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Christchurch Office
Level 8
180 Manchester Street
PO Box 13-804
Christchurch 8141
Phone: +64 3 377-7307

Blenheim Office
Level 1, 1 Hutcheson Street
PO Box 521
Blenheim 7240
Phone: +64 3 579-1324

Nelson Office
Level 1, 12 Oxford Street
Richmond 7050
Phone: +64 3 544 6622

Tauranga Office
Suite 1, 17 Grey Street
PO Box 13460
Tauranga 3141
Phone: +64 7 927-3086

Property

Property Valuation

Value means many things to different people, and there are different standards of value that can be determined depending on the purpose of the valuation, but in most of our valuation assignments it is important to understand and, where required, quantify the financial benefit of owning an interest in the asset. Standard valuation approaches adopted, the choice of which is largely dependent on the circumstances, can be grouped into the following 3 classes:

  • Income based
  • Market based
  • Asset based

These are applicable to both property and enterprise valuations, but often by differing means. The value of an asset is not a precise notion as all value estimates are based on a set of assumptions. Different input values will give a value that could be very different from the expected value. This degree of uncertainty can be better understood with standard sensitivity analysis. For more subjective analysis, it may be beneficial to provide more comprehensive analysis to better understand the risk profile for the asset.

Crown & Maori Land

Our experience with these valuation requirements is largely around iwi settlement processes and Crown leasehold land e.g. Crown Pastoral Leases and Crown Forest Licences. These all include an advisory role for development of agreements or settling values through discussions or litigation.

Easements

An easement generally represents an interest in land, which normally requires compensation to be paid to the grantor, with the creation of an asset for the grantee.
The assessment of compensation (refer later section) and asset value created by such easements are specialised valuations undertaken by Crighton Anderson.

Specialised Assets & Infrastructure

The identification and valuation of specialised assets are required for a variety of purposes and generally require the owner of these assets to engage independent advice or expertise. At Crighton Anderson we specialise in the development of asset registers and the application of usually non-market based valuation methodologies. Our experience extends to telecommunications, electricity, airports, water and wastewater, education and port assets.

Typically, these entities own and operate a broad range of infrastructural assets. Efficient management requires customised software to manage the asset data and undertake the Optimised Depreciated Replacement Cost (ODRC) and Optimised Deprival Valuation (ODV) process. The asset registers and valuation models are developed in either spreadsheet or database formats to facilitate and streamline the financial reporting and asset management process. The valuation models may be used for financial reporting under IFRS, insurance assessments, depreciation estimates, disclosure allocations, and pricing algorithms and rating purposes.

The correct application of the ODRC and ODV valuation methodologies and organised development of asset registers require a detailed understanding of industry sectors, including asset optimisation and economic issues as they affect the particular industry sector. This also requires us to work with the client in the process.