Project Overview
Client
Solicitors & Barristers
Property Type
Freestanding Residential Apartment Building
Reason for Service
Expert Valuation Evidence for Supreme Court Litigation Proceedings
Preston Rowe Paterson was engaged by Max Bonnell of Henry William Lawyers to provide independent expert valuation evidence concerning the historic ownership, improvement history and market value of Eynesbury at 22 Albert Street, Edgecliff. The valuation was prepared for litigation in the Supreme Court of New South Wales.
The assignment required the preparation of retrospective market value assessments at multiple dates spanning more than seventy years together with analysis of the contribution made by successive capital improvements undertaken throughout the property’s life.
The engagement also required consideration of adjoining development land holdings known as the Lincoln Land and associated merger value issues.
Summary of Scope of Services
Our engagement involved:
- Retrospective market valuations at seven dates between 20 October 1946 and 30 November 2017
- Independent expert valuation evidence for litigation proceedings
- Assessment of the property with and without successive capital improvements
- Analysis of reconstructed market rents, parking income, outgoings, net income and historical investment yields
- Review of historical ownership, titles, council approvals, architectural plans, rental records and market transactions
- Consideration of adjoining development land and merger value issues
The Challenge
Unlike a conventional valuation assignment, this engagement required the reconstruction of market value as at seven separate historical dates:
- 20 October 1946
- 20 October 1951
- 15 February 1962
- 31 March 1980
- 22 July 1994
- 4 August 1997
- 30 November 2017
In addition, the Court required analysis of the property’s value both with and without major capital improvements undertaken over many decades.
The challenge was compounded by:
- Limited historical market evidence
- Changes from pounds to dollars
- Historic rental control legislation
- Incomplete tenancy records
- Evolving planning controls
- Multiple ownership and title changes
- Significant capital improvement works undertaken between valuation dates
Income Capitalisation Analysis
The primary valuation methodology was an Income Capitalisation Approach based upon reconstructed market rentals and investment yields applicable at each historic valuation date. Extensive analysis was undertaken to estimate:
- Market rents
- Car parking income
- Outgoings
- Net income
- Historical yield benchmarks
- Value contribution from individual improvements
Direct Comparison Analysis
The income approach was cross-checked against extensive historical market research, including:
- National Library of Australia archives
- Sydney Morning Herald archives
- Historical advertisements
- RP Data records
- Property Information Monitor sales evidence
- Historic apartment investment transactions
Capital Improvement Analysis
A detailed improvement history was examined, including the penthouse addition, additional laundries and garages, apartment refurbishments, harbour-view balconies, lift upgrades, a conservatory and porte cochère, and pedestrian-access works.
The methodology also addressed limited historical market evidence, the transition from pounds to dollars, historic rental-control legislation, incomplete tenancy records, changing planning controls, ownership and title changes, and improvements undertaken between valuation dates.
Asset Overview:
Eynesbury is a substantial freestanding Art Deco residential apartment building, originally constructed circa 1935, in an elevated Eastern Suburbs position overlooking Sydney Harbour. The property is approximately 3.5 kilometres east of the Sydney CBD and is close to Edgecliff Station, Double Bay, Woollahra and established retail and transport infrastructure
- Key property characteristics include:
- Site area of approximately 1,290 m²
- Building area of approximately 2,044 m²
- R3 Medium Density Residential zoning
- Ten large residential apartments
- A penthouse addition completed circa 1969-70
- A conservatory addition completed circa 1991
- Twelve garages or car spaces
- Harbour and district views from the upper levels
- Direct frontage to Albert Street, Edgecliff
Preston Rowe Paterson Expertise
Preston Rowe Paterson applied a forensic valuation methodology to reconstruct market conditions across seven historical dates and provide an independent, evidence-based assessment for the Court. The engagement combined income capitalisation, direct comparison and detailed capital-improvement analysis.
The resulting expert report established a valuation framework for assessing ownership interests and improvement contributions in complex shareholder and property litigation proceedings.
Approximately
1,290m²
Site Area
Approximately
2,044m²
Building Area
Approximately
3.5km
From Sydney CBD
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