Plot 12528 Barclays Report Sept 2015.docx 2

A N D E R S O N+A N D E R S O NVALUATION SURVEYORS
MSK/VAL -5829
6thNovember 2015
Acting Head – Risk Control Unit, Corporate Credit Team

Barclays Bank Zambia Plc
Head Office
Elunda Park
Stand Nos. 4643 & 4644
Addis Ababa Drive
P. O.Box 31936
LUSAKA
Dear Sirs,
Re: VALUATION OFSTAND No. 12528,OLYMPIA EXTENSION, LUSAKA

(Customer: Danait Transport Limited)
We refer to your instructions requesting us to prepare for the benefit of Barclays Bank, a valuation
report on Stand No. 12528, Olympia Extension; Lusaka; and for which we thank you.
In accordance with the instructions issued, we have inspected the property, have
undertakeninquiries necessary for purposes of this valuation, made the assessment and now have
pleasure in submitting our Report.
1.1 Purpose of Valuation
We understand that Stand No. 12528, including buildings and improvements thereon is the
subject of a possible credit facility to be provided by Barclays Bank, and that in accordance
with the conditions of such transactions, independent professional advice on the property’s
market value and other values is required to support the application.
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 market value; forced sale value, and monthly rental value;
(ii) whether there are any factors that could affect the current market value if the Bank
were to sell either as mortgagees or through a receiver;
(iii) current market conditions, and current and expected trends in respect of the type of
property in the area; and whether the market value of the property is likely to
increase, remain static or decrease.
MSK/Nov2015 Stand No. 12528, Lusaka (Barclays Bank & Danait Transport Ltd)
A N D E R S O N+A N D E R S O NVALUATION SURVEYORS 2
(iv) whether there is any “hope”, “marriage” or “special purchase” value attaching to the
property now or likely to arise in the future;
(v) 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;
(vi) if the property is for owner occupation, are their opportunities to lease surplus space;
or is there scope to sell surplus space;
(vii) valuation methodology and assumptions made; and
(viii) an estimate of the gross replacement cost of buildings and improvements for
insurance purposes.
1.2.2 Current status and factual data
provide details and comments on various matters, including:-
(i) a description of the property and improvements, including its location, the area of the
plot, accommodation, floor areas, services installations available, as well as colour
photographs;
(ii) title and ownership, annual lease charges (ground rent) and relevant statutory
consents;
(iii) condition and state of repair of buildings and improvements;
(iv) age and condition of the electrical and mechanical components, type of construction
and an indication of the building likely useful economic life;
(v) whether the market value or saleability of the subject could be enhanced by
improvements to buildings, and/or their services;
(vi) planning, highway and other development considerations; and any significant
prospect of or potential for, change of use or other development of the property or
those in the vicinity which could materially affect the value of the subject property;
(vii) environmental issues including contamination, either on the subject site or on an

adjoining site; and whether there is any evidence of environmental issues which
could potentially have clean up/liability implications for the current and future
owners, including any mortgagees in possession or receivers; and
(viii) whether the property is in an area prone to flooding.
The Letter of Instructions makes reference to the valuation of machinery. However, we wish
to mention that there is no machinery on site, or which would fall in the category of assets.
1.3 Property and Assets Valued

The valuation is restricted to land and buildings, and include only fittings and service
installations which form a permanent part of the property and which would ordinarily pass,
with the premises, on a sale or letting.
All moveable items, including household furniture and equipment, have been excluded from
the assessment.
The valuation is undertaken in accordance with provisions of the Practice Statements and
Guidance Notes of the Appraisal and Valuation Manual published by the Royal Institution of
Chartered Surveyors which are applicable locally, and which have been adopted by the
Surveyors Institute of Zambia.
1.4 Format of the Report
The format of reporting is in accordance with standard practice and is intended to provide, as
far as is possible information requested by the Bank, including a description of the subject,
buildings and improvements, planning permission as well as matters considered in
formulating our opinion of values. In this regard, we have attempted to follow as far as is
practical, the headings (but not necessarily to sequence) contained in the Banks Letter of
Instructions.
1.5 Inspection of the Property
1.5.1 Date of Inspection
5thNovember2015.
1.5.2 Extent of the Inspection
The Report is not the result of a structural, soil or geophysical survey since it is not standard
practice to undertake such surveys as part of a valuation exercise, and these surveys are
therefore taken to fall outside the scope of our instructions, nor have the services and drains
been tested. We cannot therefore give any guarantees in these respects.
In accordance with standard practice, our inspection was restricted to a visual survey of the
site and improvements, taking note of the design and construction of buildings, layout of
accommodation, services available and condition and state of repair.
We have not inspected parts of the property which are covered, unexposed or inaccessible
(such as foundation walls and footings; pipe work, conduits and cables within walls, floors
and roof voids), and for purposes of assessing market and other values, such parts have been
assumed to be in a good structural repair and condition, and free from rot and infestation.
We cannot express an opinion about or offer advice on the condition of parts we did not
inspect, and apart from matters mentioned, the Report should not be taken as making any
implied representation or statement about such parts.
In the above respects only, our valuation has been carried out on the assumption that parts
not inspected are in a good structural repair and condition, do not contain any deleterious or
hazardous materials and that services function satisfactorily. No account has been taken for
inherent latent defects, if any.
1.5.3 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 have taken measurements of
buildings over external walls, and floor areas are calculated on a gross external basis. For
purposes of conversion, one square metre is taken as equivalent to 10.764 square feet.
1.5.4 Property Boundary
We have not surveyed the extent of the property to confirm beacon positions, as this is not
standard practice when inspecting a property for purposes of assessing market or other
values; unless circumstances dictate, and this aspect is therefore considered to be outside the
scope of our instructions.
However, and in the absence of information to the contrary, we have assumed that the
concrete block wall enclosing the site is erected along boundary lines and that there are no
encroachments or boundary disputes with adjoining sites.
We have relied on information obtained from the Certificate of Title as to the extent of the
site, and the land area stated in the report is as indicated in the Certificate of Title. For the
purposes of conversion, one hectare is taken as equivalent to 10,000 square metres or 2.471
acres.
1.6 Site Plan and Pictures of the property
A location and site/accommodation layout plan (not drawn to scale) and some pictures are
provided as part of the Report. The plans are not drawn to scale but are intended for
identification purposes only.
1.7 Land Use Classification
We have been informed by the Ministry of Lands that Stand No. 12528 is zoned for
“residential high cost” use; and that the annual lease charge (commonly referred to as
ground rent and which we are advised is calculated based on the zoning and extent of a
property), is currently set at K100.08 per annum.
For purposes of payment of rent, the year end is 30th September and for the period to 30
September 2016, rent due is K699.93 which we suggest be settled in full.
1.8 Tenure and Ownership
We have been provided with a copy of the Certificate of Title, and we have also made
inquiries at the Ministry of Lands to confirm title and ownership, and establish interests held
in the property; or restrictions if any, attaching thereto.
We are advised that title is a State lease, for a period of ninety nine (99) years from 1 stJune
2012; vested in PetrosNaizghi Daniel; Certificate of Title No. 180141.
1.9 City Council Rating Assessment
In accordance with the Rating Act, No. 12 of 1997 (as amended); Stand No. 12528was listed
in the November 2007 City Valuation Roll (for purposes of levying property rates) as entry
No. 1912528, described as “Dwelling House, Servants Quarters and Premises”, with a
rebased ratable value of K560,000. However we are advised that the property has been
erroneously omitted from October 2013 Main Valuation Roll.
We are also advised that the rate levy charged for the second half of 2015 is K645.30 and the
total amount due for the period to 31stDecember 2015 is K1,810.80which we recommend be
settled in full.
1.10 Opinion of Values
Subject to the foregoing and assumptions made, and taking relevant factors into account, we
are of the opinion that values of the property and improvements would be as follows:
Assessments Opinion of Values

(i) Open Market Value US $284,000
(ii) Forced Sale Value US $250,000
(iii) Estimated Reinstatement Cost US $297,000
(i) Opinion of market rental value is US$2,000(Two Thousand United States

Dollars)per calendar month, assessed on the basis of an annual tenancy, taking
account of the quality of the accommodation in the dwelling house, and assuming
that the property is vacant and available to let.
The figure does not reflect the rental value which will be realised from the block of
flats once construction work has been completed, and the accommodation is ready
for occupation. However, it would be expected, based on market evidence that each
unit would fetch a rent in the region of US $1,500 per calendar month.
(ii) The assessment of reinstatement cost is restricted to buildings and improvements,

and includes onlyfittings and service installations which form a permanent part of the
site, the figure reported does not take account of the market value of the land since it
is not normal practise to insure against loss of land.
1.11 Date of Valuation
As the date of valuation has not been specified,values are assessed as at 5 th November 2015,
this being the date of the re-inspection of the property.
1.12 Confidentiality
The Report is provided for the sole use ofBarclays Bank Zambia Plcandfor the specific
purpose to which the Report refers. The information is confidential to the Bank and Danait
Transport Limited and their professional advisers in this matter, and 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.
1.13 Disclosure
If, for whatever reason, our opinion of values is disclosed to persons other than the
Addressees, then the bases of valuation and assumptions contained in the Report should also
be disclosed in full.
When addressed to our clients, any opinion or advice should, if any circumstances dictate, be
accepted upon only after proper and adequate consultation with the author of the documents
in the advice or opinion is contained.
We trust the report meets the Banks requirements, but if there are points to be clarified,
please let us know
Yours faithfully
ANDERSON + ANDERSON VALUATION SURVEYORS
M. S. Kasase, MSc, FRICS, IRRV, FIG, PPSIZ, MZIEA

CHARTERED &REGISTERED VALUATION SURVEYORS
2.0 Executive Summary
2.1 Location
On the corner of Mumana Road and an un-named street, branching off KatimaMulilo Road,
Olympia Extension Residential Area, approximately ten kilometres from the City’s
Commercial Centre.
2.2 Site and Fencing:
Extends to 3,747 square metres (about 0.9259of an acre), delineated and described on
Diagram No. 1742 of 1992 and is an irregular shaped corner plot; fully enclosed to boundary
by concrete block wall topped with electric fencing. A single opening sliding steel gate
provides vehicular access to compacted earth driveway/parking area, covered by crushed
stones.Grounds are well landscaped and maintained.
property), is currently set at K100.08 per annum.
2.4 Title andOwnership
Title is a State lease for a period of ninety nine (99) years from 1 stJune 2012; vested in
PetrosNaizghi Daniel; Certificate of Title No. 180141.
2.5 Mortgages/Caveats
Save for the reversion vested in the President, we are not aware of other interests; or
mortgages registered on the property, or any unusual or onerous restrictions or
encumbrances, statutory or otherwise, likely to have an adverse effect upon the market value
of the property.
2.6 Council Rating
In accordance with the Rating Act, No. 12 of 1997 (as amended); Stand No. 12528 was
listed in the November 2007 City Valuation Roll (for purposes of levying property rates) as
entry No. 1912528, described as “Dwelling House, Servants Quarters and Premises”, with a
rebased ratable value of K560,000.
However we have been informed that the property has been erroneously omitted from new
Main Valuation Roll which was compiled as at October 2013
We are also advised that the rate levy charged for the second half of 2015 is K645.30 and the
total amount due for the period to 31stDecember 2015 is K1,810.80which we recommend be
settled in full.
2.7 Buildings
Single Storey Dwelling House, Cottage, Detached Storeroom and Dog Kennel.
3No Flats (under construction, building work is at foundation level).
2.8 Services
(i) Mains water is connected.To improve supply, a borehole has been drilled, but this is
not yet equipped.
(ii) Mains electricity is connected; and supply is reticulated to all buildings, and for
security lights.
(iii) Disposal of waste from sanitary fittings is to septic tank and soakaway.
(iv). Access is from Mumana Road, to which the property has a frontage.
2.9 Condition and State of Repair
The Report is not the result of a structural or soil survey since such surveys are by standard
practice considered to be outside the scope of standard valuation instructions, nor have
services and drains been tested. We cannot therefore give any guarantees in
these respects.
However, from the extent of our limited inspection carried out as described above, and
which we considered adequate for purposes of assessing the market and other values, we can
state that buildings are well designed and constructed, and the accommodation is in a good
condition and state of repair with no material structural defects apparent, save only for minor
items of routine repair and maintenance.The 3No Flats are under construction, work is at a
very early stage.
3.0 Detailed Description of the Property
3.1 Location
The property is located on the corner of Mumana Road and an un-named street, off
KatimaMulilo Road, Olympia Extension Residential Area, approximately ten kilometres
from the City’s Commercial Centre.
3.2 Legal Description

Under the Lands and Deeds Registry Act, Cap 185, the property is described as:
“ALL that piece of land in extent 3747 square metres more or less being Stand No. 12528
situate in the Lusaka Province of Zambia which piece of land is more particularly delineated
and described on Diagram No. 1742 of 1992 except and reserved all minerals oils and
precious stones whatsoever upon or under the said land……..……......”
3.3 Site and Fencing

The site which as stated is3,747 square metresor approximately 0.9259of an acre,is an
irregular shaped corner plot; fully enclosed to boundary by concrete block wall topped with
electric fencing. A single opening sliding steel gate provides vehicular access to a
compacted earth driveway/parking area, covered with crushed stone. Grounds are well
landscaped and maintained.
property), is currently set at K100.08per annum.
3.5 Title, Ownership and Occupation
We have been provided with a copy of the Certificate of Title, and we have also made
inquiries at the Ministry of Lands to confirm title and ownership, and establish interests held
in the property; or restrictions if any, attaching thereto.
We are advised that title is a State lease, for a period of ninety nine (99) years from
1stJune2012; vested in PetrosNaizghi Daniel; Certificate of Title No. 180141.The property is
owner-occupied as a private residence.
3.6 Mortgages and Caveats
Based on searches made at the Ministry of Lands, we can mention that no caveats or
mortgages are registered. We are also not aware of other interests or any onerous outgoings
or restrictions, save for the above interest, and the reversion vested in the President who
holds the land in perpetuity for and on behalf of the people of Zambia. However, should
detailed information or assurances on title be required, we suggest that legal advice be
sought.
3.7 CityCouncil Rating Assessment
In accordance with the Rating Act, No. 12 of 1997 (as amended); Stand No. 12528was listed
in the November 2007 City Valuation Roll (for purposes of levying property rates) as entry
No. 1912528, described as “Dwelling House, Servants Quarters and Premises”, with a
rebased ratable value of K560,000. However we are advised that the property has been
erroneously omitted from 2013 Main Valuation Roll.
We are also advised that the rate levy charged for the second half of 2015 is K645.30 and
thetotal amount due for the period to 31stDecember 2015 is K3,871.80 which we recommend
be settled in full.
3.8 Services
(i) Mains electricity and water are connected.To improve water supply, a borehole has
been drilled, but this is not yet equipped.
(ii) Disposal of waste from sanitary fittings is to septic tank and soakaway.
(iii) Access is from Mumana Road, to which the property has a frontage.
3.9 Buildings and Improvements
In addition to the boundary wall, the property is developed with the following buildings:
(i) Dwelling House

(ii) 3No Residential Flats (under construction)
(iii) Cottage
(iv) Storeroom
(v) Dog Kennel
(vi) Guard Room
For purposes of identification, asite/accommodation layout plan and a few pictures are given
at the end of the Report. The plan is not drawn to scale.
3.10 Brief Description of Buildings and Accommodation
(i) Dwelling House
Single storey and constructed of a hipped/ridged roof of corrugated asbestos sheets

on timber trusses and purlins. Timber soffits and fascia boards to eaves. Metal
gutters and PVC down pipes for rain water drainage. Roofs over verandas
additionally supported on concrete pillars. Concrete block walls, rendered externally
and painted. Steel framed glazed windows, fully burglar barred. Steel framed solid
timber (Mukwa) doors, secured by steel grille gates to externalentrances.Concrete
floors.
Internal fittings and finishes include tongue-and-groove timber and soft-board

ceilings. Walls are plastered and painted, and there are full height ceramic wall tiles
to toilets, bathrooms and kitchen.Double bowl stainless steel sink unit, fitted
cupboards topped with granite finishes and wall mounted cupboards to kitchen. Wall
mounted timber shelves to pantry. Bath tub, water closet, wash hand basin, and
shower to main bathroom. Bathtub, shower, water closet and wash hand basin to
second bathroom. Water closet, showerand wash hand basin to third washroom.
Built in cupboards to linen store and all bedrooms. Wall mounted pressure geysers
for hot water. Wall mounted security lights around the house. Concrete floor
finished with ceramic floor tiles.
Accommodation comprises a self-contained main bedroom, second self-contained

bedroom, two additional bedrooms, fully fitted kitchen, pantry, lounge, dining room,
laundry, linen store, third bathroom, passageway, front and rear verandas.
(ii) 3No Flats
Under-construction,work is at foundation level. Designed to be double storey, and to

be built of concrete block walls.
(iii) Cottage
Ridged roof of corrugated asbestos sheets on timber trusses and purlins.Timber

soffits and fascia board to eaves. Soft-board ceilings in all rooms. Concrete block
walls, rendered externally, plastered internally and painted. Steel framed glazed
windows, fully burglar barred. Steel framed solid timber doors. Concrete floor, with
cement and sand screed finish. Single bowl stainless steel sink unit to kitchen.
Timber shelves to pantry. Low level water closet and shower to washroom.
Accommodation comprises two bedrooms, living room, kitchen, pantry,

shower/toilet, passage and veranda.
(iv) Storeroom
Ridged roof of corrugated asbestos sheets on timber trusses and purlins.Timber

fascia board to eaves. Soft-board ceilings. Concrete block walls, rendered
externally, and plastered internally. Steel framed glazed windows, burglar barred.
Steel framed solid timber door. Concrete floor, with cement and sand screed finish.
(v) Dog Kennel
Erected against boundary wall, of a lean-to roof of corrugated asbestos sheets on

timber joists and purlins. Concrete block walls, rendered externally, plastered
internally and painted. Concrete floor.
(iv) Guard Room
Erected against boundary wall, of a monopitched roof of corrugated asbestos sheets

on timber joists and purlins. Timber fascia board to eaves. Concrete block walls,
rendered externally, plastered internally and painted. Concrete floor.
3.11 Floor Areas
Calculated on a gross external basis, floor areas are as follows:-
Buildings/Accommodation square metres square feet

(i) Dwelling House 222.40 2,394
Verandas 34.10 367
Concrete Ramp 40.70 438
(ii) Cottage 36.90 397
Veranda 1.80 19
(iii) Storeroom 25.90 279
Veranda 1.90 20
(iv) Dog Kennel 2.30 25
(v) Guard House 4.20 45
370.20 3,984
3.12 Condition and State of Repair
As earlier stated, the Report is not the result of a structural or soil survey since such surveys
do not form part of a standard valuation exercise, and are therefore considered to be outside
the scope of our instructions, nor have services and drains been tested. We cannot therefore
give any guarantees in these respects.
However, from the extent of our inspection conducted as described above and which we
considered adequate for purposes of assessing values, we can state that the property and
structures are in fairly good condition and state of repair, with no major structural defects
apparent or signs of mechanical failure, save for minor defects and items of routine repair
and maintenance.The flats are under construction and being constructed to a fairly good
standard of workmanship using permanent materials with no structural defects or signs of
mechanical failure apparent.
4.0 General Remarks
Arelatively spacious site(3,747 square metres or approximately 0.9259 of an acre); and of a

larger size than most properties in this part of Olympia Extension. Fully secured to
boundary by a concrete block wall. Developed with a dwelling house, cottage and ancillary
structures.The house is well constructed, and the accommodation is fitted with good quality
finishes and fittings. Provideswell securedliving and sleeping accommodation. All essential
services are available.
Located in a good part of Olympia Extension; on the corner of two roads, just off
KatimaMulilo Road. Easily accessible and well sought after area. Close to and within short
distances to Manda Hill and Arcades Shopping Centres, public bus routes and other social
amenities. Approximately ten kilometres from the City’s Commercial Centre.
5.0 Bases of Valuation
5.1 Classification of the Property
The property is zoned for residential use, and improvements are designed/developed and
occupied for residential use. The property is therefore is 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, 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 properties include dwelling houses; commercial units such as
office developments, retail centres, warehouses and light industrial properties.
5.2 Valuation Considerations
In selecting the bases of valuation, we have considered various factors, including:-

(i) the location of the property;
(ii) the extent of the site and level of development;
(iii) design of buildings, and layout of accommodation; and condition and state of repair;
(iv) available evidence of sales of similar properties;

(v) demand for development land in general, and residential properties in particular; and
(vi) construction costs and availability of building materials.
In accordance with standard practice, the bases of valuation we have adopted are:-
(i) to assess market value of land and the buildings - comparative method, based on
prices paid for similar properties within the area or similar locations;
(ii) to assess reinstatement cost of the buildings and improvements - estimated

replacement cost on assumption that there is complete destruction; and
(iii) to assess forced sale value for both land and the buildings - estimated restricted
realisation price (based on the market value of land and improvements, but taking
account of a restricted time frame for disposal).
These are defined as follows:
5.3 Open Market Value
An opinion of the best price at which the sale of the leasehold interest in the property would
have been completed unconditionally for cash consideration 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 material circumstances were, on
any earlier assumed date of exchange of contracts, 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.
5.4 Open Market Rental Value
An opinion of the best rent at which a new letting of the accommodation would have been
completed unconditionally for cash consideration on the date of valuation, assuming:-
(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/terms and for the completion of the letting;
(c) that the state of the market, level of values and other material circumstances were, on
any earlier assumed date of exchange of contracts, 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;
(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.
5.5 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 subject 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 will act knowledgeably, prudently and without
compulsion.
5.6 Estimated Reinstatement Cost
The cost of re-constructing buildings and improvements on a site, in the event of destruction,
in a condition equal to but not better or more extensive than the present condition.
Accordingly, our opinion of reinstatement cost assumes complete destruction of the dwelling
house and ancillary improvements; and includes an allowance for site works at a percentage
of building costs. Our opinion does not include allowances for inflation in either building
costs or labour charges. The figure does it take account of costs and fees 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; or be “replaced”
except in instances of land reclamation or the acquisition of an alternative property or site.
6.0 Real Estate Interest Appraised

There is no fee simple or freehold tenure, these having been abolished under the now
repealed Land (Conversion of Titles) Act. Fee simple and freehold tenure were converted to
statutory lease for one hundred years from 1st July 1975. Land is vested absolutely in the
President who holds it in perpetuity for and on behalf of the people of Zambia.
The State now grants leases to leaseholders for specific periods, the most common currently
is for ninety nine (99) years. Any tenancy granted is subject to such reservations,
restrictions, encumbrances, liens, estates and interests as are contained in the lease or
attachments to the Certificate of Title.
Unless the lease is renewed for a further period, the lessee is expected, upon expiry of a term
to peacefully surrender and yield up possession of the land and improvements thereon,
subject (under the Lands Act 1995) to fair compensation being paid for the un-exhausted
improvements. The maximum interest a leaseholder can assign or transfer is therefore the
unexpired period of the lease granted.
Title to Stand No.12528 is a State lease for a period of ninety nine (99) years. In accordance
with current practice and because the Lands Act provides for renewal of leases, it is our
opinion that the registered title holder has a long term leasehold interest and the property has
been valued accordingly.
7.0 Highest and Best Use
The area in which the property is located is primarily designated for residential use and the
subject is zoned according. Improvements on site are developed for dwelling purposes.
Taking into account of the location of the subject property, the extent of the site, design and
use of the improvements, level of development, current planning permission, demand for
residential property in the area, as well as the prevailing state of the economy, we are of the
opinion that residential is the highest and best use for the subject, and we have made the
assessment on this basis.
8.0 Current Status/Facts relating to the property
As requested by the bank, we provide under various sections of the report factual data
relating to the property.
8.1 Description of the Property and Improvements
In Section 3of the report, we have given description of the property, including location,
accommodation, services, floor/site areas (with location and site layout plans). Pictures are
also provided at Appendix III of the report
8.2 Age and Condition of Structural, Electrical and Mechanical components, Types of
Construction and Buildings Economic Life.
8.2.1 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. Observations
made on the buildings review that the property must have an estimate age of 60 years old.
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.
8.2.2 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 land
lords 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, fixture and 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 long time.
9.0 Planning, Highway and Other Statutory Considerations, Potential for Change of Use
9.1 Planning Permission and Building Regulation Approvals

Based on inquiries made, we have assumed that Stand No 12528 is developed in accordance
with relevant planning consents to the full satisfaction of the Planning Authority, and that at
present, there are no planning or other development proposals likely to adversely affect the
property or its present use.
However, if written reassurance is required, we recommend that advice be requested 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.
9.2 Potential for Change of use
We are requested to advise whether there is any significant prospect of or potential for
change of use or other development on the subject or neighboring properties which might
materially affect the market value of the subject property. We believe the effect referred to
can either be positive or negative
Based on the inspections and inquiries made, there appear to be no indications that the
leaseholders intend to change the current use or have plans to undertake other development
that might affect positively or negatively, value of the subject property. In addition, the
location of the property, extent of the site and design of the improvements do not render the
site to have an alternative use which would yield a higher market value than residential. We
are also not aware of any developments in the area which might have a material bearing on
the value of the property.
10.0 Contamination, Pollution and Environmental Considerations
Due to time and cost constraints, we do not, unless specifically instructed, commission as
part of a valuation exercise, investigations into environmental matters or issues of
contamination or pollution, and any observations we may make are expressed strictly on the
basis that we have not undertaken any formal environmental study. In the absence of
appropriate investigations and where there is no apparent reason to suspect potential for
contamination, our valuation is made on the assumption that the property is not affected.
Based on our site visits, we are not aware of the content of any environmental audit or other
environmental investigation or soil survey which may have been carried out on the property
and which may draw attention to any contamination or the possibility of any such
contamination. Further, we have no reason to suspect that the property or adjoining sites
have at any time in the past been exposed to contamination.
In undertaking the valuation, we have assumed that no contamination or potentially

contaminative uses have ever been carried out on the property or on neighboring sites and
have therefore assumed that none exists.
11.0 Highway and other Development Proposals
We made inquiries to establish whether there are major development proposals that might be
undertaken in Olympia Extension, Olympia Park or neighboring areas, and which might
have a material effect on the market value of the property. We have been advised that there
are no major planning or development schemes designated for these areas. In assessing
market value, we have assumed that there are no major planning proposals or developments
which would have a material negative effect on the value of the subject or properties in the
area.
However, we can mention that there is current private sector investment, even though mainly
limited to redevelopment 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 result, market values of property in the area, including the subject will shift upwards
in the future..
12.0 Likely Changes in the Market Value of the Property
When commissioned to assess property for various purposes including loan security, we are
often requested to advise whether the market value of the subject and improvements thereon
is likely to change, either positively or negatively or will remain static. As stated, there is
currently a high demand in Lusaka and nearby areas for all classes of real estate, and in
particular residential and commercial property in easily accessible and prime locations. A
high demand over the past several years compounded by limited supply, has pushed prices
substantially upwards, and high prices continue to be paid for property that become available
for sale.
The land delivery system is extremely bureaucratic, and (despite public concerns) is likely to
remain so for many years to come. Compounded with the high cost of finance, the shortage
of property in general and residential units in particular will persist for the foreseeable future
and in accordance with normal trends, this will lead to increases in prices and rentals, even
under economic difficulties.
Considering demand for residential accommodation in Lusaka generally, the subject’s

location, extent of the site, construction of new double storey flats which are underway, as
well as developments taking place in areas close to Olympia Extension in general and the
subject property in particular, we are of the opinion that market value of the property is
likely to increase or at-least remain stable in the foreseeable future.
13.0 “Hope”, “Marriage” and “Special Purchaser” Values
13.1 Hope Values
Hope value is the element of open market value in excess of the existing use value, and
reflects the prospect of some valuable future uses of the property. As stated earlier,
considering the use for which the property is currently developed, and taking account of
planning requirements, few if any more valuable future uses can be envisaged than the
current use.
13.2 Marriage Value
Marriage value is the latent value which would be realised by the merger or amalgamation of
two or more sites or interest in land. For instance, two adjoining parcels of land may be
worthy more as one property, than the aggregate of their separate of individual values.
The site originally comprised of only one land parcel known as Stand No. 12528. Property
neighbouring the subject are held in private hands and we are not aware of whether owners
would consider reselling the properties or an amalgamation of interest, and we are therefore
unable to comment further on this matter. Even if a merger of the subject and neighbouring
properties were likely, assessment of marriage values would only be possible if both the
subject and neighbouring properties were inspected/ surveyed and then assessed.
13.3 Special Purchaser Value
Special purchaser value is an element of value and above market value (more like a
premium) which a purchaser with a particular interest in the property might be willing to pay
in order to secure the site. For example, the amount by which a special purchasers offer
might exceed offer made by non – special purchasers. We are not aware of any special
purchaser value attaching to the subject now, or likely to arise in the future
14.0 Valuation Methodology
The property which is the subject of the valuation including land and buildings is developed
for residential use, which use we have assumed will continue for the foreseeable future, and
we believe that alternative uses would not yield a higher market value. We have been
instructed to advice on the market value, as well as rental and forced sale value, and
reinstatement cost for insurance purposes.
Starting with the latter, the usual approach to assessment of cost is to establish current costs,
based on the nature of improvements in question. Our approach has been to establish the
type of improvements on site, their design, identify materials used and type of construction
and calculated floor areas. Taking account of changes in construction techniques and the
ease with which building materials and skilled labour can be sourced, we have the applied
current costs to arrive at the total estimated cost as reported.
There are common attributes to the assessments of market and forced sale values, both
assume a one-off transaction between seller and buyer; whereby the seller divests himself or
herself of their leasehold interest in the property.
Assessment of market assumes a normal one-off arms –length transaction, between a willing
seller and willing buyer, with each party acting prudently and not under duress, and whereby
the seller diverts himself or herself of their leasehold interest in the property, in return,
normally for a cash consideration. Under a forced sale scenario, the seller is normally
compelled to sell and 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 the property, by owner to tenant , with the
terms of occupation defined normally in writing (the Lease Agreement) which specifies the
right and obligations of the tenant’s otherwise limited occupation of the property.
There are four approaches which are usually adopted in the assessment of market value;-
(1) Land value by market (sale) Comparison;
(2) Property value by Market Comparison;
(3) Property value by Cost approach; and
(4) Property value by Income approach
Considering the nature and use of the subject, and as it is developed, we are of the view that
approach Nos. 1, 4 and 3 are not applicable methods to be adopted in the appraisal. The
property value by income approach is normally applicable if the property is used an income
generating property. Property value by cost approach would apply in situations where there
is no comparable evidence, for example in the case of specified properties (the subject
comprises standard ware house/workshop structures); the method usually applied as last
resort.Land value by market approach is used in instances where you land is valued as an
asset; you are valuing developmental land, in this case the option is to demolish buildings
for new development.
15.0 Variance between Information Provided and Actuality

Opinion expressed in the report are based on information obtained during our inspection of
the property, and from searches made at the Ministry of Lands, Lusaka City Council as well
as other sources mentioned. Other than the Letter of Instructions, the Bank has not provided
any information. There is no material variance between information we have obtained from
inquiries made and facts relating to the property.
16.0 Opinion of Values
Subject to the foregoing and assumption made, and taking relevant factors into account, we
are of the opinion that for purposes of collateral, values of Stand No.12528,Olympia
Extension, Lusaka would be in the region of:-
(i) Open Market Value: US$284,000(Two Hundred and Eighty FourThousand United
States Dollars)
(ii) Forced Sale Value: US $250,000(Two Hundred and Fifty Thousand United States
Dollars)
(iii) Estimated Reinstatement Cost: US $297,000(Two Hundred and Ninety
SevenThousand United States Dollars)
(iv) Open Market Rental Value: US$2,000 (Two Thousand United States Dollars) in
respect of the Dwelling House, Storeroom and Cottage; excluding the block of flats
which is under construction
17.0 Market Comparable in Arriving at the Rates

In assessing the values, we have considered various transactions. Stand No. 9666, extending
to 0.4869 hectare, and developed with two single storey each three bedroom house, with
basic fittings and finishes, not in a good condition sold at K1,470,000 in September 2014.
Stand No. 1028, Olympia/Roma part double storey dwelling house, with a garage and
swimming pool on a 0.537 acre plot sold for K1,290,000 net of transfer taxes. Stand No.
3701, Olympia comprising a 0.1672 hectare plot with a dwelling house and guest wing
(under construction) reported to have been sold at K1,030,000.
Stand No. 6539 on Katima Mulilo Road, comprising a very old three bedroom house of
basic design, with a servants quarterswas leased at the equivalent of US $1,350 per calendar
month. Stand No. 6488, Olympia/Roma a three bedroom house with a servants quarters
leased at K9,400 per calendar month.
18.0 Date of Valuation

Our opinion of market and other values has been formed as at 5 th November 2015, this being
the date of inspection of the property. The assessment is on the basis of residential use and
on assumption of a clear title and vacant possession.
19.0 Taxes, Legal and Other Charges
We have not made allowances in our assessment for:

(i) any tax or statutory liability, whether existing or which may arise in connection with
the property;
(ii) arrears of ground rent or any charges due under the terms of the State lease; or
arrears of property rates due to the City Council;
(iii) payment of arrears for services supplied to the property, including electricity and
water; and
(iv) legal or other charges which may be incidental to the sale of the subject or settlement
of matters connected thereto.
20.0 Suitability of the Property as Security for Lending Purposes

At present demand for land in Lusaka and areas in close proximity, both for development
sites in general and residential and commercial properties in particular is high. Market
prices continue to be paid for both developed property and vacant or un-developed sites.
Residential properties in Olympia Extension, Olympia Park, Kalundu, Roma Township and
similar areas are in high demand, and for properties such as the subject, up-market prices are
paid by high income groups and business houses.
Based on information obtained during our inspection and inquiries, we can mention that the
registered title holder has security of tenure and holds a long term leasehold interest with an
option to renew.
Situated in an established part of the City, with various social amenities including schools,
clinics, retail shops and public bus routes being in close proximity, renders the property
attractive to high income families.
Searches at the Ministry of Lands and inquiries made at the City Council do not reveal
unusual or onerous restrictions or encumbrances, statutory or otherwise, likely to have an
adverse effect upon the market value; of the property or which could cause difficulties if a
sale was attempted.
The subject is developed with a good and well-constructed dwelling house, which is fitted to
a high standard. This provides well secured sleeping and living accommodation which is in
a good condition. The property is located in an area which is highly sought after by high
income groups.
The subject constitutes a large land parcel(3,747 square metres or approximately 0.9259 of
an acre); which is only partly developed, the site has space for additional improvements
(including the 3No Flats being constructed).
Because of the property’s location, easy accessibility, availability of public services; the
design of the house, quality of the accommodation as well as the shortage of such type of
housing units, the subject would be in high demand and would sell easily in a disposal on the
open market. A period not exceeding three months would be adequate to market, identify a
purchaser and conclude a sale. It therefore provides good security for lending purposes.
21.0 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 and other related
matters summarized in our Report.
These sources include:-

(i) The Owner of the Property;
(ii) Ministry of Lands;
(iii) Lusaka City Council; and
(iv) Property Consultancy Firms and Real Estate Agents.
22.0 Summary of Assumptions and Limitations

Our opinion ofvalues 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 by various parties 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) asoil or geophysical survey of the site or structural survey of buildings is beyond the
scope of our instructions; we cannot therefore give any guarantees in this respect.
(iii) inspection of parts of the property that have not been inspected would neither reveal
material defects nor cause the Surveyor to alter the valuation materially.
(iv) boundaries are established and clearly defined, and there are no encroachments or
boundary disputes with adjoining sites.
(v) the ground has sufficient load bearing strength for the existing structures or any
structures planned or considered.
(vi) buildings and improvements are constructed in accordance with valid planning
consents, fire and building regulation approvals to the full satisfaction of the
Authorities concerned.
(vii) a good and marketable title can be shown; and that the property is not affected by
unusual or onerous restrictions, encumbrances, covenants or outgoings likely to have
an adverse effect upon the value of the premises;
(viii) all documentation relating to the property is satisfactorily drawn and there is not
material litigation pending;
(ix) no deleterious or hazardous materials or techniques were used in the construction of
the property or have since been incorporated.
(x) no contamination or potentially contaminative uses have ever been carried out on the
property.
(xi) an appropriate and adequate policy has been taken, and that there are no acts or
omissions on the part of the insured or the occupant of the premises which would
render the policy void or voidable.
We wish to mention that we are not aware of any variance between the information we have
obtained from 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 the
Property, Lusaka City Council, Property Consultancy Firms and Real Estate Agents 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 owner of the
property accordingly.
23.0 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.
24.0 Certification
I, MusondaSakeniKASASE, do hereby certify as follows:-
(a) that we have inspected the property and considered relevant factors affecting its
market and other values;
(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; and
(c) 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.
25.0 Confidentiality
The Report and opinion of values given, are provided for the stated purpose and for the sole
use of Barclays Bank Zambia Plc. The information is confidential to the Bank and Danait
Transport Limited theirprofessional advisers in this matter. Consequently, Anderson +
Anderson Valuation Surveyorsand its employees accept no responsibility whatsoever to any
third party for any loss, direct or consequential, which might arise from reliance on the
document or any part of its contents.
However, if our opinion of values is disclosed to persons other than the Addressees, then the
bases of valuation and assumptions contained in the Reportshould also be disclosed in full.
Yours faithfully
ANDERSON + ANDERSON VALUATION SURVEYORS
M. S. Kasase
PRINCIPAL CONSULTANT

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

Acting Head – Risk Control Unit, Corporate Credit Team

Re: VALUATION OFSTAND No. 12528,OLYMPIA EXTENSION, LUSAKA

1.1 Purpose of Valuation

1.2.1 Opinion on values

(vii) valuation methodology and assumptions made; and

1.2.2 Current status and factual data

provide details and comments on various matters, including:-

(iii) condition and state of repair of buildings and improvements;

(vii) environmental issues including contamination, either on the subject site or on an

(viii) whether the property is in an area prone to flooding.

1.3 Property and Assets Valued

1.4 Format of the Report

1.5 Inspection of the Property

1.5.1 Date of Inspection

1.5.2 Extent of the Inspection

1.5.3 Floor Areas

1.5.4 Property Boundary

1.6 Site Plan and Pictures of the property

1.7 Land Use Classification

1.8 Tenure and Ownership

1.9 City Council Rating Assessment

1.10 Opinion of Values

Assessments Opinion of Values

(i) Opinion of market rental value is US$2,000(Two Thousand United States

(ii) The assessment of reinstatement cost is restricted to buildings and improvements,

1.11 Date of Valuation

M. S. Kasase, MSc, FRICS, IRRV, FIG, PPSIZ, MZIEA

2.0 Executive Summary

2.2 Site and Fencing:

2.3 Land Use Classification

2.4 Title andOwnership

2.6 Council Rating

3No Flats (under construction, building work is at foundation level).

2.9 Condition and State of Repair

3.0 Detailed Description of the Property

3.2 Legal Description

3.3 Site and Fencing

3.4 Land Use Classification

3.5 Title, Ownership and Occupation

3.6 Mortgages and Caveats

3.7 CityCouncil Rating Assessment

3.9 Buildings and Improvements

(i) Dwelling House

3.10 Brief Description of Buildings and Accommodation

(i) Dwelling House

Single storey and constructed of a hipped/ridged roof of corrugated asbestos sheets

Internal fittings and finishes include tongue-and-groove timber and soft-board

Accommodation comprises a self-contained main bedroom, second self-contained

(ii) 3No Flats

Under-construction,work is at foundation level. Designed to be double storey, and to

Ridged roof of corrugated asbestos sheets on timber trusses and purlins.Timber

Accommodation comprises two bedrooms, living room, kitchen, pantry,

Ridged roof of corrugated asbestos sheets on timber trusses and purlins.Timber

(v) Dog Kennel

Erected against boundary wall, of a lean-to roof of corrugated asbestos sheets on

(iv) Guard Room

Erected against boundary wall, of a monopitched roof of corrugated asbestos sheets

3.11 Floor Areas

Calculated on a gross external basis, floor areas are as follows:-

Buildings/Accommodation square metres square feet

3.12 Condition and State of Repair

4.0 General Remarks