Campus Living Villages (CLV) and Arlington Investors engaged Savills to provide a Red Book valuation for bond noteholders. The portfolio consists of 4,540 beds across eight assets in seven towns and cities throughout England and Wales. The assets include student accommodation, commercial and retail space, held on a mixture of freehold and leasehold interests.
For each of the assets within the portfolio Savills provided opinions of value on the market value of the freehold/leasehold interests, plus estimated reinstatement cost.
The methodology undertaken was as follows:
- Review of forecast gross income in 2018/19 terms and assessment of market rent
- Analysis of forecast operating expenditure, benchmarking this against market comparables
- Assessment of net operating income (NOI)
- Capitalisation of NOI using an appropriate net initial yield, derived from analysis of similar transactions
Savills delivered thorough, diligent and high-quality valuation services, also assisting with post valuation meetings and follow-up queries in respect of the portfolio valuation.