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Article
Publication date: 2 October 2007

Hanna Kaleva

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382

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Journal of Property Investment & Finance, vol. 25 no. 6
Type: Research Article
ISSN: 1463-578X

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Article
Publication date: 17 July 2009

Hanna Kaleva

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369

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Journal of European Real Estate Research, vol. 2 no. 2
Type: Research Article
ISSN: 1753-9269

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Article
Publication date: 24 October 2008

Hanna Kaleva

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350

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Journal of European Real Estate Research, vol. 1 no. 3
Type: Research Article
ISSN: 1753-9269

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Article
Publication date: 9 August 2011

Irma Tikkanen and Hanna Kaleva

The purpose of this paper is to explore what kinds of contract award procedures and award criteria are followed when the municipalities make public procurements in…

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920

Abstract

Purpose

The purpose of this paper is to explore what kinds of contract award procedures and award criteria are followed when the municipalities make public procurements in catering services in Finland.

Design/methodology/approach

The literary review is related to the concepts of public procurements and, subsequently, interrelated regulations are introduced. Moreover, the municipal catering services are illustrated. Empirical data were collected in the spring of 2009 from the Finnish public procurement journal and from HILMA internet websites concerning the contract notices and the contract award notices between 1 January 2007 and 14 May 2009. The objects of the contract, thresholds, contract award procedures, sectors of contract awards, as well as both the selection and the award criteria were analysed in the contract notices. A total of 34 contract notices were discovered, out of which 24 could be utilised.

Findings

The contract award procedures could be divided into either open procedures or restricted procedures. Maximum budgets in the contract notices consisted of both the types exceeding the EU thresholds or those remaining below it. Concerning the award criteria, the relative weightings (median) concerning the price amounted to 60 per cent, whereas the quality measured 40 per cent.

Practical implications

The results can be utilised when exploring the competitive tendering in catering services using larger data, and as a guidebook when public catering services are put out to tender.

Originality/value

The dimensions of quality found offer new ideas for procurement authorities as the award criteria.

Details

British Food Journal, vol. 113 no. 8
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 2 October 2007

Michel Baroni, Fabrice Barthélémy and Mahdi Mokrane

The purpose of this paper is to offer a framework for computing optimal investment holding periods for real estate portfolios.

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1544

Abstract

Purpose

The purpose of this paper is to offer a framework for computing optimal investment holding periods for real estate portfolios.

Design/methodology/approach

The analysis is set within a standard DCF modelling framework and it is shown that it is not adapted to offer sufficient insight into the mechanics leading to optimal holding periods. A richer framework is offered that enables the portfolios terminal value to behave according to a simple diffusion process.

Findings

The findings show that optimal holding periods for real estate investment portfolios exist within very precise conditions. The key parameters are the investor's weighted average cost of capital (WACC), the cash flow growth rate during the investment period, and the investment's net initial yield. The key finding is (loosely speaking) that, if the investor's cost of capital is outpaced by (the sum of) the portfolio's net initial yield and the cash flow growth rate, then an optimal holding period exists and can be precisely computed. Numerical examples are provided to illustrate these findings.

Originality/value

Standard financial theory does not specify a consistent methodology for choosing the optimal investment horizon in investment analysis and in particular in discounted cash flow (DCF) modelling. This problem may be particularly acute in real estate investment analysis and valuation, as investment horizons are often arbitrarily chosen. The paper proves that investment horizon may strongly influence net present value.

Details

Journal of Property Investment & Finance, vol. 25 no. 6
Type: Research Article
ISSN: 1463-578X

Keywords

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Article
Publication date: 2 October 2007

Matthew Scrimshaw

The purpose of this paper is to consider the likely effect on capital values of prime retail property in major UK urban centres from any legislative ban of upward‐only…

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1987

Abstract

Purpose

The purpose of this paper is to consider the likely effect on capital values of prime retail property in major UK urban centres from any legislative ban of upward‐only rent reviews (UORRs) from commercial leases.

Design/methodology/approach

The opinion of Leeds‐based valuers regarding changes to yield and rent following a hypothetical ban of UORRs was surveyed and the implied effect on capital values calculated. Rental valuation data were obtained for a portfolio of prime retail properties located in Leeds and its satellite commercial centres, forming a case study. The data were combined with survey responses to develop a valuation model to further consider, in an applied context, the effect on capital values as a result of prohibiting UORRs. The hypothesis tested is that, immediately following enactment, prohibition of UORRs will cause a reduction in capital values of prime retail property in major UK urban centres.

Findings

The conclusion drawn from the research is that, based on contemporary professional opinion, the hypothesis is likely to be true though the extent of the reduction will vary as a function of specific lease and property characteristics.

Research limitations/implications

The behaviour of valuers and the issue of subjectivity in valuation is a limitation of this positivist research. An alternative phenomenological approach, perhaps with structured interviews at its core, might produce alternative findings.

Originality/value

This research attempts to quantify the effect on capital values on prime retail property following any ban of upwards only rent reviews, a subject that holds a high level of contemporary interest with all property stakeholders.

Details

Journal of Property Investment & Finance, vol. 25 no. 6
Type: Research Article
ISSN: 1463-578X

Keywords

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Article
Publication date: 2 October 2007

Anthony J. De Francesco

The aim of the paper is threefold: to provide an overview of gearing in the Australian real estate investment market; formally examine the relationship between property…

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2503

Abstract

Purpose

The aim of the paper is threefold: to provide an overview of gearing in the Australian real estate investment market; formally examine the relationship between property returns, risk and gearing; and provide some guidance in evaluating “optimal” gearing levels for real estate investment.

Design/methodology/approach

A mathematical modelling framework is presented for evaluating the relationship between investment returns, risk and gearing levels.

Findings

The study highlights that risk rises with rising gearing levels and that risk‐adjusted returns fall with rising gearing. Furthermore, it is shown that the gearing‐risk relationship is influenced not only by the cost of debt structure but also the interdependency between ungeared returns and interest rates.

Research limitations/implications

The study suggests that current gearing levels from Australian listed property trusts and unlisted wholesale property funds are relatively conservative. This implies that current gearing could be increased, in particular for wholesale funds, without taking on substantially more risk whilst enhancing returns.

Practical implications

The paper is of value to industry and academia as it offers an extended framework for evaluating the relationship between risk and gearing. In particular, the framework provides insight for gauging gearing levels when constructing real estate investment strategies.

Originality/value

Importantly, the paper shows that the interdependency between ungeared returns and interest rates significantly impacts the relationship between risk and gearing.

Details

Journal of Property Investment & Finance, vol. 25 no. 6
Type: Research Article
ISSN: 1463-578X

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Article
Publication date: 2 October 2007

Sally Sims and Peter Dent

The Government's aim to curb CO2 emissions from energy production has resulted in the growth of a new environmental feature; the wind turbine. Whilst this may help tackle…

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2714

Abstract

Purpose

The Government's aim to curb CO2 emissions from energy production has resulted in the growth of a new environmental feature; the wind turbine. Whilst this may help tackle climate change, there is concern that the visual and aural presence of these turbines could have a negative impact on house prices. Opinion studies undertaken within the UK appear to show significant variations in attitudes towards wind farms in different locations (in particular between Scotland and southern England) and at different stages during the development process. However, to date, no research has established the actual impact on proximate house values. Therefore, the purpose of this study, sponsored by the RICS, is to develop a methodology to measure the likely impact of onshore wind farms on house prices in the UK.

Design/methodology/approach

This study focused on residential property surrounding two wind farms in Cornwall. Transaction data for 1,052 house sales completed between 2000 and 2004 were obtained and analysed using regression modelling and comparative sales analysis. A second study undertook an analysis of the planning objections to wind farms in this location.

Findings

The analysis of transaction data found some correlation between distance from a wind farm, and value. However, the data were insufficiently detailed to draw any sound conclusions. The analysis of planning objections revealed that 95 percent of objections came from people living outside Cornwall.

Research limitations/implications

Whilst the methodology is sound, the available data were limited to house type and selling price, and therefore not sufficiently detailed to highlight any small changes in value.

Originality/value

The paper establishes general criteria which could be used to evaluate the potential impact of onshore wind farms on property values.

Details

Journal of Property Investment & Finance, vol. 25 no. 6
Type: Research Article
ISSN: 1463-578X

Keywords

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Article
Publication date: 2 October 2007

Sven Bienert and Wolfgang Brunauer

The purpose of this paper is to critically review the German mortgage lending value (MLV) and to adapt it in order to find a new concept that could serve as the basis for…

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2074

Abstract

Purpose

The purpose of this paper is to critically review the German mortgage lending value (MLV) and to adapt it in order to find a new concept that could serve as the basis for an internationally accepted standard for valuations for lending purposes.

Design/methodology/approach

The research is based on a critical review of existing practices and literature and applies developments in the area of risk management tools, modern valuation techniques as well as the results of the consultation for Basel II in order to find an improved method.

Findings

It was found that a value‐at‐risk approach and the implementation of simulation helps to understand the concept of MLV. The results also indicate that the German system of calculating the MLV has to be improved.

Practical implications

Banks are in need of tools, reliable instruments and a strong theoretical basis when evaluating their collateral. The valuation of real estate for long‐term loans has always been a problem. This paper indicates a strong basis for the implementation of tools in every day business.

Originality/value

Value‐at‐risk concepts and the concepts of maximum/maximum potential loss within a (future) time period have until today not been integrated in the valuation of real estate serving as collateral.

Details

Journal of Property Investment & Finance, vol. 25 no. 6
Type: Research Article
ISSN: 1463-578X

Keywords

Content available
Article
Publication date: 1 May 2003

Downloads
444

Abstract

Details

Property Management, vol. 21 no. 2
Type: Research Article
ISSN: 0263-7472

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