VALUATION

Types of Valuation Services

 

JLJ covers all types of landed and stratified properties including specialised properties such as shopping complexes, hotels, office buildings, ongoing development projects, plantations, timber concessions, mines & quarries, plant & machinery and chattels.

Valuation reports must be prepared and signed by registered valuers or registered appraisers.

Valuations are usually conducted for the following purposes:-

Mortgage

This valuation is required for lending (securing loan facilities) purpose by banks or financial institutions based on collateral value of the property. Valuations for loan purpose must be based on Market Value.

Foreclosure

This Valuation is prepared for the purpose of foreclosure proceedings. It is required for the purpose of assisting the relevant authorities to fix a Reserve Price for the sale of the property by Public Auction. The basis of valuation for purpose of sales by public auction shall be Market Value.

Initial Public Offerings / Corporate exercises

These valuations are prepared for submission to the Securities Commission in relation to proposed listings of companies on Bursa Malaysia Berhad or for major corporate restructuring exercises of public listed companies which require Securities Commission’s approval. (refer Asset Valuation Guidelines by the Securities Commission and Listing Requirement by Bursa Malaysia Berhad).

Other Public Listed Company Exercises

These valuations are prepared for submission to the Bursa Malaysia Berhad, PLC shareholders’ approval or PLC announcements in relation to proposed PLC corporate exercises such as acquisitions or disposals of assets. (refer Asset Valuation Guidelines by the Securities Commission and Listing Requirement by Bursa Malaysia Berhad).

Accounting / Financial Reporting Standards (FRS)

These valuations are prepared for inclusion in financial statements as per the requirements of Financial Reporting Standards / International Financial Reporting Standards for inclusion in company’s balance sheets to provide the “fair value” of properties held by the company either for investment or own use purposes.

Intended Sale or Purchase

These valuations are prepared for the purpose of recommending the market value for the sale or purchase of property. The basis of valuation shall be market value.

For claims on fair or adequate compensation in respect of properties compulsorily acquired by Relevant Authorities / Parties where negotiations and representations as expert witnesses at Court hearings may be required;

Rental Valuations

This is to ascertain the best monthly rent at which the subject property might reasonably be expected to be let in the open market at a particular time with the tenant undertaking to pay all costs for utilities and public services which result from the occupation and the landlord undertaking to bear the usual outgoings, such as assessment, quit rent, external structural repairs and other statutory taxes which are necessary to maintain the subject property in a fair and tenantable state.

Bank Negara Malaysia (Central Bank)

This valuation is required by insurance companies for submission to the Director General of Insurance, Bank Negara Malaysia whenever they value or revalue their property assets.

Foreign Investment Committee

This valuation is prepared for submission to the Foreign Investment Committee for its approval in relation to property transactions.

Advisory and Appraisal services to the Asset Management Corporation (AMC) or Pengurusan Danaharta Nasional Berhad which handled non-performing loans.

Appeals on rating assessments by local authorities, estate duty, property gains tax and other taxes/charges

Fire Insurance

These Valuations are prepared to ascertain fire insurance value. The basis of valuation shall be the reinstatement cost new or such basis as identified in a fire insurance contract or policy.

Other Purposes – Corporate takeovers, reverse takeovers, mergers and acquisitions (M&A), information, internal management, joint-ventures, lessor’s interest, lessee’s interest, migration, etc.