Draft Report JTL Akij
Draft Report JTL Akij
Draft Report JTL Akij
PROPERTY APPRAISED
APPRAISED FOR
JT International (Asia Pacific) Limited
42nd Floor, Tower 1
Times Square, 1 Matheson Street
Causeway Bay
Hong Kong
Appraised by: BALTIC CONTROL (BD) LTD., 34 Purana Paltan Line, Nurul Tower, 3rd floor, Dhaka-1000, BANGLADESH
Phone: +8802 9351037, Fax: +8802 9351094, email: [email protected], Web: www.balticcontrolbd.com
BALTIC CONTROL (BD) LTD
34 Purana Paltan Line, Nurul Tower, 3rd floor, Dhaka-1000
Phone: +880 2 9351032 , Fax:+880 2 9351094; E-mail:[email protected]
Web : www.balticcontrolbd.com
RE: REPORT ON MARKET VALUE AND LEASE FEE OF PROPERTY OF AKIJ GROUP.
Dear Sir,
Enclosed is the report on landed property of Akij Group, Bangladesh. The subject properties are situated
in 4 locations of three districts of Bangladesh. In accordance with the agreement signed on 12 April,2018
our surveyors visited the sites on 19th to 22nd April, 2018 in order to estimate the present market value
and yearly ground rental/lease fee of subject four properties. The details of properties and uses are as
follows:
Sl. Land Area Geographical
Property Type/ Uses
No. (acres) Coordinate
01. Dhaka Tobacco Industries, About 455,000 sft permanent,
23.905304°N,
Morkun, Tongi, Gazipur 14.157 semi- permanent structure and
90.414017°E
used as Tobacco factory.
02. Dhaka Tobacco Industries, About 589,000 sft permanent,
23.895366 °N,
Golora, Charkhanda, 23.825 semi- permanent structure and
90.03337°E
Manikgonj used as Tobacco factory.
03. Perfect Tobacco Company 23.872703°N, Factory Occupied: 4.944 acres
(Unit-1),Kaburhat, Khshtia 8.426
89.079084°E Free space: 3.482 acres
04. Perfect Tobacco Company
23.848657°N, Factory Occupied: 18.657 acres
(Unit-2), Swastipur, Vadalia, 47.195
89.094209°E Free space: 28.537 acres
Khshtia
METHODOLOGY:
Estimate of Market Value of Land: There are permanent and semi-permanent factory buildings
situated in all locations; but, as per agreement the value of building and civil structures has not been
included in this report; we have estimated the market value of land only. The fair market value of the
subject landed properties estimated as per standard appraisal practice in Bangladesh. The estimate
of market value, in this particular instance, is predicated upon by adopting Sales Comparison
Approach - this is an appraisal technique in which the market value estimate is predicated upon prices
paid in actual market transactions and current listings. It is a process of correlation and analyses of
recently sold properties of similar type, size and purpose in the adjacent location. Adjustments were
made to reflect and account for differences between the subject and the comparable sales utilized.
Estimate of Lease fee/rate of Land: A ground lease is typically a long-term lease of land. Lease terms
typically run 30 to 99 years, and generally no less than 30 years. The tenant typically holds ownership
of the improvements during the term of the lease and the tenant has the obligation to pay all expenses
attributable to the property. Leasing of private industrial land is not usual practice in Bangladesh. Only
agricultural lands are leased for a nominal ground rent. Land in specialized economic zones which are
mainly developed by the Government of Bangladesh are generally leased for 30 years. To estimate the
lease rate p.a. the market was surveyed for current ground leases and leasing practices of both private
firms and public agencies to derive the estimated net operating income attributable to the land.
Chittagong Office : 60 Agrabad C/A, 1st Floor, Chittagong, Phone: 724310, Fax: 880 31 714416
Khulna Office: Golden King Bhaban, 4th floor, 25 Sir Iqbal Road, Phone: 731770, Fax: 880 41 731770
BALTIC CONTROL (BD) LTD
34 Purana Paltan Line, Nurul Tower, 3rd floor, Dhaka-1000
Phone: +880 2 9351032 , Fax:+880 2 9351094; E-mail:[email protected]
Web : www.balticcontrolbd.com
No recent similar type long-term private land leases were discovered in the subject areas except
short-term lease of similar type property found in Kushtia area. Therefore, ground rent was
calculated based on hypothetical condition that the present use and future uses of land will be same. In
estimating leasehold value from freehold vale we used Bala’s table and then calculate the ground rental
rate of subject properties and also compared with a leasehold property in Kushtia. The attached
narrative report describes the property and our method of approach to the valuation and lease rent
of land.
SUMARRY OF ANALYSIS
Based on the inspection of the properties and the investigation and analyses undertaken, we have
formed the opinion that, as of the effective date of the appraisal April 30, 2018, and subject to the
assumptions and limiting conditions set forth in this appraisal report, the Estimated Market Value &
Yearly Ground Rental of the subject property is:
PRESENT MARKET VALUE
The above values are extracted from the attached appraisal report and should not be read in isolation of the main
report. Furthermore, the value presented in this report is subject to the value definitions, assumptions, limiting
conditions and certifications contained in this report.
Chittagong Office : 60 Agrabad C/A, 1st Floor, Chittagong, Phone: 724310, Fax: 880 31 714416
Khulna Office: Golden King Bhaban, 4th floor, 25 Sir Iqbal Road, Phone: 731770, Fax: 880 41 731770
BALTIC CONTROL (BD) LTD
34 Purana Paltan Line, Nurul Tower, 3rd floor, Dhaka-1000
Phone: +880 2 9351032 , Fax:+880 2 9351094; E-mail:[email protected]
Web : www.balticcontrolbd.com
APPRAISAL REPORT
This is a Summary Appraisal Report, which presents only summary discussions of the data, reasoning, and
analyses that were used in the appraisal process to develop the appraiser’s opinion of market value and
ground rental of the subject property. The depth of discussion contained in this report is specific to the
needs of the client and for the intended use stated below. The appraiser is not responsible for unauthorized
use of this report.
Chittagong Office : 60 Agrabad C/A, 1st Floor, Chittagong, Phone: 724310, Fax: 880 31 714416
Khulna Office: Golden King Bhaban, 4th floor, 25 Sir Iqbal Road, Phone: 731770, Fax: 880 41 731770
BALTIC CONTROL (BD) LTD
34PuranaPaltan Line,Nurul Tower, 3rd floor, Dhaka-1000
Phone: +880 2 9351032 , Fax:+880 2 9351094; E-mail:[email protected]
Web : www.balticcontrolbd.com
INDEX
Sl No. Description Page No.
01. Preamble .............................................................................................................. 1
02. Currency & measurement .................................................................................... 1
03. Subject of the appraisal ......................................................................................... 1
04. Scope of service .................................................................................................... 1
05. Ownership ............................................................................................................ 1
06. Intended use of this report .................................................................................... 1
07. Definitions of pertinent terms................................................................................. 2
08. Site Description of 4 sites ...................................................................................... 3-6
09. Valuation Methodology and Value of Property
Methodology of Valuation ............................................................................... 7
Comparable sales ........................................................................................... 7-8
Present Market Value ..................................................................................... 8
10. Lease fee estimation
General scenario of leasing of land in Bangladesh ........................................ 8
Existing leasing Rate in EPZs and Sreehatta Economic Zone ....................... 9
11. Methodology of lease fee estimation and Comparable lease .............................. 10-11
12. Estimated ground rent .......................................................................................... 11
13. Assumptions and limiting conditions .................................................................... 12-13
14. Conclusion
Present market value .................................................................................... 13
Exposure time ............................................................................................... 13
Ground rent / lease fee of land ..................................................................... 14
Rent reset period .......................................................................................... 14
15. Certification .......................................................................................................... 14
17. Addendum-A- Location Map of DITL Tongi Site ................................................. 15
18. Addendum-B- Site Layout & List of Buildings of DITL Tongi Site...................... 16-17
19. Addendum-C- Photograph of DITL Tongi Site ..................................................... 18-26
20. Addendum- D- Location Map of DITL Manikganj Site ........................................ 27
21. Addendum-E- Site Layout & List of Buildings of DITL Manikganj Site ............... 28-29
22. Addendum-F- Photograph of DITL Manikganj Site ............................................. 30-36
23. Addendum-G- Location Map of PTC-1, Kushtia ................................................. 37
24. Addendum-H- Site Layout & List of Buildings of PTC-1, Kushtia ....................... 38-39
25. Addendum-I - Photograph of PTC-1, Kushtia ...................................................... 40-44
26. Addendum- J- Location Map of PTC-2, Kushtia ................................................. 45
27. Addendum-K - Site Layout & List of Buildings of PTC-2, Kushtia ....................... 46-47
28. Addendum-L - Photograph of PTC-2, Kushtia ..................................................... 48-52
Chittagong Office : 60 Agrabad C/A, 1st Floor, Chittagong, Phone: 724310, Fax: 880 31 714416
Khulna Office: Golden King Bhaban, 4th floor, 25 Sir Iqbal Road, Phone: 731770, Fax: 880 41 731770
BALTIC CONTROL (BD) LTD
34 Purana Paltan Line, Nurul Tower, 3rd floor, Dhaka-1000
Phone: +880 2 9351032 , Fax:+880 2 9351094; E-mail:[email protected]
Web : www.balticcontrolbd.com
PREAMBLE
In accordance with the agreement signed with JT International (Asia Pacific) Limited on 12 April 2018,
our surveyor inspected the subject properties at Tongi, Manikganj and Kushtia, Bangladesh on 19th to 22nd
April, 2018 in ordered to estimate present market value and yearly lease fee of subject four properties.
SCOPE OF SERVICE
OWNERSHIP
Fee simple interest (Freehold Property).
Page | 1
Chittagong Office : 60 Agrabad C/A, 1st Floor, Chittagong, Phone: 724310, Fax: 880 31 714416
Khulna Office: Golden King Bhaban, 4th floor, 25 Sir Iqbal Road, Phone: 731770, Fax: 880 41 731770
BALTIC CONTROL (BD) LTD
34 Purana Paltan Line, Nurul Tower, 3rd floor, Dhaka-1000
Phone: +880 2 9351032 , Fax:+880 2 9351094; E-mail:[email protected]
Web : www.balticcontrolbd.com
OTHER DEFINITIONS2
Fee Simple Interest Absolute ownership interest unencumbered by any other interest or estate;
subject only to the limitations of eminent domain, escheat, police power, and
taxation.
Leased Fee Estate An ownership interest held by a landlord with the right of use and occupancy
conveyed by lease to others; usually consists of the right to receive rent and
the right to repossession at the termination of the lease.
Leasehold Estate The right to use and occupy real property for a stated term and under certain
conditions; conveyed by a lease.
Market Rent The rental income that a property would most probably command on the
open market.
Exposure Time As stated in the definition of "Market Value" found above, the value estimate
derived herein presumes that a "reasonable time is allowed for exposure in
the open market". Exposure time is defined by the Appraisal Standards
Board as follows: "The estimated length of time the property interest being
appraised would have been offered on the market prior to the hypothetical
consummation of a sale at market value on the effective date of the
appraisal: a retroactive estimate based upon an analysis of past events
assuming a competitive and open market".
1
Uniform Standards of Professional Appraisal Practice, 2000
2
The Dictionary of Real Estate Appraisal, Third Edition, The Appraisal Institute, 1993
Page | 2
Chittagong Office : 60 Agrabad C/A, 1st Floor, Chittagong, Phone: 724310, Fax: 880 31 714416
Khulna Office: Golden King Bhaban, 4th floor, 25 Sir Iqbal Road, Phone: 731770, Fax: 880 41 731770
BALTIC CONTROL (BD) LTD
34 Purana Paltan Line, Nurul Tower, 3rd floor, Dhaka-1000
Phone: +880 2 9351032 , Fax:+880 2 9351094; E-mail:[email protected]
Web : www.balticcontrolbd.com
SITE DESCRIPTION
A. DHAKA TOBACCO INDUSTRIES, MORKUN, TONGI, GAZIPUR, BANGLADESH
The factory is situated on Dhaka-Kaliganj Road and located at Morkun, Tongi, Gazipur under Gazipur
City Corporation. Geographical coordinates of the site is 23.905304°N, 90.414017°E. The site is about
25 km from Zero point, Dhaka and about 7.40 km from Hazrat Shahjalal International Airport, Dhaka
and about 271km from Chittagong port, and easily accessible through highway.
Shape and Area The parcel is irregular in shape and comprises of an area of approximately
57,309.98 m2/ 1415.65 decimal/ 856.47 katha.
Topography The subject property is developed land with buildings (Total covered area
is about 455,000 sft). .
Soils and Geology No soil report dealing with the subject site has been examined by the
appraiser.
Utilities Onsite Electricity and Gas connection. Water supply from deep tube well.
Streets and Access The subject has good street access and visibility. The east, on which the
subject fronts, is a two-way, north/south direction Dhaka-Kaliganj Road.
Easements Typical utility and public service easements common to industrial area is
exist. No easements were uncovered which would have a negative impact
on the parcel or its value.
Nuisances & Hazards No nuisances or hazards such as noise, or odor, other than those typical
to all industrial areas, were uncovered which would have a negative
impact on the subject.
Hazardous Materials
Contamination
Determining the presence of hazardous materials in the subject property’s
soil or improvement is beyond the scope of this appraisal. The estimations
of value derived within are predicated on the subject being free of
hazardous/toxic materials which may have an adverse impact on value.
POSSESSION :
During our physical inspection, we found that the subject property is under possession of Dhaka
Tobacco Industries, a concern of Akij Group.
ADDENDA:
- Location Map of the Site --- ADDENDUM - A
- Site Layout Plan & list of buildings & Civil Structures --- ADDENDUM - B
- Photograph --- ADDENDUM - C
Page | 3
Chittagong Office : 60 Agrabad C/A, 1st Floor, Chittagong, Phone: 724310, Fax: 880 31 714416
Khulna Office: Golden King Bhaban, 4th floor, 25 Sir Iqbal Road, Phone: 731770, Fax: 880 41 731770
BALTIC CONTROL (BD) LTD
34 Purana Paltan Line, Nurul Tower, 3rd floor, Dhaka-1000
Phone: +880 2 9351032 , Fax:+880 2 9351094; E-mail:[email protected]
Web : www.balticcontrolbd.com
The factory is situated on Dhaka-Aricha Highway and located at Golora Charkhanda area under ward
# 6 of Jagir Union, Manikganj Sadar, Manikganj. Geographical coordinate of the site is 23.895366 °N,
90.03337°E. The site is about 58 km from Zero Point, Dhaka and about 4.5km from Manikganj Bus
Stand and near BSCIC (Bangladesh Small & Cottage Industries Corporation) Manikganj and about
300km from Chittagong port. The factory is easily accessible through highway.
Shape and Area The parcel is irregular in shape and comprises of an area of approximately
96,406.05 m2/ 2382.48 decimal/ 1440.73 katha.
Topography The subject property is developed land with buildings (Total covered area
is about 589,000 sft).
Soils and Geology No soil report dealing with the subject site has been examined by the
appraiser.
Utilities Onsite Electricity and Gas connection. Water supply from deep tube well.
Streets and Access The subject has good street access and visibility. The east, on which the
subject fronts, is a two-way, north/south direction Dhaka-Aricha Highway.
Easements Typical utility and public service easements common to industrial area is
exist. No easements were uncovered which would have a negative impact
on the parcel or its value.
Nuisances & Hazards No nuisances or hazards such as noise, or odor, other than those typical
to all industrial areas, were uncovered which would have a negative
impact on the subject.
Hazardous Materials
Contamination
Determining the presence of hazardous materials in the subject property’s
soil or improvement is beyond the scope of this appraisal. The estimations
of value derived within are predicated on the subject being free of
hazardous/toxic materials which may have an adverse impact on value.
POSSESSION :
During our physical inspection, we found that the subject property is under possession of Dhaka
Tobacco Industries, a concern of Akij Group.
ADDENDA:
- Location Map of the Site --- ADDENDUM - D
- Site Layout Plan & list of buildings & Civil Structures --- ADDENDUM - E
- Photograph --- ADDENDUM - F
Page | 4
Chittagong Office : 60 Agrabad C/A, 1st Floor, Chittagong, Phone: 724310, Fax: 880 31 714416
Khulna Office: Golden King Bhaban, 4th floor, 25 Sir Iqbal Road, Phone: 731770, Fax: 880 41 731770
BALTIC CONTROL (BD) LTD
34 Purana Paltan Line, Nurul Tower, 3rd floor, Dhaka-1000
Phone: +880 2 9351032 , Fax:+880 2 9351094; E-mail:[email protected]
Web : www.balticcontrolbd.com
Shape and Area The parcel is irregular in shape and comprises of an area of approximately
34093.64 m2/ 842.55 decimal/ 509.51 katha.
Topography The subject property is developed land with buildings (Total covered area
is about 162,000 sft). Total factory occupied area is 4.944 acres and Free
space is 3.482 acres.
Soils and Geology No soil report dealing with the subject site has been examined by the
appraiser.
Streets and Access The subject has good street access and visibility. The west, on which the
subject fronts, is a two-way, north/south direction Kushtia-Poradah/
Chuadanga Road.
Easements Typical utility and public service easements common to industrial area is
exist. No easements were uncovered which would have a negative impact
on the parcel or its value.
Nuisances & Hazards No nuisances or hazards such as noise, or odor, other than those typical
to all industrial areas, were uncovered which would have a negative
impact on the subject.
Hazardous Materials
Contamination
Determining the presence of hazardous materials in the subject property’s
soil or improvement is beyond the scope of this appraisal. The estimations
of value derived within are predicated on the subject being free of
hazardous/toxic materials which may have an adverse impact on value.
Site Exposure North : 12 feet wide road then Rice Mill of Mr. Dulal
South : Vacant land of Mr. Delowar Hossain & Others
East : Others vacant land
West : 35 feet wide Kushtia Poradah Road & Land of RHD
POSSESSION :
During our physical inspection, we found that the subject property is under possession of Perfect
Tobacco Company, a concern of Akij Group.
ADDENDA:
- Location Map of the Site --- ADDENDUM - G
- Site Layout Plan & list of buildings & Civil Structures --- ADDENDUM - H
- Photograph --- ADDENDUM - I
Page | 5
Chittagong Office : 60 Agrabad C/A, 1st Floor, Chittagong, Phone: 724310, Fax: 880 31 714416
Khulna Office: Golden King Bhaban, 4th floor, 25 Sir Iqbal Road, Phone: 731770, Fax: 880 41 731770
BALTIC CONTROL (BD) LTD
34 Purana Paltan Line, Nurul Tower, 3rd floor, Dhaka-1000
Phone: +880 2 9351032 , Fax:+880 2 9351094; E-mail:[email protected]
Web : www.balticcontrolbd.com
The factory is situated on Kushtia-Jhenaidah Highway and located at Swastipur, Vadalia area under
Alampur Union, Kushtia Sadar, Kushtia. Geographical coordinate of the site is 23.848657°N,
89.094209°E. The site is about 186 km from Zero Point, Dhaka and about 8.20 km from Kushtia DC
Office, and about 191km from Mongla port and easily accessible through road.
Shape and Area The parcel is irregular in shape and comprises of an area of approximately
190970.65 m2/ 4719.45 decimal/ 2853.95 katha.
Topography The subject property is developed land with buildings (Total covered area
is about 366,000 sft). Total factory occupied area is 18.657 acres and Free
space is 28.537 acres.
Soils and Geology No soil report dealing with the subject site has been examined by the
appraiser.
Utilities Onsite Electricity connection. Water supply from deep tube well.
Streets and Access The subject has good street access and visibility. The east, on which the
subject fronts, is a two-way, north/south direction Kushtia-Jhenaidah
Highway.
Easements Typical utility and public service easements common to industrial area is
exist. No easements were uncovered which would have a negative impact
on the parcel or its value.
Nuisances & Hazards No nuisances or hazards such as noise, or odor, other than those typical
to all industrial areas, were uncovered which would have a negative
impact on the subject.
Hazardous Materials
Contamination
Determining the presence of hazardous materials in the subject property’s
soil or improvement is beyond the scope of this appraisal. The estimations
of value derived within are predicated on the subject being free of
hazardous/toxic materials which may have an adverse impact on value.
POSSESSION :
During our physical inspection, we found that the subject property is under possession of Perfect
Tobacco Company, a concern of Akij Group..
ADDENDA:
- Location Map of the Site --- ADDENDUM - J
- Site Layout Plan & list of buildings & Civil Structures --- ADDENDUM - K
- Photograph --- ADDENDUM - L
Page | 6
Chittagong Office : 60 Agrabad C/A, 1st Floor, Chittagong, Phone: 724310, Fax: 880 31 714416
Khulna Office: Golden King Bhaban, 4th floor, 25 Sir Iqbal Road, Phone: 731770, Fax: 880 41 731770
BALTIC CONTROL (BD) LTD
34 Purana Paltan Line, Nurul Tower, 3rd floor, Dhaka-1000
Phone: +880 2 9351032 , Fax:+880 2 9351094; E-mail:[email protected]
Web : www.balticcontrolbd.com
To evaluate the current value of land, we applied the ‘Sales Comparison Approach’- this is an appraisal
technique in which the market value estimate is predicated upon prices paid in actual market transactions
and current listings. It is a process of correlation and analyses of recently sold properties of similar type,
size and purpose in the adjacent location. Generally, adjustments are necessary to reflect and account
for differences between the subject and the comparable sales utilized. The resulting value indication
is an estimate of the probable price at which the property would sell if currently offered in the
marketplace.
While undertaking the valuation of the land of the subject area, we have taken into accounts the
information from different sources in conjunction with the following attributes:
Location of the land
Size of land
Commercial/industrial importance
Infrastructural facilities available in and around
Past trends and likely future appreciation
Reduce Level (in the event of flooding)
COMPARABLE SALES
In Bangladesh, the sub-registry office does not list actual transaction or actual selling rate, rather they
yearly publish a ‘lowest/minimum registry rate’ per decimal for each type of land in each mouza.
The ‘registry rate’ which is also known as ‘government rate’ is average of the registry rate of all land
(each type) sold in a particular mouza in a particular year and published on 31st December of each
calendar year. If there is no sell in a mouza in a year then the rate for previous year is considered as
minimum/lowest registry rate for the current year. The rate is the minimum benchmark registry value
for each type of land and used for calculation of different taxes and charges during transfer of
ownership. There is no relation between the ‘registry rate/value’ and ‘actual market price’ of a
land; generally the actual market price ranges from 2 to 6 times higher than registry price. The
actual value/price is not listed anywhere and one has to collect the information verbally by interviewing
with the local people who are related with real estate sector or buying/selling of property. The property
market is more or less in stagnant condition during the last one year and therefore, the government
value is not published/updated for the year 2018 and rate of 2017 is used for current registration
purpose.
Page | 7
Chittagong Office : 60 Agrabad C/A, 1st Floor, Chittagong, Phone: 724310, Fax: 880 31 714416
Khulna Office: Golden King Bhaban, 4th floor, 25 Sir Iqbal Road, Phone: 731770, Fax: 880 41 731770
BALTIC CONTROL (BD) LTD
34 Purana Paltan Line, Nurul Tower, 3rd floor, Dhaka-1000
Phone: +880 2 9351032 , Fax:+880 2 9351094; E-mail:[email protected]
Web : www.balticcontrolbd.com
Exact market value of a parcel of land cannot be ascertained unless the same is offered for sale. The
subject properties are of very large parcel of land and comparable sale of such large parcel is not
available. But, buying and selling of small size similar type of land is available in subject locations. To
evaluate the current value of land we collected the price recently paid for land of similar type in the
adjacent locations. We also discussed land prices with local people, brokers and other parties involved
in purchase and selling of land in that area. Based on our findings and interpolating it with all factors
described in the methodology we conclude that the applicable market rate of land in subject area is as
follows:
The Economic Zones in Bangladesh can be broadly classed into three main groups, Bangladesh
Export Processing Zones (BEPZs), Korean Export Processing Zone, (KEPZ) and the third and most
recent kind is Special Economic Zones. The segregation has been done on two grounds, the
ownership and the intended market it caters to. There are some basic differences between export
processing zones and special economic zones. The export processing zones, under Bangladesh
Export Processing Zone Authority (BEPZA) and the Youngone Corporation, host export-driven
industries that focus on the fiscal and non-fiscal incentives to attract foreign direct investments. On
the other hand, the special economic zones, under Bangladesh Economic Zone Authority (BEZA), are
being developed with the intention to accommodate industries for both the local and international
markets and to emphasize both local and foreign investment.
Page | 8
Chittagong Office : 60 Agrabad C/A, 1st Floor, Chittagong, Phone: 724310, Fax: 880 31 714416
Khulna Office: Golden King Bhaban, 4th floor, 25 Sir Iqbal Road, Phone: 731770, Fax: 880 41 731770
BALTIC CONTROL (BD) LTD
34 Purana Paltan Line, Nurul Tower, 3rd floor, Dhaka-1000
Phone: +880 2 9351032 , Fax:+880 2 9351094; E-mail:[email protected]
Web : www.balticcontrolbd.com
Chittagong Zone area: 183.37 hectares (453 acres) Land: US$ 2.20/Sqm/Year
EPZ
Shouth Halishahar. 3.10km from the sea port, 5.50km Readymade Factory Building Space:
from the main business center, US$ 2.75/Sqm/Month
11.3km from Shah Amanat International Airport, Period: 30 years and the rent is
Chittagong constant throughout the leasing
period
Mongla EPZ Zone area: 186.21 hectares (460 acres prop.). Mongla Land: US$ 1.25/Sqm/Year
port area, Bagerhat. 105km from Jessore Airport and
Readymade Factory Building Space:
397km from Dhaka and 664km from Chittagong port. US$ 1.60/Sqm/Month
Period: 30 years and the rent is
constant throughout the leasing period
Zone area: 124.99 hectares (308.77 acres )
Ishwardi EPZ
Pakshi, Pabna.3.7km from Pakshi Bridge through by-pass
road, 10.60km from Ishwardi Airport, 130km from
=Do=
Bangabandhu (Jamuna) Bridge, 220km from Dhaka,
280km from Mongla port, 110km from Rajshahi Airport
and 484km from Chittagong port.
Beside the above zones the Government of Bangladesh declared 55 Government Economic Zone and 11 Private
Economic Zone in different locations of Bangladesh which are regulated by Bangladesh Economic Zone
Authority (BEZA). However, leasing rate and other terms and conditions for the zones has not been finalized
(preliminary estimated rate is in between US$ 0.8 - US$ 0.4 per SQM per annum and will vary from zone to zone)
yet.
Page | 9
Chittagong Office : 60 Agrabad C/A, 1st Floor, Chittagong, Phone: 724310, Fax: 880 31 714416
Khulna Office: Golden King Bhaban, 4th floor, 25 Sir Iqbal Road, Phone: 731770, Fax: 880 41 731770
BALTIC CONTROL (BD) LTD
34 Purana Paltan Line, Nurul Tower, 3rd floor, Dhaka-1000
Phone: +880 2 9351032 , Fax:+880 2 9351094; E-mail:[email protected]
Web : www.balticcontrolbd.com
Traditionally, in most countries, valuers assess ground rentals by applying a “ground rental rate” or
percentage per annum to the property’s land value at the beginning of the lease or renewal term and
calculate Ground Rental (per annum) = Land Value X Ground Rental Rate (GR%). However, there is no
fixed GR% for a specific type of land. Another method is application of Bala’s table for estimating ground
rental per annum. In some countries, especially in the UK ground rental is estimated as certain percentage
of income generated from the property.
To estimate the lease rate p.a. the market was surveyed for current ground leases and leasing practices of
both private firms and public agencies to derive the estimated net operating income attributable to the land.
No recent similar type long-term private land leases were discovered in the subject areas except
short-term lease of similar type property found in Kushtia area. Therefore, ground rent was calculated
based on hypothetical condition that the present use and future uses of land will be same. In estimating
leasehold value from freehold value we used Bala’s table and then calculate the ground rental rate of subject
properties.
Comparable Site: Bangladesh Leaf Tobacco factory at Barakhada, Kushtia on Khshtia - Bheramara Road
which is about 9.50Km from PTC-1 and 11.90km from PTC-2 and only 5.5 km from DC office, Kushtia. Total
area of the site is 7.16 acres with about 128000 sft buildings is leased @ Tk. 75,60,000 per year which is
renewable in every two years. Where value of land is @ BDT 550,000 per decimal.
COMPARABLE
SITE
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Chittagong Office : 60 Agrabad C/A, 1st Floor, Chittagong, Phone: 724310, Fax: 880 31 714416
Khulna Office: Golden King Bhaban, 4th floor, 25 Sir Iqbal Road, Phone: 731770, Fax: 880 41 731770
BALTIC CONTROL (BD) LTD
34 Purana Paltan Line, Nurul Tower, 3rd floor, Dhaka-1000
Phone: +880 2 9351032 , Fax:+880 2 9351094; E-mail:[email protected]
Web : www.balticcontrolbd.com
There is only one private comparable site available, therefore, we calculated ground rent based on
hypothetical condition that the present use and future uses of land will be same and applied the Bala’s table
to calculate the same. Then compare the rate derived from the calculation with the available leasing rate of
public and private sector data to arrive a ground rental of each site.
Bala’s Table
The proposed lease period is 30 years. So, from the above graph we find Bala’s Factor for 30 years leasehold
property is 60%. Value of Per decimal land of Bangladesh Leaf Tobacco is same as PTC-1 and the area of
each site is almost same. Therefore, the above rental rate of Bangladesh Leaf Tobacco can be compared with
the calculated yearly rental of PTC-1. The calculated rent is found as follows:
Land Total Present 30 years Total Rent Yearly Yearly Yearly
Bala's
Site Area Market Value lease hold per annum Rent per Rent per Rent per
Factor
(Decimal) (BDT) value (BDT) (BDT) Dec (BDT) sqm (BDT) sqm ($)
Dhaka 1,415.65 1,698,780,000 60% 1,019,268,000 33,975,600 24,000 592.88 7.15
Manikganj 2,382.48 714,744,000 60% 428,846,400 14,294,880 6,000 148.17 1.79
PTC-1, Kushtia 842.55 463,402,500 60% 278,041,500 9,268,050 11,000 271.69 3.28
PTC-2, Kushtia 4,719.45 1,179,862,500 60% 707,917,500 23,597,250 5,000 123.52 1.49
The ground rental is directly proportional to the market value of land and therefore, higher rental rate at
Dhaka and Lower rental rate at PTC-2. We found from the above that the calculated ground rental of
PTC-1 is almost same of the market rental of Bangladesh Leaf Tobacco which supports validity of above
calculation.
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Chittagong Office : 60 Agrabad C/A, 1st Floor, Chittagong, Phone: 724310, Fax: 880 31 714416
Khulna Office: Golden King Bhaban, 4th floor, 25 Sir Iqbal Road, Phone: 731770, Fax: 880 41 731770
BALTIC CONTROL (BD) LTD
34 Purana Paltan Line, Nurul Tower, 3rd floor, Dhaka-1000
Phone: +880 2 9351032 , Fax:+880 2 9351094; E-mail:[email protected]
Web : www.balticcontrolbd.com
From the above it is observed that the calculated yearly ground rental rate is 2% of the present market
value of land. However, the lessor/owner may expect higher return from their land. Based on the
foregoing, we estimate that the yearly ground rent of the proposed 4 site should be:
It should be noted that the above rates were hypothetically calculated from prevailing present market value
of land as the main limitation is non-availability of ground rental data of private sector land. The above
rate is estimated to provide an idea to our client about the probable leasing rate of private sector land in
Bangladesh. The ground rent can initially be fixed for first five years and may be reset /reassessed or
escalated at certain % in every 5 years.
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Chittagong Office : 60 Agrabad C/A, 1st Floor, Chittagong, Phone: 724310, Fax: 880 31 714416
Khulna Office: Golden King Bhaban, 4th floor, 25 Sir Iqbal Road, Phone: 731770, Fax: 880 41 731770
BALTIC CONTROL (BD) LTD
34 Purana Paltan Line, Nurul Tower, 3rd floor, Dhaka-1000
Phone: +880 2 9351032 , Fax:+880 2 9351094; E-mail:[email protected]
Web : www.balticcontrolbd.com
11. While this report estimates value of the subject property, no assurance is expressed or implied that
the subject property, in fact, can be sold at the stated value estimates.
12. If there are inquiries concerning the inclusion or exclusion of items not covered by the appraisal, or
the valuation set forth in the appraisal, such inquiries must be transmitted in writing to BCBD within 14
days of receipt of the appraisal report. If no such inquiries are transmitted within the stipulated period,
the complete appraisal and valuation set forth herein shall be deemed to have been acceptable to the
client.
13. The signatories herein shall not be required to give testimony or attend court or appear at any
governmental hearing with reference to the subject property.
14. This report is made for the information and/or guidance of the client and possession of this report or
a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by
any person other than the party to whom it is addressed without the written consent of the appraiser,
and in any event, only with proper written qualification and only in its entirety.
15. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of
the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public
through advertising Public relations, news sales or other media without prior written consent of the
appraiser.
16. This appraisal report has been prepared for the exclusive benefit of the client, and complying with service
and non-disclosure agreement. It may not be used by any other party. Any party who uses any information
in this report, without the preparer’s written consent, does so at his own risk.
17. Acceptance of, and/or use of, this appraisal report constitutes acceptance of the above conditions.
CONCLUSION:
SUMMARY OF VALUE OF PROPERTY
Based on the inspection of the properties and the investigation and analyses undertaken, we have
formed the opinion that, as of the effective date of the appraisal April 30, 2018, and subject to the
assumptions and limiting conditions set forth in this appraisal report, the Estimated Market Value &
Yearly Ground Rental of the subject property is:
EXPOSURE TIME
In view of the current economy, it is felt that a sale could be affected at the above value within a twelve
month period.
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Chittagong Office : 60 Agrabad C/A, 1st Floor, Chittagong, Phone: 724310, Fax: 880 31 714416
Khulna Office: Golden King Bhaban, 4th floor, 25 Sir Iqbal Road, Phone: 731770, Fax: 880 41 731770
BALTIC CONTROL (BD) LTD
34 Purana Paltan Line, Nurul Tower, 3rd floor, Dhaka-1000
Phone: +880 2 9351032 , Fax:+880 2 9351094; E-mail:[email protected]
Web : www.balticcontrolbd.com
CERTIFICATION
We certify that to the best of our knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and
limiting conditions, and are our personal, unbiased, professional analyses, opinions, and conclusions.
3. We have no present or prospective interest in the property that is the subject of this report and we
have no personal interest or bias with respect to the parties involved.
4. Our compensation is not contingent upon the reporting of a predetermined value or direction in value
that favors the cause of the client, the amount of value estimate, the attainment of a stipulated result, or
the occurrence of a subsequent event.
5. This appraisal was not based on a requested minimum or specific valuation or ground rental; or for
the approval of a loan.
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Chittagong Office : 60 Agrabad C/A, 1st Floor, Chittagong, Phone: 724310, Fax: 880 31 714416
Khulna Office: Golden King Bhaban, 4th floor, 25 Sir Iqbal Road, Phone: 731770, Fax: 880 41 731770
ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - A
PROPOSED PROPERTY
N.C.T.B GODOWN
DHAKA TOBACCO
INDUSTRIES
HATIM GROUP
LOCATION MAP
NOT TO SCALE
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ADDENDUM-B
DHAKA TOBACCO‐ TONGI FACTORY
List of Buildings
Sl. Total
Building Name Type
No. Area (sft)
1 DTI Factory Building RCC slab, Brick Wall 95,133
2 Office Building (3 story) RCC slab, Brick Wall 13,764
3 PMD Building CI Sheet Roof, Brick Wall 123,872
4 SMD Building (2 story) Pre‐feb steel structure 160,034
Zamil Steel Godown
5 Pre‐feb steel structure 21,000
(2 story)
6 Generator Room (2 story) RCC slab, Brick Wall 14,666
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REPORT No.777/293/2018
ATTACHED TO AND FORMING PART OF
OFFICE BUILDING INNER VIEW OFFICE BUILDING TONGI- KALIGANJ ROAD (SOUTH TO NORTH DIRECTION)
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ADDENDUM - C
ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - C
FACTORY BUILDING
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - C
P.M.D BUILDING
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - C
S.M.D BUILDING
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - C
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - C
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - C
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - C
A/C CABIN
BC ROAD
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - C
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - D
PROPOSED PROPERTY
DHAKA TOBACCO
INDUSTRIES
LOCATION MAP
NOT TO SCALE
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ADDENDUM-E
DHAKA TOBACCO‐ MANIKGANJ FACTORY
List of Buildings
Sl.
Building Name Type Area (sft)
No.
1 GLT Main Factory CI Sheet Roof, Brick Wall 85,510
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - F
MAIN ROAD
MAIN ENTRANCE
MAIN ENTRANCE
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - F
GUEST HOUSE
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - F
ADMIN OFFICE
ADMIN OFFICE
BRIDGE SCALE ROOM
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - F
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - F
GODOWN
GODOWN
BY PRODUCT PROCESSING BUILDING
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - F
GODOWN
GODOWN
AKIJ ZARDA FACTORY
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - F
UTILITY AREA
WORKSHOP & STORE ROOM
POND
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - G
PROPOSED PROPERTY
RICE MILL
RICE MILL
PERFECT TOBACCO
(UNIT-I)
LOCATION MAP
NOT TO SCALE
Page | 37
ADDENDUM-H
PERFECT TOBACCO CO (UNIT‐I)‐ KABURHAT, KUSHTIA
List of Buildings
Sl.
Building Name Type Area (sft)
No.
1 Factory Shed 1 CI Sheet Roof, Brick Wall 24,846
Total 161,769
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - I
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - I
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - I
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - I
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - I
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - J
PROPOSED PROPERTY
PERFECT TOBACCO
(UNIT-I)
LOCATION MAP
NOT TO SCALE
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ADDENDUM-K
PERFECT TOBACCO CO (UNIT‐II)‐ VADALIA, KUSHTIA
List of Buildings
Sl.
Building Name Type Area (sft)
No.
1 Leaf Processing Factory CI Sheet Roof, Brick Wall 173,273
Total 366,332
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - L
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ATTACHED TO AND FORMING PART OF
REPORT No.777/293/2018 ADDENDUM - L
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ATTACHED TO AND FORMING PART OF
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ATTACHED TO AND FORMING PART OF
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