48
|
INTERNATIONAL PROPERTY DEVELOPER
www.opp.org.uk
|
JULY 2009
Y
INDUSTR
PEOPLE
TION
DESTINA
WORDS
|
Paul Golden
Percentage sales
BUSINESS
BMV deals may be in vogue, but some believe the distressed market may have almost
run its course – so agents will need to move quickly to get their share of deals
B
elow market value deals are this property in this market,” explains and this may or may not be the market international commercial director of
nothing new, but the parlous Darren Carter, managing director of value. It cannot be def_i ned by a size of Spanish bank Caja del Mediterraneo
f_i nancial position of many Goldberg & Partners Global Real Estate, discount, because the market sets the (CAM) says that in the case of CAM
developers, banks and owners means an investment consultancy sourcing value, not the developer. The banks repossessed properties, a discount of
OPER more deals are being done below discount deals across Spain. “In a and lenders value themselves and give between 10% and 30% has already
actual values rather than merely at a market like Spain it is quite deceiving a percentage of what they value at or been applied to the valuation the bank
VEL
discount to the asking price. because if the market value is x, and the sales price - whichever is lower. The has on record.
DE
During the boom years many the banks value a property at y, the banks don’t want risk.”
investors confused discounted banks will only give a percentage of y, The level of discount of_f ered varies Declining valuations
property – where the developer from property to property. According Banks are directing valuers on the basis
refunded the deposit, for example Developers tend not to invest to Steve Long, managing director that the net price (inclusive of any
– with below market value or BMV in new certif_i ed valuations for of Casacalida Properties, banks are discount) is the true value. “Developers
property. However, the combination BMV transactions. However, applying discounts of up to 30% below tend not to invest in new certif_i ed
of a soft property market and severely many developments have current market value, while Taylor valuations for BMV transactions,” says
TING
restricted access to f_i nance has focused been bought by investment Woodrow de Espana sales & marketing Peter Parfait, who recommends BMV
minds on f_i nding properties that are on clubs who will have a director Victor Sague reckons many deals to 30,000 paid subscribers to
ARKE
the market at a level below their open valuation undertaken to developers have been of_f ering his Hot Property Alerts and Property
M
market value. prove to potential buyers that discounts of up to 35% since February Auction News bulletins. “However,
“BMV is quite an interesting concept the property is being of_f ered of this year. many developments have been bought
because traditionally it implies what at a true discounted price. Acknowledging that the shelf life by investment clubs who will have
it says, below the average price for Peter Parfait, Hot Property Alert of valuations has fallen, Alfredo Milla, a valuation undertaken to prove to
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72