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Cold Storage
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PPE Valuations have valued several cold storage facilities, notably large export citrus cold storage and freezer facilities in the Durban harbour.

A cold storage facility is classified as a specialised property and therefore is the Depreciated Replacement Cost approach the preferred method of valuation. However, since the business model of most cold storage facilities is the renting out of pallet space, the Profits Approach can be used as a control method. 

​Under the Profits Approach, the fair maintainable operating profit (FMOP) which would be achieved by a reasonable efficient operator (REO) is calculated from the financial statements of the client. The profit is then split into an operator’s profit and a rental component. The rental component is then capitalised to arrive at a market value. 

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PPE Valuations operates in accordance to the three General Standards as laid down by the International Valuation Standards Council (IVSC), these being:  IVS 101 Scope of Work, IVS 102 Implementation and IVS 103 Reporting.
PPE Valuations operates across South Africa as a level four B-BBEE contributor. 

Published 2020

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  • PPE Valuations
  • Our Services
    • Agro-Processing
    • Agricultural Property
    • Short-Term Insurance
  • About
  • Contact