Real Estate Appraisal Report
Project Name: Appraisal Report of Industrial Real Estate on the
Floor 4, Block D, Gangxia Industry Park, 319 East Hubin Road,
Xiamen, Fujian, China
Consignor: Ideal Jacobs (Xiamen) Corporation
Consignee: Xiamen Da Xue Assets Appraisal Co., Ltd.
Appraiser: Wang Zhi Dong, Li Yi Feng, Huang Ji Chao
Appraisal Period: From May 2nd , 2013 to May 3rd, 2013
File No.: Xiamen Daxue Real Estate Appraisal Report No.
2013-FS-real estate-0563
Content
I. Letter to consignor .......................................................................... 3
II. Statement of appraiser .................................................................. 4
III. Hypotheses and restriction of the appraisal .............................. 6
IV. Report of appraisal conclusion .................................................... 8
V. Appendices ..................................................................................... 16
Floor 4, Block D, 319 East Hubin Road, Si Ming District
Xiamen Da Xue Assets Appraisal Co., Ltd. Page 4
Statement of Appraiser
We hereby solemnly declare that:
1.The facts stated in our appraisal report are genuine and accurate.
2.The analysis, remarks and conclusion made in our appraisal report are based on
our professional and fair judgment, but limited by the precondition and restrictive
condition for appraisal specified in the appraisal report.
3.We do not have any benefit relation to the appraisal object and neither have any
benefit relation and prejudice with regards to the relative parties.
4.According to the National Standard Code for Real Estate Appraisal, we made our
analysis, remark and conclusion and compile this appraisal report.
5.Our real estate appraisers Mr. Wang Zhi Dong with the certification no. of
3520070010, and Mr. Huang Ji Chao have carried out on-site inspection on appraisal
object mentioned in the appraisal report. However, unless otherwise agreed, the scope of
on-site inspection is restricted to appearance and use status of the appraised object. The
appraisers do not shoulder the responsibility for investigating the structure and quality of
the building as well as for examining other overlaid, unexposed and unreachable parts of
the appraised object.
6.The appraisal was performed without any professional help other than our own
staff.
7.The appraisal is based on the relevant documents supplied by the consignor who
shall be held liable for the authenticity, completeness and consequences incurred. Both
the appraisers and the appraisal company shall not be held liable for the wrong appraisal
results in case of the wrong documents supplied by the consignor.
8.The report shall only be used for the purpose of appraisal by the entrusting party.
The report shall not be used for other economic activities and other use. The consignor
should use the appraised value reasonably. Both the appraisers and the appraisal
company shall not be held liable for the unreasonable use of the appraisal results by the
consignor.
9.The appraisers shall be only held liable for the operation process and fairness of
the appraisal method adopted. The appraisers shall not be held liable for the final price
determination of the property on any transaction. The results of the appraisal report shall
Floor 4, Block D, 319 East Hubin Road, Si Ming District
Xiamen Da Xue Assets Appraisal Co., Ltd. Page 6
Hypotheses and Restriction of the Appraisal
I. Hypotheses of the Appraisal
1. This appraisal is based on the conditions that the property is satisfied with the
basic function for current use and is also continuously used in a reasonable period. The
real estate market at the appraisal time operates publicly, equally and voluntarily. Any
operation mode and procedure relating to the appraised object shall comply with the
relevant national and local laws and regulations. Some factors, such as accidents or force
majeure, are not taken into consideration for valuation conclusion.
2. The ownership of the subject property is clearly established, and no ownership
dispute is involved at the time point of the valuation. And the subject property has
qualified with the function on use supplied by the consignor.
3. The appraisal value includes the corresponding value of the right use of land.
4. The appraisal value is the open market value of the subject property as the
appraisal date under the set condition of the report. We suppose that:
① Have a public, active, and advanced real estate market;
② The real estate can be purchased freely in public market;
③ One party of the transaction does not have any benefit relation with regards to the
other party. The purpose of the transaction is to obtain the maximum benefits for each
party.
④ Have a reasonable time to make discussion and exchange, so as to make full
consideration about the real estate quality and market condition, then negotiation, then
negotiate a price. Make no consideration about the additional price of the special
purchaser.
⑤ A reasonable negation period is required to fulfill the transaction and achieve the
reasonable price. Within the period, the market and physical conditions of the property
will keep stable accordingly.
5. The appraisal time is on May 2nd, 2013. The appraisal result in this report is the
market value of the real estate at the appraisal time of May 2nd, 2013, and meets all the
presumption and restrictive conditions. Our company shall not be liable for the great
change of the price of the subject property after the appraisal time of May 2nd, 2013.
II. Data without researching inquiry in the report
Floor 4, Block D, 319 East Hubin Road, Si Ming District
Xiamen Da Xue Assets Appraisal Co., Ltd. Page 7
1. The appraisers make on-site inspection for the current appearance and use
conditions only. We can’t accept the requirement of construction test and equipment
checking. So we could not make sure whether the real estate has any scathe inside. We
supposed that there is no severely quality problem in the base and structure of the subject
property, and that the property will be used continuously in the left economic life period.
2. The consignor has supplied the Certificate of Land and Property and some
relative materials as on consignation. Some other data such as the right to share land area,
the year of completion, and else, we have acquired from the file departments of the
Xiamen Land and Property Bureau. On the appraisal time, we assume that the above data
is real and effective and there is none disputes in the ownership and debts about the
subject property.
III. Non-considered factors and special adjustments in the report
1. The results of the appraisal are taken for reference as the market price under this
appraisal purpose. Changes in national macroeconomic and social policies and force
majeure, are not taken into consideration for valuation conclusion. Make no
consideration about the additional price of the special purchaser, or special trade
condition. If the conditions change, the appraisal value will be different accordingly.
2. The appraisal is base on the open market price. We make comparison with the
normal price of the similar real estate on the appraisal time and make no consideration
about the mortgage, debts, rent and other rights limitations and make no consideration
about the risks on the market changes in the future. The transaction taxes are also not
taken into consideration.
IV. Restriction of the appraisal
1. The appraisal result shall remain effective within one year since the finalization
of the report, that is, from May 3rd, 2013 to May 2nd, 2014. After the period, or when the
fast changes of property market price come forth, the report users should adjust the
appraisal result in time.
2. In the appraisal report, the technical report attached is only kept as a file by our
company and kept for the check-up by the administration bureau in charge, which will
not be applied when use.
3. The appendices shall be effective when used with the report contents altogether.
Floor 4, Block D, 319 East Hubin Road, Si Ming District
Xiamen Da Xue Assets Appraisal Co., Ltd. Page 8
Report of Appraisal Conclusion
Xiamen Da Xue Assets Appraisal Co., Ltd. accepts the appraisal consignation of Ideal Jacobs (Xiamen) Corporation In accordance with the code for Real Estate Appraisal
of P.R.C and relevant rules and regulations, and following the acknowledged appraisal
methods and principles of objectivity, independence, fairness and science, the appraisers
have appraised the industrial property which is located on the Floor 4, Block D, Gangxia
Industry Park, 319 East Hubin Road, Xiamen, Fujian, China. The certified real estate
appraiser, following the standard appraisal procedure, has carried out the on-site
inspection, market survey and property appraisal, and obtained the results of the fair
value of the appraisal subject on appraisal date May 2nd, 2013. The report of appraisal
conclusion is as follows:
I. Consignor:
Consignor:Ideal Jacobs (Xiamen) Corporation
Company Add.:Floor 4, Block D, Gangxia Industry Park, 319 East Hubin Road,
Xiamen, Fujian, China.
Legal Representative:Meng Bin
II. Appraisal Party
Consignee:Xiamen Da Xue Assets Appraisal Co., Ltd.
Business Lisence No.:350200200034023
Legal Representative:Li Yi Feng
Company Add.:Unit 2, 3, 4, 6, 8, 10, on 6th floor of Kaixuan Building at No. 63
Jinbang road in Si Ming District of Xiamen city
Appraisal Qualification Grade:First-rate
Appraisal Qualification Certification No.:2013011
Appraisal Qualification Approval No.:Fujian real estate [2001] 5
Tele:(0592)5804752
Fax:(0592)5804760
Floor 4, Block D, 319 East Hubin Road, Si Ming District
Xiamen Da Xue Assets Appraisal Co., Ltd. Page 9
III. Appraisal Subject
The subject property is located on Floor 4, Block D, Gangxia Industry Park, 319
East Hubin Road, Xiamen, Fujian, China. Details descriptions are in the following status
description, district factors, on-site inspection status, and right status of the property.
(I)、Property basic status description:
Property Name Gangxia Industry Park
Location Floor 4, Block D, Gangxia Industry Park, 319 East Hubin Road, Si
Ming District
The four boundaries of the
land
East Hubin East Road South Xiaxin garden
West Jinqiao Road North Xianyue Road Property owner Ideal Jacobs (Xiamen) Corporation Legal usage Industrial Real usage Industrial
Type of right to use land Transfer Left years of land
use rights 28 years
(II)、District factors:
Location
Located at the south of Xianyue road and at the west of Hubin east
road. The location is fine and there are many house buildings and
industrial and commercial buildings nearby, such as the Boshi
building, Yueyang housing estate, Xiaxin garden, Binbei
automobile town, and so on. The residential aggregation degrees
are high but the industrial aggregation degrees are in general.
Location Map
The subject property
Floor 4, Block D, 319 East Hubin Road, Si Ming District
Xiamen Da Xue Assets Appraisal Co., Ltd. Page 10
Traffic conditions
In the district, there are Xianyue road, Hubin east road, Jinqiao
road, and other primary and secondary roads. Good routing
network with great road accessibility. There are the buses of no.
80、847、9、16、97、20、126 and other buses and minibus passing
by. There is no traffic line control in the area, and the conditions of
traffic lines are much higher.
Surroundings Good road planting design and good residential environment.
Facilities Complete facilities with water, electricity, road, kindergarten, schools, markets, banks, mail bureaus, shopping malls, restaurants, hospitals and bus stops and so on.
(III)、On-site inspection status of the property
On-site inspection of the
building
The building is a factory building with 6 floors in steel and
concrete structure. It is built in 1995. The outside wall is in paint.
The anti-theft intercom system is in normal use. The floor of the
building is paved in tiles. The inner walls are paved in tiles. The
ceilings are in paint. The floors in stairway are paved in tiles. The
subject property is located on the 4th floor of the D building with
good lighting and ventilation.
Property management Semi-closed property management
Residential environment Green areas, good environment
Property layout Height between floors is about 3.6 meters. Good and reasonable
inner layout.
Inner decoration: Glass entrance door and aluminium alloy window; in most areas, tiles paved in
the floor, and plastic covered in some part of floor, inner walls in paint, and plastic suspended
ceilings. In the bath room, tiles paved in the floor and walls, plastic suspended ceilings. On
appraisal date, The property is in good facilities with water and electricity and in normal use.
On-site inspection pictures
Floor 4, Block D, 319 East Hubin Road, Si Ming District
Xiamen Da Xue Assets Appraisal Co., Ltd. Page 11
Non depreciation rate
The property is in good facilities with water and electricity. And in normal use. Based on the completion year, durable year, use status and on-site inspection, the non-depreciation rate is determined as 85%.
(IV)The registered status of property in ownership certificate:
The registered status of property in
ownership certificate
Location Floor 4, Block D, Gangxia Industry Park, 319 East Hubin Road, Si
Ming District
Property Ownership
Certificate No. Certificate of Xiamen Land & Property(X. L. P. C. No. 00605419)
Property owner Ideal Jacobs (Xiamen) Corporation
Type of right to use
land Transfer
Source of
ownership Owner rename in 2007
Land area 21960.4 sq. m. Right to share
land area 879.91 sq. m. on survey
Year of completion In 1995 Covered area 2734.58 sq. m.
Drawing No. 7500-4300 Land No. 4528-2
Floor 4, Block D, 319 East Hubin Road, Si Ming District
Xiamen Da Xue Assets Appraisal Co., Ltd. Page 12
Structure In steel and
concrete
Total floor
number 6 floors
Legal Usage Industrial Real Usage Industrial Validity of the land
use rights From Sept. 24th, 1991 to Sept. 24th, 2041
Mortgage Based on the materials supplied the consignor, the property has
been mortgaged for loan on the appraisal time.
IV. Purpose of Appraisal:
This appraisal is to know the value of the assets on transferring based on the open
market price for the consignor’s reference. The appraisal will not be used in other
purpose.
V. Appraisal Date: May 2nd , 2013
VI. Value Definition:
1. The appraised property is located on Floor 4, Block D, Gangxia Industry Park,
319 East Hubin Road, Xiamen, Fujian, China. Both the legal usage and real usage of the
land are industrial. The type of right to use land is transfer and the validity of the land use
rights is till Sept. 24th, 2041. Since the appraisal time, there are still 28 years left for the
use of land rights and still 32 years left for the economic building life.
2. Appraisal Date: May 2nd, 2013
3. Appraisal purpose: This appraisal is to know the value of the assets on transferring
based on the open market price for the consignor’s reference.
The appraised value is satisfied with the above appraisal conditions.
VII. Appraisal Basis:
(I)Gist of relevant laws, rules and policy documents of this appraisal
1、Land Management Law of the People’s Republic of China (implemented as from
Jan. 1, 1999)
2、Urban Real Estate Management Law of the People’s Republic of China
(implemented as from Jan. 1, 1995)
3、Fujian Province Real Estate Price Appraisal Management Method (implemented
Floor 4, Block D, 319 East Hubin Road, Si Ming District
Xiamen Da Xue Assets Appraisal Co., Ltd. Page 13
as from Jun. 23, 1998)
4、Notice of Standard Land Price in Xiamen Urban issued by People’s Government
of Xiamen City ( Xiamen Gov. No. [2007]314 )
Xiamen Land Price Collection Rules ( Xiamen Gov. No. [2007] 315 )
5、Some Provisions of the Supreme People’s Court on the Appraisal and Auction
Entrusted by Court (Court Explain No. [2011] 21)
6、Implementation Regulations of the Fujian Provincial High Court on the Appraisal
and Auction by Court (Fujian High Court No. [2012] 335)
(II)Appraisal code and standards in this appraisal
1、The GB/T 50291-1999 Code for Real Estate Appraisal of P.R.C
2、Valuation of Urban Land in National Standards GB/T18508-2001
3、The Housing Damage Rating Criteria issued by Ministry of Construction
(III)Relevant materials provided by the consignor
1、Certificate of Xiamen Land and Property (X. L. P. C. No. 00605419)
(IV)Files collected by the consignee
1、Loan rates on the appraisal date
2、The on-site inspection records
3、Some inquiries performed and parameter data and other relative materials
collected by Xiamen Da Xue Assets Appraisal Co., Ltd.
VIII. Appraisal Principle:
1、Principle of legality
The real estate appraisal shall be conducted on the basis of the legal proprietorship
of the real estate, which contains the legal obtainment, legal use, legal transaction or
disposition, etc.
2、Principle of Maximal and Optimal Use
The appraisal of the real estate shall be based on the maximal and optimal use. The
maximal and optimal use means enabling the appraised object to generate the maximal
Floor 4, Block D, 319 East Hubin Road, Si Ming District
Xiamen Da Xue Assets Appraisal Co., Ltd. Page 14
value legally allowed, technically possible, economically feasible and after reasonable
argument.
3、Principle of Replacement
The appraisal result shall not deviate from the normal price of similar property
under similar conditions obviously.
4、Principle of Appraisal Time
The appraisal result is the objective and reasonable price or value of the appraised
object at the appraisal time.
IX. Appraisal Method:
The common methods of appraisal are market comparison method, income method,
cost method, and hypothetical development method. Market comparison is adopted when
there are many similar transactions. The income method is adopted when the income or
potential profit is available. The cost method is used when the market transactions are
rare so as that the market method, income method, or hypothetical development method
can’t be adopted as usual. The hypothetical development method is used when the
property has potential investment benefits. Two and more methods should be adopted in
the appraisal report for the subject property.
This appraisal is to know the value of the assets on transferring based on the open
market price for the consignor’s reference. Considering the characters of the subject
property, and the costs and tax data which the appraisers obtained, the appraisers use the
cost methods and income methods in the appraisal. The land value is appraised by the
method of standard land modification method.
The cost method is based on the total necessary building costs or expenses for the
object property or similar property, while plus a normal profit and taxable payments to
determine the replacement cost valuation of the object property, and after deducting the
property depreciation so as to estimate the objective and reasonable price or value of the
subject real estate.
The income method is to anticipate the normal net profit of the appraised object in
the future and choose suitable capitalization rate to discount such profit to appraisal time
for accumulation, in order to estimate the objective and reasonable price or value of the
subject real estate.
X. Appraisal Conclusion:
Floor 4, Block D, 319 East Hubin Road, Si Ming District
Xiamen Da Xue Assets Appraisal Co., Ltd. page 16
Appendices
1. Certificate of Xiamen Land and Property (X. L. P. C. No. 00605419) (Photocopy)
2. Qualification Certificate of Appraisal Institute Qualification (Photocopy)
3. Business License of the Appraisal Institute (Duplicate in photocopy)
4. List of appraisers and Certificate of Registered Real Estate Appraisers (Photocopy)