bluuebunny/crossref_metadata_2025 huggingface dataset:
Vision Tips the Scales for Robofish
Authors: Gouvianakis N. , Loupis M. , Dimitriadis B.
Published: February 2008

Vision‐based intelligent automation systems have been slow in finding a way to the food industry, mainly due to the conservative nature of the food processing industrial sector, and the unproven maturity of the required vision and automation technologies. Vision‐based systems should be convincingly robust, and fulfil the set performance requirements at a reasonable economic investment.
3‐D Tactile Image Display
Authors: Monkman G.J.
Published: February 2008

Much of the work on teleoperation has concentrated on active force and torque feedback between the slave device carrying out the required physical function and the master controller being guided by human hands. This gives the operator a feeling of resistance or damped acceleration when obstacles are encountered or large masses lifted. However, little idea of an object's physical outline or profile can be portrayed by these techniques, and such systems must be augmented by additional vision facilities. Similarly, the aerospace industry is presently developing ever increasingly sophisticated virtual reality environments for pilot training. It is felt that, in addition to visual, audio and torque feedback, some form of tactile feedback would be useful.
Loadcell Accuracy in Process Weighing – A Confusion of Terms
Authors: Zecchin Peter
Published: February 2008

Strain gauge loadcells have been used for many years to measure the contents weight of tanks, hoppers and the many various specialist processing vessels found in industrial manufacturing processes. Many of these applications have been extremely successful, providing the user with accurate and repeatable measurements with which to monitor and control chemically reactive, sometimes complex, blending operations. The benefits of a non‐contact measurement which is a direct indication of weight are self evident and have brought a reduction in manufacturing costs and improvement of product quality to those companies which have correctly applied the technique.
The Kilogram Mass Standard
Authors: Grewal Simmy
Published: February 2008

The place where I work in Sydney is the site of the National Measurement Laboratory (NML) of Australia. The function of the Laboratory is to develop technologies for high accuracy measurements of mass, length and time. The theme of weight measurement for this issue of Sensor Review prompted me to talk to some of the scientists involved in this area of research.
Digital Probe
Authors: Shaw Julian
Published: February 2008

The linear variable differential transformer (LVDT) has been at the heart of electronic gauging systems for many years. The fundamental simplicity of the LVDT has made it almost impervious to the transition from analogue to digital techniques which have revolutionized everything else.
Vision Aids Rapid Prototyping
Authors: Hollingum Jack
Published: February 2008

Image processing in support of rapid prototyping was one of the minor features of the Hanover Industry Fair in April 1993, where much of the vision sensing innovation was concentrated in a group stand organized by the German Vision Club image‐processing interest group. The club has more than 60 member firms, including all the leading German manufacturers, accounting for 75 per cent of all industrial applications. Another notable feature of this year's exhibition was the number of exhibitors from the former East Germany, the so‐called neue Länder, and from Eastern Europe.
“Tap and Listen” on the Tiles
Authors: Kochan A.
Published: February 2008

The “tap‐and‐listen” method of detecting internal cracks in earthenware roofing tiles has been automated on the production line of French manufacturer IRB/TBL. The company responsible for developing the automated system is ITMI, a French vision specialist now taking its first step into sound technology.
Biosensors – The Needs of the Healthcare Market
Authors: Owen Valerie M.
Published: February 2008

This article is based on a study, sponsored under the Department of Trade and Industry Advanced Sensors Technology Transfer Programme (ASTTP), into the Market Requirements and Opportunities for Advanced Sensors in the Healthcare Industry,
Whole Cell Biosensors for Environmental Monitoring
Authors: Atkinson A.L. , Haggett B.G.D.
Published: February 2008

Biosensors are chemical sensors with a biological component which is normally used to impart selectivity to the sensor. Such devices have been under development for more than 20 years. Most particularly, the clinical and health care markets have been addressed since these were seen as being both large and lucrative. However, in recent years the development of sensors for environmental monitoring has received impetus from the increasing public awareness of “green” issues and consequent burgeoning of legislative requirements.
Capacitive Measurement System for Blade Clearances
Authors: Mönich Marcel , Bailleul Gilles
Published: February 2008

With the increasing optimization of turbine engines, there is a growing demand for precise measurement equipment. The minimal tip blade clearance in such an engine is one of the main parameters governing its efficiency. It is not sufficient to rely on laboratory results but to prove them under actual flight conditions.
What's New in Signal Processing?
Authors: Hollingum Jack
Published: February 2008

Behind every system using sensors are the software and hardware for interpreting the output of the sensors. During recent years there have been important developments in signal processing, and a colloquium in September at the University of Southampton Institute of Transducer Technology brought together a number of these techniques with examples of their application.
Food for Thought at C&I '93
Authors: Wittenberg Gunter
Published: February 2008

The Control & Instrumentation Exhibition, with a 23‐year history, took place at the National Exhibition Centre, Birmingham, 25–27 May 1993. The emphasis, as usual, was on process engineering and sensors in many forms were much in evidence.
SEVERANCE AND THE LAND TAKEN
Authors: SAMS G.S.
Published: February 2008

It has long been established that when part of a parcel of land in one ownership is acquired compulsorily and the land which is retained is rendered less valuable as a result the owner is entitled to compensation for that depreciation. The purpose of this article is to discuss whether a similar right to compensation arises where the land taken is itself rendered less valuable as a result of the severance.
TOWARDS A STANDARD PROPERTY INCOME VALUATION MODEL: RATIONALISATION OR STAGNATION?
Authors: McINTOSH ANGUS , SYKES STEPHEN
Published: February 2008

In a previous paper Sykes derived a mathematically consistent investment valuation model for freehold properties which he referred to as the Rational Model. This new model overcomes certain serious failings of other methods commonly in use. The present paper readdresses the arguments of the earlier paper in a manner rather more familiar to a practising valuer and compares current methods of valuation with the Rational Model. It is also shown that the Rational Model can be simply adapted for the valuation of leasehold interests without resorting to a separate (and usually quite artificial) ‘sinking fund’ rate.
THE VALUATION OF ‘NO‐MARKET’ PROPERTY ASSETS
Authors: RAYNER MICHAEL
Published: February 2008

Since 1974 a great deal of thought has been given to the valuation of the property assets of public limited companies. The ‘Guidance Notes’ published jointly by the Royal Institution of Chartered Surveyors and the Institute of Chartered Accountants in that year have been revised progressively, culminating in the Second Edition of 1981 However, the recommendations, both in Guidance Note 14 and the relevant Background Paper 3, concerning properties that are rarely sold on the open market still leave a great deal undiscussed. The criticisms of the recommended method, Depreciated Replacement Cost, voiced by Rayner in 1976 are dealt with only in part in Guidance Note No. 14.
THE VALUATION OF DEVELOPMENT PROPERTIES: 2
Authors: RATCLIFFE JOHN
Published: February 2008

Part one of this article appeared in Journal of Valuation Volume 1 Number 1 at page 24. Part three, to be published in Journal of Valuation Volume 1 Number 3, will illustrate in specimen appraisals and valuations the points raised in the first two parts.
DEVELOPMENT LAND TAX: THE BASES OF VALUE
Authors: HOYES T.
Published: February 2008

The history of the taxation of development value in the UK is long, exceedingly complicated and, until the mid‐1970s, a saga of failure for political, administrative and technical reasons. The Development Land Tax (DLT) Act of 1976 had a somewhat uncharacteristic birth, since the Chancellor of the Exchequer in the Conservative Government of 1970–74 resolved in December, 1973, to attempt to tax development value from land in a special way. His subsequent tenure of office was short and the succeeding Labour Chancellor decided that the opportunity should not be missed. Moreover, the confusion created by the December, 1973, statement needed to be regularised to bring back some measure of certainty during those turbulent times in the area of property and development.
LONDON COMMERCIAL OFFICE SPACE SURVEY: A SURVEY AND ANALYSIS OF OFFICE DEVELOPMENT
Authors: SHERMAN PAUL
Published: February 2008

This research was provoked by the apparent lack of a consistent information base for commercial office floorspace statistics for London. Each of a variety of sources seem to offer different magnitudes for the total floorspace stock. Beyond this we attempted to disaggregate floorspace figures by unit size, in order to ascertain a clearer picture of the composition of office floorspace and to assess changes in this over time.
THE USE OF EQUATED YIELD TECHNIQUES: A CASE STUDY
Authors: MULQUINEY ALLAN , ALLEN SIMON
Published: February 2008

This paper considers the valuation in 1982 of the freehold interest in an industrial estate. The freeholder has granted a ground lease to a developer who has over a period of years constructed and let a number of factory and warehouse units. The ground rent is geared to a percentage of the rack rents on review every seven years. The majority of the occupation leases of the units on the estate are on a five‐yearly rent review basis with one unit on a three yearly rent review basis.
THE ASSESSMENT OF PROPERTY INVESTMENT RISK
Authors: SYKES STEPHEN
Published: February 2008

The quantitative assessment of the degree of risk associated with the direct acquisition of commercial property for investment purposes is practically non‐existent. There is almost always a total reliance on unquantified subjective feeling with no attempt to transform such a qualitative treatment into an analytically more acceptable and useful form. Whilst the investment capitalisation rate should, to an extent, reflect the investor's view of the future earnings capacity of a particular property, this yield rate is principally a function of general market sentiment and may not significantly allow for the inherent risk characteristics of an individual investment. This is especially the case at the prime end of the market where the pressure of funds competing to invest in a sector of particularly limited supply remains most severe.
THE VALUATION OF DEVELOPMENT PROPERTIES: 3
Authors: RATCLIFFE JOHN
Published: February 2008

In the concluding part to this series, which has offered some comments on the residual method of valuation, a hypothetical site possessing development potential is described, and a conventional residual valuation is carried out to demonstrate how, in practice, the technique is used and adapted to ascertain the likely value of land. It should be stressed that the example is purely illustrative, and relates to the author's perceptions of the market in January, 1983.
THE INVESTMENT METHOD OF VALUATION: A REAL VALUE APPROACH: 1
Authors: CROSBY NEIL
Published: February 2008

This paper introduces the real value approach. A second paper, to be published in the next issue of Journal of Valuation, considers specific applications of this approach.
STANDARD MEASUREMENTS OF REAL PROPERTY VALUES
Authors: PEARCE IDRIS
Published: February 2008

In the scientific instrument industry, measuring devices are tested and evaluated using various criteria. One test is for accuracy: how precisely does the instrument monitor changes in the variables it is designed to measure? Another test is for repeatability: will the instrument (or several different copies of the same instrument) consistently give an accurate reading when essentially similar conditions are duplicated time and again? A third test is for efficiency: does the instrument carry out the measurement rapidly and economically, taking full advantage of innovations in technology?
THE VALUATION OF VARYING INCOMES: 3
Authors: BOWCOCK PHILIP
Published: February 2008

In the previous paper the reasons for the well known anomaly in the valuation of varying incomes of limited duration were examined and it was shown that the Double Sinking Fund Method as originally proposed did not solve the problem where different remunerative rates of interest were used. It was pointed out that in fact the problem was not a dual rate problem but a triple rate one since during some part of the life of the income there were three different rates of interest operating. If, however, the problem is constrained by requiring that during any part of the period only one remunerative rate is permitted, then the Double Sinking Fund Method is consistent, providing that it is appreciated that during one period there will be a shortfall of income which is exactly balanced by a surplus in another when each is capitalised at the corresponding remunerative rates.
VALUING TIME‐SHARE INTERESTS: 1
Authors: AVIS MARTIN , GIBSON VIRGINIA
Published: February 2008

A second paper, providing an illustrative valuation, will appear in volume 2 of Journal of Valuation.
POINTE GOURDE, RULE 3 and SECTION 6
Authors: LEACH W.A.
Published: February 2008

The purpose of this article is to differentiate between the Pointe Gourde principle, rule (3) of s. 5 of the Land Compensation Act 1961 and s. 6 of that Act, three rules affecting valuations of land for purposes of compulsory acquisition by requiring some aspect of value to be disregarded. It is not intended to discuss the detailed application of the rules.
THE DEPRECIATION OF BUILDINGS
Authors: BOWIE NORMAN
Published: February 2008

A sustained period of inflation followed by a deep recession, in which demand for space has slumped, has really brought home to property owners the fact that buildings do gradually wear out and depreciate in value. The time has passed when tenant demand for space so exceeded supply that rental and capital values for second‐hand buildings equated to those of brand new ones. As in other fields inflation covered up the errors of omission or commission particularly when accompanied by a buoyant economy. The crevasse type of market collapse in 1974/75 seemed but a hiccup to property people travelling along a one way street without end.
CHANGING EMPHASIS IN APPRAISAL TECHNIQUES: THE TRANSITION TO DISCOUNTED CASHFLOW
Authors: KORPACZ PETER , ROTH MARK
Published: February 2008

The marketplace has never been as dynamic as it is today. In real estate, many factors are affecting the validity and usefulness of traditional valuation techniques. Rent levels in many markets have risen so rapidly in the last two years that a wide margin exists between current economic rents and contract rents — resulting in a greater market differential. As leases expire and space is released at much higher rent levels, opportunities occur for rapidly increasing cash flows. (The occurrence of lease expirations and subsequent releasing of the space is commonly referred to as ‘lease rollover’.)
THE INVESTMENT METHOD OF VALUATION: A REAL VALUE APPROACH: 2
Authors: CROSBY NEIL
Published: February 2008

It is important to question the suggestion that there is no distinction between inflation and growth. An illustration of the applications will show that the hybrid between the real value and equated yield approaches enables valuers to place the right ‘type’ of yield on differing types of income or capital value, ie high yields when rents are unable to be reviewed, low yields when rents are able to be reviewed continually and moderate yields when the income in partially proofed.
TAX EXPLICIT CALCULATIONS: INDUSTRIAL BUILDING ALLOWANCES FOR THE SMALL INVESTOR
Authors: COLBORNE ANN
Published: February 2008

Valuers generally shy at specific allowances for taxation in their calculations. There should always be good reasons for making specific allowances (even NIL ones) in as much as the much quoted ‘market’ is made up inevitably of tax payers and tax exempt bodies. There are many situations where the tax payers' bid can be the highest and thus create the ‘market’.
VALUATIONS FOR MORTGAGE PURPOSES
Authors: MORETON PETER
Published: February 2008

A purchaser of a residential property has several options in satisfying himself or herself that the dwelling in question is or is not in satisfactory condition and/or is or is not worth the price being paid.
WHAT USE IS PROPERTY PERFORMANCE ANALYSIS?
Authors: PATRICK M.J.
Published: February 2008

The measurement of property investment performance has become a subject of much discussion in recent years. A number of the leading surveying firms have put considerable effort into developing systems for the measurement of performance and it may now be time to look more closely at how the output from these systems can be used in practice.
MAKING PROPERTY INVESTMENT DECISIONS VIA CAPITAL MARKET THEORY
Authors: BROWN GERALD
Published: February 2008

This paper was originally published in Accountancy and is reproduced with kind consent, with modification.
PROPERTY VALUATION: A RATIONAL MODEL
Authors: SYKES STEPHEN
Published: February 2008

The mathematics of property valuations commonly used in practice exist in several formulations which have been adopted over the years. All are similar in that they represent simple discounted cash flow models equating the estimated future earnings capacity of a property to a net present (capital) value. The process, whilst appearing somewhat daunting, is in fact accomplished in a manner such that, under normal circumstances, the estimated future cash flow beyond the next rent review is not explicitly expressed. Instead of generating a future income flow (assuming some rate of rental growth) and discounting at a money rate of interest (suitably adjusted for risk), the estimated rental income at the next review is capitalised at a relatively low investment yield rate which merely implies a future rental growth rate.
REAL ESTATE PORTFOLIO PERFORMANCE
Authors: WYATT ADRIAN
Published: February 2008

This paper will take the practical line of looking into the ‘What, How, Why, When and Where’ of performance measurement. The history of performance measurement will be reviewed and the distinction between the various methods of calculation highlighted.
VALUATION OF VARIABLE RENTS: THE NORTH AMERICAN EXPERIENCE
Authors: NORTH LINCOLN
Published: February 2008

In contrast to rents which are prescribed by contract to remain fixed or constant during the term of a lease, the expression variable rents simply implies that the rent to be paid during the tenure of occupancy will be subject to change with the passage of time.
VALUATION FOR CORPORATE PURPOSES: ASSET VALUATIONS
Authors: GEOFFREY POWELL J.
Published: February 2008

Monetary instability presents property valuers with particular problems. My view of the current situation is that of a practising valuer, but one who, since 1973, has also participated with other members of the profession in work to identify these problems, and to draft and publish valuation standards and guidance notes for valuers throughout the UK. No less important is the continuing work of keeping these standards under review and, where necessary, of updating them, together with the appropriate guidance notes to the profession.
VALUATION FOR CORPORATE PURPOSES: CURRENT COST ACCOUNTING PERSPECTIVES
Authors: SPEEDY SQUIRE
Published: February 2008

1. Introductory perspectives If you want to catch a trout, you must think like a trout. If you want to value real estate, you must look at it from various angles. If you want to understand valuations for current cost accounting you must think like an accountant and view it from several perspectives.
PERIODIC REFURBISHMENT AND RENTAL VALUE GROWTH
Authors: SYKES STEPHEN
Published: February 2008

The market value of any property investment will tend to deteriorate over time when compared to similar modern properties if monies are not periodically expended to mitigate the effects of obsolescence. This paper examines the relationship between the initial yield of a property at purchase and the rate of future rental value growth necessary to achieve a criterion rate of return on the investment. Traditionally in calculations of the future rental growth rate required to justify an initial investment yield (when compared, say, to the rental shown by gilt‐edged stocks) the simplistic view is taken that following purchase no further expenditure is anticipated. However, if a property is to maintain its original market appeal (or adapt to evolving circumstances), capital must from time‐to‐time be injected for the purposes of refurbishment. Thus, any analytical model which ignores this inevitable expenditure, but nevertheless assumes a constant rate of long‐term future rental growth, is quite unrealistic. A Refurbishment‐Rental Growth Model is derived which allows the introduction of regular future capital expenditure both in terms of magnitude and frequency. Various examples are illustrated of the effect which such expenditure may have in necessarily increasing the required future rental growth for a property investment in order to achieve an anticipated level of return.
VALUATIONS OF DEVELOPMENT SITES USING THE STOCHASTIC DECISION TREE METHOD
Authors: ARNISON CHRISTOPHER , BARRETT ADELE
Published: February 2008

Deterministic valuations of any type are increasingly subjected to criticism. Single point estimates of market value are arguably insufficiently informative where the estimate is prone to error. Residual valuations are probably most open to variation as a result of changes in the variable inputs, that is to say the result is sensitive. This paper suggests that if the probability and degree of error are made explicit in any development appraisal the potential developer can at least judge how much risk is involved and is thus better equipped to make a decision. Existing microcomputer programmes can be utilised for this purpose, together with published statistical tables, so that non‐mathematicians can reach valuable conclusions hitherto available only after very complex calculations.
THE VALUATION OF LEASEHOLDS: A REVIEW: PART I
Authors: BAUM ANDREW , SHI MING YU
Published: February 2008

A preceding paper by Baum examined the valuation of reversionary freehold interests, distinguishing between conventional and modern approaches. This paper applies the same approach to the valuation of leaseholds, and falls into two parts. Part 1 examines conventional leasehold valuations and the criticisms that may be made, concluding that both dual rate and single rate conventional valuations should be abandoned except in limited circumstances. Part 2 identifies three alternative modern approaches — real value, rational model and DCF — and compares their use in three general variations of leasehold valuation. The results are compared, and recommendations for their use are made. Finally an overview of the application of modern approaches to investment property valuation is presented.
THE VALUATION OF LEASEHOLDS: A REVIEW: PART II
Authors: BAUM ANDREW , SHI MING YU
Published: February 2008

A preceding paper by Baum examined the valuation of reversionary freehold interests, distinguishing between conventional and modern approaches. This paper applies the same approach to the valuation of leaseholds, and falls into two parts. Part 1 examined conventional leasehold valuations and the criticisms that may be made, concluding that both dual rate and single rate conventional valuations should be abandoned except in limited circumstances. Part 2 identifies three alternative modern approaches — real value, rational model and DCF — and compares their use in three general variations of leasehold valuation. The results are compared, and recommendations for their use are made. Finally an overview of the application of modern approaches to investment property valuation is presented.
RATIONAL MODELS OR PRACTICAL METHODS?
Authors: FRASER WILL
Published: February 2008

This paper criticises the ‘rational’ model of valuation propounded by McIntosh and Sykes in their two papers in the Journal of Valuation. It concludes that, in the case of freehold investments with a standard pattern of income flow, the years' purchase method of valuation (adopting a single capitalisation rate) is likely to be more appropriate, and in the case of short leasehold investments a full discounted cash flow approach is preferable. Only in the case of long reversions or non‐standard short reversions may the ‘rational model’ prove optimal, but in these cases it seems merely a sensible application of conventional DCF techniques rather than a new valuation method.
SELECTION OF ASSETS FOR A PROPERTY PORTFOLIO USING PORTFOLIO THEORY
Authors: HARGITAY STEPHEN
Published: February 2008

To maintain and enhance the efficiency of a property portfolio the portfolio manager should select those property investment propositions which promise the maximum improvement of portfolio return and reduction of portfolio risk. To cope with this difficult task the portfolio manager needs appropriate decision criteria. This paper discusses some of the selection criteria evolved through the developments in capital market theory in order to assess their usefulness in property asset selection procedures. The use of the ‘reward‐to‐volatility’ criterion to select appropriate property portfolio projects is explored through a worked example. The reliability of such selection procedure depends on the availability of reliable historic record of the performance of the property market and of the property portfolio together with the portfolio manager's ability to perceive expected returns in different ‘states of the world’.
RATING VALUATION: THE CONTRACTOR'S BASIS
Authors: GRIMMETT LAURENCE
Published: February 2008

This paper examines the use of the contractor's basis of valuation in rating assessment. It is often assumed that this involves the application of a simple, straightforward valuation model, but the practising valuer soon realises that the contractor's basis is more complex and contentious than it appears. It has been criticised for its alleged anomalies and vagaries, and it has been the subject of numerous Lands Tribunal and Court of Appeal decisions. The various ‘stages’ of a contractor's valuation model are discussed in detail against the background of the leading decisions and the manner in which the Court and the Tribunal have grasped the problems presented, including, inter alia, the university and public schools cases of the 1960s, Lord Denning's important decision in Cardiff Corporation v Williams (V.O.), and the recent dispute involving Imperial College of Science and Technology. After close examination of the stages, it is concluded that the guidelines which have gradually evolved now present the valuer with substantial rationale.
COMPUTER SOFTWARE AVAILABILITY FOR VALUATION (Property Valuation, Development Appraisal and Portfolio Analysis)
Authors: DIXON TIMOTHY
Published: February 2008

Computer software, and indeed hardware, has not as yet captured the imagination of many practising valuers. There are a number of reasons for this. But micro‐computer software is available for property valuation, appraisal and analysis, and this software takes a number of forms. Care should be taken in choice, especially if the firm in question uses ‘traditional’ methods of valuation. It is clear that for those not already computerised the overall strategy of a firm, as regards its function and scope of practice, should be carefully considered. For those already computerised it is hoped that the article will provide valuable advice on software availability for valuation, appraisal and portfolio analysis, with particular reference to development appraisals.
THE RATE OF RETURN AS A MEASURE OF PERFORMANCE
Authors: NEWELL MARTIN
Published: February 2008

Papers by Wyatt (Wyatt, 1984) and Hall (Hall, 1985) have addressed the subject of property performance measurement in this journal, and the topicality of the subject has been ensured by the response to Hager and Lord's paper to the Institute of Actuaries (see Editorial, Journal of Valuation, 3: and Brown, 1985). However, the measure employed has not been the subject of detailed analysis, and at various times the time weighted rate of return, the money weighted rate of return, the internal rate of return and others have been suggested as the appropriate measure. It is not even clear whether MWRR and IRR are identical measures. This paper examines alternative measures and demonstrates the difference between MWRR and IRR and makes recommendations of the correct measure.
PROPERTY YIELD TRENDS IN A FLUCTUATING ECONOMY
Authors: FRASER WILL
Published: February 2008

In the 1970s, yields on UK commercial investment property appear to have been influenced principally by the cost of long term capital and the rate of rental growth. Consequently, yields tended to respond to the economic cycle, falling in times of economic recovery and rising when the economy moved into recession. However, in the 1980s so far, yield trends appear anomalous by comparison. Yields failed to rise on the advent of the recession in 1980–81, despite a sharp rise in the cost of capital, yet rose in 1982 just when the economy began to emerge from recession, and have since continued to rise as economic recovery and rental growth have gathered pace. This paper seeks to explain recent movements in investment property yields and to reconcile these with trends in the 1970s. It concludes that the behaviour of yields in the 1980s can be explained by the dominance of institutional investors in the property market, and by their perception of the changing risk attributes of property (compared with alternative investments) which have resulted from changes taking place in the investment markets and the UK economy.
INVESTMENT PROFILES
Authors: LEIGH DUDLEY
Published: February 2008

The object of the Investment Profiles is to expose the bidden assumptions which lie behind valuations of investment properties, and in doing so to provide a more objective platform for debate and argument about any particular valuation. The traditional approach to valuation is to apply an ‘all risks’ yield to the flow of income from any property, reflecting the advantages and disadvantages of that investment. However, there is no sound objective basis on which to justify the ‘all risks’ yield used. In reality, the valuer arrives at the yield by making a number of subconscious mental adjustments to the yield based on the particular features or disadvantages of the property under consideration. Investment Profiles arrive at the same ‘all risks’ yield by an explicit approach, the valuer making a series of adjustments to the yield. These adjustments can then be debated and argued. The need to resort to unscientific cliches like ‘prime’, ‘semi‐prime’ and ‘secondary’ can be much reduced or avoided. The paper considers a number of example valuations, and demonstrates that the technique is easy to understand and simple to use.
THE VALUATION OF SHORT LEASEHOLD INVESTMENTS
Authors: BAUM ANDREW , BUTLER DEREK
Published: February 2008

The valuation of short leasehold investments has become a subject of debate over the past few years. Concern has been centred upon the suitability of conventional valuation techniques, the unique nature of the short leasehold investment and its affinity with gilts rather than the mainstream property market. This paper is the result of a seminar at ISVA headquarters in late 1985 to which Butler and Baum contributed, and examines the nature of short leaseholds as investments, the market for short leaseholds, characteristics affecting values and both principles and practice of short leasehold investment valuations. Three case studies are presented in illustration.
SUPPLY ELASTICITY AND THE RENTAL VALUE OF INVESTMENT PROPERTY
Authors: FRASER WILL
Published: February 2008

Investment returns from property derive from rental income and change in value, and a property's value is a function of the current rent and the expected future rent. So, ultimately, investment returns derive from rent, and successful investment will depend on an understanding of the principles and forces which explain the market's determination of rental value. This paper explains the significance of supply elasticity to the determination of rental value and investigates the probable elasticities of the four main types of investment property. It concludes that, due to the very inelastic supply of farmland and prime High Street shops, trends in rental growth will reflect the profitability of occupation whereas, in general, the rental value of office and industrial property will tend to reflect development costs, due to their relatively elastic supply. The article investigates how far such predictions appear to be supported by evidence and briefly discusses the relative impact of obsolescence on the four property types.
EXPERT SYSTEMS — KNOWLEDGE ELICITATION FROM BUILDING SOCIETY VALUERS
Authors: GRONOW STUART , SCOTT IAN
Published: February 2008

Expert systems are currently being developed in many and varied professions. A major problem however is the extraction of knowledge from the required expert in order that it can be represented within the system. This paper will summarise the problems of knowledge elicitation, outline the methods currently used to acquire expert knowledge and describe the method we have refined from these general principles as the most suitable for ‘capturing’ the expertise of a practicising residential mortgage valuer. The basis of this paper is a research project investigating the application of expert systems to the valuation of vacant possession residential properties for mortgage purposes continuing at the Polytechnic of Wales.
THE VALUATION OF AN INDUSTRIAL BUILDING IN AN ENTERPRISE ZONE
Authors: NEEDHAM PAUL
Published: February 2008

Special problems arise in the valuation of property which is transacted in a market distorted by government policy in the particular form of the enterprise zone. This paper seeks to outline the nature of enterprise zones, the effect they have had on local property markets and the impact upon values and valuations created by rates exemptions and capital allowances. A case study illustrates how these factors may be taken into account in the valuation of industrial property in an enterprise zone.
THE VALUATION OF MODERN WAREHOUSES: INFLATION AND DEPRECIATION IMPLICATIONS
Authors: HARKER NORMAN
Published: February 2008

The inflation and depreciation assumptions implied within a traditional valuation should be exposed for consideration in an appraisal of a depreciation‐prone investment. Modern warehouses are examples of this type of investment. The all‐risks yield implies judgements concerning a long list of factors which affect the quality of an investment and its comparative appeal against alternatives such as gilt‐edged securities. An analysis for implicit growth is a starting point in an explicit appraisal. However, no account of depreciation is normally taken in the estimation of the growth implications. A combination of explicit growth and depreciation assumptions will enable an appraisal to be based upon a depreciated equated yield, the basis of the appraisal technique presented for consideration below.
THE APPRAISAL OF SHOP INVESTMENTS
Authors: MASON RAMSAY
Published: February 2008

Value is the price which several operations in the market may reasonably be expected to pay. However, the investor is vitally interested in the future cashflow of an investment, and the soundest valuation advice will incorporate some attempt to project future rental incomes and capitalisation rates in order to predict total return (IRR) on the basis of varying assumptions. This paper presents valuations/appraisals of three contrasting shop investment opportunities in illustration of this guideline.
PERFORMANCE ASSESSMENT INDEXES AND CAPITAL ASSET PRICING MODELS
Authors: LOCKE STUART
Published: February 2008

The applicability of capital asset pricing theory to the derivation of performance measures for real estate is examined. Although risk and return are fundamental concepts in modern finance they are seldom treated formally in non‐academic discussions of asset performance. An explanation is sought for the apparent failure to adopt formal models which have been developed and tested in the share markets for performance assessment in the real property market. The evidence suggests that it may not be the difference in approach pursued by real estate professionals toward valuation vis‐à‐vis share market analysts but rather the inapplicability of capital asset pricing models to real property returns that is the explanation for the lack of standardised measures.
RISK‐EXPLICIT APPRAISAL: A SLICED INCOME APPROACH
Authors: BAUM ANDREW
Published: February 2008

Property investment risk is traditionally accounted for by valuers in a risk‐adjusted discount rate approach, although this term, popular in mainstream finance, is rarely used. This paper shows that RADR is but one of several risk adjustment techniques that may be employed within an explicit cash flow framework. It explains how a certainty equivalent technique may be used in an objective manner by use of standard deviation analysis, and develops a new technique for use in the UK prime market known as the sliced income approach. The paper goes further by setting risk adjustment (deterministic) techniques within the wider context of risk analysis and compares a simple probabilistic approach and sensitivity analysis with these techniques for use in property investment appraisal. A case study is employed in illustrations.
CASH FLOWS AND RISK ANALYSIS
Authors: ROBINSON JOHN
Published: February 2008

Much has been written about probabilistic methods of risk analysis and about the probability distributions required for its use. This paper demonstrates a method known as the probability of acceptance error approach using simple scenarios in which the only variable tested by a probability distribution is rental growth but in which other variables such as discount rate, capitalisation rate and holding period are also tested. In particular, the sensitivity of the probability distribution chosen for the rental growth values is discussed where both the rental growth values themselves and the probability distributions are normally distributed and also where they have a skewed distribution. It is shown that for current market projections for rental growth great accuracy in the selection of a probability distribution is not required. It is also shown that assumptions about independence or serial correlation of cash flows may be similarly treated and that the probability of acceptance error may be described as a range having independence and serial correlation as the two extremes. The range usually turns out to be fairly narrow. The most sensitive item in the calculations is, as expected, the discount rate. The above findings are demonstrated in a series of appendices.
THE VALUATION OF RETAIL STORES
Authors: STJ HOPPER MICHAEL
Published: February 2008

The paper describes the various types of retail stores found in shopping centres and states that rental valuations are made by reference to rents paid for comparable premises. The paper describes the alternative methods of rental valuation which may be employed. The ‘zoning’ method and the ‘overall’ method are described and commented upon with references to relevant case law and examples of each method of valuation. The alternative methods are compared and it is concluded that one or other method may be preferred in particular circumstances. It is concluded that either method may be employed but that the preferred method will be that which best facilitates comparison between rents of stores which differ in location and other relevant characteristics. The paper also deals with capital valuations on an ‘existing use’ basis and concludes that that method of valuation should be by way of capitalisation of actual rents or estimated net rental values.
RAISING FINANCE FOR NEW DEVELOPMENT
Authors: GIBBS RICHARD
Published: February 2008

Summary With the advent of very large development schemes, traditional forms of funding have proved insufficient in meeting the massive cost of such developments. This paper looks at the various forms of funding currently available to the developer and discusses the merits and shortcomings of traditional financing techniques, comparing them with more innovative techniques which are currently emerging. No longer can property finance be viewed in isolation; it now forms an integral part of the much wider field of business and corporate finance.
THE SECURITISATION OF A HYPOTHETICAL SHOPPING CENTRE
Authors: HUMPHREY TONY
Published: February 2008

Securitisation, unitisation and PINCS are all, in essence, very simple. They share a common objective of creating a market instrument which gives investors a return which is comparable to holding a direct interest in the freehold of a property at a fraction of the price. The only recent public transaction of this type to have proceeded is Billingsgate City Securities plc, which was a corporate securitisation. This paper analyses, by way of case study, a corporate securitisation involving the public issue of debt securities and preferred ordinary shares. The discussion is intended to stimulate thought about the problems that arise (and will tend to arise in any securitisation, unitisation or PINCS scheme), to suggest solutions and to demonstrate the flexibility of corporate securitisations. It should become apparent that the complexity of any particular structure is largely a function of the sophistication of the specific objectives of the property owner. It is the author's belief that the fact that the problem solving techniques used in a corporate securitisation are familiar (even though in a different context), makes corporate securitisations robust as well as flexible.
TAX RELIEF AND PROPERTY FINANCE
Authors: PARRY‐WINGFIELD MAURICE
Published: February 2008

With property finance it is often a case of grabbing an opportunity as soon as it presents itself. Failure to consider the tax consequences beforehand may mean that it is not such a good deal after all. For example the interest may not qualify for tax relief, or may qualify tomorrow rather than today. If the money is raised overseas the UK Revenue and the lender may be pulling your arms in different directions over whether withholding tax should be deducted: and insult will be added to injury if a loss is incurred on repaying the loan in a foreign currency and that loss is not allowed for tax. At the same time a number of new and innovative financing schemes are coming on to the market. Are these tax effective? By explaining how the tax rides work and drawing attention to the various pit‐falls, this paper illustrates that tax planning needs to be done before signing the finance agreement rather than be faced by a firefighting exercise afterwards.
MARKET SEGMENTATION — APPLYING A MARKETING CONCEPT TO COMMERCIAL REAL ESTATE DEVELOPMENT
Authors: ETTER WAYNE , SHAFFER SCOTT
Published: February 2008

Market segmentation, the dividing of a market into distinct subsets of customers, is a conceptual approach that commercial real estate developers can use to identify unmet needs. By developing properties for which there is an unmet need instead of those that are already adequately supplied, the developer achieves a temporary monopoly. To accomplish this, the market area must be defined, an inventory of existing space must be made and the demand for particular types of space must be estimated. The office space market and the retail space market are used to illustrate the process of identifying the type and size of building that should be built as well as determining when it should be built.
THE APPLICATION OF MULTIPLE REGRESSION ANALYSIS IN PROPERTY VALUATION
Authors: ADAIR ALISTAIR , McGREAL STANLEY
Published: February 2008

The adoption of statistical methods of analysis by British valuers has been, at the best, rather piece‐meal. This paper highlights the contrasting application of multiple regression analysis (MRA) within valuation practice in the USA relative to that in the UK and emphasises the need for suitable databases. Historically the valuer in the UK has lacked access to databases. The analyses presented in this paper indicate that, even if databases exist, factors such as statistical variability, heterogeneity, geographical scale and sample size may influence both the explanatory and predictive powers of the MRA model. Nevertheless the estimation of value from the objectivity of the MRA model can assist the valuer by supporting opinion or highlighting circumstances where re‐appraisal is necessary.
THE VALUATION OF LANDFILL SITES
Authors: SAWYERS R.D.
Published: February 2008

It is unlikely that, as yet, a paper on this subject is of wide general interest. However, it would seem that the assessment of landfill sites will become a more common valuation exercise, particularly for those involved with the mineral extraction industry. Responsible landfill waste disposal was primarily in the control of local authorities, but there has been an emergence of privately operated waste disposal companies over recent years and an awareness of the commercial potential of such operations has developed. Therefore, a need to appreciate values in the context of all aspects of practice, whether for sale, purchase, asset valuation or tax computation, is becoming more relevant to the general practitioner.
REDUCING THE DISPERSION OF RETURNS IN UK REAL ESTATE PORTFOLIOS
Authors: BROWN GERALD R.
Published: February 2008

Although real estate represents a substantial proportion of the UK investment market, research in this area is extremely limited. This is particularly true of the performance and construction of portfolios. This paper deals with one of the major issues which confronts both investor and advisor; namely, how effective is the diversification of a real estate portfolio as more properties are included. The analysis is undertaken at an empirical level and draws on similar research developed in the stock market. The main findings are that the low correlation between returns on individual properties enable high levels of risk reduction to be achieved. This correlation structure does, however, impose a penalty making it extremely difficult to construct highly diversified portfolios. The problem is exacerbated by the indivisibility of real estate assets.
IMPLICIT V EXPLICIT VALUATION AND INVESTMENT ANALYSIS
Authors: MACKMIN DAVID
Published: February 2008

This paper draws on the work of Miles, Harker and Mason to illustrate how inconsistent the valuation profession is about the fundamental requirement to present information in a consistent and acceptable manner to its clients. Investors in other markets are not confronted with the same lack of consistency, so, unless the current random approach is corrected, the credibility of the profession will come in for further criticism.