Freehold advice - Australia

Freehold advice - Australia

In addition to a substantial property portfolio in the UK, a major institutional landowner also owned a quarry in Australia. It was operated by a tenant that’s part of an international mineral production company. The tenant approached the landlord to see if they’d be willing to sell them the freehold interest.

The landlord asked for our help in determining how much the freehold interest was worth. We advised that since valuation is a regulated profession in Australia and can only be undertaken by valuers holding an Australian licence, the most cost-effective solution would be for us to find an Australian mineral valuer for them to instruct - and then to interpret the valuation if necessary.

Since the valuation methods and calculations used in Australia are different from those in the UK, it proved to be an effective combination. We were able to advise our client as to which of the scenarios suggested by the valuer was the most appropriate to use for determining a realistic asking price.