Valrus experts have defined the cost of the famous "Gorbushka" complex. As part of the case to challenge the cadastral value, a repeated judicial valuation examination of the real estate complex was carried out at the address: Moscow, Bagrationovsky proezd, 7.
During Soviet times, the complex was occupied by one of the leading manufacturers of televisions - the Moscow Television Factory Rubin, which also produced military and space equipment. Currently, the complex is called Gorbushkin Dvor and consists of a shopping center, two office buildings and two multi-storey above-ground parking lots.
The study was fascinating because various experts were charged with conducting initial examinations of capital construction projects and land plots. This led to many contradictions when comparing the results obtained, since the experts used different methodologies and significantly different economic parameters.
The expert of the Valrus company had to bring the two cases together and value the complex based on a unified methodology, as well as provide explanations for the court on deviations in the results of examinations. It was necessary to specify in great detail all the differences in key indicators and, accordingly, the differences in the results obtained in determining the market value of objects.
Though all the experts used a similar valuation methodology, the differences in the research results turned out to be significant. The comparative analysis of the results of repeated and primary examinations showed the presence of numerous errors in the primary examinations that have a multidirectional impact on the final results, for example, a significant underestimation of rental rates, but at the same time the use of low capitalization rates (lower than for high-quality facilities).
The main mistake was in the incorrect selection of the value of the land and the discrepancy in the valuation of the land plot in the primary examinations of the capital construction projects and the land itself. In the valuation of the ACS, the expert of one expert organization deducted the land plot as a share in the total cost of the object, and the cost of the land was about 74 thousand rubles/sq.m., while in another examination, when valuing the site itself, its value was determined to be only equal to 37 thousand rubles / sq.m.
Also, it is worth mentioning that neither one nor the other primary examinations analyzed the actual composition of the leasable areas, rental conditions and actual profitability indicators of the complex. As part of the re-examination of the Valrus company, the leasable areas were determined on the basis of actual plans and explications compared with the data of a personal inspection of the facilities by an expert, the terms of lease agreements were requested through the court and analyzed, as well as the actual performance of the retail and office complex.
As part of the re-examination, the cost of office buildings was determined to be 10-12% lower than according to the initial examination, and the cost of the shopping complex is 15% higher. At the same time, the cost of a land plot in comparison with the primary examination was determined to be 27% higher, since there is an underestimation of the cost of a land plot for commercial use in the west of Moscow in relative proximity to the third transport ring.
The total difference in the valuation of the real estate complex according to primary and repeated examinations is about +11.56%, which, on the one hand, is not so big, however, with the total cost of the complex of about 8 billion rubles (buildings and land in total), this deflection is equal to about + 900 million rubles, which, of course, is significant with from the point of view of determining the tax base for property tax.
The administration of the city of Moscow, represented by the Department of Urban Property, without objecting to a significant increase in the value of land, tried to challenge the examination of capital construction projects, presenting indicators in figures favorable to them, and unscrupulously manipulating figures from primary examinations (presenting for comparison an overestimation of buildings from the primary examination in relation to land), however, the professional position of the expert and the detailed explanations provided by them allowed the court to understand the situation. As a result, the court decided to establish the cadastral value of the objects based on the results of the expertise of Valrus company.
By the ruling of the First Court of Appeal of General Jurisdiction, the decision of the Moscow City Court was left unchanged in both administrative cases.