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Old 26th Sep 2008, 13:43
  #483 (permalink)  
ChrisGr31
 
Join Date: Sep 2006
Location: East Sussex
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I am a property valuer although have never valued an airport and don't wish to start now!

However there are a number of approaches to arrive at a capital valuation: -

Rental - You basically capitalise the rental stream - unlikely to give a particularly high valuation for Manston!

Profits - You basically capitalise the profits -------- hmmmm!

Contractors - You calculate the cost of rebuilding the facility - Likely to be pretty high!

Development value - You work out a site value for alternative use

Or you could do part and part on the ground some areas have development value, some areas are occupied and achiving a rental stream.

Valuation is an art not a science and 2 valuers will come up with the same answer! But something like Manston is very difficult to value and I am glad I don't have the job.

In reality it is worth what someone is prepared to pay for it and at the end of the day that is a commercial decision by the purchaser!
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