property valuations

Locam Real Estate performs valuations and appraisals of real estate used to secure unpaid credits (NPLs/UTPs), also in view of national and international standards.

Appraisals prepared by our valuers seek to preserve the value of property collateral with a positive impact also in terms of efficiency in credit recovery and during the technical due diligence phase for the property.

All of Locam Real Estate’s valuers meet the requirements of the UNI 11588:2014 standard, also referenced by the ABI.

For their part, the appraisal reports are drawn up in accordance with the requirements and methodologies set out below:

  • ABI, guidelines for the valuation of real estate as collateral for credit exposure;
  • Property Valuation Code, Tecnoborsa;
  • Article 568 of the Italian Code of Civil Procedure – presence of civic use.

Various estimation criteria are also utilised:

Comparative: a comparison of the property in question with other similar properties recently purchased, sold or rented or currently offered on the same market or on competitive markets, by deriving values from market analyses and correlating such with factors directly affecting the property.

Income-Financial: actualising the cash flow determined by the cash inflows and outflows generated by the property/initiative over a defined period of time, at the end of which the asset is expected to be sold.

Value-in-use: indicates the value attributable to the property in relation to its size, characteristics and remaining life, assuming its continued use in the current context.

Transformation: consists in estimating the transformation value of the asset by discounting, at an appropriate rate, the costs and revenues required for transformation.

Locam Real Estate Srl also effectuates the following types of valuations:

An indicative and broad estimate, based on synthetic factors deduced from an analysis of the specific segment of the real estate market. This is carried out without any inspection and on the basis of documents provided by the owner.

An inspection report aimed at determining the fairness of the commercial value by means of on-site surveys of the property market and accompanied by photographic documentation. This is carried out with an external inspection and on the basis of data provided by the owner.

One prerequisite for a standard valuation is a careful inspection of both the exterior and interior of the property to determine its functionality and efficiency, being based on an analysis of the local economic landscape, with particular attention to the property market and transactions with similar (comparable) properties. This is carried out with a site-inspection and on the basis of data provided by the owner.

In addition to the analyses of the standard report, an urban-building and cadastral conformity analysis of the property is effectuated. In the event of discrepancies detected during the inspection, the necessary authorisations and costs of restoring the state of the site are indicated, so that the property may be transferred. This is carried out with a site-inspection and on the basis of documents being held by the authorities.

Conducted in order to adequately assess the risk of real estate transactions, these concern the adequacy of the value of the asset, its compliance with specific urban planning, building and cadastral regulations, its fungibility, its relocatability on the market and its value in the event of early repossession due to the insolvency of the user. This is carried out with a site-inspection and on the basis of documents being held by the authorities.

An inspection report aimed both at monitoring the correct execution of the building works and at estimating its value at a specific stage of work progress. Drafting of the final technical report is complete with all deeds and/or certifications. This is carried out with a site-inspection and on the basis of data provided by the owner.

For more information, please head to the Contacts page.

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