# Property Valuation Report: [Property name, interest valued and valuation date]

> A written valuation report for a real property interest: the terms of
> engagement, the basis of value and assumptions, the inspection and
> investigations, the property and its tenancies, the market evidence,
> the approach and calculation, the uncertainty, and the opinion of
> value. Structure aligned with RICS Valuation, Global Standards (the
> "Red Book Global Standards", effective 31 January 2025) and the
> International Valuation Standards (IVS) published by the IVSC on
> 31 January 2024 and effective 31 January 2025, with notes for the
> European Valuation Standards 2025 (TEGoVA) and USPAP (US). Replace
> every `[bracketed]` value and every row marked *Example*. This is a
> documentation format, not valuation, legal or financial advice: a
> valuation must be prepared by a qualified valuer under the standards
> and law that apply to the instruction.

<!--
Guidance: How to use this template
- The standards named here are copyrighted. This template uses their
  public structure (standard numbers and titles) in original wording.
  Read your licensed copy for the actual requirements, and do not claim
  compliance with a standard you have not applied in full.
- Agree and record the terms of engagement (section 1) before any
  valuation work. Most disputes about valuations start with an unclear
  purpose, basis of value or special assumption.
- Keep the working papers: inspection notes, photos, evidence, model
  files and the reasons for each judgement. Standards expect a record
  another valuer could follow.
- Fictional example: Quelmont Park Building B, a 4,200 m2 multi-let
  office, valued for Varrowby Property Fund by Orlund Valuation
  Partners for a purchase decision, valuation date 2026-09-30. Tenancy
  data match `real-estate/rent-roll-arrears`, condition costs match
  `real-estate/property-condition-assessment`. All names, evidence and
  figures are invented and were computed with a script; currency USD.
-->

## Document control

<!-- Guidance: Give the report a unique reference and keep every issued version. A valuation figure travels: lenders, auditors and courts need to find the exact report it came from. -->

| Field | Value |
|---|---|
| Report reference | [VAL-QPB-2026-01] |
| Property | [Quelmont Park Building B, address] |
| Interest valued | [*Example:* Freehold subject to and with the benefit of the occupational leases] |
| Client | [Varrowby Property Fund] |
| Purpose | [*Example:* Acquisition decision and internal investment committee] |
| Valuation date | [*Example:* 2026-09-30] |
| Report date | YYYY-MM-DD |
| Basis of value | [*Example:* Market value] |
| Valuer | [Name, qualification, registration number, firm] |
| Version and status | [1.0, Final] |
| Classification | [Confidential to the client] |

### Approvals

| Role | Name | Date |
|---|---|---|
| Responsible valuer | [@name] | YYYY-MM-DD |
| Reviewing valuer (internal quality check) | [@name] | YYYY-MM-DD |
| Client acknowledgement of terms | [@name] | YYYY-MM-DD |

### Revision history

| Version | Date | Author | Change summary |
|---|---|---|---|
| 0.1 | YYYY-MM-DD | [@name] | Draft for factual accuracy check by the client |
| 1.0 | YYYY-MM-DD | [@name] | *Example:* Final; tenancy data corrected for U-G02 arrears |

## Contents

1. [Terms of engagement and scope of work](#1-terms-of-engagement-and-scope-of-work)
2. [Basis of value, assumptions and special assumptions](#2-basis-of-value-assumptions-and-special-assumptions)
3. [Inspection, investigations and data](#3-inspection-investigations-and-data)
4. [The property](#4-the-property)
5. [Tenure and tenancies](#5-tenure-and-tenancies)
6. [Market commentary and evidence](#6-market-commentary-and-evidence)
7. [Valuation approach and method](#7-valuation-approach-and-method)
8. [Calculation](#8-calculation)
9. [Valuation model](#9-valuation-model)
10. [Uncertainty and sensitivity](#10-uncertainty-and-sensitivity)
11. [Opinion of value and compliance statement](#11-opinion-of-value-and-compliance-statement)
12. [Glossary and references](#12-glossary-and-references)

## How the standards map to this report

<!-- Guidance: Use this table to check that every required topic has a home in the report. The numbers below are the public structure of each standard; the content of each section is your own. -->

| Report section | RICS Red Book Global Standards 2025 | IVS (effective 31 January 2025) | Other frameworks (examples) |
|---|---|---|---|
| 1 Terms of engagement | VPS 1 Terms of engagement | IVS 101 Scope of Work | USPAP: scope of work and engagement; TEGoVA EVS 2025 |
| 2 Basis of value | VPS 2 Bases of value, assumptions and special assumptions | IVS 102 Bases of Value | EVS 2025 bases of value |
| 3 Inspection and data | VPS 4 Inspections, investigations and records | IVS 104 Data and Inputs | USPAP record keeping |
| 7 and 8 Approach | VPS 3 Valuation approaches and methods | IVS 103 Valuation Approaches; IVS 400 Real Property Interests; IVS 410 Development Property where relevant | USPAP Standard 1 (real property development) |
| 9 Model | VPS 5 Valuation models | IVS 105 Valuation Models | |
| 11 Report | VPS 6 Valuation reports | IVS 106 Documentation and Reporting | USPAP Standard 2 (real property reporting) |
| Ethics and independence | PS 1 and PS 2 (professional standards on compliance and on ethics, competence, objectivity and disclosure) | IVS 100 Valuation Framework | National regulator rules |

```mermaid
flowchart TD
    A["Instruction and conflict check"] --> B["Terms of engagement agreed (VPS 1, IVS 101)"]
    B --> C["Inspection and investigations (VPS 4, IVS 104)"]
    C --> D["Evidence and market analysis"]
    D --> E["Approach and model (VPS 3, VPS 5, IVS 103, IVS 105)"]
    E --> F["Draft report and factual check by client"]
    F --> G["Internal review"]
    G --> H["Final report (VPS 6, IVS 106)"]
```

## 1. Terms of engagement and scope of work

<!-- Guidance: Confirm these items in writing with the client before the valuation date or, at the latest, before the report is issued. Any later change in purpose, basis or special assumption needs revised terms. Common pitfall: a valuation agreed for internal use being passed to a lender without the valuer's consent. -->

| Item | Entry |
|---|---|
| Client and intended users | *Example:* Varrowby Property Fund only. No reliance by any lender without written consent |
| Purpose | *Example:* To support a purchase decision |
| Asset and interest | *Example:* Freehold of Quelmont Park Building B, subject to 5 occupational leases |
| Valuer status | *Example:* External valuer, no previous involvement with the property or the seller in the last 24 months |
| Conflicts disclosed | *Example:* None. The firm values a neighbouring property for another client; information barrier in place |
| Valuation date | *Example:* 2026-09-30 |
| Basis of value | *Example:* Market value |
| Currency | *Example:* USD |
| Assumptions and special assumptions | See section 2 |
| Extent of inspection and investigations | See section 3 |
| Information relied upon | *Example:* Seller's rent roll and leases, measured survey, property condition report PCA-QPB-2026 |
| Restrictions on use, distribution and publication | *Example:* Not to be published or quoted without written consent |
| Liability cap and fee | [As agreed in the engagement letter] |
| Standards applied | *Example:* RICS Valuation, Global Standards (effective 31 January 2025), which incorporate the IVS |

The scope of work must be enough for the purpose. A purchase decision
for an investment committee usually needs a full inspection, a review
of the leases and a check of planning and title information, while a
desktop update for a quarterly fund report may rely on the previous
inspection if nothing material has changed. Say which of these applies
and why. If the client restricts the scope (for example no internal
inspection), record the restriction and its effect on the reliability of
the figure.

## 2. Basis of value, assumptions and special assumptions

<!-- Guidance: Name the basis of value and give its source definition by reference, not by copying it. Distinguish assumptions (facts that are reasonable to accept without checking) from special assumptions (facts that differ from those at the valuation date). Pitfall: a special assumption hidden in the narrative. -->

### 2.1 Basis of value

| Item | Entry |
|---|---|
| Basis | *Example:* Market value |
| Source of definition | *Example:* IVS 102 Bases of Value, as adopted in Red Book VPS 2 (see your licensed text for the definition) |
| Other bases considered | *Example:* Investment value (worth) to the client was not requested |

IVS 102 recognises several bases, including market value, market rent,
equitable value, investment value (worth), synergistic value and
liquidation value. Other bases may be required by law, regulation or a
contract, for example a fair value measurement for financial reporting
or a mortgage lending value in some European markets. State which
framework sets the basis when it is not one of the IVS bases, and do not
mix bases within one figure.

### 2.2 Assumptions

| ID | Assumption | Effect if wrong |
|---|---|---|
| ASM-01 *(Example)* | Good and marketable title, free of onerous restrictions not disclosed | Value could fall; title report needed |
| ASM-02 *(Example)* | Lettable areas as in the measured survey dated 2026-08-12 | Rent and value change in proportion |
| ASM-03 *(Example)* | No contamination beyond that noted in section 4 | Value could fall; Phase II pending |
| ASM-04 *(Example)* | Current use is lawful and has all required permits | Value could fall |
| ASM-05 *(Example)* | Plant and services comply with current regulations, except as in the condition report | Further costs |

### 2.3 Special assumptions

| ID | Special assumption | Reason | Agreed with client |
|---|---|---|---|
| SA-01 *(Example)* | None for the main figure | | YYYY-MM-DD |
| SA-02 *(Example)* | Supplementary figure assuming unit U-202 is let at market rent on the valuation date | Requested for the investment committee | YYYY-MM-DD |

## 3. Inspection, investigations and data

<!-- Guidance: Say who inspected, when, what was seen and what was not. List each data source, how it was checked, and any data you could not verify. Pitfall: relying on seller data without saying so. -->

| Item | Entry |
|---|---|
| Inspected by and date | *Example:* [Valuer name], 2026-09-16 |
| Extent | *Example:* External and internal, all common parts, roof, plant rooms, 4 of 5 let units and vacant unit U-202 |
| Not inspected | *Example:* Unit U-102 (clinic in use), roof void above U-201 |
| Measurement | *Example:* Measured survey provided by the client; spot checks agreed within 1% |
| Documents | *Example:* Leases and abstracts, rent roll as at 2026-09-30, service charge budget, energy certificate, condition report |
| Enquiries | *Example:* Planning portal search, flood map check, local agents for letting evidence |
| Data not verified | *Example:* Seller's statement of no disputes, except the service charge query on U-101 |

### 3.1 Data quality log

| ID | Input | Source | Check performed | Reliability |
|---|---|---|---|---|
| DAT-01 *(Example)* | Passing rents | Rent roll and leases | Reconciled to leases and bank receipts for 3 months | High |
| DAT-02 *(Example)* | Market rents | 4 lettings within 2 km, 2025 to 2026 | Confirmed with agents | Medium |
| DAT-03 *(Example)* | Capitalisation rate | 3 sales, see section 6 | Confirmed with buyers' agents | Medium |
| DAT-04 *(Example)* | Capital costs | Property condition report | Read in full; not independently costed | Medium |

## 4. The property

<!-- Guidance: Describe what drives value: location, site, building, accommodation, condition, environmental matters, sustainability, planning and title. Keep it factual and cross-refer to specialist reports. -->

### 4.1 Location and site

*Example:* Quelmont Park is an established business park 6 km from the
city centre, served by a tram stop 400 m away. Building B stands on a
0.6 ha site with 120 parking spaces on 1,800 m2 of surfaced car park.
The neighbouring site has a right of way across the car park (title
finding DD-T07), with no loss of spaces.

### 4.2 Building and accommodation

| Unit | Floor | Use | Net lettable area m2 |
|---|---|---|---|
| U-G01 *(Example)* | Ground | Laboratory office | 900 |
| U-G02 *(Example)* | Ground | Retail | 300 |
| U-101 *(Example)* | First | Studio and office | 1,000 |
| U-102 *(Example)* | First | Clinic | 500 |
| U-201 *(Example)* | Second | Office | 1,000 |
| U-202 *(Example)* | Second | Office, vacant | 500 |
| **Total** | | | **4,200** |

### 4.3 Condition

*Example:* The property condition report PCA-QPB-2026 forecasts 591,900
of costs over 10 years plus a 10% contingency (651,090 in total), of
which 21,500 is immediate. Most of the forecast relates to items that a
buyer would expect in a 2004 building (roof membrane, lifts and
chillers). The immediate items are assumed to be repaired by the seller
before completion; the forecast is reflected in the choice of
capitalisation rate rather than deducted, because the comparable sales
were of buildings of similar age and condition.

### 4.4 Environmental, sustainability and planning

| Topic | Finding | Effect on value |
|---|---|---|
| Contamination *(Example)* | Former print works use on part of the site before 1990; Phase II pending | Assumption ASM-03; reported as a risk |
| Flood risk *(Example)* | Low on public mapping | None |
| Energy performance *(Example)* | Certificate rating in the middle band; lighting and chillers upgrade planned | Considered in yield; minimum energy rules to be monitored |
| Planning *(Example)* | Lawful office use; U-102 clinic permit in place | None |

Explain how sustainability and climate factors affect the evidence, and
avoid double counting: if the comparable buildings have similar energy
ratings, the yield already reflects the market's view.

## 5. Tenure and tenancies

<!-- Guidance: Summarise the interest and the leases. Take data from lease abstracts and the rent roll and state the date they were checked. -->

| Unit | Tenant | Expiry | Break | Passing rent | Market rent | Notes |
|---|---|---|---|---|---|---|
| U-G01 *(Example)* | Kestrimo Labs | 2031-06-30 | None | 202,500 | 198,000 | Review 2026-07-01 outstanding, upward only, no increase expected |
| U-G02 *(Example)* | Saltmarsh Bikes | 2028-12-31 | 2026-12-31 | 78,000 | 78,000 | Arrears of 15,000; break risk |
| U-101 *(Example)* | Fenwyn Print Studio | 2032-03-31 | 2027-09-30 | 210,000 | 215,000 | Review 2027-04-01 |
| U-102 *(Example)* | Dovecroft Dental Clinic | 2034-09-30 | 2029-09-30 | 115,000 | 112,500 | |
| U-201 *(Example)* | Quorran Insurance Brokers | 2027-12-31 | None | 215,000 | 215,000 | Renewal talks |
| U-202 *(Example)* | Vacant | | | 0 | 110,000 | Marketing |
| **Total** | | | | **820,500** | **928,500** | |

*Example:* the weighted average unexpired lease term is 4.24 years to
expiry and 2.20 years to first break, weighted by passing rent. Arrears
total 27,783.33, of which 3,200 is a disputed service charge balance.

## 6. Market commentary and evidence

<!-- Guidance: Give the market context at the valuation date and the evidence used, with its date, source and how it was adjusted. Prefer recent, comparable and verified transactions. Pitfall: listing asking prices as if they were evidence. -->

*Example:* Occupier demand for mid-size offices near public transport
is stable; vacancy in the submarket is about 9% according to two local
agents. Investment volumes are lower than two years earlier, and buyers
price in capital expenditure for older buildings.

### 6.1 Investment evidence

| ID | Property (fictional) | Date | Area m2 | Price | Price per m2 | Net initial yield | Comparison with subject |
|---|---|---|---|---|---|---|---|
| CMP-01 *(Example)* | Linmoor Court | 2026-06 | 3,800 | 9,600,000 | 2,526 | 6.90% | Similar age, better tenant mix |
| CMP-02 *(Example)* | Harnet House | 2026-03 | 5,100 | 11,900,000 | 2,333 | 7.40% | Older services, more vacancy |
| CMP-03 *(Example)* | Saxbridge Yard 4 | 2025-11 | 2,900 | 7,400,000 | 2,552 | 6.75% | Refurbished 2022, longer leases |

Prices exclude purchaser's costs. *Example:* the subject sits between
CMP-01 and CMP-02: shorter income than CMP-01 and CMP-03, a better
condition than CMP-02. A capitalisation rate of 7.25% on stabilised net
operating income was judged appropriate.

### 6.2 Letting evidence

| ID | Property (fictional) | Date | Area m2 | Headline rent per m2 | Incentive | Net effective rent per m2 |
|---|---|---|---|---|---|---|
| LET-01 *(Example)* | Linmoor Court, floor 2 | 2026-05 | 600 | 225 | 6 months rent-free on 5 years | 202.50 |
| LET-02 *(Example)* | Harnet House, floor 1 | 2026-02 | 800 | 210 | 3 months rent-free on 5 years | 199.50 |

*Example:* net effective rent spreads the rent-free period over the
term (225 x 54 / 60 and 210 x 57 / 60). The market rents adopted in
section 5 are headline rents (215 to 225 per m2 for the office and clinic units), so
the rent-free period a new tenant of U-202 would expect is deducted
separately in section 8, line 8.

## 7. Valuation approach and method

<!-- Guidance: Name the approach (market, income or cost) and the method, and say why the others were not used or were used as a check. Pitfall: a "blended" figure with no explanation of weights. -->

| Approach | Used? | Reason |
|---|---|---|
| Income approach, direct capitalisation of stabilised income | *Example:* Yes, primary | Investors price multi-let offices on income; good yield evidence |
| Income approach, discounted cash flow | *Example:* No, check only | Client did not require it; useful when income changes a lot over time |
| Market approach, price per m2 | *Example:* Yes, cross-check | Three sales of similar buildings |
| Cost approach | *Example:* No | Not used for income-producing property with market evidence |

*Example:* the method capitalises the market rent of the whole building,
less a structural vacancy allowance and non-recoverable costs, then
deducts the costs of letting the vacant unit and the purchaser's costs.
The difference between passing and market rent on the let units is
small: over-renting of 4,500 a year on U-G01 and 2,500 on U-102 against
under-renting of 5,000 on U-101, a net 2,000 a year (0.22% of market
rent). It was not adjusted. A term-and-reversion or cash flow method
would be needed if these differences were material.

## 8. Calculation

<!-- Guidance: Show the calculation so a reviewer can rebuild it. State each input with its evidence reference. Round the final figure in line with market practice and say how. -->

| Line | Item | Basis | Amount |
|---|---|---|---|
| 1 | Market rent, all units | Section 5 | 928,500 |
| 2 | Less structural vacancy allowance | 5% of line 1 | (46,425) |
| 3 | Effective gross income | Line 1 less line 2 | 882,075 |
| 4 | Less non-recoverable costs | Service charge shortfall, management, insurance excess | (45,000) |
| 5 | Stabilised net operating income | Line 3 less line 4 | 837,075 |
| 6 | Capitalised at 7.25% | Line 5 divided by 0.0725 | 11,545,862 |
| 7 | Less void on U-202 | 9 months of 110,000 | (82,500) |
| 8 | Less rent-free to new tenant of U-202 | 6 months of 110,000 | (55,000) |
| 9 | Less letting fees | 15% of 110,000 | (16,500) |
| 10 | Less void costs on U-202 | Service charge share of 500 m2 at 60 per m2 a year for 9 months | (22,500) |
| 11 | Value before purchaser's costs | Line 6 less lines 7 to 10 | 11,369,362 |
| 12 | Net of purchaser's costs at 6.8% | Line 11 divided by 1.068 | 10,645,470 |
| 13 | **Market value, rounded to nearest 50,000** | | **10,650,000** |

*Example:* the figure equals 2,536 per m2, within the range of the
sales evidence (2,333 to 2,552 per m2). It shows a net initial yield of
6.82% on passing rent less non-recoverable costs and a reversionary
yield of 7.77% on market rent less those costs, both on the value plus
purchaser's costs.

## 9. Valuation model

<!-- Guidance: Name the model (spreadsheet or software), its version, who built it and how it was checked. The standards expect the valuer to understand and take responsibility for any model or automated tool, including tools that use machine learning. -->

| Item | Entry |
|---|---|
| Model | *Example:* Firm's spreadsheet template v4.2 for direct capitalisation |
| Built or adapted by | [@name] |
| Checked by | [@name], independent recalculation of lines 1 to 13 |
| Automated tools or data feeds | *Example:* None; comparables entered manually |
| Limitations | *Example:* Single-period capitalisation; does not model lease events year by year |

## 10. Uncertainty and sensitivity

<!-- Guidance: Report material uncertainty when the standards or the circumstances require it, in clear words near the opinion of value. Show how the figure moves with the key inputs. -->

### 10.1 Sensitivity to capitalisation rate and market rent

Values rounded to the nearest 50,000, holding the lease-up deductions
fixed. Change against the reported figure in brackets.

| Capitalisation rate | Market rent 5% lower | Market rent as adopted | Market rent 5% higher |
|---|---|---|---|
| 7.00% | 10,450,000 (-1.9%) | 11,050,000 (+3.8%) | 11,600,000 (+8.9%) |
| 7.25% | 10,100,000 (-5.2%) | 10,650,000 (0.0%) | 11,200,000 (+5.2%) |
| 7.50% | 9,750,000 (-8.5%) | 10,300,000 (-3.3%) | 10,850,000 (+1.9%) |

### 10.2 Uncertainty statement

[*Example:* The valuation is not reported as subject to material
valuation uncertainty. The key risks are the U-G02 break on 2026-12-31,
the pending Phase II investigation (ASM-03) and the limited number of
recent sales.]

## 11. Opinion of value and compliance statement

<!-- Guidance: Give the figure in words and numbers, the basis, the date, the interest valued and any special assumption. Add the compliance statement and any departure from the standards with reasons. -->

*Example:* Our opinion of the market value of the freehold interest in
Quelmont Park Building B, subject to the occupational leases, at
2026-09-30 is **10,650,000 (ten million six hundred and fifty thousand
US dollars)**, exclusive of transfer taxes and purchaser's costs.

*Example, supplementary figure under SA-02:* [Figure assuming U-202 is
let at market rent, computed only if the client confirms the request.]

| Item | Entry |
|---|---|
| Compliance | [*Example:* Prepared in accordance with RICS Valuation, Global Standards (effective 31 January 2025), which incorporate the IVS] |
| Departures | [None, or each departure with its reason] |
| Valuer's independence | [Statement as agreed in the terms] |
| Reliance and publication | [Client only; no publication without consent] |
| Signature | [Responsible valuer, qualification, date] |

### 11.1 Traceability

| Report element | Evidence or input | Section |
|---|---|---|
| Market rent 928,500 | LET-01, LET-02, rent roll | 5, 6.2 |
| Capitalisation rate 7.25% | CMP-01 to CMP-03 | 6.1 |
| Lease-up deductions 176,500 | Letting evidence, agents' advice | 8 lines 7 to 10 |
| Condition | PCA-QPB-2026 | 4.3 |
| Tenancy data | Rent roll as at 2026-09-30, lease abstracts | 5 |

## 12. Glossary and references

<!-- Guidance: Define the terms your reader may not know and list every standard and document used, with editions. -->

| Term | Meaning in this report |
|---|---|
| Market rent (ERV) | The rent the valuer expects a unit to let for on the valuation date |
| Net operating income | Income after vacancy allowance and non-recoverable costs |
| Capitalisation rate | The rate that converts one year of stabilised income into a capital value |
| Net initial yield | Current net income divided by value plus purchaser's costs |
| Reversionary yield | Net market rent divided by value plus purchaser's costs |
| WAULT | Weighted average unexpired lease term, weighted by rent |
| Special assumption | An assumed fact that differs from the actual facts at the valuation date |

References (editions checked 2026-10-30):

- RICS Valuation, Global Standards, effective 31 January 2025: VPS 1
  to VPS 6 numbering confirmed on the RICS Red Book Global page. RICS
  states that a Red Book 2028 edition will follow the next IVS update.
- International Valuation Standards, published 31 January 2024 and
  effective 31 January 2025: general standards IVS 100 to IVS 106 and
  asset standards IVS 200 to IVS 500, per the IVSC standards page.
- European Valuation Standards 2025 (tenth edition, TEGoVA), in force
  from 1 January 2025.
- USPAP 2024 edition (The Appraisal Foundation), effective 1 January
  2024 with no fixed end date; check for a later edition.
- Related templates: `real-estate/rent-roll-arrears`,
  `real-estate/lease-abstract`, `real-estate/property-condition-assessment`,
  `real-estate/property-due-diligence-checklist`,
  `mba/mba-real-estate-finance-card`, `finance/credit-memo`.

## Standard and licence note

Structure aligned with RICS Valuation, Global Standards (effective
31 January 2025) and the International Valuation Standards (effective
31 January 2025), with references to TEGoVA European Valuation
Standards 2025 and USPAP. These standards are copyrighted: this template
names their standard numbers and titles only and is written in original
wording; it does not reproduce definitions or requirements. Official
text: RICS, purchase or licensed access:
https://www.rics.org/profession-standards/rics-standards-and-guidance/sector-standards/valuation-standards/red-book/red-book-global;
IVSC, registration or licensed access: https://www.ivsc.org/standards/;
TEGoVA: https://tegova.org/european-valuation-standards-evs. The
template is independent and not endorsed by any standard setter. Check
the current editions and use a qualified valuer. Template licence: MIT.