General Standards

work area

 These standards specify the requirements and conditions

for conducting valuation work, except for what is modified
by the Assets Standard or Valuation Applications, and the
purpose of these standards is to apply them to the
valuation work of all assets and for any other evaluation
purposes to which the evaluation criteria apply.
 This report was prepared by the company to evaluate and
value the assets and the work team that it has, which
enjoys the highest levels of efficiency and impartiality
necessary, and benefiting from the resources available to
us represented in the efficiency of the team with expertise
in the field of evaluation. Our company has an information
base that has been built through its evaluation expertise
and through the collection of data, information and
statistics issued by official and non-official bodies, which
gives residents the ability to understand to carry out their
tasks to the fullest, and the company is working to update
its database on an ongoing basis.
 Our experience in valuation work is more than 10 years,
and we have submitted more than 24,000 valuation
reports during our tenure. 
 Tathmeen Company was honored to provide its services to
governmental and semi-governmental agencies for most
of the banks located in the Sultanate, financial companies,
real estate companies, industrial sectors, commercial
companies and others.
 General Standards

 Customer Information and Usage:

customer name
author of the report
the use

 The nature of the assessed assets:-

City
Region
Area 
Preview date
Evaluation date
Release Date
work area

 Description of the report: a report that explains the evaluation

methodology and steps, evaluation results, and photographs and
borders of the assets being evaluated without clarifying the details of
the data - in accordance with Paragraph 102 of Paragraph 42 of the
Book of Explanation of International Standards, Part Two, General
Standards.

 The purpose of the evaluation

 Assumptions:
 It was assumed that the real estate is fully owned and has no
obligations.
 A photocopy of the deed and a croquet of the site were
received from the customer, and Tathmees did not work to
verify their authenticity, and it was assumed that the property
was not mortgaged and that there were no rights over it to other
parties.

 Scope of research and survey: We have studied the real estate

market in the area of the target property and used the study with the
closest properties to the target property in terms of specifications and
spaces for each of them, and we have worked hard to ensure the
correctness of the information obtained.
 The nature and sources of information: real estate offices in the
targeted area, real estate dealers, the database of the valuation
company, which is constantly updated.

 The currency used in the report

 Value basis (type of value): Market value: the estimated amount on

which an asset or liability should be exchanged on the valuation date
between a willing buyer in a neutral transaction after proper
promotion where each party acts on a knowledgeable basis in
accordance with the principle of prudence without coercion or
coercion.

 Restrictions on use, distribution or publication: This report is

intended for the purpose for which it was prepared only and may not
be used, circulated, quoted from, or referred to in any way for any
other purpose. Accordingly, neither the company nor the evaluator
bears any responsibility for any loss incurred by any party as a result
of using the evaluation report in violation of the provisions of this
clause. The evaluator reserves all rights to issue the evaluation
report. This report may not be reproduced in any manner without the
express consent of the Company. This report may not be submitted
to any party other than those referred to in it without the express
consent of the company. It is a matter of caution that the company
and the evaluator reserve the right to make any amendments and
make any revision to the evaluation or support the evaluation result
under specific circumstances. The company reserves the right,
without any obligation, to review the evaluation accounts and to
amend and revise its results in light of information that was present
on the date of the evaluation but which became clear to him later.

 Commitment to international evaluation standards: The

methodologies followed by the company in the field of evaluation and
based on sound foundations and solid constants in line with local and
international standards applicable in this field, especially the
application of international evaluation standards.
 Scope of work (2-2) | stages of work

1. original preview: The title deed was received from the client,

which shows that the area is the real estate .... in addition to a
sketch showing the location of the property. After that, the
property was identified and the information received from the
client was matched with reality. 
2. Determine the properties of the original: Through the inspection,
it was found that the original subject of the evaluation is ..... in the
city of .....
3. Data collection: Based on the type of property being evaluated,
the scope of data collection was determined in the
city….neighborhood….especially the area surrounding the
property.
4. Data analysis: The data available in the real estate area, which
was obtained from unofficial sources such as real estate offices
operating in the real estate area, and from official sources
represented in the indicators of the Ministry of Justice, was
analyzed.
5. Application of evaluation methods: After the experts assessed
the current use in terms of the market and the data available
about it, it was concluded that the method of capitalizing income
and cost is the best for estimating the value of the property.
6. Estimating the value: After reconciling the results of the
evaluation methods, a value is weighted that corresponds to the
scope of work described with the customer.
7. Value review: The value review by the review committee reviews
the information, analyzes and assumptions made by the valuer.
8. Report preparation: Work on preparing the report in accordance
with Standard 101 for Report Description and Standard 103 for
Report Preparation.
 Scope of work ( 2-3) | Data obtained from the client

Title Deed:
A title deed was received from the client bearing:
number
date
Land area

construction license:
The building permit was issued......, and it is clear from it that
the total building surfaces.....

Tenants data:

Financial data:
 Scope of work (3-3) | field survey

 Selecting the scanning range

The scope of the field survey process has been determined in
the geographical area, especially the properties that are similar
in characteristics to the property in question, whether in terms
of use, areas or level of finishing.

 Data collection
Data were collected from towers and real estate similar to real
estate, to know the prevailing rental prices in the area, and
similar lands were searched to find out the value of the land
through similar sales operations

 Compare results
In the process of arriving at the value of the land or the fair
rental rates in the property, the differences between the
property under evaluation and other properties, whether in
terms of location, area, level of finishing or level of services
provided, were taken into account, in order to arrive at the fair
value of the property.

 The result
Evaluation methods
 Evaluation methods
Stylization: cost style
Used for: buildings
Define Stylization
 It provides indicators of value using the economic principle, which states
that the buyer does not pay for the purchase of an asset more than the cost
of obtaining an asset of the same benefit, whether through purchase or
construction. The cost of purchasing or constructing an equivalent asset
unless there are factors such as inappropriate timing, inappropriateness,
risk or other factors. Often the asset subject to evaluation is less attractive
than the alternative that can be purchased or constructed due to the age or
obsolescence of the asset. In this case, there will be a need to make
adjustments and adjustments in the cost of the alternative asset according
to the required value basis.

 Source

methodology
 The cost method is the one that depends on calculating the cost of
constructing a property identical to the property being evaluated at the
prices of the evaluation date, then deducting the depreciation value of the
property being evaluated from the cost of constructing the matching
property.
 The method that will calculate the cost of constructing a property identical
to the property being evaluated will be approximate, not quantitative, and
using the cost indicators method, where costs will be estimated using the
square meter of building surfaces as a basic cost indicator, as will be clear in
the steps for calculating the value

Implementation
1. ———
 2. ———

Evaluation methods
Stylization: Income Method (Income Capitalization)
Used for: Income-Producing Real Estate
Define Stylization:
 Provides an indication of value by converting future cash flows into a single
present capital value. 

 This method deals with the income that the asset achieves during its useful
life (the useful life of the asset) and the value is estimated through the
capitalization process. Capitalization means converting the income into a
capital amount using an appropriate discount rate. Income flows are
generated under contracts or non-contractual arrangements, such as the
expected profit from the use or retention of an asset.

 The methods that fall within the income method (income capitalization)
involve applying the risk factor or total capitalization to one typical income
period.

methodology
 The focus of the method is on the expected net cash income from the
asset, taking into account any capital costs required to ensure the
achievement or continuity of the expected income.
 In the market study, the evaluator focuses on identifying the appropriate
income indicators for the property and the degree of its continuity
according to the expected future and not historical forces of supply and
demand.
 If the asset has a stable income, capitalization is likely to be used instead of
cash flows.
 The estimation of the capitalization and discount coefficient is a constant
challenge for an appraiser due to the lack of transparency in the market.

Implementation
1. ———
2. ———

Information and description of

the property
 Property Description

General description

property data
 Instrument number

 Piece number

 No. planned

 Block number

Site Description
 Country

 Region

 City

 Neighborhood

 Street

The nature of the property:

Building System: Commercial
 Property Description

Important information about the property:

 Property name

 The site

 Property type

 Property age

 Land area

 Building erea

 Number of roles

 Real estate components

 Total Current Income (OMR)

 Operating and maintenance expenses (OMR)

 Net operating income (OMR)

Evaluation Result
 Assessment process risks

Assessment process risks:

1. Macroeconomic risks
2. The risk of not having a guarantee to achieve the target
revenue
3. Regulatory and Regulatory Risks
4. Risks of not having long-term contracts
5. Competition risks
6. Forward-looking statements
Analysis of the real estate market in the Sultanate of
Oman
 Assumptions of access to value

 Evaluation methods
 All available professional methods and methods were used
to reach the value of the property, the most important of
which are the cost method, similar sales and income
capitalization, as well as the income bracket method.

 Edit data
 When it becomes clear to the resident that the data
received from the customer is not in line with the prevailing
rates in the market, or that it cannot continue in this manner
in the future, which may affect the value of the property,
and adjust it to suit the market situation, or it is assumed
that the situation in the future may change It uses the data
it deems appropriate to prevail in the market (the income
bracket method).

 Choosing the appropriate method for evaluation

 After taking into account the data provided by the client, the
data collected from the market, and the application of all
appropriate valuation methods, only one method is chosen
and other methods are excluded to reach the value of the
property, according to the nature of the property and the
purpose on which the evaluation process takes place, and
here we will The income capitalization method (slices) is
adopted because it is the most appropriate method for
evaluating this property, as the occupancy rate has not
reached the stage of stability yet.

Real estate deeds

clarification:
End of report