Forton

Landmark Property Portfolio Valuation

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Overview

Forton delivered an in-depth strategic valuation of the Landmark Property portfolio. The task included valuing 6 income-generating properties with TBA of 80 000 sqm, among which Landmark Center, Bulgaria Center, Porsche Center, DHL building.  In addition, the portfolio also included 15 land plots located in Sofia and Razlog with a total area of 292 000 sqm. As the buildings included in the portfolio are leased, we had to undertake the DCF approach which analyzes the generated rental income. A model which took into account the development options for the land plots was prepared for the purposes of a reliable estimation of their current market value.


The Challenge

In a time of economic distress and financial difficulties, Landmark sought to engage a reputable real estate consultant to perform annual valuations of their encompassing portfolio.
Landmark assigned Forton the task of performing in-depth comprehensive valuations of their portfolio in a difficult environment of decreasing rental levels, declining demand and lack of investment transactions. The goal was to determine a market value of the properties taking considering not only the current market conditions but also the potential for development in the realm of a fast-changing market. 


The Solution

To be able to provide a comprehensive analysis of each of the properties, Forton undertook an in-depth inspection, in order to assess its current status and to consider the factors which impact the performance of the properties, such as location, accessibility, visibility, etc.  Benefitting from extensive market knowledge, we also prepared a market analysis detailing the supply, demand, major competitors and pipeline projects which impact the performance of the properties and the potential for development of the land.


The Result

Complying with all RICS and IVSC standards, Forton delivered valuation of the property portfolio, consistent with the client needs for a comprehensive report. The extensive research on a variety of factors which determine the market value of an asset, such as its marketability, leasing options, market positioning and condition, of all properties ensured a quality product which also properly addressed the current and future market trends.