Value Terms

The sum needed for the reconstruction of the insured buildings – on the same location and equivalent in terms of construction and lay-out – immediately after the occurrence.

This includes the architect’s and consultant’s fees, cost of drawing and of supervising during construction, municipal fees, etc.

The amount required  to acquire items of the same kind, quality, condition and age.

• If there is no replacement market, the highest outcome of:
• the new value after deducting an amount for physical depreciation or
• the new value after deducting an amount for economic obsolescence taking into account the state of maintenance of the item.

This includes the costs of drawing up, starting up, adjusting, engineering, project supervision, import duties, etc.

The amount which could be required for the parts of the building still usable or valuable, reduced by the costs of demolition, clearance, removal and dumping.

The amount required for the construction, immediately after the occurrence, of a building on the same location.

This includes the architect’s and consultant’s fees, cost of drawing and of supervising during the construction, municipal fees, etc.

The amount required for the acquisition of objects of the same kind, quality and maintenance level, equipped for the present purpose.

This includes the costs of drawing up, starting up, adjusting, engineering, project supervision, import duties, etc.

The amount required to obtain new items of the same kind and quality.

This includes the costs of setting up, starting up, adjusting, engineering, project supervision, import duties, etc.

The best price for which an asset can be sold after deducting the costs still to be incurred for the sale.

This value is applied if the asset will definitely no longer be used.

The estimated amout for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

The estimated amount for which an interest in real property should be leased on the valuation date between a willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently an without compulsion.

De waarde van een object voor een eigenaar of een toekomstige eigenaar voor individuele belegging of operationele doeleinden.

Based on the Decree of 14 June 2005, which stipulates rules on the content, the limits, and the manner of application of the valuation in the financial statements at current value (Actual Value Decree 2012):

Article 1 Current value

By current value of the asset or liability is meant the value that is based on current market prices or on details which may be deemed relevant to the value on the valuation date.

The current value against which assets and liabilities can be assessed, depends on the types of assets or liabilities, or circumstances, and is expressed in terms of replacement value, commercial value, or market value or net realisable value.

Article 2 Replacement value

By replacement value is meant the sum that would be required to acquire a replacement property that has the same economic significance in the commercial activities of the firm as the property in question, in terms of use, application or production.

Article 3 Commercial value

By commercial value is meant the fixed value to be assigned to an asset or collection of assets according to estimated future cash flows that can be received through the operation of the business.

Article 4 Market value

By market value is meant the amount for which an asset could be exchanged or a liability could be settled between knowledgeable, willing parties who are independent of each other.

Article 5 Net realisable value

By net realisable value is meant the maximum amount for which an asset can be sold, less costs still to be incurred.

Article 7

If tangible fixed assets or intangible fixed assets, other than investments, are valued against the current value, the replacement value comes into consideration for this purpose. Valuation takes place against the commercial value if and as long as this is lower than the replacement value. Valuation takes place against the net realisable value if the legal person has decided to sell the tangible or intangible fixed assets that are not investments.

Market value, Article 17, paragraph 2 (Valuation of Immovable Property Act):

The value of an immovable property shall be determined by the value that should be assigned to an immovable property if its full and unencumbered ownership could be transferred and the acquirer of the property can put it to full and immediate use in its current state.

Under Article 17, paragraph 3 of the Valuation of Immovable Property Act, with the exception of houses and monuments (Historic Buildings Act 1988), the value is determined by the replacement value if it leads to a higher value than the market value.

By adjusted replacement value of the immovable property is meant: “The amount required to obtain or produce an immovable property that has an economically equal significance for the business operations, the determining whereof takes into account the nature and purpose of the property together with the technical and functional ageing which has occurred since the establishment of the property, whereby the impact of subsequent alterations are taken into account.”

The concept of market value deviates, as a consequence of the use of the so-called notion of vacancy and acquisition, from the standard definition ©IVSC 2013 Market Value.

The amount equal to the highest price offered by an interested party in a sale made in the most appropriate way for the property and after the best preparation.

Supreme Court 5 February 1969, BNB 1969/63, no.16 047.

Market value within the scope of the IPD property index (IPD March 2013) is:

The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s- length transaction after proper marketing wherin the parties had each acted knowledgeably, prudently, and without compulsion.

(in accordance with IVS 2011).

Particular assumptions or special instructions in the valuation, as agreed with the client: market value taking into account the principles and guidelines established by the IPD.

This valuation report and the associated calculations in the scope of the IPD property index were carried out subject to the regulations relating to choosing a valuation method and the substantive basis thereof, as described in the valuation agreements and guidelines of the Stichting IPD property index.

For housing complexes, the market value remains the point of departure, but the guideline is to assume the value based on a sale with sitting tenant to a third party, meaning: “the highest price that a market party would want to give, where the effects of individual sale of the residences are generally accounted for. A situation can be assumed where units are sold individually, depending on the percentage of leased housing on the market, developments in house prices, interest rates and options of selling to sitting tenants.” Or, a situation of further exploitation can be assumed where the rental income can be maximised as much as possible depending on the percentage of leased housing on the market, developments in rental prices, and interest rates.

The estimated amount for which an asset or liability should exchange on measurement date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

Assumption:

–          Based on the sales market of the company

The estimated price for the transfer of an asset or liability between identified knowledgeable and willing parties that reflects the respective interests of those parties.

The amount that would be realised when an asset or group of assets are sold on a piecemeal basis, that is without consideration of benefits (or detriments) associated with a going-concern business.

Liquidation value can be either in an orderly transaction with a typical marketing period or in a forced transaction with a shortened marketing period.

The total cost of replacing an asset, generally in its present form and in accordance with appropriate regulations and legal requirements.

Replacement Value considers allowances for professional fees and, in the case of tangible assets, considers factors related to construction of a replacement asset (which may include demolition, debris removal and other factors).

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Definitions relating to amendments to title 9 Book 2 of the Netherlands Civil Code and the related decrees are stipulated in the Dutch language.