In the previous case - we talked about the valuation for "Castorama RUS" in Perm. ;
So, for hypermarkets in the Moscow region, a profitable approach was used as the main one. The cost approach was also used as a verification method.
As part of the examination of the case in the Moscow Regional Court, a forensic examination was appointed. The cost determined by the expert, including VAT, turned out to be only 10% higher, but from a methodological point of view, this examination was poorly performed. The hypermarket was valued by analogy with mini-shopping centers based on the rental rates of built-in and attached premises that differ significantly in area from the hypermarket. As you know, this approach to valuing hypermarkets is unacceptable.
Together with our client, we participated in the court session, proving the error of the conducted examination, artificial overestimation of the cost, because if the forensic expert considered the cost of the object to be a comparative or profitable approach according to analogues that are on the market and used, at least, premises of comparable size, which can accommodate super/hypermarkets, and not small premises of the street-retail segment, then the results of its valuation would be significantly lower. Nevertheless, the court decided that the expert had responded to the comments, and the slight difference between the results of our valuation and the conducted examination contributed to the fact that Castorama RUS decided not to continue the dispute and end the trial.
As part of this case, we have once again confirmed that our clients can count on the highest level of service and support at all stages of the process of challenging the cadastral value, including in the framework of the judicial process. The expertise and professionalism of our team were highly appreciated by "Castorama" company.
The last facility was located in Moscow. The establishment of the cadastral value of real estate in the amount of the market value in the Moscow City Court also occurs with almost 100% appointment of forensic examinations. The process follows a standard scenario. The Moscow City Property Department brings comments (feedback) to the valuation report, which states that the report is incorrect, does not comply with valuation standards and the federal law on valuation activities. Valuers are not called to court, a judicial valuation examination is appointed at the first meeting.
Within the framework of this case, the expert showed a sound and professional approach: he considered the disputed object as a specialized commercial, that is, directly as a hypermarket. After applying the correct valuation methodology and even without allocating VAT, the expert came to the same figures. His results confirmed that our valuationes were not only not underestimated, but were also made moderately optimistically. As in the previous time, this made it possible for our client not to continue the proceedings, clarify the claims based on the results of the examination and achieve the set goals as quickly and effectively as possible.