Annex 4: External appraisers

Appraisal process for investment properties

The purpose of the appraisal is to gain an accurate and independent valuation of the assets by the end of each quarter. The valuation of the residential properties in the investment portfolio complies with the relevant legislation and regulations (AIFM Directive, IFRS and Dutch legislation and regulations).

The appraisal is conducted in accordance with the guidelines and regulations of the Nederlands Register Vastgoed Taxateurs (NRVT or Dutch Register of Real Estate Appraisers), the prevailing valuation guidelines and valuation models as laid down by the Dutch property index, IPD, and the RICS Appraisal and Valuation Standards, or the Red Book (including the International Valuation Standards, IVS). The valuations of the residential properties are conducted using the Reaturn TM valuation system.

In 2017, the valuations of the properties in the portfolio were conducted by the following agencies:

  • CBRE Valuation Advisory (Q1, Q2, Q3)

  • Dynamis Taxaties (Q1, Q2, Q3)

  • DTZ Zadelhoff v.o.f. (Q1, Q2)

  • Colliers International Consultants (Q1, Q2, Q3, Q4)

  • Cushman & Wakefield (Q1, Q2, Q3, Q4)

  • Capital Value Taxaties (Q1, Q2, Q3, Q4)

  • Jones Lang LaSalle (Q2, Q3, Q4)

Valuations are conducted by qualified appraisers of these agencies; the appraisers are registered in the NRVT, which guarantees the initial qualification of the appraiser and his/her continuous training, and preferably also in RICS. In order to guarantee their independence and objectivity, every appraisal agency is contracted for a period of maximum four years.

For the purpose of the valuations, Vesteda divides the portfolio properties into four equal sub portfolios, each with its own appraisal agency. Once a property has been valued by the same appraisal agency for 3 years, it is assigned a different appraisal agency, to guarantee the objectivity of the appraisal. The appraisers value the properties that Vesteda assigns them at least once a year. For this valuation, the appraiser visits the property in question and incorporates, substantiates and records all the factors relevant to the value of the property in the appraisal. In the remaining quarters, the valuation is an update of the previously conducted (full) appraisal. For this update, the appraiser does not need to visit the property and will update data and references and adjust the value on the basis of market developments relevant to the property.