3AA - 13380 2nd Draft Report Nov 2022

A N D E R S O N+A N D E R S O NVALUATION SURVEYORS
EXECUTIVE SUMMARY
Instructions
To prepare, for the benefit of the Bank and the Customer, a valuation report on Stand No. 13380,
Chalala-Hillview Area, Lusaka for purposes of collateral/loan security.
Interpretation of Instructions
As the valuation is required to support an application for a credit facility, instructions are that we
inspect the property, buildings and ancillary improvements; assess and provide advice and
comments, on amongst other matters:
 the current open market value;
 forced sale value;
 estimated monthly market rental value;
 estimated replacement cost of buildings and improvements for insurance purposes;
 title and ownership and annual ground rent (lease charges);
 suitability of the property and improvements as security for lending purposes, and whether
there would be difficulties if realization by the Bank became necessary; and
 likely changes in the market value of the property.
Physical Location of the Property

On an un-named gravel road less than 200 metres, off the east side of Kasama Road, quite close
to Zambia Army Buffalo Park Barracks, and less than a kilometre off Tokyo Way; within
Chalala-Hillview Area; and approximately twelve kilometres from the City’s Commercial
Centre.
Property and Assets Valued

Land, buildings and ancillary improvements comprising Stand No. 13380; including service
installations which form a permanent part of the property; and which would ordinarily pass with
the premises, on a sale or letting.
Items Excluded
Moveable assets, including household furniture and equipment.
Site/Plot Area
Rectangular shaped land parcel, extending to 730 square metres (0.0730 hectare or
approximately 0.1803 of an acre), delineated and described on Diagram No. 1252 of 1997.
Land Use Classification

The Ministry of Lands has advised that Stand No. 13380 is currently shown as being zoned for
“residential high cost”use, and developed as such. The annual lease charge (commonly referred
to as ground rent) and which is assessed based on the land use and extent of a property is payable
to the Ministry of Lands, but we have not had the opportunity to establish the current amount per
annum.
Title and Ownership

Title is a State lease, for a period of ninety nine (99) years, commencing 1 st February 2005. The
title holder is Rosemary Astridah Chola; Certificate of Title No. 217769.
Mortgages/Caveats and Limitations on Title
MSK/Nov 2022 Stand No. 13380, Lusaka (Zanaco Bank& M. Lubasi)

A N D E R S O N+A N D E R S O NVALUATION SURVEYORS 2
No mortgages are registered, and save for the State lease referred to above, and the reversion
vested in The President who holds the land in the country in perpetuity for and on behalf of the
people of Zambia, we are not aware of other interests or onerous restrictions or encumbrances;
statutory or otherwise, likely to have an adverse effect upon the market or other values of the
property.
City Council Rating Assessment

Lusaka City Council has advised that in accordance with the Rating Act, No. 21 of 2018; the
property is listed in the Council’s Valuation Roll (for purposes of levying local authority property
rates) as entry No. 2828541, and described as“Dwelling Houseand Premises” with a rateable
value of K2,460,700 assessed as at October 2013.
We are further informed that the rate levy charged on the property for the six month period to 31 st
December 2022 (K2,525.20) has not been paid.
Services
Mains water and electicity are connected.
Disposal of waste from sanitary fittings is to a septic tank and soak-way.
Access is from an un-named gravel road, to which the property has a frontage.
Condition
Based on the extent of our limited inspection undertaken as described above, and which we
considered adequate for purposes of assessing market and other values, we can state that although
of basic design and with limited fittings, the dwelling house has been constructed to a fairly good
standard. The accommodation is generally well maintained, and is in a fairly good condition,
with no material structural defects or signs of mechanical failure apparent, except for minor
defects and various items of routine repair and maintenance.
Buildings and Improvements

In addition to the boundary wall and concrete/stone paved driveway and parking area, the site is
developed with:
(1) Dwelling House
(2) Dog Kennel No.1
(3) Dog Kennel No. 2
Bases of Valuation
As the valuation is required to support an application for a credit facility, bases adopted to arrive
at opinion of values are:-
(i) to assess market or capital value
“Open Market Value”, being the estimated amount for which an asset or liability
should exchange on the date of valuation, between a willing seller and willing buyer, in
an arms-length transaction; after proper marketing and where the parties to the
transaction had each acted knowledgeably, prudently and without compulsion.
(ii) to assess rental value
“Open Market Rental Value” assuming that the property is vacant and available to let,
and that the letting is at arms-length, between a willing landlord and willing tenant;
that no premium is paid and there is no additional bid by a prospective tenant with a
special interest; and that both landlord and tenant had acted knowledgeably, prudently
MSK/Nov 2022 Stand No. 13380, Lusaka (Zanaco Plc& M. Lubasi)

and without compulsion, taking account of the nature of the property and purposes for
which the tenancy is taken.
(iii) to assess forced sale or liquidation value

“Estimated Restricted Realisation Price”, being an amount of cash consideration before
deduction of costs of sale of the property which the Valuer considers, on the date of
valuation, can reasonably be expected to be obtained (in an arms-length transaction) on
the basis that the time allowed for marketing is unduly short, publicity and market
exposure is inadequate, compared to the period and promotional measures necessary to
achieve the best price on the market.
(iv) to assess replacement cost

“Estimated Reinstatement Cost” being the total cost of re-constructing existing
structures and ancillary improvements on a property, including the replacement of
fittings and service installations, in a condition equal to, but not better or more
extensive than their condition when new.
Suitability for Loan Security

Despite the negative effects of Covid-19 and current economic challenges the country is facing,
demand in Lusaka and areas in close proximity, for development land in general and residential
properties such as the subject in particular, remains high amongst high income groups; and
market prices continue to be paid for properties which become available for sale.
Because of various market factors, including points stated below, Stand No. 13380 would, even
under prevailing economic conditions, be in high demand and would sell relatively easily in a
disposal on the open market; and therefore provides good security for lending purposes:
The subject’s advantages and material aspects or factors to note include the following:
(a) Locality of the Property –Chalala-Hilview Residential Area
Chalala-Hillview is located about eight kilometres south east of Lusaka’s Commercial
Centre. Although the area was until recently largely made up of farm land, many farms
have been subdivided into residential estates on relatively large sized plots. Over the
past few years this has evolved from a farming area into a relatively prime residential
suburb mainly due to spacious nature of most plots. As demand for residential
property in Chalala increases, so does the popularity of neighbouring localities such as
Lilayi and Shantumbu Area How does this fit into suitability
for the subject ? .
Landmarks such as the newly established King Salman Bin Abdulaziz Specialised
Hospital and the Zambia Army’s Buffalo Park Barracks projects which are under
construction and Appex University Main Campus and several retail facilities located
on Kasama Road convey a feeling of high status to its residents.
(b) Location and Accessibility

The property is located in good position less than 200 metres off Kasama Road, which
has over the recent years become one of the City’s busiest roads, with heavy vehicle
traffic flow. The subject enjoys easy and direct access to a designated road reserve a
factor which would prove attractive to any potential purchaser.
(i) a fairly large property (0.0000 of an acre), situated in quite a good position in an area
which is easily accessible and now has a good net-work of tarred roads.

(c) Quality of Accommodation and Improvements

The dwelling house and ancillary improvements are fairly well designed, and have
been constructed to a good standard of workmanship.The accommodation is fitted to a
fairly standard. The house provides spacious well laid out, secured living and sleeping
accommodation.
(d) Proximity to Other Residential Areas&the City Centre

Relatively easy accessibility to other residential areas, including Chilenje South,
Kamwala South, Libala South Woodlands Extension andNyumba Yanga, as well as the
Showgrounds and also theLusaka South Multi-Facility Economic Zone - renders
properties in Chalalaattractive to high-income groups.
 situated in a well established area, with various social amenities such as shopping
centres, public and private schools, clinics, churches and public bus routes being in
close proximity.
(e) Demand for Development Land

Despite the current economic challenges, supply of development land falls far short of
demand. There is a shortage in supply of serviced land for development in all parts of
Lusaka and areas in close proximity, particularly in easily accessible or prime
positions. The result is that sites that become available change hands quickly and
usually at market prices. Even land held under customary tenure, with limited or no
security of tenure (as is the case in parts of Chibombo, Ngwerere and Chongwe), now
change hands at commercial prices.
The part of the City in which the subject is located, is popular and well sought after by
the mid and high income groups; and properties and accommodation in the area
continue to be in high demand.
In addition, we can state that:
(i) based on information obtained from searches undertaken and inquiries made, the
leaseholder has security of tenure by way of a long term lease, with an option,
provided under the Lands Act, to renew her 99-year leasehold interest; and
(ii) there are no onerous restrictions or encumbrances, statutory or otherwise, which would
have an adverse effect upon values of the property, or which could cause difficulties if
a sale was to be made.
Opinion of Values
Subject to assumptions made, opinion of values for the property are:
(i) open market and forced sale values:
Category of Assets Open Market Forced Sale
(i) Land K000,000 K000,000
(ii) Buildings and Improvements K000,000 K000,000
Total Value K000,000 K000,000
(ii) the market rental value would be in the range of K3,500 (Three Thousand and Five
Hundred Kwacha) per calendar month, assessed on the basis of a yearly tenancy; and on
terms normally applicable in lettings of this class of property, and assuming that the
accommodation is vacant and available to let.

(ii) opinion ofestimated reinstatement cost is K000,000(Hundred and Thousand Kwacha).

This assessment is restricted to buildings and improvements, and includes only service
installations which form a permanent part of the site, the figure does not take account of the
market value of the land since it is not normal practice to insure against loss of land.
Damage caused to buildings and ancillary improvements, for instance by fire or storm, is
usually partial, the assumption made of complete destruction is therefore only for purposes
of this valuation
Date of Valuation
As the date of valuation has not been specified, opinion of values is assessed as at 8 thNovember
2022, which is the date of inspection of the property.
Confidentiality
The Report and opinion of values are provided for the sole use of Zambia National
Commercial Bankand for the specific purpose to which it refers. The information is
confidential to the Bank and Mr. Milner Lubasi and their professional advisors in this matter.
No responsibility whatsoever is accepted to other parties, for any loss or financial obligation,
direct or consequential, which might arise from reliance on the document or any part of its
contents.
Disclosure
If, for whatever reason our opinion of values is disclosed to persons other than the Bank and the
property owner, then the bases of valuation adopted, assumptions made as well as exclusion
clauses stated in the Report should also be disclosed in full..
M. S. Kasase
PRINCIPAL CONSULTANT
ANDERSON + ANDERSON VALUATION SURVEYORS

MSK/GM/VAL –5900
10thNovember 2022
Head – Credit Administration and Monitoring

Zambia National Commercial Bank (Zanaco) PLC
Head Office, Cairo Road
Commercial Centre
P. O. Box 33611
LUSAKA
Attention: Mr. Mwale M. Ilunga
Dear Sir,
Re: VALUATION OF STAND No. 13380, CHALALA-HILLVIEW AREA, LUSAKA
We refer to the Bank’s Letter of Instructions dated 3 rd November 2022, requesting us to provide a
valuation report, for purposes of collateral, on Stand No. 13380, Chalala-Rockfied Area, Lusaka;
and for which instructions we are greatly thankful.
We have inspected the property and improvements, undertaken inquiries necessary for purposes of
the valuation, made the assessment and now have pleasure in submitting our Report.
1.0 Purpose of Valuation

We are informed that Stand No. 13380, as well as improvements thereon are subject of a
credit facilityto be provided by the Bank to Mr. Lubasi, and that in accordance with the
conditions prescribed for such transactions, professional advice is required on the property’s
market and other value to assist in the formulation of a management strategy for the
advances to be secured on the property
1.2 Instructions
As the valuation is required to support an application for a credit facility, we are instructed
to assess the property and improvements; and advise the Bank on various matters, including:
1.2.1 opinion on values

(i) the current open market value;
(ii) where appropriate and realistic the market value for alternative use on the
assumption that the property is vacant;
(iii) an estimate of the replacement cost of buildings and improvements for insurance
purposes; and
(iv) comments on whether the market value of the property is likely to increase, remain
static or decrease.
(v) comments on the suitability of the property as security for lending purposes and
whether their would be any difficulties if realization by the Bank became necessary;
1.2.2 current status and factual data

provide details and comments on various matters, including:-
(i) description of the property and improvements; including the location, extent of the site, type of
materials and construction, accommodation, services, floor areas including colour photographs;
(ii) comments on the age and condition of buildings and improvements (structural, electrical and
mechanical components), and an indication as to whether buildings and improvements can retain a
useful economic life of atleast 25 years;
(iii) comments on environmental issues and contamination, either on the subject sites or on adjoining sites;
and whether there is evidence of environmental issues that could potentially have clean-up or liability
implications for the current or future owners; including mortgagees in possession or receivers;
(iv) comments on whether the property is in an area prone to flooding, and if this has a detrimental impact
upon the valuation;
(v) comments on planning, highway and other statutory (licensing/registration/fire regulation) and
whether the property is listed;
(vi) details on title/tenure and ownership;
(vii) whether there is any “hope”, “marriage” or “special purchase” value attaching to the property now or
likely to arise in the future;
(viii) comments on whether the property is subject to a lease, together with terms of the letting, review
dates, restrictions on usage, alienation and alteration rights, or any clauses having a depreciating effect
on marketability of the property or its value; and whether present rent payable is in line with current
market rent;
(ix) comments on any actual/potential developments in the vicinity which would materially affect the
valuation of the subject property;
(x) valuation methodology and assumptions made; and
(xi) comments on the sustainability of the type of business carried on within the property, as well as any
competition (either current or proposed) that is faced by the operating from the property.
2.0 Interpretation of Instructions

As the valuation is required to support an application for a credit facility, we understand
instructions to be that we inspect the property and improvements, and:-
(1) assess and provide advice in respect of the following values:
(i) the current open market value;
(ii) forced sale value;

(iii) an estimate of the replacement cost of the buildings and improvements for
insurance purposes; and
(iv) estimated rental value of the accommodation.
(2) provide brief details or comments on various matters, including:
(a) a description of the property, its location, improvements and accommodation,
floor areas, services and coloured photographs;
(b) age and condition of structural, electrical and mechanical components, type of
construction and an indication of the buildings’ likely useful economic life;
(c) title and ownership, land use classification (zoning) and annual lease charges
(ground rents), City Council property rates, as well as encumbrances, caveats and
leases, if any;
(d) whether there is potential for change of use or other development potential;
(e) planning, highway and other statutory considerations;
(f) any actual/potential developments in the vicinity of the property which would
materially affect the value of the subject;
(g) environmental issues and contamination, either on the subject site or on adjoining
sites;
(h) confirm the property boundary line and verify if there are any encroachment or
boundary disputes;
(i) suitability of the property and improvements as security for purposes of
collateral; and whether there would be difficulties if realisation by the Bank
became necessary; and
(j) assumptions made and matters considered in formulating our opinion of values
reported, together with bases of assessment adopted and assumptions made.
3.0 Format of the Report

The format of reporting adopted is in accordance with standard practice; and is intended to
provide, as far as is possible, information required by the Bank; including a description of
the property and improvements, as well as matters considered in arriving at our opinion of
values.
In this respect, we have attempted to follow as far as practical, the headings (but not
necessarily the sequence) stated in the Letter of Instructions issued by the Bank.
4.0 Property and Assets Valued

In accordance with the Bank’s instructions, we have restricted the valuation to the land,
buildings and ancillary improvements; and reflects only service installations which form a
permanent part of the property, and which would ordinarily pass, with the premises, on a
sale or letting.
Household furniture and equipment, motor vehicles and moveable items, are excluded from
the assessment. In addition, there are no items of machinery on site.
5.0 Inspection of the Property

5.1 Date of Inspection
8thNovember 2022.

5.2 Extent of the Inspection

The Report is not the result of a structural or soil survey, since it is not standard practice to
undertake such surveys when inspecting a property for purposes of assessing market or other
values unless specific instructions are issued, and such surveys are therefore considered to
be outside the scope of the instructions, nor have the services been tested. We cannot
therefore give guarantees in these respects.
In accordance with standard practice, we restricted the inspection to a visual survey of the
land and buildings, noting the siting, within the plot, design and construction of each
structure, layout of accommodation, material fittings and finishes, service installations
available and the condition and the state of repair.
We did not inspect parts of the property and buildings which are covered, unexposed or
inaccessible (such as foundation walls and footings; roof timbers; pipe work and electrical
conduits and cables within roof voids, walls and floors), and for purposes of assessing
market and other values, such parts were assumed to be in good structural repair and
condition and free from hazardous materials, rot and infestation. We cannot express an
opinion about or offer advice on the condition of parts we did not inspect and except for
matters mentioned or referred to, this Report should not be taken as making any implied
representation or statement about such parts.
In the above respects only, the valuation is carried out on the assumption that parts not
inspected are in good structural repair and condition, do not contain any deleterious or
hazardous materials and that available services function satisfactorily. No account has been
taken for inherent latent defects, if any.
5.3 Floor Areas

Considering that the subject is a residential property, the purpose for which the valuation is
commissioned and in accordance with standard practice, we took measurements of buildings
over external walls, and floor and covered areas have been calculated on gross external
basis. For purposes of conversion, one square metre is taken as equivalent to 10.764 square
feet.
5.4 Property Boundary

We have not surveyed the extent of the property to confirm beacon positions, as due to time
and cost constraints, it is not standard practice to undertake such surveys when inspecting a
property for purposes of assessing market or other values; and this aspect is therefore
considered to fall outside the scope of our instructions. However, we have assumed, in the
absence of evidence to the contrary that the concrete block wall enclosing the subject site is
erected along boundary lines; and further, we have not observed any encroachments, and we
have not been informed of any boundary disputes with adjoining sites.
We have relied on information contained in the Certificate of Title and confirmed by
searches made at the Ministry of Lands, as to the extent of the site; and the area stated in the
Report is as provided by the Ministry. For purposes of conversion, we have taken one
hectare to be equivalent to 10,000 square metres or 2.471 acres.
6.0 Description of the Property and Improvements

As requested by the Bank, we have provided under various Sections of Paragraph 6, factual
data relating to the subject.
6.1 Physical Location

Onan un-named gravel road less than 200 metres, off Kasama Road, close to Zambia Army
Buffalo Park Barracks, and about less than a kilometre off Tokyo Way; within Chalala-
Hillview Area; and approximately twelve kilometres from the City’s Commercial Centre.
Global Position System Reference is 15°27'51.03"S "Sand 28°19'51.96"E.
For ease of identification of location, an extract from Google Earth Map showing the
position of the property boarded in red is provided at Appendix I.
6.2 Legal Description

Under the Lands and Deeds Registry Act, Cap 185, the property is described as:
“ALL that piece of land in extent 730 square metres more or less being Stand No. 13380
situate in the Lusaka Province of Zambia which piece of land is more particularly delineated
and described on Diagram No. 3606 of 1999except and reserved all minerals oils and
precious stones whatsoever upon or under the said land ..............”
A copy of the Certificate of Title is provided at Appendix IV.
6.3 Site and Fencing

The site which as stated extends to 0.0730 hectare or approximately 0.1803 of an acre, is
rectangular shaped, and fully enclosed to boundary by a two and half metre high concrete
block wall, topped with electric fencing. A single opening sliding steel gate provides
vehicular access to a flat stone paved and compacted earth driveway and parking area.
6.4 Land Use Classification

The Ministry of Lands have advised that the property is zoned for “residential high cost”
use, and that the annual lease charge (commonly referred to as ground rent and which is
calculated based on the land use and plot size of a property) is currently at K333.30 per
annum.
For purposes of payment of this rent, the year end is 31 st December, and for the current year
ending 31st December 2022, ground rent due have been paid in full.
6.5 Title and Ownership

We have been provided with a copy of the Certificate of Title, and we have also made
searches at the Lands and Deeds Registry (Ministry of Lands) to confirm title and
ownership, and establish interests held in the property or restrictions, if any, attaching
thereto. We are informed that title is a State lease for a period of ninety-nine (99) years from
1st February 2005, vested in Rosemary Astrida Chola; Certificate of Title No. 217769.
6.6 Charges/Mortgages and Caveats

Searches and inquiries we have made at the Lands and Deeds Registry in the Ministry of
Lands do not reveal any mortgages or charges being registered against the property.
Save for the interests stated above, and the reversion vested in the President who holds the
land in perpetuity for and on behalf of the people of Zambia; we are not aware of any
caveats, or unusual restrictions or encumbrances. However, should detailed information or
assurances on title be required, we suggest that legal advice be sought.
6.7 Council Rating Assessment

In accordance with the Rating Act, No. 21 of 2018, Stand No. 13380being a residential
property and developed/occupied as such, is subject to payment of local authority rates. The
property is listed in the Lusaka City Council Valuation Roll entry No. 1008360, described

as“Dwelling Houseand Premises”with a rateable value of K277,600 assessed as at

December 2019.
We are also advised that rate levies due on the property for the period ending 31 st December
2022 is K2,525.20 which we recommend be paid in full.
6.8 Services
(i) Mains water and single phase electricity are connected.
(ii) Disposal of waste from sanitary fittings is to a septic tank and soakaway.
(iii) Access is from anun-named gravel road, to which the property has frontage, branching
off Kasama Road.
6.9 Buildings
In addition to the boundary wall, paved parking areas as well as service installations referred
to above, the property is developed with the following:
(1) Dwelling House
(2) Dog Kennel No. 1
(3) Dog Kennel No. 2 (for puppies)
For purposes of identification, a single – line building and accommodation layout plan (not
drawn to scale) and a few pictures, are provided as part of the Report.
6.10 Brief Description of Buildings and Accommodation

(1) Dwelling House
Single storey and constructed of a ridged roof of corrugated asbestos sheets on timber
trusses and purlins. Roof over front veranda additionally supported on concrete pillars,
and steel post to rear veranda. Concrete block walls, rendered externally and painted.
Steel framed glazed windows, fully burglar barred. Steel framed timber door to
kitchen. Steel framed timber doors to Living room and bedroom secured with steel
grille gates. Steel framed timber flash doors internally. Door opening to garage.
Concrete floors.
Internal fittings and finishes include hardboard ceilings in all rooms. Walls are
plastered and painted; and there are full height ceramic wall tiles to bathrooms anf
toilets. Double bowl stainless steel sink fitted in the kitchen. Bath tub, water closet,
shower cubical and wash hand basin to main bathroom. Bath tab, water closet and
wash hand basin to second bathroom. Water closet and wash hand basin to visitors
toilte. Porcelain floor tile finish in all rooms.
Accommodation comprises a self-contained main bedroom; three additional bedrooms,
living room, dining room, kitchen, second bathroom, visitors toilet, passageway,
garage and front and rear verandas.
(2) Dog Kennel No.1 & 2

Constructed of the same design. Both low level buildings, erected against the boundary
wall. Built of a monopitched roof of corrugated iron sheets, on concrete block walls,
not rendered or plastered. Steel framed steel doors. Concrete floor.
Accommodation compriseskennels.
6.11 Condition and State of Repair

The Report is not the result of a structural, soil or geophysical survey; since these surveys do
not form part of a standard valuation exercise, unless specific instructions are issued, and
these are therefore considered to fall outside the scope of usual instructions, nor have service
and drains been tested. We cannot therefore give any guarantees in these respects.
However, based on the extent of our inspection undertaken as described above and which we
considered adequate for purposes of assessing market and other values, we can state that the
dwelling house and ancillary improvements are in a fairly good condition and state of repair,
with no structural defects or signs of mechanical failure apparent, except for minor defects
and items of routine maintenance.
6.12 Floor Areas

Calculated on gross external basis from measurements taken, approximate floor areas are as
follows:
Buildings/Accommodation square metres square feet

Dwelling House 176.60 1,900
(1) Front Veranda 19.80 213
Kitchen Veranda 6.50 69
Garage 29.60 318
Dog Kennel No. 1 6.00 64
(2)
Dog Kennel No. 2 5.00 53
Total 243.50 2,617
7.0 Other Key Factors Requested by the Bank
7.1 Details on Internal Improvements to Buildings

In Section 6.11, we have given a detailed description of each building or structure on the
property as well as ancillary improvements; and stated where applicable, internal finishes
and fittings, including those in toilets. In addition, ancillary improvements are described in
relevant sections of the Report.We have also provided colour photographs of buildings and
improvements within the property; these are given for external sections only.
7.2 Copy of Official Search

We obtained from the Lands and Deeds Registry at the Ministry of Lands, Computer Print-
Outs which at the present time are considered as evidence of official search on title and
related matters. Copies are attached at Appendix V.
7.3 Site Plan Identifying Buildings/Accommodation Layout of the Valued Property

A single-lined siteaccommodation layout plan is attached at Appendix II. This is not drawn
to scale, and is provided as part of the Report only for purposes of identifying structures and
improvements on site.
7.4 Confirmation that Property Boundaries Confirm to the Certificate of Title

We took measurement of the property using roll up tape measure; and we have also used
Google Earth Map, GPS Coordinates Application and the Zambia National Spatial
Infrastructure Map to obtain and ascertain the actual boundary lines of the property as
delineated on the Survey Diagram. We have further made verbal searches at the Ministry of
Lands to confirm the existence of the subject as it appears on the Certificate. We have
conducted these exercises so as to confirm that the inspected property is not different from
the one described on the Certificate of Title.

Due to time and cost implications, it is not standard practice to undertake a cadastral or
satellite survey as a verification exercise, unless circumstances dictate and specific
instructions are issued. In addition, we believe that few if any Customers expect this aspect
to form part of a valuation exercise, as would any property owner, unless circumstances
dictated otherwise.
8.0 Planning and other Building Consents

Based on inquiries made, we have assumed that necessary statutory consents and approvals
have been obtained; that the property is developed and occupied in accordance with valid
planning and building regulation approvals, to the full satisfaction of the authorities
concerned; and that there are no Statutory or other development proposals likely to adversely
affect the property or its present use.
However, if reassurance is required, we recommend that further advice be sought to confirm
that:-
(i) the position is correctly stated in our Report;
(ii) the property is not adversely affected by other decisions made or conditions prescribed,
by public authorities; and
(iii) there are no outstanding statutory notices.
9.0 Highway and Other Development Proposals

We have made inquiries with the Planning Authority and relevant Government Departments
to establish whether there are major development proposals that might be undertaken in this
part of the Chalala or neighbouring areas, either by Government, organizations or
individuals, and which might have a material impact on the market value of the property,
either at present or in the near future. We informed that there is no major public or private
sector development scheme being undertaken; except for the new Zambia Army Buffalo
Park Barracks which under construction. we advised that once completed, the Barracks will
have about 700 housing units including two Primary Schools, one Secondary school,
hospital and office accommodation for military personal and a multi-million dollar 800-bed
capacity King Salman Bin Abdelaziz specialist hospital for women and children.
With regard to private development, we can mention that there is current private sector
investment, is mainly limited to the development of residential units within the area and at
an individual level, is likely to improve the quality of property and create a high demand;
and we are of the opinion that as a resultmarket and rental values of properties in this part of
the Chalala, including the subject, will shift upwards in real terms at least in the long term.
10.0 Contamination, Pollution and Environmental Considerations
Unless evidence suggests potential for contamination, or we are specifically instructed to do so, we
do not (due to cost and time constraints), commission investigations into environmental matters or
issues of contamination or pollution, and any observations we may make are expressed strictly on
the understanding that we have not undertaken any formal environmental study.
Due to cost and time constraints, we do not, unless specifically instructed, commission as
part of our inspection of a property, investigation into environmental matters or issues of
contamination or pollution, and any observations made are expressed strictly on the
understanding that we have not undertaken any formal environmental study. In the absence
of specific investigations and where there is no apparent reason to suspect potential for
contamination, our valuation is made on the basis that the property is not affected.

We are not aware of the content of any environmental audit or other environmental
investigation or similar study, which has been carried out on the property which may draw
attention to contamination or the possibility of any contamination. Further, we have no
reason to suspect that the property has at any time in the past been exposed to contamination.
In undertaking our work, we have based on the site visit, assumed but can give no
assurances that no contamination or contaminative uses have ever been carried out on the
subject property or on neighbouring sites and have therefore that the subject and adjoining
sites are not contaminated.
With respect to adjoining properties, we are unable to express an opinion, in the absence of
physical inspections, or access to studies undertaken or similar environmental investigations,
as to whether adjoining sites might or might not be subject to contamination. Further we
wish to mention that even if specific instructions were issued for such a study and adequate
time allowed, it would prove difficult, due to costs constraints, and access would most likely
be denied by respective land owners.
Further, we are of the view that there is no apparent evidence of environmental issues that
could potentially have clean up or liability implications for current or future owners. We
can add that the business undertaken by current occupants could not be permitted,
deliberately or otherwise, to be subjected to contamination, and therefore we believe that for
purposes of granting a mortgage, an environmental risk assessment would not be necessary.
11.0 Site Conditions and Flooding Risks

A standard valuation exercise does not normally extend to investigations in site conditions as
such an exercise is costly and time consuming. We do not therefore carry out or normally
commission a site investigation or geophysical survey in order to determine the suitability of
ground conditions and services, nor do we undertake archaeological or environmental
surveys. In the absence of information that indicates there are adverse ground conditions
affecting a subject property, we assume, but can give no assurances that the ground has
sufficient load bearing strength for the existing structures or any structures, proposed or
planned.
In addition we can mention that information available at the City Council indicates that the
area in which the subject is located is not prone to flooding and available public drainage
systemsare fairly adequate to deal with the volume of waste generated in the area; as well as
the level of storm water experienced each year.
12.0 Approach to Assessment of Values
12.1 Valuation Methodology

The subject property, including land and buildings, are developed for residential purposes,
which use we have assumed will continue for the foreseeable future. We have been
instructed to advise on the market value and forced sale values as well as reinstatement cost
(buildings and improvements) for insurance purposes.
Starting with reinstatement cost, the obvious approach to assessment of value is to establish
current buildings costs of materials and labour, based on the nature of the improvements on
site. Our approach has been to establish the type of improvements, identify materials used
and type of construction, and calculate floor and covered areas. Taking account of changes
in construction techniques and improved availability of building materials, we have then
applied current costs to arrive at total estimated cost as reported.

There are common attributes to the assessment of market and forced sale values; both
assume a transaction between seller and buyer and the appraisal entails establishing a value,
but based on different sale conditions. Market value assumes a normal transaction, between
a willing seller and willing buyer, with each party acting prudently and not under duress.
Under a forced sale scenario, the intention is to achieve a disposal quickly, and therefore
time allowed for marketing is normally unduly short.
Assessment of rental value assumes a letting of a property, from owner to tenant, with the
terms of occupation stated, which specifies rights and obligations of the tenant’s otherwise
limited occupation of the property.
There are four possible approaches to estimating the value (market or forced sale) of a
property; namely: -
(1) Land Value by Market (Sales) Comparison;
(2) Property Value by Market Comparison;
(3) Property Value by the Cost Approach; and
(4) Property Value by Income Approach.
(1) Assessment of a Property by the Land Value by Market (Sales) Comparison is normally
adopted in situations where the objective is to establish the value of the site; for
example a vacant un-developed plot; or if the economic value of the buildings is lower
than redevelopment value.
(2) Property Value by Market Comparison would be appropriate if the assessment is
intended to produce a value for both the site and improvements; normally for properties
which have evidence of sales and rental is adequate.
(3) Assessment of the Property Value by the Cost Approach is normally applied if there is
no comparable evidence, for example in the case of specialized properties. This method
is usually applied as a last resort.
(4) Assessment by Income Approach is normally used for properties held as long term
investment and often producing (or would produce) regular income by way of rent.
Examples include office developments held by pension funds or shopping centres. The
assessment is based on income inflow (rental stream) over the period of the investment.
Considering the extent of the site, designand condition of buildings; we are of the view that
Approach Nos. 1, 3 and 4 are not in the present instance appropriate methods to be adopted
in the appraisal of the property.The nature of the property, dictates that the assessment be
based ona “Comparative Method”, based on prices and rentalspaid for similar properties
within the area or similar locations.
12.2 Classification of the Property

Stand No. 13380, including buildings and ancillary improvements, is zoned and developed
primarily for residential use; and structures, and ancillary service installations are of standard
specification and construction. The property is therefore not specialized.
Specialized properties are those which, due to their specialized nature, are rarely, if ever,
sold on the open market for single occupation for a continuation of their existing use, except
as part of a sale of the business in occupation. Their specialized nature may arise from the
construction, arrangement of the accommodation, size or location of the property, or a
combination of these factors, or may be due to the nature of the plant and machinery and
items of equipment which the buildings are designed to house, or the function or the purpose
for which the buildings are constructed.

Examples of Specialized properties include oil refineries and chemical works where
buildings are no more than housing for highly specialized plant; hospitals, universities,
museums, libraries and other similar establishments.
Non-Specialized properties are those for which there is a general demand, and which are
commonly bought or sold on the open market for their existing or similar uses, either with
vacant possession for single occupation, or (whether tenanted or vacant) as investments or
for redevelopment.
Examples of Non-Specialized properties include dwelling houses and residential flats,
commercial units such as shops, warehouses, offices and light industrial properties; as well
as agricultural smallholdings.
12.3 Valuation Considerations

In selecting the bases of valuation adopted, we have considered various factors, including:-
(i) that the property is located in a good position, less than a 200 metres off one of the
City’s major roads;
(ii) theextent of the site and the level of development;
(iii) design of buildings, quality of accommodation, and the condition and state of repair;
(iv) available evidence of sales of similar properties;
(v) demand for land in Lusaka and nearby areas in general; and residential properties in
particular;
(vi) current construction costs of various types of residential buildings, as well as
availability of building materials; and
(vii) factors affecting values of property in this part of the City.
12.4 Property Risks

We are sometimes requested to rate a subject property in terms of lettability, marketability,
saleability, locality and building quality based on BAGL’s standard rating scale. We wish to
state that we are not qualified to assess the capital or income risks that might be related to
the subject property during the loan period, but we can comment on the future prospects for
the movement in the values of the property in comparison to similar properties over short
term period. The nine-point evaluation scale is as follows (1 - unlettable, 2 - very poor, 3 -
poor, 4 - below average, 5 – average, 6 – above, average, 7 – good, 8 - very good and 9 -
excellent).
Factor Rating Scale Comments
The property is well positioned, less than two
hundred metres off Kasama Road and is
expected to benefit from the ongoing
1 Location/Situation 7 regeneration and development of the area as
well as the forecasted increase in commercial
activities and surging population in the
surrounding areas.
We have not been provided with building
survey report on the condition of buildings and
improvements, but based on our inspection, we
can state that the dwelling house originally
2 Building Quality 4 constructed to a good standard of
workmanship, structures, fittings and finishes
have not been maintained; and are now in a
poor state with various defects apparent.

State lease for 99 years from 1 st February 2005.

Our opinion is that the registered title holders
3 Title 9 have a long-term leasehold interest; with an
option to renew for a further term; and
therefore, tenure is secure.
The number of willing purchasers for prime
property is uncertain at present given the
Market Value decline in the overall transactions in the market
4 8 as a result of the COVID-19 pandemic which
Volatility
has exerted downward pressure on prices of
property.
Rental Value We are of the view that rentals will at least
5 7
Volatility remain stable through the course of the loan.
Should the property be marketed for sale, we
would expect a reasonable number of
6 Liquidity 8 prospective purchasers interested in the
property in view of its location, extent of the
site and development potential
13.0 Bases of Valuation

In accordance with standard practice, the bases of assessment adopted to arrive at opinion of
the values are:
(a) to assess value of land, buildings and other structures:- open market value
(market/sales comparison);
(b) to assess replacement cost of buildings and ancillary improvements:- estimated
reinstatement cost;
(c) to assess forced sale value:- estimated restricted realization price; and
(d) to assess rental value of the property and accommodation thereon:- open market rental
value.
These are defined as follows:
13.1 Open Market Value

An opinion of the estimated amount for which an asset or liability should exchange
unconditionally on the date of valuation, assuming:-
(a) a willing seller;
(b) that, prior to the date of valuation, there had been a reasonable period (having regard to
the nature of the property and the state of the market) for the proper marketing of the
interest, for the agreement of the price and terms and for the completion of the sale;
(c) that the state of the market, level of values and other circumstances were, on any
earlier assumed date of exchange of contracts of sale, the same as on the date of
valuation;
(d) that no account is taken of any additional bid by a prospective purchaser with a special
interest; and
(e) that both parties to the transaction had acted knowledgeably, prudently and without
compulsion.
13.2 Open Market Rental Value

An opinion of the bestrentat which a new letting of the accommodation would have been
completed unconditionally at the date of valuation, assuming:-
(a) a willing landlord;
(b) that, prior to the date of valuation, there has been a reasonable period (having regard to
interest, for the agreement of the rent and other letting terms and for the completion of
the letting;
earlier assumed date of entering into an agreement for a lease, the same as on the date
of valuation;
(d) that no account is taken of any additional bid by a prospective tenant with a special
interest;
(e) a stated length of term and stated principal conditions, applying or assumed to apply to
the letting and that the other terms are not exceptionally onerous or beneficial for a
letting of the type and class of the subject property;
(f) that no premium passed and that any rent free period is in respect only of the time
which would have been needed by the incoming tenant to make the subject property fit
for occupation; and
(g) that both parties to the transaction had acted knowledgeably, prudently and without
compulsion.
13.3 LeaseTerms Assumed in Assessing Rental Value

In assessing rental value, we have assumed, considering the nature and extent of the
property, the level of development, quality of accommodation as well as demand for
residential accommodation, a lease at arms-length, on a year to year basis, with an option to
renew and terms normally applicable in lettings of this class of residential property. In
addition to standard terms, such as grant of quiet enjoyment, the Landlords would be
responsible for structural repairs and payment for insurance of the property as well as
property taxes, including local authority rates. The tenant, in addition to compliance with
normal terms, such as payment of rent as agreed under the lease, would be responsible for
routine repairs and maintenance, and settlement of charges for services supplied to the
premises, including electricity.
13.4 Estimated Restricted Realization Price

An opinion as to the amount of cash consideration before deduction of costs of sale; which
the Valuation Surveyor considers, on the date of valuation, can reasonably be expected to be
obtained on future completion of an unconditional sale of the interest in the property
assuming:-
(b) that, completion will take place at a future date specified by the Client, which does not
allow a reasonable period for the proper marketing (having regard to the nature of the
property and the state of the market);
(c) that no account is taken of any additional bid by a prospective purchaser with a special
interest; and
(d) that both parties to the transaction (the sale) will act knowledgeably, prudently and
without compulsion.

13.5 Comment on Assessment of Forced Sale Value

The Royal Institution of Chartered Surveyors and other professional organizations whose
members are involved in the appraisal of real estate, have following the economic melt-
down, and many of the fore-closures that took place in the not too distant past, particularly
in Britain and the United States, expressed great reservations on the provision, to lending
institutions, of an opinion of forced sale value.
The principal argument is that an opinion of forced sale value amounts to no more than a
forecast, and is based on many variables, some of which are difficult to quantify with a fair
degree of accuracy. Professional organizations are now encouraging property Valuation
Surveyors and other related property consultants not to undertake such assessments or
provide opinions of forced sale values.
With regard to the local environment, demand for land is high despite current economic
circumstances, particularly in urban areas, and has been for many years. For property in
areas well sought after by high and mid-income groups, including sites in good areas which
have development potential, there may be little difference between market and forced sale
value. Where there is a marked difference, experience has shown that in most cases,
potential buyers often offer lower than market prices because they are aware that the owner
of the property which is being sold is acting under duress (as is often the case with property
repossessed and advertised by lending institutions), bidders therefore tend to adopt a
vulturous approach, and will offer and negotiate for the lowest price possible.
Another aspect of disposal under forced sale circumstances is litigation, and the lengthy
procedures a mortgagee or receiver in possession may have to follow in selling the property.
These procedures tend to be quite costly, and in the end, the disposal takes far much longer
to conclude than a normal sale.
We therefore suggest that the Bank takes account of this position with regard to the opinion
of forced sale value stated.
13.6 Estimated Reinstatement Cost

The cost of reconstructing buildings and improvements on a property, in the event of
complete destruction, for example by fire, in a condition equal to but not better or more
extensive than the present condition.
Damage caused to buildings and ancillary improvements on a property, for example by fire
or storm, is usually partial, the assumption of complete destruction of existing structures is
therefore hypothetical, and made only for purposes of the valuation.
Accordingly, our opinion of reinstatement cost assumes complete destruction of the dwelling
units and ancillary improvements on site, and includes an allowance for debris removal at a
percentage of the building costs. Our opinion does not include allowances for inflation in
either building costs or labour charges, nor does it take account of costs which might be
incurred in connection with matters relating to environmental issues or complying with
exceptional conditions which may be specified by public authorities.
The assessment does not reflect the market value of the site (land) since it is not standard
practice to insure against loss of land, and land per-se cannot, in the ordinary sense, be
destroyed unless due to substantial contamination or un-planned quarrying; and neither can
it be “replaced” except in instances of land reclamation or the acquisition of an alternative
property or site.
14.0 Bases of Valuation

In accordance with standard practice, the bases of assessment adopted to arrive at opinion of
the values are:
(a) to assess market value: - open market value (market/sales comparison);
(b) to assess replacement cost:- estimated reinstatement cost; and
(c) to assess forced/distress sale value:- estimated restricted realization price.
These are defined as follows:
14.1 Open Market Value

An opinion of the estimated amount for which an asset or liability should exchange
unconditionally on the date of valuation, assuming:-
(b) that, prior to the date of valuation, there had been a reasonable period (having regard to
interest, for the agreement of the price and terms and for the completion of the sale;
(c) that the state of the market, level of values and other factors and circumstances were,
on any earlier assumed date of exchange of contracts of sale, the same as on the date of
valuation;
(d) that no account is taken of any additional bid by a prospective purchaser with a special
interest; and
(e) that both parties to the transaction had acted knowledgeably, prudently and without
compulsion.
14.2 Open Market Rental Value
An opinion of the bestrentat which a new letting of the accommodation would have been
completed unconditionally at the date of valuation, assuming:-
(a) a willing landlord;
(b) that, prior to the date of valuation, there has been a reasonable period (having regard to
interest, for the agreement of the rent and other letting terms and for the completion of
the letting;
earlier assumed date of entering into an agreement for a lease, the same as on the date
of valuation;
(d) that no account is taken of any additional bid by a prospective tenant with a special
interest;
(e) a stated length of term and stated principal conditions, applying or assumed to apply to
the letting and that the other terms are not exceptionally onerous or beneficial for a
letting of the type and class of the subject property;
(f) that no premium passed and that any rent free period is in respect only of the time
which would have been needed by the incoming tenant to make the subject property fit
for occupation; and
(g) that both parties to the transaction had acted knowledgeably, prudently and without
compulsion.
14.3 LeaseTerms Assumed in Assessing Rental Value

In assessing rental value, we have assumed, considering the nature and extent of the
property, the level of development, quality of accommodation as well as demand for
residential accommodation, a lease at arms-length, on a year to year basis, with an option to
renew and terms normally applicable in lettings of this class of residential property. In
addition to standard terms, such as grant of quiet enjoyment, the Landlords would be
responsible for structural repairs and payment for insurance of the property as well as
property taxes, including local authority rates. The tenant, in addition to compliance with
normal terms, such as payment of rent as agreed under the lease, would be responsible for
routine repairs and maintenance, and settlement of charges for services supplied to the
premises, including electricity.
14.4 Estimated Restricted Realization Price

An opinion as to the amount of cash consideration before deduction of costs of sale; which
the Valuation Surveyor considers, on the date of valuation, can reasonably be expected to be
obtained on future completion of an unconditional sale of the interest in the property
assuming:-
(b) that, completion will take place at a future date specified by the Client, which does not
allow a reasonable period for the proper marketing (having regard to the nature of the
property and the state of the market);
(c) that no account is taken of any additional bid by a prospective purchaser with a special
interest; and
(d) that both parties to the transaction (the sale) will act knowledgeably, prudently and
without compulsion.
14.5 Comment on Assessment of Forced Sale Value

The Royal Institution of Chartered Surveyors and other professional organizations whose
members are involved in the appraisal of real estate, have following the economic melt-
down, and many of the fore-closures that took place in the not too distant past, particularly
in Britain and the United States, expressed great reservations on the provision, to lending
institutions, of an opinion of forced sale value.
The principal argument is that an opinion of forced sale value amounts to no more than a
forecast, and is based on many variables, some of which are difficult to quantify with a fair
degree of accuracy. Professional organizations are now encouraging property Valuation
Surveyors and other related property consultants not to undertake such assessments or
provide opinions of forced sale values.
With regard to the local environment, demand for land is high despite current economic
circumstances, particularly in urban areas, and has been for many years. For property in
areas well sought after by high and mid-income groups, including sites in good areas which
have development potential, there may be little difference between market and forced sale
value. Where there is a marked difference, experience has shown that in most cases,
potential buyers often offer lower than market prices because they are aware that the owner
of the property which is being sold is acting under duress (as is often the case with property
repossessed and advertised by lending institutions), bidders therefore tend to adopt a
vulturous approach, and will offer and negotiate for the lowest price possible.
Another aspect of disposal under forced sale circumstances is litigation, and the lengthy
procedures a mortgagee or receiver in possession may have to follow in selling the property.
These procedures tend to be quite costly, and in the end, the disposal takes far much longer
to conclude than a normal sale.

We therefore suggest that the Bank takes account of this position with regard to the opinion
of forced sale value stated.
14.6 Estimated Reinstatement Cost

The cost of reconstructing buildings and improvements on a property, in the event of
complete destruction, for example by fire, in a condition equal to but not better or more
extensive than the present condition.
Damage caused to buildings and ancillary improvements on a property, for example by fire
or storm, is usually partial, the assumption of complete destruction of existing structures is
therefore hypothetical, and made only for purposes of the valuation.
Accordingly, our opinion of reinstatement cost assumes complete destruction of the dwelling
units and ancillary improvements on site, and includes an allowance for debris removal at a
percentage of the building costs. Our opinion does not include allowances for inflation in
either building costs or labour charges, nor does it take account of costs which might be
incurred in connection with matters relating to environmental issues or complying with
exceptional conditions which may be specified by public authorities.
The assessment does not reflect the market value of the site (land) since it is not standard
practice to insure against loss of land, and land per-se cannot, in the ordinary sense, be
destroyed unless due to substantial contamination or un-planned quarrying; and neither can
it be “replaced” except in instances of land reclamation or the acquisition of an alternative
property or site.
15.0 Highest and Best Use

We have made inquiries and have been advised by the Planning Authority that the land use
class for this part of Chalala was originally “agricultural”. However, due to demand, the
Planning Authority has rezoned Chalalaand nearby areas from primarily residential to mixed
use. Several sites have now been developed for residential purposes, subject to compliance
with the planning requirements, and some properties on Tokyo Way and Kasama Road are
now used for commercial purposes.
Taking relevant factors into account, including location, extent of the plot and design of
existing improvements, as well as current demand for up-market residential sites, we are of
the opinion that use of the site for residential purposes is the highest and best, and we have
assessed the property on this basis.
16.0 Potential for Change in Use

The Bank often expects that we advise whether there is any significant prospect of or
potential for change of use, or other development on the subject or neighbouring properties
which might materially affect the value of the subject. The effects referred to can be either
negative or positive.
Based on our knowledge of Chalala and nearby areas, as well as the inspection and inquiries
made, we can mention that the majority of properties in Chalala Hillview originally
comprised residential properties. However, due to demand for commercial accommodation,
the Planning Authority has permitted in several instances where applications are tendered,
change of use from residential to mixed or commercial use. Several sites have been
redeveloped or old houses have been extended or renovated and converted to commercial
use (primarily offices), subject to compliance with the planning requirements.
We are not aware of any major development being undertaken in the vicinity of the subject
or neighbouring areas which might have a material negative bearing on the value of the
subject or other properties.

17.0 Likely Changes in the Market Value of the Property

Despite current economic challenges and the negative impact of Covid-19, demand for
serviced development land and developed property in all parts of Lusaka and areas in close
proximity in general, and for residential and commercial properties in easily accessible
locations in particular, is high. For areas such as Chalala, Lilayi, Kamwala and Lilayi South;
high prices continue to be paid for propertiesor sites which become available. A sustained
high demand over the past several years for sites has led to substantial increases in prices.
Limited availability of land for development is compounded by Government’s bureaucratic
and lengthy land administration and delivery system, because even though sites with
development potential can be rezoned and subdivided for commercial or residential
occupation, the process is lengthy and cumbersome. The result is that plots which are
available for re-development remain in short supply, leading to high prices for property
offered for sale, even during times of economic difficulties.
Considering the location, design of buildings and type of accommodation, the extent of the
property, the purpose for which the premises are held; as well as current demand for
residential accommodation, we are of the opinion that the market value of the subject, like
for many properties in Chalala, is likely to increase in real terms, or remain stable in the
foreseeable future.
18.0 Market Comparatives at Arriving at the Rates

Although there has been increased activity in the Chalala since early 2000s, sale of property
can relatively speakingnot many sales area reported openly. In assessing market and other
values of the property, we have relied on evidence of various sales and rentals transactions,
including the following:
Site
Property Location Description Sale Price
(Acres)
Double storey Dwelling House,
Lot No. off Tokyo Way
Block of Single Storey 3No Flats 0.3212 US$400,000
18262M/A Chalala Area
and ancillary improvements
Off Shantumbu Block of Single Storey 4No
0.4280 K4,500,000
Road, Chalala Flatsand Servant’s Quarters
Lot No. Off Kasama Bare land Parcel, Less than 500
0.2965 K300,000
16518/M/C Road, Chalala metres to G-Greens
Kasama Road,
Lot No. Bare land Parcel, fronting onto
off Tokyo Way, 0.2965 K250,000
13072/M/T Kasama Road
Chalala Area
19.0 Age and Condition of Structural, Electrical and Mechanical Components
9.2 Age and Condition of Structural, Electrical and Mechanical components, Types of
Construction and Buildings Economic Life.
9.2.1 Age and condition of Structural, Electrical and Mechanical Components

As mentioned earlier, we have not inspected parts of the property which are covered,
unexposed or inaccessible, and neither have we tested service installations. It is not standard
practice to undertake structural or soil surveys or detailed examination of services when
assessing market or forced sale value of a property unless evidence or circumstances dictate.

However, based on inquiries made and the inspections conducted as earlier described, we
understand that the property was initially developed over several years ago. Buildings are
constructed to a fairly good standard of workmanship using permanent materials, and
existing service installations have been installed to expected standards. Fittings and finishes
are to a fairly good standard and in addition, we have not observed material or structural
defects or signs of mechanical failure, although there are minor defects and items of routine
maintenance.
9.2.2 Buildings’ Useful Economic Life

We understand this to mean the period within which the structures and ancillary fittings as
we as service installations will remain economically functional, taking account of the
property’s owners’ objectives and market expectations. We assume that this has relevance to
the term of the credit facility, although the period has not been disclosed.
We can mention that the improvements are built of good quality permanent materials and to
a good standard of workmanship, fittings are of current standards, and there is no evidence
to suggest that service installations are non-compliant; and structures have no apparent
major structural or mechanical defects.
Based on our inspection conducted as earlier described, and the standard market
expectations, we are of the opinion that provided normal routine maintenance is regularly
undertaken, improvements have a useful economic life spreading over many years, and
structures will remain functional for a period of more than twenty five years.
19.1 Age and Condition

As earlier stated, we have not inspected parts of the property or buildings which are covered,
unexposed or inaccessible, nor have we tested service installations. It is not standard
practice to undertake structural surveys or detailed examination of services when assessing
market, rental or forced sale value of a property, unless evidence or circumstances dictate.
However, based on our inspection conducted as earlier described, we believe that buildings
are fairly well constructed and existing service installations have been installed to expected
standards. As regards the age and expected life span of these installations, all the structures
were built in the early 2000’s. Buildings and service installations are of basic design, and
due to limited or no maintenance.
19.2 Carrying Out Immediate Repairs

Buildings can suffer different types of defects, either structural or of a minor nature. The
latter require only routine repair and maintenance, such as repainting, fixing of leaking taps
or replacement of small items such as electrical fittings, broken window panes or various
pieces of iron mongery. On the other hand, structural defects are those that may affect the

stability and safety of a building; examples include structural cracks, sinking foundations,
defective electrical installations and termite infestation.
As mentioned above,the dwelling house was originally constructed to a good standard of
workmanship, structures, fittings and finishes have not been maintained; and are now in a
poor state with various defects apparent. We believe that buildings are in a poor state, due to
lack of maintenance; structures require complete refurbishment.
20.0 Opinion of Values

Subject to the assumption made, we are of the opinion that for purposes of collateral, values
of the property and improvements thereon, would be as follows:
(i) Open Market Value: K000,000
(Hundred and Thousand Kwacha)
(ii) Forced Sale Value: K0,000,000
(Hundred and Thousand Kwacha)
(iii) Open Market Rental Value: K000,000

( Thousand Hundred Kwacha) per calendar month
(iv) Estimated Replacement Cost: K000,000
(Hundred and Thousand Kwacha).
Note: As mentioned, assessment of replacement cost is restricted to buildings and
ancillary improvements, the figure does not take account of the market value of
the land.
21.0 Taxes, Legal and Other Charges

We have not made allowances in our valuation for:
(i) any tax or statutory liability, whether existing or which may arise in connection with
the property;
(ii) arrears of ground rent or similar charges, if any, arising under the terms of the State
lease;
(iii) arrears of property rates or charges due, if any, to the District Council;
(iv) payment of arrears, if any, for services supplied to the property, including electricity;
and
(v) legal or other charges which may be incidental to the sale of the subject or settlement of
matters connected thereto.
22.0 Sources of Information

We accept as being complete and correct the information provided to us by the various
sources, as to details of tenure, land use, services, planning consents, evidence of value and
other related matters summarised in our Report.
These sources include:-
(i) the Owner of the Property;
(ii) the Ministry of Lands;
(iii) Property Consultancy Firms and Real Estate Agents; and
(iv) Engineering Firms and Construction Companies.
23.0 Summary of Assumptions and Limitations

Our opinion of market value is prepared on the assumptions and limitations summarized
below. In the absence of information that adversely affect the property; these assumptions
and limitations are usual; and do not negatively impact on the valuation.
(i) information provided to us is complete and correct in all respects; but we assume that
where appropriate, advice will be sought to confirm the accuracy of these details.
(ii) a soil survey of the site or structural survey of buildings and ancillary improvements is
beyond the scope of our instructions; we cannot therefore give any guarantees in these
respects.
(iii) boundaries are established and clearly defined, and there are no encroachments or
boundary disputes with adjoining sites.
(iv) inspection of parts of the property and improvements that have not been inspected
would neither reveal material defects nor cause the Valuation Surveyor to alter the
valuation materially.
(v) the property is developed and improvements constructed in accordance with valid
statutoryconsents and building regulation approvals, to the full satisfaction of the
Authorities.
(vi) a good and marketable title can be shown; and there are no onerous or unusual
outgoings, restrictions or encumbrances, likely to have an adverse effect upon the
market value of the premises.
(vii) all documentation relating to the property is satisfactorily drawn and there is no
material litigation pending.
(viii) no deleterious or hazardous materials were used in the construction of buildings or
have since been incorporated.
(ix) no contamination or potentially contaminative use has ever been carried out on site or
on adjoining properties.
(x) an appropriate and adequate insurance policy has been obtained, and that there are no
acts or omissions on the part of the insured of the premises which would render the
policy void or voidable.
We wish to mention that we are not aware of any variance between information we have
obtained from searches and inquiries made, and facts relating to the property, and further; we
have no reason to believe that information provided by various sources, including the Owner
of property and the Ministry of Lands is inaccurate.However, should we subsequently
become aware that any of these or other assumptions are incorrect, we may choose to revise
our opinions, and if need be, advise the Addresseesaccordingly.
24.0 Publication
Neither the whole nor any part of this Report, or any reference thereto, may be reproduced
or included in any published document, circular, advertisement or statement without the
prior written agreement of the Valuation Surveyor as to the form and context in which it
may appear.
25.0 Certification
I, Musonda Sakeni KASASE, do hereby certify as follows:-
(a) that we have inspected the property and considered relevant factors affecting its market
and othervalues;
(b) that I and Anderson + Anderson Valuation Surveyors have no undisclosed or
contemplated interest in the property valued, either at the present time or in the future;
(c) that I have relevant experience and knowledge required to value this type of property in
this locality; and
(d) that I am a qualified Valuation Surveyor and licensed to practice by the Valuation
Surveyors Registration Board in accordance with the Valuation Surveyors Act, Cap.
207 of the Laws of Zambia.
26.0 Confidentiality
The Report and opinion of values are provided for the stated purpose and for the sole use of
Zambia National Commercial Bank to whom it is addressed. The information and
opinions are confidential to the Bank and Mr. Milner Lubasiand their professional advisers
in this matter. Consequently, Anderson + Anderson Valuation Surveyors and its
employees accept no responsibility whatsoever to any other party, for any loss or financial
obligation, direct or consequential, which might arise from reliance on the Report or any part
of its contents.
We trust the Report will be useful, but should anything further be required or if there are points to
be clarified, please let us know.
Yours faithfully
ANDERSON + ANDERSON VALUATION SURVEYORS
M. S. Kasase
PRINCIPAL CONSULTANT

3AA - 13380 2nd Draft Report Nov 2022

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3AA - 13380 2nd Draft Report Nov 2022

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A N D E R S O N+A N D E R S O NVALUATION SURVEYORS

Physical Location of the Property

Property and Assets Valued

Land Use Classification

Title and Ownership

Mortgages/Caveats and Limitations on Title

MSK/Nov 2022 Stand No. 13380, Lusaka (Zanaco Bank& M. Lubasi)

City Council Rating Assessment

Buildings and Improvements

MSK/Nov 2022 Stand No. 13380, Lusaka (Zanaco Plc& M. Lubasi)

(iii) to assess forced sale or liquidation value

(iv) to assess replacement cost

Suitability for Loan Security

(b) Location and Accessibility

MSK/Nov 2022 Stand No. 13380, Lusaka (Zanaco Plc& M. Lubasi)

(c) Quality of Accommodation and Improvements

(d) Proximity to Other Residential Areas&the City Centre

(e) Demand for Development Land

MSK/Nov 2022 Stand No. 13380, Lusaka (Zanaco Plc& M. Lubasi)

(ii) opinion ofestimated reinstatement cost is K000,000(Hundred and Thousand Kwacha).

MSK/Nov 2022 Stand No. 13380, Lusaka (Zanaco Plc& M. Lubasi)

Head – Credit Administration and Monitoring

Attention: Mr. Mwale M. Ilunga

1.0 Purpose of Valuation

1.2.1 opinion on values

1.2.2 current status and factual data

(vi) details on title/tenure and ownership;

(x) valuation methodology and assumptions made; and

2.0 Interpretation of Instructions

MSK/Nov 2022 Stand No. 13380, Lusaka (Zanaco Plc& M. Lubasi)

3.0 Format of the Report

4.0 Property and Assets Valued

5.0 Inspection of the Property

MSK/Nov 2022 Stand No. 13380, Lusaka (Zanaco Plc& M. Lubasi)

5.2 Extent of the Inspection

5.3 Floor Areas

5.4 Property Boundary

6.0 Description of the Property and Improvements

6.1 Physical Location

MSK/Nov 2022 Stand No. 13380, Lusaka (Zanaco Plc& M. Lubasi)

6.2 Legal Description

6.3 Site and Fencing

6.4 Land Use Classification

6.5 Title and Ownership

6.6 Charges/Mortgages and Caveats

6.7 Council Rating Assessment

MSK/Nov 2022 Stand No. 13380, Lusaka (Zanaco Plc& M. Lubasi)

as“Dwelling Houseand Premises”with a rateable value of K277,600 assessed as at

6.10 Brief Description of Buildings and Accommodation

(2) Dog Kennel No.1 & 2

6.11 Condition and State of Repair

MSK/Nov 2022 Stand No. 13380, Lusaka (Zanaco Plc& M. Lubasi)

6.12 Floor Areas

Buildings/Accommodation square metres square feet

7.0 Other Key Factors Requested by the Bank

7.1 Details on Internal Improvements to Buildings

7.2 Copy of Official Search

7.3 Site Plan Identifying Buildings/Accommodation Layout of the Valued Property

7.4 Confirmation that Property Boundaries Confirm to the Certificate of Title

MSK/Nov 2022 Stand No. 13380, Lusaka (Zanaco Plc& M. Lubasi)

8.0 Planning and other Building Consents

9.0 Highway and Other Development Proposals

10.0 Contamination, Pollution and Environmental Considerations

MSK/Nov 2022 Stand No. 13380, Lusaka (Zanaco Plc& M. Lubasi)