RICS and IVS valuations
VALUATIONS UNDER INTERNATIONAL REGULATIONS
Valuations drafted using the standards of the Royal Institution of Chartered Surveyors (RICS) and in accordance with the International Valuation Standards (IVS) are recognised by investors, funds and financial institutions around the world. These reports are commonly used in consulting and guaranteeing large investments, since the regulation of RICS standards and principles of good professional practice and their implementation ensure globally consistent and comparable information – essential qualities for cross-border investments and traders.
RICS valuations are often required in a project’s financial design and debt restructuring processes in which a syndicate of credit institutions participates, usually of varying nationalities.
WHO IS IT FOR?
PROPERTY MANAGEMENT COMPANIES AND HOTEL CHAINS
PRIVATE BANKING DIVISIONS OF FINANCIAL INSTITUTIONS
1. THE SITUATION
The owner of a 4-star central hotel consisting of 200 rooms next to Gran Vía in Madrid was looking for domestic and foreign investors interested in buying shares of the asset. The new resources provided were to be used to promote the image of the hotel as recovery prospects for the tourism industry in the city grew.
2. OUR SERVICES.
Tinsa proposed a valuation report following RICS standards, using realistic scenarios of a favourable evolution of vacancy, turnover and margins, as well as improvements in brand management. The report exhaustively described the quality of the central location and the property, growth assumptions and the methodology of investment analysis with standard parameters, valid for all investors, not necessarily those from a Western culture or an expert in the hotel industry.
3. THE RESULT.
The client was able to begin conversations with Asian investors interested in buying shares. The negotiation opened the door to new funds which helped position the hotel in tourist service commercial platforms for operators in the Asian market