Various valuations: Kinshasa, DRC

DRC 5An embassy was looking to relocate its mission in Kinshasa, Democratic Republic of Congo and instructed EMC RE to undertake Red Book valuations of target properties.

Country: Democratic Republic of Congo
City: Kinshasa
District: Various
Type: Land and buildings
Size: Up to 4 hectares
Project: 3 x valuations
Client: Western government

Assignment
The client was a Western government with various older-style buildings in Kinshasa and looking to consolidate its operations. Three potential sites had been identified and EMC RE was instructed to undertake Red Book “highest and best use” valuations.

Approach
EMC RE inspected and measured all properties and undertook research on-the-ground in Kinshasa, including an assessment of the nature of the ownership (“concessions” being normal in this country) and planning/development potential. The approach was very much market-based, using adjusted evidence of sales of land and buildings. This was “checked” against investment and residual development approaches.

Result
The client was provided with valuations to international standards and with transactional evidence to give a good level of certainty as to market value. This allowed it to determine whether or not to progress negotiations for purchase and to develop a negotiation strategy. EMC RE has also sold a surplus villa for this client in Kinshasa, and worked for it in multiple emerging and frontier locations across the world.

Bank branch search: Lubumbashi, DRC

DRC 4A banking client with operations in Kinshasa was looking to have a branch in Lubumbashi, Democratic Republic of Congo, and asked EMC RE to find this for them.

Country: Democratic Republic of Congo
City: Lubumbashi
District: City centre
Type: Offices/retail
Size: 300 sq m
Project: Branch search
Client: International bank

Assignment
EMC RE was instructed to find a branch for a banking client in Lubumbashi. It needed to be in a central area of the city with good visibility, car parking and a ground floor presence. Security and set-back were also important issues.

Approach
EMC RE spent time on the ground in Lubumbashi identifying potential options, including contacting many of the local retailers and banks. A report was produced identifying nine options including photographs, plans, specification and a qualitative analysis of each building.

Result
The client was provided with the information it needed in order to be able to prepare its business case for market entry and with practical options. As a result, it has since opened for business in Lubumbashi.

Sale and leaseback assessment: Kinshasa, DRC

DRC 3A bank was considering a sale and leaseback of an owned office HQ in Kinshasa, Democratic Republic of Congo and instructed EMC RE to prepare a market study.

Country: Democratic Republic of Congo
City: Kinshasa
District: Gombe
Type: Offices
Size: 2,500 sq m
Project: Sale and leaseback assessment
Client: International bank

Assignment
An international bank owned an office building in Kinshasa located in a central area of the city on a main thoroughfare. It occupied around one third of the building with the remainder for third parties (although there was significant vacancy following a fire). The client wanted EMC RE to produce an assessment of the potential to undertake a sale and leaseback.

Approach
EMC RE undertook a full review of the office market in Kinshasa including supply, demand, practices, trends, development pipeline and values (capital and rental). Various scenarios were assessed including redevelopment, extension, sale of surplus land, etc. The sale and leaseback was considered based on a sensitivity to account for degrees of lease flexibility and leasing/subleasing risk.

Result
The client was provided with a full report including a building review, market context and sale and leaseback terms and values. As a result of this project EMC RE introduced several prospective tenants to the client for the vacant space. EMC RE also undertook a similar study for the same client in Libreville, Gabon.

Feasibility study: Lubumbashi, DRC

DRC 2The client was a European investor looking to undertake a residential development JV in Lubumbashi, Democratic Republic of Congo and requiring EMC RE to undertake a feasibility study.

Country: Democratic Republic of Congo
City: Lubumbashi
District: North of city
Type: Villas
Size: 60 units
Project: Feasibility study
Client: European investor

Assignment
As part of a much larger masterplanned area of Lubumbashi a new 60-unit villa compound development was being considered. A show home has been erected and EMC RE was commissioned to undertake research into the market and a feasibility for a European investor who was considering a JV to develop this residential phase.

Approach
EMC RE spent time on the ground researching the residential sales and leasing markets, and the market for land. Geographical areas covered included Kiswishi, Luano City, Golf, Golf Météo, Les Battants, Cercle Hippique and on the road to Kipopo. Practical issues covered included segmenting of likely demand, projected take-up, value, and the potential general added-value to the vicinity.

Result
A full report was produced in a short timeframe including a Broker’s Opinion of Value, which enabled the client to produce and to take a board decision to proceed and finalise their business case. We have since undertaken a similar study for this client in Accra, Ghana.

Free Zone valuation – Takoradi, Ghana

Ghana Case Study 1On behalf of an international investor EMC RE was asked to provide a valuation of land for the potential development of a Free Zone just outside Takoradi in western Ghana.

Country: Ghana
City: Takoradi
District: Shama
Type: Industrial
Size: 175 has
Project: Valuation
Client: International investor 


Assignment
An international investor was considering the purchase of land for the potential development of a Free Zone, to the east of Takoradi. Takoradi had previously seen something of a “boom” due to the presence of oil off the coast, and prices had been rising rapidly, although market conditions were becoming more subdued. EMC RE was asked to provide the client with a valuation for decision making purposes.

Approach
EMC RE reviewed the industrial market in Takoradi and its surrounding areas, including activity and transactions in Sekondi, Aboadze, and to the north and the site of Rendeavour’s King City. Information was obtained from the local Land Registry and confirmed where possible with parties and corporates involved with the actual transactions. The approach to valuation was based on adjusted land sales and residual value after the provision of infrastructure and assuming phased development and sales.

Result

The client was provided with a valuation, backed up with hard evidence, allowing it to reach a business decision on how to progress.

Feasibility study: Accra, Ghana

Ghana Case Study 2EMC RE was instructed to undertake a feasibility study relating to a new high-end apartment tower development.

Country: Ghana
City: Accra
District: Ministries Area
Type: Residential
Size: Up to 80 units
Project: Feasibility study and financials
Client: Private equity investor 

Assignment
The client wanted a feasibility study relating to the construction of a new 20-storey luxury apartment tower with up to 80 units in the Ministries Area of Accra and close to the new Kempinski and Galleria Shopping Centre.

Approach

EMC RE inspected the site and the plans, and undertook on-the-ground research relating to construction costs, supply and demand, pricing, key market players, competition and pipeline.

Result

The client was provided with a feasibility study and financial analysis including potential net present profit, return on development cost and IRR, all with sensitivity analyses. The report also gave practical recommendations as to market positioning and a marketing strategy for the development. This report and supporting advice allowed the client to reach a decision as to how to progress.

More Blogs...