Valuation for Pension Purposes

Overview

Properties held in pension funds are required to be valued every 3 years to establish whether the fund has appropriate assets to cover its accrued liabilities. Our team of valuers at Vickery Holman are often instructed to provide Red Book valuations for commercial properties held in pension funds.

Situation

In this instance, the pension fund required an updated valuation of the property held in its fund.

Solution

We recently undertook a valuation of a light industrial unit in Wellington which was let as at the valuation date. We inspected and measured the property to assess its condition, specification and size. Given its use, we measured the property on a Gross Internal Area basis.

Outcome

As the property was occupied under a lease and generating an income, we sought investments sales of similar properties and analysed the yields they produced. In reaching in our opinion of Market Value, we capitalised the Market Rent in perpetuity at a chosen yield which was derived from the comparable evidence.

Key Contact

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