CHALLENGE
Greystar engaged Savills to provide a valuation for internal accounts purposes.
The Quill is a development site with Resolution to Grant for 905 purpose-built student accommodation beds. Full planning permission was expected imminently on the signing of the Section 106.
SOLUTION
Savills undertook the valuation using the following methodology:
- Review of forecast gross income in 2019/20 terms and assessment of Market Rent;
- Analysis of forecast Operating Expenditure, benchmarking this against market comparables including the Chapter portfolio;
- Assessment of Net Operating Income (NOI);
- Capitalisation of NOI using an appropriate Net Initial Yield, derived from analysis of similar transactions, to calculate Gross Development Value;
- Assessment of Market Value using a residual calculation.
As part of this process Greystar required various Special Assumption valuations based on proposed changes to the floor plans, which Savills were happy to provide.
RESULTS
Savills delivered high quality valuation services for our client, and also assisted with meetings and discussions with accountants and auditors.