In mid-July 2020, Valrus specialists, as determined by the Moscow City Court, valued the building of the Oceania Shopping and Entertainment Center on Kutuzovsky Prospekt as part of an administrative case on establishing a cadastral value equal to the market value as of April 12, 2019.
We have already conducted a re-examination, appointed due to the presence of the State budgetary institution and City Property Department defendants' comments on the definition of net operating income in the primary examination, which, in their opinion, led to an underestimation of the final result.
Oceania Shopping Center is a bright and conceptual project with unique architecture and modern design, mainly aimed at family buyers with children. In terms of the size of the coverage area and the expected number of visitors, it is a shopping center of regional scale. Taking into account the purchasing power and needs of the target group of visitors, it is a thematic family entertainment and educational center.
The developer and manager of the facility is the company TPS-Real Estate (asset holder - TPS Real Estate Holding), which began its activities in Krasnodar, building the shopping center "Gallery Krasnodar", and then entered the market of Moscow, Sochi and Novosibirsk. The owner of the TPS group is currently a holding company owned by Arkady Rotenberg. Actually, it is his capital and others after the acquisition of the company in 2012 and allowed it to carry out so many large projects in Moscow and other cities.
The opening of the Oceania shopping center in August 2016 was marked by unprecedented high rates of retail space occupancy and attendance in the retail real estate market, which remained both according to the results of 2018 (98.7% of the load) and at the current moment. High occupancy and attendance rates, as well as the mall's 135 thousand square meters scale, make it one of the key shopping centers on a regional scale. The main competitors are the European shopping mall and Afimall shopping mall.
Since the object in question belongs to the class of investment objects, representing a modern shopping mall with high-quality management, a profitable approach was used to determine the market value as the main one. During the research, information was requested through the court on the actual terms of the lease relationship, which gave us the opportunity to conduct a qualitative analysis and compare the data presented on rental income and operating expenses with market indicators. As part of the profitable approach, the direct capitalization method was applied, since the cash flows of the facility are stabilized, the occupancy of the premises is valued at the market level. The actual gross income was determined on the basis of actual data on rental rates for rented premises. The scale of the shopping center and architectural and construction features do not allow for the correct calculation of the object within the framework of comparative and cost-based approaches, and market comparison with other real estate objects of this class is carried out through the use of a comparable rate of return.
As a result of our calculations, the market value of the shopping center building was determined at 11.7 billion. rub. at the current cadastral level of 13.4 billion. rub. The plaintiff disagreed with the findings, insisting that the results of the initial examination are more objective and reliable (11.3 billionRUB., the difference with the re-examination of 3.5%), and filed an additional (clarified) administrative statement of claim, in which he asked to establish the cadastral value of the disputed non-residential building in the amount of the market value determined in the conclusion of the initial valuation forensic examination. At the same time, the initial examination was carried out without taking into account the actual terms of the concluded lease agreements, and the rates were justified by market analytics data. Having considered the expert's explanations, the court made a decision based on the results of the examination performed by us.