Common use of Valuation Method Clause in Contracts

Valuation Method. The methodology adopted in preparing the Independent Valuation Report was the market comparison approach. The market comparison approach considers transactions in the market for similar properties and directly compares the properties to be valued with the comparable properties transacted close to the valuation benchmark date. Comparable properties of similar location, quality and size are analyzed and adjusted against all the respective advantages and disadvantages of each property in order to arrive at a fair comparison of market value. The Target Property is the office premises and car parking spaces for a commercial office project, where there are many comparable sales cases (within the same supply and demand circle, same usage and adjacent areas) in the region similar to the Target Property, and the market transactions are active. Therefore, the market comparison method is adopted in this valuation.