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Auckland Property Valuation and Advisory Services

Comprehensive, expert commercial property valuation services across all asset classes


From corporatisation to privatisation, acquisition to disposal, financing to refinancing, our property valuation expertise covers every aspect of your commercial real estate needs.

Our experts specialise in Property Valuation in Auckland and possess the knowledge, skills and experience to provide you with valuation advice across all property types. We produce independent reports ranging from single valuations to entire portfolios within New Zealand.

 

Colliers Auckland-based Valuation Team

Colliers provide market valuations for financial reporting and mortgage finance purposes. All reports are undertaken within the requirements of International Valuation Standards and the Australian and New Zealand Valuation and Property Standards.

We determine 'market value' as the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s-length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

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Our valuations team provide rental assessments to inform negotiations between landlord and lessee. The assessment outlines the current market rental for the premises as at the date of inspection or as per the lease document

Generally, the most appropriate method of rent assessment for rent reviews is comparison with other premises within the immediate vicinity, which have recently been leased or have been subject to recent rent reviews. The information from these comparable properties is adjusted for factors at variance with those of the subject premises, such as the size, position, location, lease terms and conditions, market trends and a number of other factors.

We consider 'market rent' as the estimated amount for which an interest in real property should be leased on the valuation date between a willing lessor and a willing lessee on appropriate lease terms in an arms-length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

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An insurance valuation estimates the cost of reinstating the property with a new modern equivalent for insurance purposes. An insurance valuation also provides an estimate of inflation costs through the insurance period as well as an estimate of demolition/site clearance costs and an indemnity value. Insurance valuations can also be required as a basis for calculation of the Fire Service Levy.

An insurance valuation is different to a market valuation in that it provides the cost to rebuild the building and excludes any value of the land. Insurance companies recommend that insurance valuations are completed every one to two years to ensure the current costs of building are taken into account.

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Our valuation team are able to assist with tax queries to help you claim the appropriate tax benefits. 

The IRD requires a Tax Depreciation Cost Allocation to ensure both the vendor and purchaser have appropriately allocated depreciation of the asset.

As at 1 April 2020 depreciation on commercial and industrial buildings has been reinstated. The applicable depreciation rates for the building structure are now 2% on a diminishing value basis and 1.5% on a straight-line basis.

Fit-out of commercial premises is also depreciable property, therefore it is important when depreciating fit-out to obtain a Tax Depreciation Cost Allocation soon after settlement. The property cost must be separated between non-depreciable land and depreciable building structure and fit-out by means of a market valuation.

A Tax Depreciation Cost Allocation assesses the fixed asset schedule and identifies components that can be separately classified (componentised) and depreciated.

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Our team are also able to assist with purchase price allocations, which is when parties to the sale of two or more assets with different tax treatments allocate the sale price between the assets for tax purposes.

Generally for commercial property this relates to a breakdown of the sale price between land, building and fitout, at market values agreed between the vendor and purchaser at the time of sale.

1. If the parties don’t agree, the vendor can make the allocation.

2. If that does not occur, then the purchaser can make the allocation.

3. If no allocation is made the purchaser is treated as acquiring the depreciable property for nil, missing out on depreciation deductions.

A purchase price allocation is a requirement by the IRD from 1 April 2021 for property with a total purchase price over $1 million, or where the buyer’s total allocation to taxable property is more than $100,000.

Our Auckland valuation team has experts who can assist in this process at the time of sale. An additional service we can provide is a detailed breakdown of the fitout to assist with tax depreciation purposes if required.

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