Property Asset Valuations

1) Are valuation reports still required to be prepared for property assets that do not fall under the category of “identified assets” or parameters for approval of corporate proposals under the Issues Guidelines?
Yes. Valuation reports are required for all property assets where the assets are/will be revalued or have been revalued in the past five (5) years and where such revalued amount is used in the determination of the acquisition/disposal consideration. However, in the case of proposals by Distressed Listed Companies, valuation reports have to be prepared where such assets are/will be revalued or have been revalued in the past five (5) years prior to the submission to the SC. Valuation reports are also required where valuations on property assets have been carried out for inclusion in the prospectus. All such reports are required to comply with the Guidelines on Asset Valuations.
2) Will any assessment be conducted on valuation reports carried out on property assets for corporate proposals that fall under the declaratory approach?
Under the declaratory approach, a compliance review will be conducted to ensure valuation reports comply with the Guidelines on Asset Valuation and relevant valuation standards. However, SC reserves the right to seek a second opinion.
3) When does the SC seek a second opinion?
The SC reserves the right to seek a second opinion where the valuations of the property assets are found to be unreasonable or overvalued. However, the second opinion will be sought depending on the materiality of each case.
4) In cases where the valuation involves large number of supporting documents such as copies of titles, tenancy agreements, sale and purchase agreements etc, how should the Valuer address these issues?
If these documents are standard in nature, then samples of typical units may be attached. However, a list summarising details of such documents must be prepared and verified. In the case of standard titles, the Valuer may conduct searches on typical titles for each category of property type.