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RICS expert discusses future of commercial property valuations

DUBAI, January 21, 2021

An independent review into the way commercial property is valued has launched a call for professionals, consumers and stakeholders to get involved – seeking views on whether updated guidance is needed.
 
Established to maintain confidence in the valuation practices of RICS professionals, the review is seeking evidence around four principle areas that form the foundation of commercial property valuation: the methodology behind valuation, identifying risk, maintaining independence and how value is measured.
 
Questions the review have posed include whether new, more prescriptive rules are needed and whether the existing Red Book remains the right global framework to deliver quality valuation services.
 
Peter Pereira Gray, Independent Chairman of the Valuation Review, has also sought views on specific ways a valuer’s objectivity and independence in the marketplace can be protected and enhanced, which would allow consumers and stakeholders to continue having full confidence in the advice provided.
 
"Valuers and the users of valuations are working with significant structural shifts in investor sentiment and occupier demand for real estate which is changing the marketplace and public and regulatory expectations of valuers," he stated.
 
"It’s why I have launched a Call for Evidence, setting out the context for the review and the specific areas that I would welcome stakeholders, consumers and industry to respond to," he added.
 
With the marketplace constantly evolving to respond to rapidly changing consumer trends, the review’s recommendations could see updates being made to the Red Book – an agreed set of international rules and ethical principles applied to the sale and purchase of commercial property.
 
To assist with the gathering of evidence and provide further advice, a panel of experts from across the market has been convened by Gray. It will bring a wide range of experience and challenge to the review from a variety of different perspectives. This new working group comprises the following experts:
 
*Isobel O’Regan – Currently at Savills in Ireland and a member of the Governing Council at RICS, the majority of Isobel’s 35-year career has specialised in professional services with an emphasis on valuations for secured lending and funds.
 
*Michael Brodtman – Brodtman has ran the valuation department at CBRE for nearly 20 years, advising banks, institutions and REITs and is now closely involved in the development of sustainability services.
 
*David Franklin – A Chartered Accountant with over 17 years’ experience working in commercial, operational, audit and advisory functions in the corporate and not-for-profit sectors, He is currently a Director at the Institute of Chartered Accountants in England and Wales.
 
*Marc Mogull – Executive Chairman and CIO of Benson Elliot Capital Management, Mogull is also a Senior Fellow in Land Economy at the University of Cambridge.
 
*Rebecca Worthington – She is currently the CFO at iQ Student Accommodation and Non-Executive Director and Chair of the Audit Committee at British Land and will shortly join Canary Warf Group in 2021 as its new CFO.
 
*Tim Mould QC – A planning, environmental and public law specialist at Landmark Chambers, Mould has over 30 years’ experience of practice in the field of compulsory purchase, land compensation and rating. Prior to taking silk in 2006, he was standing junior counsel to the Inland Revenue on rating and valuation.
 
*Paul Kennedy – Holder of Ph.D. and a first-class degree in real estate, Kennedy is a visiting lecturer at the Cass Business School at the University of London. He recently joined JP Morgan Asset Management in January as head of strategy and a portfolio manager for European Real Estate.
 
*Sarah Fromson – Currently Chair of JP Morgan’s £400 million-plus Global Emerging Markets Income Trust, Sarah has over 35 years’ experience in the City and in the investment management industry, including roles such as Chief Investment Risk Officer at RBS Asset Management and Head of Risk at The Wellcome Trust.
 
*Mike Prew – A senior Equity Research Analyst at Jefferies based in London, she heads the Pan-European Real Estate and covering 30 UK REITs with 30 years' sell-side experience
 
*Sandra Robertson – A regulated investment manager responsible for managing long term charitable capital, Robertson is the CIO and CEO on the board of Oxford University Endowment Management(OUEM).
 
Established in October 2020, the independent review is led by Gray, who has been appointed by the RICS Standards & Regulation Board. The review itself will specifically consider the ability of valuers to keep pace with key market changes.



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