600.00 citizens, together with Gdynia and Sopot it constitutes the urban conurbation called the Tricity with 743,000 residents and more than 100,000 companies registered there. The economy in Gda ńsk is diversified. Approx. 99% of companies registered in the city are small and medium enterprises employing less than 50 people. Approx. 30% is active in the financial sector, 24% in trade, 12% in industry and 10% in construction. Services play the important role in local economy and generate 73% (for Poland: 65%) gross value added (GVA) and employ 73% (for Poland: 50%) of professionally active people. Services sector includes: public administration, financial services (for instance, banks and insurance companies), real estate market services, IT, healthcare (there are nine hospitals functioning in the area of the city) and trade. Industrial section together with construction branch is well-developed. Its share in GVA structure as well as in employment amounts to 26%. Due to attractive location and availability of qualified
ul. Orfeusza 16/11, 80 - 299 Gda ńsk phone: 7628133, 0601 681268 13
workers, Gda ńsk is an attractive place for foreign investors functioning in electronic, IT, biotechnological and innovative technology markets.
7.2. Analysis and characteristics of the local market
Real estate markets, due to their specific character, are difficult and troublesome in assessment, they are not easily subject to detailed analyses. There are no uniform explanatory models for price development on real estate markets. The aim of the research is the analysis of factors shaping selected elements of land property market by means of objective assessment of market factors, influencing transaction prices for real estates. The need for market analysis stems from- among others- the necessity to manage efficiently the limited real estate resources and the important role of this market in spatial economy. The knowledge of market value of real estate and market factors creating this value is the vital issue in many cases, particularly for the purpose of market turnover and for administrative purposes. The transactions preceding market analyses allow for gathering information on attributes and degree of their impact on market prices of real estates. Market analysis is based on reviewing factors shaping demand, supply and prices, as well as conditions of ownership transfer. The aim of the analyses is the detection of regularities and connections between market constituents and factors influencing them and providing information on preferences and motives of market proceeding participants.
Gda ńsk is the largest economic, scientific and cultural centre of Polish Coast. The city itself is an important communication point with the deepest and one of the biggest ports at Baltic Sea, international airport, railway and road networks. Gda ńsk has been preparing for the completion of several large town-planning projects which shall contribute to the increase of commercial areas with various functions.
At present, there are several dozens of housing investments in the area of the city. Local real estate market has moderate amount of free-market transactions of sale of lands. The following factors influence the price of the real estate: location, vicinity, condition, access to technical infrastructure, access road, type and condition of ground drifts.
2.6. Analysis and characteristics of the real estate market in the scope relating to the aim and method of the valuation
For the purpose of valuation the local market of undeveloped real estates for the purposes of production or service and production development was taken into account. The research included the whole area of Gda ńsk city, rural commune of Pruszcz Gda ński- town Przejazdowo located at state road no. 7, in the direct vicinity of the territory of Gda ńsk city. As a result of these analyses, the market area was limited to
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districts outside the central part of the city and outside the town of Przejazdowo. Due to the character of the analysed market and frequency of sale of undeveloped land in transaction turnover, the period of transaction research includes data obtained in the period from January 2010 to the date of valuation. The period for analysis was forced due to the specific character of the land property. At present, there has been substantially smaller real estate turnover in comparison with the preceding years. From the afore-defined market the sale transactions of undeveloped land properties were noted down and analysed. Some transactions were not taken into account due to the suspected particular conditions of transaction, causing the price settlement grossly differing from the average market prices of real estates. The features of similar land properties were found.
The undeveloped land property market of plots with industrial designation, on the analysed area, is a low-activity market. On the basis of the local market observation it was established that the value of the real estate is substantially dependant on the area function designated in the spatial development plan. The analysis of buyers' preferences leads to conclusion that -apart from the designation in the spatial development plan- the location and investment opportunities are also vital. Price differences stem from the particular location, including the direct vicinity, degree of urbanization, communication accessibility and access to facilities.
Among transactions collected for analysis, there are plots of small and large areas. Transaction prices show that both the plots of small areas and of large areas, on the specified local market are subject to sale and the obtained prices are equally high. The size of area varies and is contained in the scope of 32 to 99.949 m 2. The weight of the market price, which is the land area, can be ignored, as there are no grounds for indicating a particular area section with similar features. The aforementioned confirm the statement that area is the constituent of real estate investment potential. The figure below presents the analysis in this scope.
[figure] [explanatory notes to the figure:] plot area price per 1 sq.m. linear (plot area)
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Average prices of industrial plots in the area of Gda ńsk city included in the range between 20 and 260 PLN/m 2, there were also several transaction for lower and higher prices. After the exclusion of transactions from areas in districts incomparable due to the location, the prices vary in the scope from 10 to 120 PLN/m 2, and the accessible transaction prices (without extreme prices, excluded from the valuation) vary from approx 12.19 PLN/m 2 to approx 119.06 PLN/m 2. On the basis of the collected transactions, the alteration of price level was analysed, taking into account the time lapse, and the update of prices due to the time lapse was not performed.
2013-11-27 tendency of increase
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The representative group consisted of 11 transactions, among which the lowest price of 12.19 PLN/m 2 was noted (the complex of two plots of 32558 m 2 area, situated in the town of Przejazdowo rural community of Pruszcz Gda ński, plots of regular polygonal shape, situated at the state road no. 7, undeveloped area, covered with wild greenery, in the direct vicinity of undeveloped plots, in the close vicinity of developed lands with production and residential functions) as well as the highest price amounting to 119.06 PLN/m 2 , located at Maszynowa street in Gda ńsk Kokoszki, of 99949 m 2 area and irregular shape, in the vicinity of production-service developed area). Average market price amounted to: 72.89 PLN/m 2.
Factors identifying the market: In the context of the performed analysis and legal conditions for the valuation, taking into account the features of the real estate being the subject of valuation, as the most essential market factors influencing the value of the assessed real estate, the following were determined: localization, vicinity, investment potential, availability of infrastructure.
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The particulars concerning transaction prices mentioned below are taken from notarial deeds- sales contract in the period of market research. 1m 2 of land area is regarded as a unit for comparison.
LIST OF TRANSACTIONS INCLUDED IN CALCULATIONS
2 Transaction Poviat Town/Commune Precinct Plot area Price 1 m date 2013-02-01 Gda ńsk Gda ńsk Rudniki 12277 89.60 2012-07-27 Gda ńsk Gda ńsk Klukowo 2955 109.98 2011-12-29 Gda ński Pruszcz Gda ński rural Przejazdowo 41070 93.74 commune 2011-12-19 Gda ński Pruszcz Gda ński rural Przejazdowo 32558 12.44 commune 2011-11-23 Gda ńsk Gda ńsk Rudniki 10484 23.46 2011-11-17 Gda ńsk Gda ńsk Kokoszki 99949 119.06 2011-01-31 Gda ński Pruszcz Gda ński rural Przejazdowo 32558 12.19 commune 2010-11-15 Gda ńsk Gda ńsk Rudniki 95 110.50 2010-09-20 Gda ńsk Gda ńsk Klukowo 9746 87.63 2010-04-14 Gda ńsk Gda ńsk Kokoszki 1100 109.09 2010-05-28 Gda ńsk Gda ńsk Kokoszki 18300 34.15
Determination of limits of correction coefficients
On the basis of data included in the table, the following input is estblished:
2 Cśr – average price 1 m land property determined on the basis of representative sample of n = 11 equals 72.89 PLN/m2 2 Cmin – minimum price in a sample 12.19 PLN/m 2 Cmax – maximum price in a sample 119.06 PLN/m
The limits of correction coefficients are as follows:
Cmin 12.19 Cmax 119.06 ------= ------= 0.17 ------= ------= 1.63
Cśr 72.89 Cśr 72.89
ul. Orfeusza 16/11, 80 - 299 Gda ńsk phone: 7628133, 0601 681268
3. DETERMINATION OF MARKET VALUE OF THE PROPERTY
3.1. Determination of Real estate market value Real estate market factors and their assessment item Market factor Assessment Description 1. location good location attractiveness- location average in the area of the local market satisfactory sufficient 2. vicinity good location within district, aesthetics of the average surrounding and neighbouring facilities, degree of satisfactory urbanization sufficient 3. availability of very good communication availability, access road (type of infrastructure good pavement, condition), access to territorial average development, possibility of connection to sufficient infrastructure situated in short, medium and substantial distance 4. investment good investment potential: town planning conditions, potential average urbanization conditions, environmental, conditions, archaeological conditions, limitations resulting from spatial development plan, restrictions, exclusions, physical conditions (surface, shape of the plot, area line), geo-technical conditions, degree of development, manner of use; water conditions, necessary input before investment initiation limited
List of weights of market prices item factor factor weight (%) 1. Location 30 2. Vicinity 15 3. Investment potential 35 4. Availability of infrastructure 20 100
ul. Orfeusza 16/11, 80 - 299 Gda ńsk phone: 7628133, 0601 681268 Determination of corrective coefficients sum
item Type of factor Factor Scope of corrective Characteristics of coefficient value weight in coefficient the real estate % lower upper under valuation 1. Location 30 0.051 0.489 average 0.343 2. Vicinity 15 0.026 0.244 average 0.171 3. investment 35 0.059 0.571 good 0.571 potential 4. availability of 20 0.034 0.326 average 0.131 infrastructure 100 0.17 1.63 1.216
Market value 1 m 2 of the assessed real estate was calculated in the basis of the following equation:
[equation] where:
2 2 W 1m -market value of 1 m land property area, 2 C śr - average price of 1 m land property area on the local market determined on the basis of the representative sample, u i -value of correction coefficient.
Market value 1 m 2 amounts to:
2 2 W1m2 = 72.89 PLN/m x 1.216 = 88.63 PLN/m
Valuation of the real estate amount to:
W = 82536 m 2 x 88.63 PLN/m 2 = 7,315,165.68 PLN
after rounding 7,315,200.00 PLN including: plot no. 147/1: W = 19123 m 2 x 88.63 PLN/m 2 = 1,694,871.49 PLN
after rounding 1,694,900.00 PLN plot no. 148/3:
W = 28373 m 2 x 88.63 PLN/m 2 = 2,514,698.99 PLN
after rounding 2,514,700.00 PLN plot no. 149/2:
W = 35040 m 2 x 88.63 PLN/m 2 = 3,105,595.20 PLN
after rounding: 3,105,600.00 PLN
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ul. Orfeusza 16/11, 80 - 299 Gda ńsk phone: 7628133, 0601 681268 Valuation survey... Gda ńsk, area of streets: Benzynowa and Pło ńska, plot no. 147/1, 149/2, 148/3
3.2. Final determination of value of real property
Final market value of the land property under valuation equals:
7,315,200.00 PLN /seven million three hundred fifteen thousand two hundred PLN/
The assessed market value of the real estate was achieved using the comparative approach of real estate comparison in pairs, assuming that the value of the assessed real estate is expressed in prices obtained for similar real estates which were subject to market turnover. The real estate market analysis completed in the scope of the aim and manner of valuation allowed for notification of real estates similar to the one under valuation. Valuation procedure led to the determination of market value of the real estate. This value includes all the individual features of the real estate under valuation and this is the most probable price that may be reasonably obtained in the market transaction as of the date of valuation.
prepared by: Beata Jezierska
[signature] [oval stamp of the valuation assessor]
______20 ______ul. Orfeusza 16/11, 80 - 299 Gda ńsk phone: 7628133, 0601 681268 Valuation survey... Gda ńsk, area of streets: Benzynowa and Pło ńska, plot no. 147/1, 149/2, 148/3
4. Clauses and reservations - This valuation survey was prepared in accordance with the regulations in force and professional standards for property assessors belonging to Polish Federation of Property Assessors' Associations. - The basis for determining the legal and factual status of the real estate were documents, materials and information provided by the Ordering Party. - The property assessor is not liable for legal issues. All rights to appoint receiver were regarded as transferable in the scope of the analysis binding for the assessor and were not subject to separate research. - The remuneration for the valuation of the real estate was established in the course of negotiations between the Ordering Party and the mandatory. The amount of the remuneration does not depend on the value of the assessed real estate. - All reviews of the existing documents were performed exclusively for the purposes of this valuation survey and cannot be used for other purposes. - This valuation survey cannot be published as a whole or in parts in any document without written consent of its author and without agreement on the form and contents of this publication. - This valuation survey cannot be used for any other purpose than the one specified in this survey. - This survey was issued in two equivalent copies, copying/ reproduction of this document is strictly prohibited. - The value of the real estate may alter as a result of the changing market situation.
______21 ______ul. Orfeusza 16/11, 80 - 299 Gda ńsk phone: 7628133, 0601 681268