Sooner or later, not only institutional investors but all other companies will also have to face the need for a market value appraisal. Whether it’s to optimise their tax liability or to settle on a reasonable purchase or sale price.

Real estate as business assets as well as the reasons for valuation vary greatly. The most usual reasons for a valuation are the threat of real estate redemption procedures, the sale and the investment or withdrawal of immovable property out of or into the business asset.

If a portion of a property used for business is transferred to private assets, a taxable capital gain occurs. Contributions of property and land from private assets to business assets must be valued in terms of historical acquisition or production costs. If the partial value (normally the market value) is lower at the time of the contribution, this must be cited. Since 1 April 2012, contributions from buildings are also to be valued as the lower amount of the partial value or the adapted acquisition or production costs.