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.