Foreword
The Real Estate Investment Trust called “Tarvisium” is responsible for the ownership of a transformable area located in the center of the City of Treviso on which, until a few years ago, stood the former headquarters of the Province of Treviso.
As an Independent Expert, PRAXI was commissioned to make a semi-annual estimate of the Market Value, for the purposes of the financial statements, of the real estate assets in the aforementioned area, in accordance with the provisions of the Bank of Italy Regulations of 19/1/2015 Title V – Chapter IV – Section II – Paragraphs 2.5 (Real Estate) and 4 (Independent Experts) and DM 30 of 5/3/2015. At the time of the appointment at the end of 2018, the Fund was managed by Numeria S.G.R.E., which as of May 2022 serves as advisor on behalf of Namira S.G.R.p.A., which instead holds the management.
The intervention represents a significant example of redevelopment of the historic center on the furrow of qualified reuse of existing buildings, adapted to current modern quality and architectural standards.
Project
The “Tarvisium” Fund project, which started at the end of 2017, included the demolition of the existing building (former headquarters of the Province), for the construction of a new residential complex (“Residenza Tarvisium“), consisting of 42 residential units and 8 executive units spread over seven above-ground floors, in addition to the ground floor and a basement level for exclusive parking use; an indoor condominium garden; and an adjoining building of about 600 square meters for executive use, once used as the council seat of the then Province Authority, for which complete renovation is planned.
PRAXI’s activity included the following steps:
- A direct inspection of the property to assess its surroundings, consistencies, and the progression of work according to schedule;
- estimating the Market Value of the area using the Transformation Value methodological approach, which is considered to be the most appropriate for determining the final Value of the property following the transformation, after deducting the costs to be incurred to carry out the transformation itself and taking into account the risk component related to the timing of the work and the performance of the real estate market;
- sending on a semi-annual basis to Numeria S.G.R.E., and starting in 2022 to Namira S.G.R.p.A., the updated estimate of the Market Value of the said area;
- Annual direct inspection of the asset.
The semi-annual update, a periodic discussion between PRAXI consultants, the Fund Manager and his staff, has created a fruitful collaboration to incorporate:
- any problems on the progress of the work (e.g., delays caused by the pandemic or the difficulty in obtaining site materials);
- The issuance of SALs in favor of the construction company;
- The update of design, construction management and safety coordination costs, in addition to concession fees;
- updating revenues such as whether new sales preliminaries or deeds are signed.
Issuing the report from the data collected enabled the Fund manager to update the asset’s book value.
PRAXI also assisted the client in issuing fairness reports about the transfer value of the assets or, in the specific case of individual units, car boxes or basements.
Results
The construction of the new “Tarvisium Residence” was completed in December 2023. Currently, all residential and office units, along with parking garages, parking spaces and basements, have been fully preliminized and notarized.
The project has been very successful in the market, which was confirmed by the high level of interest already shown during the construction phase.
Future
The fruitful cooperation established with PRAXI since the first appraisal has set the stage for the assignment of other activities in the future, including the issuance of fairness reports related to the sale of individual units at the deed stage.
