Power plants and CHP plants are non-standard facilities. There are not common on the real property transaction market. Nevertheless, occasionally investors do want to sell the owned facilities. Don’t know how to determine the profitability of such investments? You should first estimate the market value of the property.
However, we know well that this is difficult to accomplish on your own. That is why one of the pillars of our business is the appraisal of power plants and CHP plants. Although these are unique facilities, we have the right qualifications to professionally estimate their market value.
Importantly, we draw up appraisal reports not only for use in transactions, but also for financial reporting and loan security purposes.
Each of our appraisals is based on objective criteria and meets the formal and content-related legal requirements as well as property appraisal standards. This ensures high quality and indisputability.
Appraisal of power plants and CHP plants – reliability and objectivity
The market for power plants and CHP plants is unique. Supply and demand are low, and there are few transactions. This means that the comparative approach is not viable. The income approach and its profit method prove much more reliable.
Expert knowledge and experience enable us to analyse all factors that affect the market value of a power plant or CHP plant. When appraising a plant we analyse:
the plant’s capacity
technical condition and wear of individual components
service life
estimated cash flows
operating costs, which include balancing costs, maintenance and real property tax