Property, being ports’ largest asset, will increasingly play a major role in their profitability and the way they finance their expansion and modernization needs. Because of this, senior port management increasingly needs to have a realistic assessment of the true ‘market’ value of their port property assets to obtain a value base line with which to better run their business and make decisions on such things as setting appropriate lease rates and throughput charges.
The valuation and appraisal of port property presents a unique challenge because port business model dynamics, specialised nature of port assets and the impact port operations have on real property asset values is not readily understood by the traditional real estate industry. Essential elements inherent in developing ‘market values’ through the comparable or sales benchmark approach to valuation are hard to find and often simply do not exist, because ports typically do not sell land or facilities. Without the requisite knowledge of both industries, results from real estate valuations and appraisals will most probably not reflect true market values and produce appraisals of little relevance.
Without the ability to quickly and cost effectively determine appropriate reproduction cost estimates, what constitutes functional and economic obsolescence at ports, using unrealistic land valuations and a lack of experience and knowledge in identifying income streams for ports will also result in near meaningless results from using the income approach to value as well.
We surmount these challenges by having access to a comprehensive international database of operational, income and market data for the port industry worldwide, access to a team of proven port, maritime logistics and shipping experts and experienced appraisers in port real estate. We also work in tandem with local appraisers to ensure clients are given the full spectrum of the port and non-maritime property market information to produce the most relevant analysis and results possible.
Aegir and Drewry are strategically positioned and equipped offer a unique combination of in depth understanding of ports and their business along with the requisite property knowledge and skills to produce timely, corroborated and market relevant valuations of both port properties and ports themselves.
At Aegir, our focus is always to meet your unique port property challenges through a comprehensive, multi-disciplined approach for producing measurable, effective, feasible and timely solutions.
If you need a valuation or appraisal that will be meaningful, reflecting the actual value of a property asset located within your port, hire the people who truly understand your business, from the inside out – Aegir