It is widely recognised in the directly held and listed property sectors that a consistent approach to valuations is needed to ensure a credible South African Property Index. Investors, more so now than ever before, are comparing property investments with competing asset classes such as cash, bonds, listed property and equities. Valuation is a critically important issue that goes to the heart of good corporate governance and financial asset management. These are the principles underlying the compilation of the SAPIX/IPD Valuation Guide.

Following extensive consultation with the participants, institutional and private valuers, the SAPIX/IPD Valuation Guide has been revised, with the purpose of improving the credibility, consistency and accuracy of valuations and valuation data submitted to the IPD. It is the objective of the valuation guideline to ensure that a common set of consistent valuation principles is adopted with respect to the valuation of properties held by the IPD participants. To this end, the Valuation Guide has attempted to be more specific, particularly with regard to the determination of input parameters such as discount rates, cap rates, etc. Finally it should be recorded that participation in IPD South Africa requires each participant to follow the defined valuation principles and standards as set out in the Valuation Guide.

In line with the JSE regulations, where properties are to be externally valued at least once every three years, it is recommended that IPD participants regularly instruct and consult with independent Valuers. Adherence to this recommendation will ensure ongoing unbiased and consistent reporting of valuations.

In 2003 IPD South Africa collected commercial Property Investment data for 21 different property portfolios representing R60,1 billion capital value spread across the Retail, Office, Industrial, Leisure and other investment property markets.

The participants in the IPD process are:

• Allan Gray Property Trust
• Capital Property Fund
• Emira Property Fund
• Growthpoint Properties Limited
• Hyprop Investments
• Liberty Group Property Portfolio
• Martprop Property Fund
• Metboard Properties Limited
• Metropolitan Life Properties
• Old Mutual Combined Property Portfolio
• Pangbourne Properties Limited
• Paramount Property Fund Limited
• Pareto Limited
• Redefine Income Fund
• RMB Combined Property Portfolio
• SA Retail Properties Limited
• Sanlam Property Portfolio
• Standard Bank Group Retirement Fund
• Sycom Property Fund
• Transnet Pension Fund
• Tresso Trading 119 (Pty) Limited
• Other Members of IPD/SAPIX are:
• National Ports Authority
• Victoria and Alfred Waterfront