Posted: 2023 | Pages: 48 | Format: MS Word | Chapters: 1-5 | Others: Questionnaires & References

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CHAPTER ONE

INTRODUCTION

          According to Babcook F.M (1970) industrial asset can be regarded as speculative investment to some extent because of their tendency to be specialized in a particular industry or trade hat might suffer periodic or permanent decline. They may be factory premises or warehouses. On the other hand Donald J. Hartman attempted to determine value of an industrial property in the following words. The question of the value of an industrial plant to the company occupying and using if present a problem that long has defiled logical solution. Because value generally is used to mean the ability of something to attract something else in exchange, the word as used in the context of industrial real estate implies at least a hypothetical exchange of the real estate for money or the equivalent. The difficulty with what has been called a value in use is that there is no active market in which to identify the estimate of value in use which can be observed, and analyzed in order to form a conclusion of value in use. By definition, these properties have been built in features customized for the operation of the company occupying them. Depreciation is the most important valuation of landed property. In estate appraisal, depreciation ca be defined as loss in value from any cause. They are physical deterioration, functional obsolescence, economic obsolescence. Physical deterioration is the loss in value as a result of the wearing out of the improvement. Functional obsolescence is the ability of the improvement to perform the job for which it is designed. Economic obsolescence is the loss in value as a result of factors outside the property itself.

Depreciation is the actual decline in market value or the impoverishment to land from the time of development to the time of resale or valuation. As soon as a building is completed, deprecation begins to set in gradually. Where the property is new, the effects of depreciation may be insignificant, thus it can be ignored.

1.2 STATEMENT OF PROBLEM

          All valuation methods are in fact models of market behaviour with various implicit assumptions and input requirements. The subject of this project, Emenite industry limited at Emene Enugu as many warehouses for manufacturing and storage of goods. The problem can therefore be stated that, if Emenite limited industry is to value its industrial properties how will it go about doing so considering all factors and drawbacks.