Immovable Property Valuation

Valuation for
Immovable Property Valuation

Valuation for loan collateral & security purpose

Banks and Financial Institutions lend money to the borrowers against mortgage of their fixed assets which are kept as collateral security. These banks and financial institutions require valuation of the collateral securities, which are in the form of both – Immovable property, more commonly known as land & building assets, as well as Plant & machinery.

It is imperative for the banks & financial institutions to ensure that the value of the offered collateral securities provides adequate coverage of the loans being disbursed to the borrowers. At the same time, the borrowers would require that offered collateral securities are not undervalued so as to leverage their assets appropriately.

RNC has been empanelled and rendering valuation services to all major Nationalized Banks, financial institutions and Non Banking Financial Corporations (NBFC), since almost the past three decades. RNC is preferred valuation service provider for these financial institutions because of its professional and timely services.

RNC has in house capability of carrying out valuation of both – Immovable property as well as plant & machinery and hence the banks & financial institutes get benefitted by getting both expertise at one place.

Valuation Of Immovable Property

Valuation of Real estate involves determining the value for real property (Land & Building). Real estate deals involving either sale or purchase require valuations because each property has intrinsic attributes which are distinctive from others and need to be factored in for determination of its value.

Valuation of Real Estate involves aspects of legal interests in the real estate, demand/supply, suitability of location, site characteristics, etc. Real estate fulfils the needs of use or as only an investment for the owner. However, in both cases the potential for growth of value is the key driver for purchase. The location and the up-gradation or improvements of the real estate have a direct bearing on its value.

Valuation reports form the basis of collateral for loans, settling disputes, liquidation, taxation, etc.

RNC has long and vast experience in providing services for valuation of real estate ranging from single dwelling residential units, housing societies, commercial properties like offices & shops, institutions like schools, hospitals, malls, multiplexes to large townships, industrial parks, SEZs, ports and other industries.

Valuation Of Plant & Machinery

Valuation of Plant and Machinery is considered as a tough exercise as it has lots of variables. Type of plant and machinery differs from industry to industry and also depends on the product being manufactured. Specific utility or usefulness of plant and Machinery, its design and applicability to production of goods and services for which it is intended to be deployed contribute in determining the value of such assets.

Maintenance practices adopted, usefulness, salvage value, replacement cost by taking into account the current value, cost of import, exchange rate, elapsed and balance life of equipment are factors which influence the Value of the assets.

RNC has a strong techno commercial team comprising of engineers from various disciplines such as Civil, Mechanical, Chemical, Textile, Mechatronics, Electrical, Electronics, etc and Chartered Accountants & Cost Accounts.

RNC has vast experience in providing services for valuation of plant & machinery from SSI units to large industrial conglomerates in sectors like Pharmaceuticals, Power, Chemicals & Fertilizers, Manufacturing & Engineering, Cement, Construction, Consumer Goods, Hospitality, Infrastructure, Iron & Steel, Automobile, Logistics, Metals & Mining, Petroleum, Petrochemicals, Oil & Gas, Real Estate, Telecom, Information Technology & Electronics, Textile & Leather and Cables etc.