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Rural Property Report Template – Compensation Valuation under the Public Works Act 1981

WHY A TEMPLATE?These Templates have been developed to

1. Assist valuers to understand the valuation process for property acquired under the Public Works Act,

2. Ensure Valuers provide information in their valuation reports to enable good decision making

3. Enable easier comparisons between valuation reports4. Ensure that the valuation reports comply with current Australia and New Zealand

Valuations and Property Standards and International Valuation Standards.

The templates emphasise the obligation for valuations to be evidence based and require the Valuer to provide supporting comparable sales evidence for all stages of the valuation e.g. the ‘Before’ valuation, the ‘After’ valuation and the assessment of Injurious Affection (if any).

HOW TO USE THIS TEMPLATE

The report templates provide the recommended report format to be used for PWA acquisition work.

The structure is based on the ANZ Practice Standard 1, ANZVGN 5 and the IVS reporting standards. http://www.propertystandards.org.nz/course/view.php?id=2

Valuers should use the headings in the same order as the template and provide supporting commentary at least to the level of detail described in the template.

The valuation report is to be sent to the client as a secure PDF format (print to PDF). Do not print and scan the valuation report.

Valuers may tailor the template and add paragraphs and descriptions as appropriate depending on the subject property.

Valuers who wish to make any other changes should advise of the proposed changes in the Scope of Works.

Some valuation practices may have in-house templates or systems to assist in the report writing process. The template can be used in this manner.

All guarantees, disclosures compliance statements and disclaimers etc. are to be attached to the report.

KEY TO TEXT

Shaded text will need to be altered/ or deleted to reflect the subject property. The content and the wording of this report is an Example of a valuation complying

with IVS. The non-shaded text should be retained where possible as it is written to ensure

compliance with the current valuation standards. Note to Valuer – offer guidance as to the Transport Agency expected content and

description under that particular heading.

DISCLAIMER

Please note that the examples used in this template (property description and comparable sales) are fictional. Whilst we have tried to be as realistic as possible, any resemblance to an existing property is purely coincidental.

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VALUATION FOR COMPENSATION PURPOSES

PROPERTY ADDRESS

DATE OF VALUATION

PHOTO

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VALUATION SUMMARYF i l e N o .

D a t e

C l i e n t

L a n d o w n e r

P r o p e r t y A d d r e s s

I n s t r u c t e d B yWe refer to the written instruction from company and agreed Scope of Work of date.

We confirm that our report complies with the instructions received and scope of works, subject to the valuation assumptions detailed in this report

P u r p o s e o f V a l u a t i o nState here the type of valuation requested e.g. a compensation valuation under Section 62 Public Works Act 1981 for total or partial acquisition and include if you have been requested to additional assessments such as a rental assessment, business loss, disturbance etc.

D a t e o f I n s p e c t i o n

D a t e o f V a l u a t i o n

L a n d A r e a ( T o B e A c q u i r e d )

Ra t i n g V a l u a t i o nRoll Number

Land value $Value of Improvements $ Capital Value $

B r i e f P r o p e r t y D e s c r i p t i o nExample - The subject property comprises a 150 hectare hill country block located in the northern district of Pauatahanui and run as a sheep and cattle grazing block. Improvements comprise a tidy, 4 bedroom, 1970’s built dwelling, ancillary farm buildings and standard farm improvements. The property has been well managed and would be considered one of the largest holdings in the immediate locality, where smaller lifestyle properties are more prevalent.

The intended area of acquisition, comprising some 20 hectares, is for the proposed Transmission Gully road project and is located along the rear boundary of the property.

V a l u a t i o n A s s u m p t i o n sThis assessment is made on the basis of and subject to certain assumptions which are noted as follows;

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Examples - Our compensation assessment has been assessed for the specific purpose of compensation under

the Public Works Act 1981 and no responsibility is accepted in the event that this report is used for any other purpose.

Our assessment addresses the Market Value of the property subject to the existing tenancy arrangements.

We assume the security boundary will be reinstated by the New Zealand Transport Agency (Transport Agency), and our compensation assessment is made on this basis.

The valuation is based on the Land Requirement Plans provided by the instructing party and the proposed access plans.

This report should be read in conjunction with our previous report dated 1 April 2011.

V a l u a t i o n A p p r o a c h Direct Comparison and ‘Before and After’ approach to Valuation.

E x t e n t o f I n s p e c t i o n

N a t u r e a n d S o u r c e o f I n f o r m a t i o n R e l i e d U p o n

V a l u a t i o n S u m m a r yWe assess the Compensation (including chattels), for the total property/partial acquisition of the required land to be:

Compensation $ ,000

Apportionment of Compensation Note to Valuer - delete if valuation is for total purchaseLand & Improvements (plus GST, if any) $ ,000Injurious Affection $ ,000 Compensation Payable $ ,000Less Betterment $ ,000 Total Compensation $ ,000

Valuer

CompanyContact Details

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DISCLAIMERS, LIMITATIONS AND COMPLIANCE STATEMENTValuers to insert clauses that comply with IVS 103 reporting e.g.

1. Restrictions on Use, Distribution or Publication.2. Market Movement.3. Valuers Interest.4. Market Value Definitions.5. Confirmation that the valuation has been undertaken in accordance with the IVS and

Australia and New Zealand Valuation and Property Standards, in particular Australia and New Zealand Practice Standard 1 Valuations for Compulsory Acquisitions.

6. Identification and status of the Valuer.

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TABLE OF CONTENTSRural Property Report Template – Valuation under the Public Works Act 1981............1

Why a Template?......................................................................................................................................................1

VALUATION SUMMARY.............................................................................................3

DISCLAIMERS, LIMITATIONS AND COMPLIANCE STATEMENT.......................................5

TABLE OF CONTENTS...............................................................................................6

VALUATION REPORT................................................................................................7

1.0 SITE DESCRIPTION.........................................................................................7

2.0 LAND TENURE................................................................................................8

3.0 RESOURCE MANAGEMENT...............................................................................9

4.0 RESOURCE CONSENT......................................................................................9

5.0 IMPROVEMENTS DESCRIPTION......................................................................10

6.0 PROPOSED ACQUISITION..............................................................................12

7.0 GENERAL MARKET DISCUSSION.....................................................................13

8.0 SALES EVIDENCE..........................................................................................14

9.0 Valuation Approach and Reasoning...............................................................20

10.0 Compensation..............................................................................................21

11.0 Valuation Process........................................................................................23

12.0 Valuation (Total Acquisition)........................................................................24

13.0 Valuation (Partial Acquisition)......................................................................25

14.0 Assessment of Betterment...........................................................................27

15.0 Compensation Assessment...........................................................................28

16.0 Concluding Remarks.....................................................................................29

APPENDIX I - HYPOTHETICAL SUBDIVISION Example................................................30

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VALUATION REPORT1.0 SITE DESCRIPTION1.1 Location

Region

Situation

Locality

Amenities

Saleability of Area

Insert map to show surrounding location and position of subject property.

1.2 The Land Land use

Land area and shape

Access

Soils and Erosion

Weeds and Pests

Pasture Management

Water Resources

Production History

Insert map of subject property (showing dimensions and topography is possible)

1.3 Environmental Factors

Example - There does not appear to be any evidence of flooding, land subsidence or landslip and to the best of our knowledge any additional proposed road works or high tension power lines which may affect the saleability of the property. Council records have been searched to check the site history in relation to;

Contamination

Other details on Council files which may impact value.

Example – As at the effective date of valuation there was no evidence to suggest previous or current uses of the property have impacted negatively on the value.

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2.0 LAND TENURE2.1 Certificate of Title (1)Delete the number when there is only one title

Computer Freehold Register Identifier

Tenure

Legal Description/ Appellation

Registered Proprietor

Land Area of Affected Property

Interests Registered on Title

The above (non-financial) registrations are noted and are not considered to materially affect the value of the property.

Where the registrations on the title affect the market value / saleability of the subject property, the valuer is to provide additional details. The valuer should comment on the non-financial registrations and encumbrances only.Comment specifically on existing Compensation Certificates registered on the title at the date of valuation.

The Required Land Example - The land required from this title, Ref. WNXX/XXX, is a 15.0 hectare parcel of land on the rear boundary to be used for road widening.

2.2 Certificate of Title (2)Where the affected property is held in more than one title, list the titles separately and note the part to be acquired.

Computer Freehold Register Identifier

Tenure

Legal Description/ Appellation

Registered Proprietor

Land Area of Affected Property

Interests Registered on Title

The above(non-financial) registrations are noted and are not considered to materially affect the value of the property.

Where the registrations on the title affect the market value / saleability of the subject property, the valuer is to provide additional details. The valuer should comment on the non-financial registrations and encumbrances only.Comment specifically on existing Compensation Certificates registered on the title at the date of valuation.

The Required Land

We enclose a copy [copies] of the Computer Freehold Register (refer Appendices).

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3.0 RESOURCE MANAGEMENT District Plan

Zoning

Permitted Uses

Heritage

DesignationsComment on the range of permitted activities, the application of the District Plan to the subject property and any possible effect on value. A long narrative of all the permitted activities in the zone is not required, unless the subject property’s highest and best use is not the current use.

4.0 RESOURCE CONSENTIf the property is subject to a Resource Consent, please provide a full description of the details of what the resource consent pertains to and the effect on the value of the subject property of the Resource Consent.

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5.0 IMPROVEMENTS DESCRIPTIONTo follow is a brief description of the improvements and their condition, at the date of inspection5.1 Dwelling

Type

Floor Area

Year Built (approx.) plus additions

Levels

Insert photographs of the dwelling (front and rear views).

5.1.1 Construction Foundations

Floor

External cladding

Roof

Joinery

Internal linings

5.1.2 Internal Layout (including fixtures and fittings) Kitchen

Dining

Lounge

Bedrooms

Bathroom(s)

Laundry

Hallway

Heating

Chattels

Decks / Terraces

Insert photographs of the kitchen and at least two other rooms to provide a good indication of the quality of the accommodation provided.

5.2 Other Buildings Garage / Carport

Other

Insert photographs of the Other Buildings.

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5.3 Other Farm Buildings Implement Shed

Workshop

Insert photographs of the Other Farm Buildings

5.3 Other Improvements Site Development

Tracks

Water Supply

Fencing

Insert photographs of the Other Improvements.

5.4 Condition and Repair

Note to Valuer – Where deferred maintenance exists and remedial work is required to preserve the value of the asset, please note this here and provide an estimate (a range is acceptable) of remedial costs in the separate addendum as requested in the scope of works.

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6.0 PROPOSED ACQUISITION6.1 Description of ProjectBriefly describe the project for which the acquisition forms part and include a map showing the location of the subject property in relation to the project.

6.2 Description of Proposed AcquisitionDescribe the land to be acquired, dimensions etc. Refer to the Land Requirement Plan provided.

Delete the following paragraph if the acquisition is of the entire property.6.3 Impact of Acquisition on PropertyDescribe the impact of the project when completed on the retained land. This needs to include the distance of the proposed work to any dwelling on the retained land.

Describe any mitigation work proposed and the effect of this work in relation to the retained land.

If the impact of the project injuriously affects the retained land i.e. depreciation in value caused by the operation of the public work on completion, describe the factors that contribute to the injurious affection e.g. increased traffic noise, loss of privacy etc.

Similarly, if the impact of the project on the retained land is positive, or creates betterment, then the factors that contribute to the betterment are to be described.

6.4 Improvements on Land to be AcquiredDescribe the improvements that form part of the property that is being acquired.

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7.0 GENERAL MARKET DISCUSSION

Please comment on general market trends, possible evidence of changes in market trends, observations on reported listing periods and movements thereof. The general market situation is to be related to the market of the subject property.

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8.0 SALES EVIDENCE8.1 Comparable Sales of Improved Properties

In some localities and / or situations comparable sales may not relate to the subject property both in the ‘Before’ scenario and in the ‘After’ scenario or there may be a paucity of sales, therefore comment as such and note the comparability in the Sales Reconciliation Table.

However in a market of larger scale, where sales are regularly recorded, the Valuer must provide sales evidence and analysis (both improved and vacant land sales) to support both the ‘Before’ and ‘After’ valuations for the subject property.

Please rank the sales in ascending order of sale price, lowest to highest.

2. 182 Djokovic Road

Sale Date Sep 2011 Comprises a hill country block. It is improved by way of a small 10 year old dwelling, garage, fencing and a farm track.

This sale is plus GST.

PhotoSale Price $500,000Land Area (ha) 20.8Sale Price / ha $24,000Analysed Val of Imps

$175,000

Residual LV/ha $15,625Comparability This is a smaller property with lesser quality improvements and in an

inferior location to the subject property. We consider it to be inferior to the subject property in both the ‘before’ and after’ situations.

4.

Sale Date PhotoSale PriceLand Area (ha)Sale Price / haAnalysed Val of ImpsResidual LV/haComparability

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5.

Sale Date Photo

Sale Price

Land Area (ha)

Sale Price / ha

Analysed Val of ImpsResidual LV/ha

Comparability

6.

Sale Date Photo

Sale Price

Land Area (ha)

Sale Price / ha

Analysed Val of ImpsResidual LV/ha

Comparability

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8.2 Comparable Sales of Vacant Rural Zoned Land

In some localities and / or situations comparable sales may not relate to the subject property both in the ‘Before’ scenario and in the ‘After’ scenario or there may be a paucity of sales, therefore comment as such and note the comparability in the Sales Reconciliation Table.

However in a market of larger scale, where sales are regularly recorded, the Valuer must provide sales evidence and analysis (both improved and vacant land sales) to support both the ‘Before’ and ‘After’ valuations for the subject property.

Please rank the sales in ascending order of sale price, lowest to highest.

2. 79 Wawrinka Road, Waikanae

Sale Date Aug 2011 Bare block of moderately steep hill country situated 8km east of Waikanae, being accessed via a narrow and winding road. This property has access off the end of this no exit road via a shared driveway. The land is fenced on the boundaries and internally and is provided with a reticulated water supply from a bore.

The sale is plus GST.

Photo or aerial map of saleSale Price $375,000Land Area (ha) 39.6Sale Price / Ha $9,470Analysed Land Val $358,000Analysed LV/ha $9,040

Comparability A smaller block in an inferior location to the subject property. Over all inferior to both the ‘before’ and ‘after’ scenarios.

4.

Sale Date Photo or aerial map of saleSale PriceLand Area (ha)Sale Price / HaAnalysed Land ValAnalysed LV/haComparability

6.

Sale Date Photo or aerial map of saleSale PriceLand Area (ha)Sale Price / HaAnalysed Land ValAnalysed LV/haComparability

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8.3 Sales Reconciliation TableSale No.

Address Sale Date

Sale Price

Land Area (ha)

Comparability‘Before’ ‘After’

Sales of Improved Properties1 182 Djokovic Rd,

JohnsonvilleAug 2011 $500,000 20.8 Inferior Inferior

2

3

Sales of Vacant Land1 79 Wawrinka Rd,

WaikanaeAug 2011 $375,000 39.6 Inferior Inferior

2

3

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8.4 Comparable Sales of Retained Land (including. impact of work)Delete this heading if valuation is for total purchase.

The following sales should represent the situation of the subject property taking into account the proposed work. Where possible, include vacant land sales that represent the situation on completion of the proposed work.

2. 350 Hewitt Road, Wellington

Sale Date Nov 2012 Comprising of rolling hill country, this property is located towards the end of Hewitt Road, which is a winding, steep narrow road. Surrounding properties are either lifestyle or small uneconomic units. The Petone to Johnsonville expressway runs along the rear boundary of this property

This sale is plus GST.

PhotoSale Price $637,500Land Area (ha) 57.9Sale Price / ha $11,000Analysed Val of Imps

$210,000

Residual LV/ha $7,380

Comparability Of similar size to the subject property, after the proposed partial acquisition, plus of similar contour and location to the subject property. We consider this sale offers a good comparison to the subject property on completion of the work.

4.

Sale Date PhotoSale Price $Land Area (ha)Sale Price / ha $Analysed Val of Imps

$

Residual LV/ha $Comparability .

6.

Sale Date PhotoSale Price $Land Area (ha)Sale Price / ha $Analysed Val of Imps

$

Residual LV/ha $Comparability

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8.5 Sales Reconciliation TableSale No.

Address Sale Date

Sale Price

Land Area (ha)

Comparability‘Before’ ‘After’

Sales of Improved Properties1 350 Hewitt Rd Nov 2012 $637,500 57.9 Inferior Inferior

2

3

Sales of Vacant Land1

2

3

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9.0 Valuation Approach and Reasoning9.1 Valuation Approach/s

Discuss the reasons for adopting the valuation approach used and reasons for not using alternative (if any) approaches.

Greatest reliance should be placed on actual inputs e.g. actual cash flows generated by the property, over assumed inputs. Assumed inputs may be relevant if the actual inputs are less reliable e.g. out of date costs.

9.2 Improved Sales Summary

Discuss the sales considered the most comparable to the subject property and why, plus the value range that is indicated for the subject property in all scenarios.

9.3 Vacant Sales Summary

Discuss the sales considered the most comparable to the subject property and why, plus the value range that is indicated for the subject property in all scenarios.

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10.0 Compensation10.1 StatuteSection 62(1)(b) states the amount of compensation payable is “that amount which the land if sold in the open market by a willing seller to a willing buyer on the specified date might be expected to realise, unless

(i) the assessment of compensation relates to any matter which is not directly based on the value of land and in respect of which a right to compensation is conferred under this or any other Act; or

(ii) only part of the land of an owner is taken or acquired under this Act and that part is of a size, shape, or nature for which there is no general demand or market, in which case the compensation for such land and the injurious affection caused by such taking or acquisition may be assessed by determining the market value of the whole of the owner's land and deducting from it the market value of the balance of the owner's land after the taking or acquisition.”

Section 62(1)(c) states “where the value of the land taken for any public work has, on or before the specified date, been increased or reduced by the work or the prospect of the work, the amount of that increase or reduction shall not be taken into account”.

Therefore the value of the land taken (either the full site or a partial acquisition) must be assessed as if the work was not proposed or not in existence.

Note to Valuer - Delete paragraphs 11.2 -11.4 if the valuation is for total purchase.10.2 ‘Before’ and ‘After’ Valuation ApproachThe value of the land acquired is the difference between the ‘Before’ valuation and the ‘After’ valuation. This assesses the compensation for the loss of land and improvements on the land taken, ignoring the proposed work.

The ‘Before’ valuation is “that amount which the land if sold in the open market by a willing seller to a willing buyer on the specified date might be expected to realise”. Comparable sales of vacant and improved properties have been used to assess this amount.

The ‘After’ valuation is the amount which the retained land (after the acquiring of the required land) if sold in the open market by a willing seller to a willing buyer on the specific date might be expected to realise and, again, disregarding the prospect of the proposed work. Therefore the ‘After’ valuation is of a smaller property in the exact same location and situation as the ‘Before’ property.

10.3 Effect on Retained Property – Injurious Affection / Betterment10.3.1 Injurious AffectionInjurious Affection is assessed by valuing the retained land (smaller parcel etc.) on completion of the works and comparing it to the value of the retained land, ignoring the proposed works.This has required reference to sales of properties in a location that reflects the location of the subject property on completion of the works, e.g. busy, multi-lane road with high traffic volume. Such sales provide an indication as to the permanent affect the works have on the retained property and include noise, possible poorer access etc.It must be noted that Injurious Affection can also apply to ‘other land’ of the claimant even if land for a Public Work was not directly taken e.g. a rear title owned by the claimant suffers Injurious Affection by the taking of land from a front title that includes right of way access to the rear title.

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Example - Given that the ‘Highest and Best’ use of the subject property is currently a lifestyle property on the fringe of a rural community, the construction of the Southern Expressway along the southern boundary is considered to have a detrimental effect on the property’s value.Our analysis of sales evidence of residential properties with an expressway and / or a road that carries a high volume of traffic along their boundary indicate a value for the subject property on completion of the proposed work (being the retained land area and improvements) of $165,000.

10.3.2 BettermentSection 62(1)(e) statesThe Tribunal shall take into account by way of deduction from that part of the total amount of compensation that would otherwise be awarded on any claim in respect of a public work that comprises the market value of the land taken and any injurious affection to land arising out of the taking, any increase in the value of any land of the claimant that is injuriously affected, or in the value of any other land in which the claimant has an interest, caused before the specified date or likely to be caused after that date by the prospect of the work:And62(1)(f) The Tribunal shall take into account, by way of deduction from the total amount of compensation that would otherwise be awarded, any increase in the value of the parcel of land in respect of which compensation is claimed that has occurred as a result of the exercise by the New Zealand Transport Agency of any power under Section 91 of the Government Roading Powers Act 1989.The amount of Betterment is the increase in value between the ‘After’ value of the subject property, ignoring the project and the value of the retained property having regard to the presence of the project.It must be noted that Betterment also includes any increase in the value caused by the project of any other land in which the claimant has an interest.Example - Given the ‘Highest and Best’ use of the property is a lifestyle property requiring market exposure for its home industry business, the construction of the Southern Expressway along the southern boundary will have a positive effect on the whole property’s value.Our analysis of sales comparable evidence of properties that can be used for properties which have exposure to a high traffic volume roadway suggests that the effect of the proposed works on the retained property will increase the value due to increased market exposure and improved customer access. This increase in value is generally known as ‘Betterment’ and from comparable sales indicates a value of the retained property of between $175,000 and $185,000.

10.4 No Effect on PropertyExample - The effect of the proposed Works on the subject property is considered to be Nil. The subject property is already on a busy road with similar levels of visibility, accessibility and road noise. The exiting road is being widened slightly and it is considered that the reduction in size and the effect of the completed Works will have cause no further loss in value to the subject property.

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11.0 Valuation ProcessThe recommended process for assessing compensation for a partial acquisition complies with the following steps:

1. Market value of owners interest ignoring the proposed work (the ‘Before’ valuation)

2. Market value of the owners interest after the taking of the land (retained land) but ignoring the proposed work (the ‘After’ valuation)

3. Compare the ‘Before’ and ‘After’ valuations to assess the market value of the land being acquired.

4. Assess the impact of the project on the retained land i.e. injurious affection (damage) or betterment (enhancement).

The above described process is recommended to provide a clear basis for understanding the impact of the project on the retained land.

For an acquisition of a whole property, the market value is the fair market value of the land as described in the Act - S62(1)(b).

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12.0 Valuation (Total Acquisition)12.1 Current Market Value (Total Purchase Ignoring the Work)Clearly state your treatment of GST in your valuation and assessment of market value.Example – 150 ha (Improved)

Land ValueLand Value - 150 ha @ $xx/ha $Total Land Value Say $

BuildingsDwelling – xxx m² @ $xx/ m² $Carport/ Garage – xxx m² $Implement Shed - xxx m² $Value of Buildings $Other ImprovementsSite Development $Water Supply $Tracks $Fencing $Value of Other Improvements $Chattels $Total Value of Improvements Say $Market Value (plus GST if any) $

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13.0 Valuation (Partial Acquisition)Delete this section if valuation is for a total purchase.

If Improvements form part of the area to be acquired, note the reduced value of improvements, which may be zero, in the ‘After’ valuation.

13.1 ‘Before’ Valuation(Refer paragraph 12.1 – Current Market Value Total Purchase Ignoring the Work)

Market Value (plus GST, if any) $

13.2 ‘After’ Valuation (Retained Land Ignoring the Work)

Example – Retained Property 130 ha (Improved)

Land ValueLand Value - 130 ha @ $xx/ha $Total Land Value Say $

BuildingsDwelling – xxx m² @ $xx/ m² $Carport/ Garage – xxx m² $Implement Shed - xxx m² $Value of Buildings $Other ImprovementsSite Development $Water Supply $Tracks $Fencing $Value of Other Improvements $Chattels $Total Value of Improvements Say $‘After’ Market Value (plus GST if any) $

13.3 Valuation of Land to be Acquired

Market Value of Land to be Acquired (plus GST if any)

(Difference 13.1 & 13.2) $

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13.4 Valuation of Retained Land (Including Impact of the Work)Example – Retained Property 5.25 ha (Improved)

Land ValueLand Value - 130 ha @ $xx/ha $Total Land Value Say $

BuildingsDwelling – xxx m² @ $xx/ m² $Carport/ Garage – xxx m² $Implement Shed - xxx m² $Value of Buildings $Other ImprovementsSite Development $Water Supply $Tracks $Fencing $Value of Other Improvements $Chattels $Total Value of Improvements Say $Market Value of Retained Land (incl. impact of work)

$

13.5 Injurious Affection (Impact of the Work on Retained Land)With reference to analysis of sales of properties that are comparable to the subject property on completion of the work, we have assessed the Injurious Affection of the work on the retained land, (and other land of the claimants that is affected by the acquiring of the described land), as follows;

‘After’ Market Value of Retained Land $(copied from para. 13.2)LessMarket Value of Retained Land (Incl. Impact of Work)

$

(copied from para. 13.4)Assessed Injurious Affection $

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Delete this page if there is no Betterment.

14.0 ASSESSMENT OF BETTERMENTWith reference to our analysis of sales of properties that are comparable to the subject property on completion of the work, we have assessed the Betterment of the work on the retained land (and other land of the claimants that is affected by the acquiring of the described land), as follows;

Assessed Betterment of Retained Land $PlusAssessed Betterment of Claimants Other Land $

Total Betterment $

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15.0 Compensation AssessmentDelete this section if valuation is for a total purchase.The total compensation is the value of the land (and any improvements on it) to be acquired plus the injurious affection to the remaining property attributed to the proposed works less the betterment to the property on completion of the proposed works.

We assess the compensation for the acquisition of the required land to be $,000 (Dollars) plus GST, if any.

This is further broken down as follows:

Market Value of Land & Improvements to be Acquired $Injurious Affection (to retained land) $(Total) Compensation $Note to Valuer - Delete following if there is no betterment.LessBetterment $Total Compensation $

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16.0 Concluding Remarks

This report is to be read in conjunction with the attached appendix documentation, including:

the scope of works the terms of engagement the client engagement contract

Please do not hesitate to contact me should you require any further assistance or clarification.

ValuerCompanyContact Details

A p p e n d e d CT/CFR Land Requirement Plan Longitudinal Plans Planning Conditions Photo Montage/Profile Plans/Concept Drawings Mitigation Reports Impact Reports (e.g. Traffic, noise, pollution) Designation Planning Condition

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APPENDIX I - HYPOTHETICAL SUBDIVISION Example

Note to Valuers – This example is only suitable for a small to medium sized hypothetical subdivision that has an assessed sell down period of 12 months or less. For a hypothetical subdivision where the assessed sell down period is greater than 12 months we recommend the use of the discounted cash flow method of valuation. An explanation and analysed evidence of sell down periods should be included in the valuation report. The valuer may add to or alter this format. To support this method of valuation, we recommend reference to sales of block land. (Please note that the amounts used are example only). Please state clearly your treatment of GST and ensure that the treatment of GST is consistent in all valuation scenarios.

Hypothetical Subdivision Worksheet

Val Ref: xxxx/xxxx CV $ 500,000Address: 116 Victoria

AveLV $ 475,000

Land Area (ha) 20 Rates $ 1,473Min. Size lot (ha) 5 Interest Rate 6.0%No. Sites (max) 4 Profit & Risk 25.0%Realisation period (yrs) 1

VALUATION CALCULATIONS

No of Lots - 4 sitesLot 1 $

380,000Lot 2 $

320,000Lot 3 $

320,000Lot 4 $

500,000

GROSS REALISATION $ 1,520,000

$ 1,520,000

less GST 15.0% $ 198,261

less Agents Commission 5.0% of GR excl gst $ 66,000

less advertising $ 500 per site $ 2,000

less Legal Fees $ 2,000 per site $ 8,000

$ 76,000

NET REALISATION $ 1,245,739

less Profit & Risk 25.0% of Outlay $ 249,148

OUTLAY $ 996,591

less Development Costs Development (roading, services etc) $ 25,000 per site $

100,000 Resource consent $ 10,000 $

10,000 Survey and title $ 5,000 per site $

20,000 Reserve Contribution $ 7,500 3 sites $

22,500

$ 152,500

Interest on Outlay(1/2 sell down period) 6.0% $ $

31

(Address) (date)

29,658 182,158

BLOCK VALUE (Excl. GST) $ 814,433

Block Value Analysis Per site $ 203,600

Per ha $ 40,700

Development Costs Analysis Per site $ 38,125

(excl. of Interest) Per ha $ 7,625

32