THE VALUATION OF REVERSIONARY FREEHOLDS: A REPLY

Abstract

In his article ‘The Valuation of Reversionary Freeholds: A Review’ Andrew Baum drew a comprehensive picture of conventional and modern valuation approaches to this topic. His conclusions were well founded, but appeared to be a bit harsh on the basic Discounted Cash Flow Approach which, in his article, seemed to emerge as the Rational Model of Sykes. This article hopes to show that the basic Discounted Cash Flow Approach can deal adequately with complex reversions without being cumbersome or without requiring major adjustments, as Baum's article implies, and that it has the benefit of being more explicit than the Real Value approach which still hides rental growth in ‘i’, the inflation‐proof discount rate.

Citation

GREAVES, M. (1985), "THE VALUATION OF REVERSIONARY FREEHOLDS: A REPLY", Journal of Valuation, Vol. 3 No. 3, pp. 248-252. https://doi.org/10.1108/eb007974