Property valuation

Real estate (residential and commercial property) and land plots valuation for different purposes in accordance with Russian and International valuation standards (including RICS standards – Red Book).

We provide full range of services for valuation of different types of properties – both residential (flats, apartments, town–houses and cottages) and commercial (offices, retail, warehouses, hotels and mixed–used) and also land plots.

We are happy to offer our different services:
  • valuation (fair value/liquidation value)
  • best use analysis
  • lease rates analysis and redemption value.
Our services may be used for:
  • IFRS
  • revaluation (including for property tax decreasing)
  • insurance
  • finance rising
  • mortgage, pledge, leasing or refinancing
  • lawsuits
  • sale/purchase
  • capital increase
  • receiving of citizenship.
Russian Appraisal is happy to offer your professional and high–quality services in accordance with leading valuation standards:
  • Russian standards: Federal Valuation Law with all amendments and modifications
  • International Valuation Standards
  • European Valuation Standards etc.
  1. Valuation in accordance with Russian Law
    The valuation project results in appraisal report, which prepared in strict accordance with:
    • Russian Federal Law «Valuation activities in RF» # 135 dated July 29, 1998
    • Russian Federal Law «Amendments and additions to valuation activities in RF» # 143 dated November 14, 2002
    • Russian Federal Law # 157 dated July 27, 2006
    • Federal valuation standards approved by Government of Russian Federation.

    The valuation report can be used for lawsuit. The independent valuation expertise is performed upon court order.

    The content of report can vary depending on the appraised object, valuation purposes and type of value.

  2. Appraisal in accordance with international valuation standards

    International valuation standards (IVS) are developed and promoted by International Valuation Standards Committee, which includes 60 countries. The main aim of these standards is to reach consistency and concurrence between different national valuation standards. IVS includes basic rules, which reflect unity of basic economic principles.

    Very often valuation results prepared in accordance with IVS are used for IFRS.

  3. Letter of opinion
    Letter of opinion can be prepared in accordance with International Valuation Standards and provides reasonable fair value calculations and conclusions. As a rule standards valuation letter of opinion includes:
    • detailed description of appraised object
    • financial and valuation calculations with detailed description.

    Letter of opinion allows within the short period of time to get the justified calculation of fair value of any asset for negotiations in deals (purchase and sale agreements), and also for managerial decision, when fundamental valuation report is not required. Optimum price/quality solution.

  4. Valuation for IFRS
    Valuation for IFRS is performed in the following cases:
    • first–time adoption of IFRS
    • annual revaluation of real estate, fixed assets and intangible property
    • sale/purchasing of property
    • to show fair value of assets in financials.

    For these purposes you need fair (market) value of the appraised objects done by professional valuation company with long–term relevant experience.

    Valuation for IFRS is to be made in accordance both Russian and International valuation standards.

    Russian Appraisal for a long time proved valuation services to its clients for IFRS purposes and we have trusted relationships with Big4 companies: Ernst and Young, PricewaterhouseCoopers, KPMG, Deloitte. Our company also have positive experience on audit support valuations for BDO and Grant Thornton.

    Several last years financial institutions (banks, insurance companies) must prepared financial statements in accordance with IFRS.

    In the first time to transform financials from national accounting standards to IFRS the company have to analyze and revalue its fixed assets on the date of transformation.

    Valuation for IFRS is done for:
    • valuation for IAS 16 and IAS 36 – property, plant and equipment valuation and impairment of assets
    • IFRS 1 – first–time adoption of IFRS
    • IAS 38 – intangible assets valuation
    • IAS 36 – impairment of assets
    • business combination –IFRS 3 – объединение бизнеса
    • fair value of fixed assets/construction in progress (IAS 16)
    • market value of asset for barter (IAS 16, IAS 18)
    • valuation of liquidation value of fixed assets – property, plant and equipment (IAS 16)
    • inventory valuation for sale (IAS 2)
    • valuation of long–term assets and liabilities
    • valuation of long–term assets for sale (IFRS 5)
    • valuation for IAS 39 (financial instruments)
    • valuation for IAS 40 (investment property).
  5. Expertise of valuation reports

    Expertise of valuation report is required when you use the valuation report of other appraisal company and need to be sure that this report is made in accordance with all mandatory requirements, certain quality and fairly.

    Detailed and qualitative analysis with all the inaccuracies is provided. Also expertise confirms whether valuation report is done in accordance with existing valuation standards and law or not.

  6. Finance rising/valuation of pledge assets

    Banks, leasing companies and other potential creditors define market value of fixed assets (property) as pledge (collateral). On the basis of independent valuation report the creditor decides to provide finance and what amount.

    We are ready to offer our clients:
    • valuation of finished properties if the debt financing is provided for cash generating property as collateral
    • valuation of investment projects, future cash flow from real estate in case project finance is required for development (independent confirmation of financial and economic sustainability is vital).
  7. Valuation for managerial decisions
    In numerous occasions management or shareholders of the company need to make managerial decisions:
    • sale/purchase of assets/property
    • new business lines development
    • acquisition of companies.

    For these purposes our specialist will prepare for you independent report of fair value of any assets or/and scenario analysis of future cash flows. This work can be in the form of letter of opinion or comprehensive valuation report prepared in accordance with Russian or/and International valuation standards.

  8. Valuation for insurance

    In order to mitigate the risks of real estate ownership each year more and more companies insured their property. In order to get fair value of insured property the company is to provided independent valuation report to insurance company (insurance coverage).

    Russian Appraisal will make independent appraisal report with market value of the property, which will contain description of all the risk factors necessary for insurance company as well as for the company.

    The insurance valuation may include only real estate appraisal and also property situated in it.

  9. Credit portfolio analysis and non–performing loans management

    Recently many companies and financial institutions (banks, leasing companies) became the owners of many pledged assets.

    Our company is ready to help you to identify the fair value of the real estate and construction in progress.

    Our valuation will be key agreement in negotiations with potential buyers of the assets.

    Furthermore we are glad to offer you strategic analysis of portfolio of assets for the purposes of best use analysis and maximization of the profit.

  10. Land plots valuation

    Any land plot has different value (price) depending on its location, size and category.

    There are many factors affecting the price of the land:
    • location
    • category
    • permitted use
    • availability of utilities
    • restrictions/easements etc.

    Russian Appraisal will do valuation report with independent fair value of land plot in short period of time whatever the purposes of the appraisal.

    Our specialist successfully appraised more than 270 land plots in 32 regions of Russian Federation for the last two years.

  11. Cadastral value of property and land plots review and negotiations

    For the last years cadastral value of land plots and commercial real estate significantly increased.

    From January 1st of 2014 new new Federal Law 307–FZ About Amendments to the Article 12 of Part 1 and to the Chapter 30 of Part 2 of the Tax Code of Russian Federation adopted on November 2nd of 2013 came.

    The proposes law presumes different approaches for property tax calculation for different types of real estate.

    Accordingly, the new ceiling rates for property tax in Moscow will be 1.5% in 2014, 1.7% in 2015, and 2% from 2016 and onwards, the ceiling rates for the Russian regions will be 1%, 1.5%, and 2% respectively.

    According to the amendments adopted by Regional Governments in Moscow and Moscow Region, the tax rates for Offices and Retail in Moscow will be 0.9% in 2014, 1.2% in 2015, and 1.5% in 2016, 1.8% in 2017, and 2% from 2018 onwards. In Moscow region the rate for retail is set at 1% in 2014, 1.5% in 2015, and 2% from 2016 and onwards. Moscow region office properties will retain the previous rates, i.e., 2.2% of average book value of a property as the Moscow Regional government wants to develop office property sector.

    We will help you to decrease cadastral value of land plots and commercial real estate.

    Our valuation reports will have expertise done by self–regulated valuation organization and we will protect your position in arbitrage court.