MBC Property Valuation

Maidstone Borough Council (MBC) is looking for quotes from suitably experienced and

qualified contractors to undertake its asset valuations for yearend financial reporting and

insurance purposes.

The current assets (see appendix A) are likely to increase over the next 10 years as we

continue to increase our Housing portfolio for affordable housing. We are aiming to increase

the stock up to around 1,000 Affordable and 350 private rented sector properties.

The Council is required to revalue its land and buildings as a minimum every 5 years. The Council’s assets include car parks, offices, residential properties, public conveniences, sports centres, commercial property, café/restaurant, museum, theatre, and a crematorium/cemetery/chapel.

The basis of valuation should be existing use value or for specialised properties, where market evidence of such a value can’t be identified, depreciated replacement cost. The values should be apportioned between land and buildings where applicable. Some properties will also require the valuations to include componentisation values. For the residential properties the beacon principle may need to be used to ensure we value properties more regularly.

Technical advice around the valuation methodology, compliance with accounting standards and property valuation indices will need to be provided to support the Council through its audit process.

The valuations are required to take place during February, with contractors submitting a draft assessment to the Council by end of February each year and the final valuation and report by 31st March each year.

When completing the asset valuations, the Council requires a short narrative and headline value, where an alternative use, development opportunity presents. The Council are always looking at ways to use their portfolio “smarter”, this may include development opportunities, alternative use, acquisition of adjacent sites or disposal. The asset valuations should provide a short overview if the surveyor in the course of their valuation feels there is an alternative or where value could be added.

The Council will also have ad hoc valuation requirements during the term of the contract in relation to the acquisition or disposal of assets. A proportion of the ad hoc valuations will be Red Book Valuations including, but not limited to, valuations of land being sold by the Council with outline planning consent for development and would need to be completed within 15 working days of instruction. Tenderers will be required to submit a fixed price for these ad hoc requirements, which will be listed as separate items in the pricing schedule, Appendix B.

Whilst the intention is to utilise the ad hoc rates under this contract for additional requirements, the Council makes no guarantee of any instructions and reserves the right to conduct a separate procurement process should it deem appropriate.

The contractor will be required to confirm if fees will be payable by the Council for disposals or additions during the contract term.

2 extension option(s) available, 0 taken; up to 24 months in total

Option: 12 months, from 2027-12-20, to 2028-12-19, First Extension

Option: 12 months, from 2028-12-20, to 2029-12-19, Second Extension