Information on the Department of Estate Management  Research Group

 PROPOSED INTERNATIONAL WORKSHOP ON PROPERTY VALUATION 

Proposed Theme: New Trends in Property Investment and Valuation

Proposed Date: January 24-26, 2007

Preamble

Property investment and valuation is a dynamic field and has seen tremendous changes in the past 40 years. Property has been included in world investment portfolios since the early 1970s. New investment mechanisms have emerged. These have had tremendous influence on property investment approaches as well as on the way valuations are conducted. For example, the requirement for high accuracy has resulted from the need to use valuations for property performance measurement in investment portfolios. The requirement for accuracy has in turn spurred investigations into behavioral aspects of the valuation process, including client influences on valuer behaviour.

There have also been changes in the perception of valuation rationality. Some of the drivers for change have come from problems posed in practice by changes in markets. In the UK for example, the reverse yield gap of the 1960s and the recessions of 1973 and 1990 have had a huge influence on the debate on valuation rationality and risk analysis. Such problems have prompted more practice interest in alternative techniques than ever before. 

At the same time, new branches of valuation have opened up. For example, in the past 25 years, the world has focused on the quality of the natural environment and a new discipline of environmental economics has emerged which requires valuation of environmental resources. Concurrently, there are new requirements for the valuation of plant and machinery, art and artifacts, mineral resources, contaminated sites, oil wells etc. At the same time, the valuer has had to work out how to value new forms of property interests such as securitized (or unitized) property assets.

The implication of all these is that established ways of carrying out (and teaching) valuation are increasingly inadequate. The valuation surveyor must update and even expand on his knowledge base so as to be able to participate effectively in the shape of things to come. This workshop is an attempt to facilitate the knowledge updating and expansion process in Nigeria and across Africa.

All papers for presentation will go through a peer review process to ensure quality and currency of practice/research. At the end of the workshop, the organizers hope to publish a Book of Readings (and a Compact Disk), that will serve as a valuation reference material as well as an authoritative Book on theory and practice of valuation in Nigeria and Africa for use by students and practitioners.

Significance of Conference & Benefit to the University

The International workshop would have very significant benefits to the Department and University. For one, it would afford the Department and the University both national and international recognition. Moreover it would begin to actualize the dream of the Department to be an international research centre. In addition, as we intend to secure partnership with the Royal Institution of Chartered Surveyors (which controls practice of our profession in the UK and in the Commonwealth), as well as invite some of its important members as Lead Speakers, there is a strong possibility of securing full or partial exemption for the graduates of the Department from the RICS professional examinations which would enable them to practice anywhere in the Commonwealth.

Proposed Workshop Sub Themes

Valuation implications of Globalization

Globalization trends as they affect valuation professional institutions, emerging sameness of valuation practice and standards, emergence of global/regional valuation associations and control systems, implications for local practice

Valuation Implications of Recent Macro Economic Policy

Recent macro economic developments: Privatization and mergers, foreclosure of Banks, capital base reforms (upgrading) in the banking, insurance and airport sectors, monetization, implications for Valuation practice.

Valuation Rationality Debate

The reverse yield gaps in the UK and Nigeria, problems created for conventional valuation approaches, the emergence of contemporary DCF based approaches, applicability in Nigeria

Valuation Accuracy

Increasing requirements for accuracy from clients and portfolio managers, reliability and consistency of estimates, statistical usefulness of researches done, implications for valuation practice

Behavioral Research and Client Influence in Valuation

The movement from method to process in valuation research, heuristics in valuation, client influences on value estimates.

Valuations for Different Purposes

Sale, letting, mortgage, company asset valuation including privatization, mergers and takeovers, floatation of shares etc, insurance, compensation, plant & machinery valuation, inventory and schedule compilation,  valuation inspections, report writing.

Vehicles of Property Investment

Securitization, unitization etc, applicability in Nigeria, valuation implications

Valuation of special properties

Emergence of special valuation fields – artwork and antiquities, oil wells, mineral resources, environmental resources, contaminated sites, ships, airports/air planes –  appropriate valuation techniques, valuation competence: challenges from engineers, quantity surveyors etc

Alternatives to the Norm in Valuation

Emerging alternatives to usual valuation approaches: Contingent valuation, regression analysis etc

Computer programming/IT Connotations for Valuation Practice/Teaching

Information technology, computer valuation software, implications for valuation practice, implications for valuation teaching/curricula.

Proposed Important Dates for Paper Presenters at the Workshop

Workshop Date - Wednesday to Friday, 24-26 January, 2007.

Call for abstracts, receipt and acceptance of abstracts   – to end by 31^st July 2006

Submission of draft papers                                            – August 31^st, 2006

Completion of Review of draft papers                           – September 15, 2006

Completion of return of papers to authors                      – September 30, 2006

Correction of papers and return to workshop organizers            – October 30, 2006

Typesetting/production of Book of Readings/CD                       – November 2006

Target Audience and Number of Participants

The target audience for the workshop includes not only the academia in Nigerian/African Universities and polytechnics teaching/researching on Estate Management, but also valuation practitioners in private firms, banks, property companies and government parastatals. The workshop would also interest professionals with vested interests in aspects of property valuation: stock brokers, accountants, engineers, bankers, actuaries and lawyers.

To this end, the organizers expect up to 250 participants.

Envisaged Partners

The conference intends to secure partnership with professional bodies in Nigeria and abroad. Bodies to be contacted in this regard include the Royal Institution of Chartered Surveyors (RICS), London, Commonwealth Association of Surveyors and Land Economists (CASTLE), the Nigerian Institution of Estate Surveyors and Valuers (NIESV) and the Estate Surveyors and Valuers Registration Board (ESVARBON). The organizers would also seek partnership with large private practitioner firms, state branches of the Nigerian Institution of Estate Surveyors and Valuers (particularly the Lagos and Ogun state branches to which the Department belongs), and property development companies like UAC Properties, Afribank estates and the NDIC

Proposed Invited Foreign Speakers/ Guests of Honour

Keynote Speaker

Prof Neil Crosby, University of Reading, UK

Lead Speakers

1.      Dr Nick French (University of Reading)      – Valuation rationality and accuracy

2.      Dr. Nick Derry                                        – Plant & Machinery Valuation

3.      Mr. Stephen Brown (Head, Research, RICS)   – Behavioral research and client influence in Valuation

4.      Prof Stephen Hargitay (Singapore University)                – Valuation implications of finance vehicles

Special Guests of Honour

Chief Dosu Fatokun                                       -  President, Nigerian Institution of Estate Surveyors and Valuers

Rev. L.L. Esho                                              -  Chairman, Estate Surveyors and Valuers Registration Board (Nigeria)

Senator Ebenezer Ikeyinna                             - President, Commonwealth Association of Surveyors and Land Economists (CASTLE),

Chief R.C.O. Okafor                                     - President, FIAPCI.

Professor Ume                                              - First Professor of Estate Management in Nigeria

Professor J.I. Ighalo                                       -  Second Professor of Estate Management in Nigeria

The workshop is expected to generate registration fees for the University. It is expected that participants would pay as follows:

• N6,000.00 or $250 or for registration which would include tea break, lunch, workshop bag Compact Disk and the Book of Readings.
• Students would pay N1,500.00 or $75 which would include the CD, tea break, lunch and workshop bag but exclude the Book of Readings.

The various partners in the conference are also expected to make financial contributions.

Inquiries

For further enquiries, the conference organizers can be contacted on the following GSM numbers/e-mail addresses:

Dr. O.A. Ogunba   Chairman, LOC      segogunba@yahoo.co.uk    GSM +234-803-401-4739

Mr. O.A. Oni         Secretary, LOC      wandeoni@yahoo.com       GSM +234-802-312-2014

Mr Durodola          Member, LOC       dan_ass2007@yahoo.com GSM +234-803-610-5028

Prof. C.A. Ajayi     Adviser, LOC        ydlajayi@yahoo.com          GSM +234-803-725-8925