REAL ESTATE APPRAISAL REPORT

‘of

Lot 2, (LRC) Psd-148704 located along National Highway (South

Road) Barangay San Pedro, Puerto Princesa City, Palawan
under the name of BONIFACIO CARLOS

for

BONIFACIO CARLOS
Subject Property Owner

by

CONCEPCION A. GILONGOS
Real Estate Appraiser
February 12, 2020

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February 14, 2020

Bonifacio Carlos
National Highway (South Road), San Pedro
Puerto Princesa City

Sir:

As per agreement, Ie have prepared an appraisal report of your property located along the National
Highway (South Road), Bgy. San Pedro, Puerto Princesa City identified as Lot # 2, (LRC) Psd-148704 with
Title No. TCT No. 15219 with the intention of coming up with an estimated Present Market Value.

I personally conducted ocular inspection and investigated local market conditions, and gave
considerations to the :

 Extent, character and utility of the property;

 Sales and holding prices of similar land; and
 Highest and best use of the property

Based on the market analysis as supported by the accompanying narrative report, it is of our
opinion that the amount of FOUR HUNDRED ELEVEN MILLION FIFTY SIX THOUSAND PESOS
(P411,056,000.00) reasonably represents the Market Value of the subject property appraised as of
February 12, 2020

Thank you and It’s been a pleasure to serve you in this matter.

Respectfully submitted,

CONCEPCION A. GILONGOS
Real Estate Appraiser
PRC License No. 0005330

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 SUMMARY OF SALIENT FACTS AND CONCLUSIONS

Subject Property : Lot 2, (LRC) psd-148704 with title No. TCT No. 15219

Property Type : Commercial / Residential Lot

Interest Appraised : Fee Simple Interest

Plot Size : 11,932 square meters

Zoning : Commercial Zone

Highest and Best Use : As improved, Commercial Establishments

Value Indications : Sales Comparison Approach

Final Value : P 33,000.00 per square meters or P393,756,000.00

for the area of 11,932 square meters for the lot and
P17,300,000.00 for the building, total of
P411,056,000.00

Date : February 12, 2020

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 APPRAISAL REPORT

GENERAL

This report covers the appraisal of the property with Lot 2, (LRC)Psd-148704 with Title No. TCT
No. 15219. The appraisal was made for the purpose of expressing an opinion of Market Value of
the real property involved.

The term Market Value is defined as the estimated amount for which a property should be
exchanged on the date of valuation between a willing buyer and a willing seller in an arm’s length
transaction after proper marketing wherein the parties had each acted knowledgeably, prudently,
and without compulsion.

In this definition, it is assumed that any transaction shall be based on cash or its equivalent
consideration. The price which the property would fetch if offered for sale in the open market
would undoubtedly be affected, should the sale be on terms, whether favorable or unfavorable.

It is further assumed that the titles to the properties are good, marketable and free from liens and
encumbrances, and that fee simple ownership is transferable.

The rights appraised in this report is the property rights in fee simple. Fee Simple is defined as the
absolute fee without limitation to any particular class of heirs or restrictions but subject to the
limitations of eminent domain, escheat, police power and taxations.

PROPERTY LOCATION AND IDENTIFICATION

The subject property is identified as Lot 2, (LRC)Psd-148704 with Title No. TCT No. 15219 and had
an total area of 11,932 square meters owned by Mr. Bonifacio Carlos. It is located along the National
Highway (south road), Barangay San Pedro, National Highway beside the some commercial
establishments such as a commercial building rented by the AFPSLAI, Asturias Hotel and Jollibee
Fast Food Store on the northern boundary; commercial store, CITI Hardware Store and Life
College School on the eastern side of the subject property and is also very near the Robinson’s Place
Mall, KIA Display Center (4-Wheels Cars) , Adventist Hospital approximately more or less 300 to
500 meters.

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Shown below are location map of the subject property

Subject Property
Appraised

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NEIGHBORHOOD DATA

The property is located in an area where land development is of commercial use. It is situated as
along the national highway. It’s neighboring lots were also developed commercial developments.

Photos of the Subject property and its surrounding neighborhood.

Subject Property improved with Residential and Commercial Building

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 Gate of the Subject Lot

Back of the Residential Building

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 Building 2 (Commercial - Office)

Building 3 (Extension of Office - Commercial)

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 Building 4 (Garage)

Building 5 (Water Tank Shed)

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 Side of the Residential Building

Entrance of the Residential Building

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Establishment in the northern side of the subject property

The Natasha Place

Asturias Hotel

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 The Jolibee Fastfood Restaurant

Establishments on the Eastern side of the Subject Property with more or less 100 to 200 meters
distance

Commercial Lot ( currently under construction of building)

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 Hardware Store

Life Church and Life College Compound)

Other Commercial Buildings very proximate the subject property with more or less 500 meters
away
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 Gasoline Station

Chowking Fastfood Restaurant

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 Adventist Hospital

Others Views of Subject Property to the Neighboring Establishments

The Natasha Place

Bldg

National Highway
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View of the back portion of subject lot

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 Robinson’s
Place

Distances of commercial buildings (hotel, mall and hospital is less than 500meters to the subject Adventist
prperty) Hospital

Hue Hotel

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Inside View of the Residential Building

Sala

Dining Room
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Ceiling

Doors

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Ceiling with Light

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Eleavator going to 2nd Floor and rooftop

Elevator

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 Second Floor

Stairway to Second Floor and Roof Top

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Second Floor

Second Floor

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Stairs to Rooftop

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 Bedroom

Comfort Room

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Concrete Deck Roof & Terrace

Rooftop Bar

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 Rooftop Shed

Concrete Water Tank

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 HIGHEST AND BEST USE

Highest and Best Use is a real estate valuation principle that dictates that the market trends to put
property to its most profitable use, and that use which provides the greatest benefits of ownership.
The Manual on Real Property Appraisal and Assessment Operations, 2006 edition , defines highest
and best use as: the most probable use of a property which is physically possible, appropriately
justified, legally permissible, financially feasible and which results in the highest value of the
property being valued. Because the principle of highest and best use reflects the actions of the
market, generally accepted professional appraisal practice requires that the subject property must
be valued under this premise. If the property being appraised is improved with a structure, two
highest and best use analyses are required; the highest and best use of the land as though vacant,
and the highest and best use of the total property as developed.

Based upon on my analysis of the property itself and the prevailing land usage in the neighborhood,
we are of the opinion that the subject property is of highest and best use if it is improved such as
erecting buildings and others.

VALUATION

There are three generally accepted approaches in estimating the market value: the Cost, Income
and Sales Comparison Approaches.

The Cost Approach involves estimating the replacement cost, as if new, of a structure and
deducting the estimated depreciation, if any from all sources (physical, functional and economic).
Since the property to be purchased is vacant, this approach is not applicable.

The Income Approach typically involves projecting the income and expenses of a property over a
period of time into a cash flow projection before debt service and depreciation. Given the situation,
this approach is not also applicable for this estimation.

The Sales Comparison Approach involves analysis of recent sales of property similar to the
subject property. Generally, adjustments are necessary to reflect and account for differences
between the subject and comparable sales utilized. The resulting value indicates an estimate of the
probable price at which the property would sell if currently offered in the market place.

Valuation Methodology

In estimating the value of the subject properties, we will use the three valuation Approaches
discussed above. We considers the similar or substitute properties and related market data and
establishes a value estimate by processes involving comparison. Listings and offerings may also be
considered.

For purposes of comparison, the following market data are considered sufficient to provide a
reasonable indication of value.

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 SALES COMPARISON APPROACH

Subject of Lot # 2, (LRC) PSD-148704

Appraisal
Location National Highway, San Pedro, Puerto Princesa City
Date of Appraisal February 12, 2020
MARKET DATA ANALYSIS
Type of Data Sale 1 Sale 2 Listing Listing
Date of Data 2018 2018 2020 2020
Source: Licensed Broker Licensed Broker Licensed Broker Licensed Broker
(09491975785) (09491973785) (09491973785) (09491973785)
Location San Manuel San Pedro San Miguel San Pedro
Price per Sq. m. (P) 35,000.00 25,000.00 50,000.00 40,000.00
Elements of Comparison
Time -10% -10% 0% 0%
Bargaining 0% 0% 5% 5%
Allowance
Location 5% 0% -5% 5%
Size (sq. m) 0% 0% 0% 0%
Shape 0% 0% 0% 0%
Terrain 0% 0% 0% 0%
Elevation 0% 0% 0% 0%
Corner Influence 0% 0% 0% 0%
Total Adjustments -5% -10% 10% 5%
Adjusted Value -5,250.00 -2,500.00 5,000.00 2,000.00
Weight 30% 30% 20% 20%
Weighted Value 12,075.00 8,250.00 10,000.00 7,600.00
Concluded Value 37,925.00
(P)
Rounded to (P) 38,000.00

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 APPRAISER’S OPINION
Based on the market data analysis presented above, our estimation of the market value of the
subject property as of December 27, 2019 is P33,000.00 per square meter for the lot or a total
of Three Hundred Ninety Three Million Seven Hundred Fifty Six Thousand Pesos
(P393,756,000.00) and the value of the residential building is Seventeen Million Three
Hundred Thousand Pesos (P17,300,000.00), Total Value of the Property Lot plus Building) is

FOUR HUNDRED ELEVEN MILLION FIFTY SIX THOUSAND PESOS

(P411,056,000.00)

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 ASSUMPTION AND LIMITING CONDITIONS

1. The appraiser is not responsible –

a. For matters of legal in nature that may affect the value of the property being
appraised;
b. That the appraiser assumes that the title is good and marketable and
therefore, will not render any opinion about the title;
c. That the property is appraised on the basis of it under responsible
ownership;
d. That any encumbrance to the property is disregarded;
2. No relocation was done in the property
3. The appraiser will not give testimony or appear in court if the appraised property is
in question unless it is within the scope of the assignment;
4. The appraiser obtained the information (say value of comparables), estimates and
opinions that were expressed in the appraisal report from sources that he considers
being reliable and believes them to be true and correct. The appraiser does not
assume responsibility for the accuracy of such items that were furnished by the
informants.

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