CENTRE OF STUDIES FOR ESTATE MANAGEMENT

DEPARTMENT OF BUILT ENVIRONMENT STUDIES AND TECHNOLOGY

FACULTY OF ARCHITECTURE, PLANNING, AND SURVEYING
UNIVERSITI TEKNOLOGI MARA, PERAK BRANCH, SERI ISKANDAR CAMPUS

INDIVIDUAL ASSIGNMENT FOLDER

Name MUHAMMAD IKMAL DANIEL BIN MOHD HAMIDI

Supervising Lecturer: SITI NADIAH BINTI MOHD RAMLI

Course Code/Name : REM350 INDUSTRIAL TRAINING

Programme : AP115 DIPLOMA IN ESTATE MANAGEMENT

Assignment Title QUESTION 1 – REPORT AND VALUATION OF PETROL STATION.

THE VALUATION PROCESS, CHALLENGES AND THE OPINION
OF VALUE.

Submission Date 25 JULY 2023

Signature : Daniel
DECLARATION :
I declare that no part of this assignment has been copied from other person’s work except where due
acknowledgement is made in the text, andno part of this assignment has been written for me by any
other person except where such collaboration has been authorised by the lecturer concerned.
A lecturer/tutor has and may exercise a right not to mark this assignment if the above declaration has
not been signed.If the above declaration is found to be false, no mark will be awarded for this
assignment
 TABLES OF CONTENT

1. BEFORE INSPECTION 3
2. SUBJECT OF VALUATION 5
3. PURPOSE OF VALUATION 5
4. DATE OF VALUATION 6
5. DEFINITIONS OF VALUE 6
6. PARTICULAR OF TITLE 7
7. LOCATION 8
8. DURING INSPECTION 9
9. DESCRIPTION OF THE PROPERTY 11
10. OBSERVATION 17
11. NEIGBOURHOOD 20
12. AFTER INSPECTION 21
13. SERVICES 23
14. PLANNING 23
15. METHOD OF VALUATION 24
16. EVIDENCE OF VALUE 25
17. VALUATION 26
18. APPENDICES 27
19. CHALLENGES FACED 36

2
Before Inspection

Valuers use the examination as a systematic method of gathering information about the target
property. The three main stages of valuation work are before inspection, during inspection, and
after inspection. The tasks that need to be finished before the inspection are listed below:

Received Instruction
from client

Registered case

Quotation (Professional
Valuation Fee)

Assignment

Title Search

3
1. Receive instruction from client

 Our client which is Malaysian Industrial Development Finance Berhad instruct us to do valuation
on the subject property.

2. Registered case

 The case will be registered on Valuation Information Management System (VIMS).

3. Quotation (professional valuation fee)

 We will ask the client to pay the fee after the quotation is prepared. Client also required to pay the
deposit if not ready to made full payment. The payment is important because the valuation will
not proceed if client still not make payment.

4. Assignment

 Valuer will obtain information about the subject property such as the Sale and Purchase
Agreement and land title.

5. Title search

 The title search is needed in order to proceed the valuation. Title search can be obtained on the
website (smartbox.my).

4
1. SUBJECT OF VALUATION : The subject property comprises a leasehold
interest in a parcel of petrol station building land
identified as Lot 45711, PN 47877, Pekan Baru
Sungai Buloh, District of Petaling, Selangor
Darul Ehsan hereinafter referred to as the
subject property.

We have been duly instructed by MALAYSIAN

INDUSTRIAL DEVELOPMENT FINANCE
BERHAD to value the subject property with the
following assumption:-

(a) the site has been approved, converted to a

petrol station use with a conversion
premium and other relevant fees paid;

2. PURPOSE OF VALUATION : The valuation is intended for internal

management purposes.

5
3. DATE OF VALUATION : The subject property was inspected Muhammad
Ikmal Daniel bin Mohd Hamidi and Puan
Liyana Binti Azhar on 1st June 2023.

For the purpose of this valuation, the date of

inspection is to be taken as the date of valuation.

4. DEFINITIONS OF VALUE : “Market Value” the estimated amount for

which an asset or liability should exchange on
the valuation date between a willing buyer and
a willing seller in an arm's length transaction
after proper marketing and where the parties had
each acted knowledgeably, prudently and
without compulsion.

6
5. PARTICULARS OF TITLE : Brief particulars of the title document as
extracted from a search conducted at
the Selangor Registry of Land Titles,
Selangor Darul Ehsan, on 8th May 2023 are
as follows:-

LOT NO. : Lot 45711

TITLE NO. : PN 47877

TOWN : Pekan Baru Sungai Buloh

DISTRICT : Petaling

STATE : Selangor Darul Ehsan

TENURE : Leasehold interest for 99 years expiring on 15

June 2102 (It has an unexpired term of about
80 years)

CATEGORY OF LAND USE : Bangunan

REGISTERED LAND AREA : 2,929 square metres

(Approximately 31,527 square feet)

ANNUAL RENT : RM6,459.00

REGISTERED OWNER : PELARIS CHROME SDN. BHD.

(COMPANY NO. 220840-H) – 1/1 SHARE

EXPRESS CONDITIONS : Bangunan perniagaan

RESTRICTIONS IN INTEREST : Tanah yang diberi milik ini tidak boleh

dipindah milik, dipajak atau digadai melainkan
dengan kebenaran Pihak Berkuasa Negeri

ENCUMBRANCES : The subject property is currently charged to

Malaysian Industrial Development Finance
Berhad (Company No. 3755-M) vide
Presentation No. 48675/2016 dated 3 June
2016

ENDORSEMENTS : Pindaan Cukai Tanah vide Presentation No.

155767/2016 dated 14 April 2016

7
6. LOCATION : The subject property is a SHELL Petrol Station
located nearby the intersection of Persiaran
Mahogani and Jalan Kenyalang 11/14.

Geographically, it is located about 18

kilometres to the north-west of Petaling Jaya
city centre.

Access to the subject property from the

abovementioned city centre is possible via
Jalan Yong Shook Lin, Jalan Selangor, Jalan
Sultan, Jalan Barat, Federal Highway, SPRINT
Expressway, Jalan Damansara, Damansara –
Puchong Expressway, Persiaran Surian,
Persiaran Mahogani, Jalan Kenyalang 11/14
and finally turn left, to where the subject
property is sited.

8
During Inspection

The methods that must be followed during the site inspection are as follows: valuers must
conduct an appropriate examination and review of the property to be valued, as well as gather
and compile every relevant detail about the property in order to arrive at a rationalised valuation.

Arriving to the inspection

site

Referring to the valuation

inspection checklist

Sketching the layout plan

and measure the floor area

Identification of the building

material and finishing

Taking photographs of the

subject property

Inspection of the surrounding

and neighbourhood area

9
1. Arriving to the inspection site
 Valuer must prepare the inspection tool such as measuring laser to measure floor area,
paper and pencil to sketch, camera for photographs and more.

2. Referring to the valuation inspection checklist

 The checklist is the list of what we need to obtain during the inspection such as the
building material and finishes, building floor area, the neighborhood and surrounding and
more.

3. Sketching the layout plan and measure the floor area

 Valuer will sketch the whole floor and layout plan including the Main Floor Area (MFA)
and Ancillary Floor Area (AFA) and take the measurement on each side.

4. Identification of the building material and finishing

 The building finishing such as floor finishing are the things that valuer must jot down
during the inspection. In addition, valuer must take the photographs on the whole
building including the interior and exterior. Hence, we need to take note on how much is
the pump for petrol and diesel for the subject property.

5. Inspection of the surrounding and neighborhood area

 After finish the building inspection, we need to inspect the surrounding area and
neighborhood. Furthermore, valuer must look for the competitor’s building and
surrounding as well.

10
7. DESCRIPTION OF PROPERTY : Site

The subject site is a plot of building land which

is trapezoidal in shape, flat in terrain and lies on
the same level with the frontage road.

The subject property contains a registered land

area of 0.724 acre or 2,929 square metres
(approximately 31,527 square feet).

Buildings

Erected upon part of the site is SHELL Petrol

Station together with other related buildings and
facilities.

From our observation, we noted that the

buildings are still operation and well
maintained.

We estimate that the Main Floor Area (MFA)

of the building is approximately 234.3 square
metres or 2,522 square feet whilst the
Ancillary Floor Area (AFA) is approximately
464.98 square metres or 5,005 square feet

Detail of the buildings and other facilities are as

follows:-

11
 i) Convenient shop cum office Building

The building is basically constructed of

reinforced concrete frameworks, plastered
brickwall and covered over with spandex
roofing laid over steel trusses and purlins.

The main entrance to the shop is of dual leaf

frameless glass panel type whilst other
internal doors are timber flush type.

The floor finishes are of ceramic tiles,

homogenous tile and cement rendered.

Other services provided at the petrol station

are such as follows:-

i) Convenience shop
ii) Store
iii) Air pump
iv) Water taps
v) Toilet

12
 ii) Surau, Refuse chamber and Compressor
room

The building is basically constructed of

reinforced concrete frameworks, plastered
brickwall supporting roof trusses covered
with metal deck.

The doors generally of timber flush type for

surau whilst for refuse chamber and
compressor room is metal louvered.

The floor finishes are of ceramic tiles, and

cement rendered.

13
 iii) Fueling Section consists 6 units of pump
island
This section is sited annexed to the front of
main office building and convenience shop
of these petrol station.
We noted the total pump island is 6 units as
follows:

Pump 1 : 6 nozzle
- 4 Petrol
- 1 Diesel
- 1 Euro diesel
Pump 2 : 6 nozzle
- 4 Petrol
- 1 Diesel
- 1 Euro diesel
Pump 3 : 4 nozzle
- 4 Petrol
Pump 4 : 4 nozzle
- 4 Petrol
Pump 5 : 6 nozzle
- 2 Petrol
- 2 Diesel
- 2 Euro diesel
Pump 6 : 6 nozzle
- 2 Petrol
- 2 Diesel
- 2 Euro diesel

14
 The floor for this section is finished with
premix concrete.
iv) 5 unit of underground tank

The separated underground tank for three

(3) units for petrol, one (1) unit for Euro
diesel and one (1) unit for diesel.

Additional physical description and

relevant information of the subject site is
listed as follows:

Description Remarks
1. Visibility Good
2. Sewerage / Drain Available
3. Fire Hydrant Available
4. Bus stop No
5. TNB Post Available
6. Telekom Post Available
7. Lamp Post Available

At the date of inspection, we noted that the

building is well maintained and in active
operation.

15
 Satellite View of Subject Property

General View of Subject Property

Shell Petrol Station, Lot 45711, Persiaran Mahogani, Seksyen 11, Kota Damansara,
47810 Petaling Jaya, Selangor Darul Ehsan

16
8. OBSERVATION : The subject property is located at the intersection
between Persiaran Mahogani and Jalan
Kenyalang 11/14.

Observation on the subject site.

The surrounding area is a residential surround

with settlement area.

The primary destinations for the area is Seksyen

11, Kota Damansara which is about 1 kilometres
from the subject property. Persiaran Mahogani is
the main road access from the subject property to
the Seksyen 11 Kota Damansara, which is known
for administrative centre area.

From our survey and observation, we noted that

there are six (6) competitors petrol station in
operation within 5 kilometres radius of the
subject property.

As a result of the above situation, it seems to be

that the site is fine catchments as at present the
number of motorists plying the route through
Persiaran Mahogani lead to various commercial
and administration facilities within Kota
Damansara and its surrounding.

The details of the stations and Competitor’s

Oulet Plan are as attached overleaf

17
 ITEM COMPETITOR’S COMPETITO COMPETITOR’S COMPETITOR COMPETITOR’ COMPETITOR’
1 R’S 2 3 ’S 4 S5 S6

Petrol Station Petronas Kota Shell Persiaran Petronas Kota Shell Persiaran Shell Persiaran Shell Jalan
Damansara 2, Surian, Kota Damansara, Sungai Buloh Jati, Kota Cecawi,
Petaling Jaya Damansara Petaling Jaya Damansara Persiaran Surian,
Kota Damansara
Tanks 4 Petrol and 1 5 Petrol and 2 4 Petrol and 1 3 Petrol and 1 3 Petrol and 1 3 Petrol and 1
(Petrol/Diesel) Diesel Diesel Diesel Diesel Diesel Diesel

3 (2) Petrol 6 (4) Petrol 3 (6) Petrol/Diesel 6 (6) 3 (4) Petrol 3 (4) Petrol
Pump Islands 3 (2) Petrol/Diesel 1 (2) Diesel 3 (2) Petrol/Diesel Petrol/Diesel 1 (6) Petrol/Diesel 4 (6) Petrol/Diesel
(Hoses) 1 (2) Diesel 1 (2) Diesel

24 Hours No Yes No No No No
Services

Facilities  Convenient  Convenient  Convenient  Convenient  Convenient  Convenient

shop shop shop shop shop shop
 KFC  Car wash  A&W  Costa coffee  Costa coffee  Costa coffee
 McDonald’s  Burger king  Tealive

Photograph

18
 Competitor 5

Competitor 4

SUBJECT PROPERTY

Competitor 6

Competitor 1

Competitor 3

Competitor 2

19
9. NEIGHBOURHOOD : The locality within which the subject property is
sited is generally of residential schemes such as PJU
5 Kota Damansara, Seri Utama Damansara,
Seksyen 4, Seksyen 5, Seksyen 6 and Seksyen 7 of
Kota Damansara and Taman Rimba Riang.

Notable landmarks within the vicinity include

Thomson Hospital Kota Damansara, Sunway Giza
Mall, Tropicana Gardens Mall, Kelab Golf Seri
Selangor, MRT Kota Damansara (KG06), Station,
SEGi University & College Kota Damansara, NSK
and Giant Hypermarket Kota Damansara.

Other petrol stations which compete with the

subject property include Petronas Kota Damansara,
Petronas Kota Damansara 2 Station, Shell Persiaran
Jati Kota Damansara, Shell Jalan Cecawi and
SHELL Pusat Bandar Sungai Buloh.

The local centre for the area is Bandar Utama whilst

the main trading centre is Petaling Jaya city centre
located about 18 kilometres to the south-east of the
subject property.

Facilities that are available within the said centre

include banking, shopping, educational, marketing,
medical, entertainment and other public amenities.

20
After Inspection

After the inspection procedures are over, it is crucial for the valuer to take all necessary actions
to gather all the data gathered during the valuation process. The steps that must be taken during
the post-inspection are as follows:

Prepare the report

Type report valuation

and Insert photos / plan

Edit report

Final print and binding

report

Invoice

Check / Approve

Signing by registered
valuer

Delivery to client

21
1. Prepare the report
 All the information gathered during the inspection is being transferred into
Valuation Information Management System (VIMS) as a first step to make a
valuation report.

2. Type report valuation and insert photos/plan

 Valuer will type the valuation report by adding the information that could not be
generated by VIMS such as neighborhood, surrounding, direction, all the
photographs, location plan, layout plan and site plan.

3. Edit report
 To prevent any mistake before printing the valuation report, it will be double-
checked and valuer will edit if there is any correction.

4. Final print and binding report

 After valuer satiesfied with the valuation report and there is no more error, the
valuation report will be printed and binded.

5. Check/approve
 The finalised valuation report will be checked by the Registered Valuer. This is
the important stage because if there is any error made by the valuer, action will be
taken by the Board.

6. Signing by Registered Valuer

 If the valuation report is approved by the Registered Valuer, it will be signed as
an approval and indication that the valuation report is complete and perfect.

7. Delivery to client
 The last step is to deliver the completed valuation report to the client which is to
Malaysian Industrial Development Finance Berhad. The valuation report will be
picked up by the courier.

22
10. SERVICES : Essential public utilities such as mains water and
electricity supply are connected to the subject
property.

Transportation facilities in the form of buses and

taxis are available within the main road.

Public amenities and services such as refuse

collection, street lightings, road maintenance and
upkeep are provided by the Majlis Bandaraya
Petaling Jaya (MBPJ).

11. PLANNING : The subject property is designated for commercial

use.

23
12. METHOD OF VALUATION Comparison Method

We have adopted the Comparison Approach in the

valuation of the subject property.

In this approach the sales and listings of

comparable properties recorded in the area are
compiled. From the compiled data adjustments are
made between the subject property and those
properties regarded as comparable in order to arrive
at a common denominator.

The adjustments made are in relation to location,

size and shape of the lot, physical features, legal and
legislative constraints, time element and other
factors that may affect the value of the subject
property.

Cost Method

In the Cost Method, the values of the land and

building are separately determined and a summation
of these values is taken to be the Market Value of
the Subject Property.

The value of the land is arrived at by the

Comparison Approach whilst the value of the
building is established by the Depreciated
Replacement Cost Method.

24
13. EVIDENCE OF VALUE : We have investigated the local and neighborhood
market situation in order to determine the Market
Value and rental per month of the subject property.
From our investigations, we noted that comparable
properties have been transacted as follows :-

The above price range is attributable to the location, condition of the property, legal and
legislative constraints and other relevant factors.

25
14. VALUATION : Premised on the foregoing we are of the opinion that
the Market Value of the subject property identified
as Lot 45711, PN 47877, Pekan Baru Sungai
Buloh, District of Petaling, Selangor Darul Ehsan,
free from encumbrances and subject to the title being
good, marketable and registrable is RM15,000,000/-
(RINGGIT MALAYSIA : FIFTEEN MILLION
ONLY).

We assess the Forced Sale Value of the subject

property at RM12,000,000/-(RINGGIT
MALAYSIA : TWELVE MILLION ONLY).

Daniel

MUHAMMAD IKMAL DANIEL BIN MOHD

HAMIDI
REGISTERED VALUER - V258

26
APPENDIX A

27
APPENDIX B

SITE PLAN

NOT TO SCALE SHELL PETROL STATION, LOT 45711,

PERSIARAN MAHOGANI, SEKSYEN 11,
KOTA DAMANSARA,
47810 PETALING JAYA, SELANGOR
DARUL EHSAN

28
 SITE PLAN

NOT TO SCALE SHELL PETROL STATION, LOT 45711,

PERSIARAN MAHOGANI, SEKSYEN 11,
KOTA DAMANSARA,
47810 PETALING JAYA, SELANGOR
DARUL EHSAN

29
APPENDIX C

FLOOR PLAN

NOT TO SCALE SHELL PETROL STATION, LOT 45711,

PERSIARAN MAHOGANI, SEKSYEN 11,
KOTA DAMANSARA,
47810 PETALING JAYA, SELANGOR
DARUL EHSAN

30
APPENDIX C

FLOOR PLAN

NOT TO SCALE SHELL PETROL STATION, LOT 45711,

PERSIARAN MAHOGANI, SEKSYEN 11,
KOTA DAMANSARA,
47810 PETALING JAYA, SELANGOR
DARUL EHSAN

31
APPENDIX C

FLOOR PLAN

NOT TO SCALE SHELL PETROL STATION, LOT 45711,

PERSIARAN MAHOGANI, SEKSYEN 11,
KOTA DAMANSARA,
47810 PETALING JAYA, SELANGOR
DARUL EHSAN

32
APPENDIX C

FLOOR PLAN

NOT TO SCALE SHELL PETROL STATION, LOT 45711,

PERSIARAN MAHOGANI, SEKSYEN 11,
KOTA DAMANSARA,
47810 PETALING JAYA, SELANGOR
DARUL EHSAN

33
LAND AREA

31,527 sqft @ RM375 psf

Total Land Value RM11,822,625

BUILDING VALUE

Area (sqft) Installation year Cost (RM) Depreciation Value

MFA
Convenience shop 1638 2018 300 10% RM442,260
Office 324 2018 325 10% RM94,770

Surau/toilet 560 2018 250 10% RM126,000

RC/CR 88 2018 200 10% RM15,840

AFA
Forecourt/ Canopy 5005 2018 180 10% RM810,810
Premix - Driveway 10,000 2018 50 10% RM500,000

RM1,989,680

34
 Other Equipment
Pump island RM150,000 6 unit 15% RM765,000
Underground Tank (36,000 litres) RM160,000 2 unit 15% RM272,000
Underground Tank (27,000 litres) RM140,000 1 unit 15% RM119,000
Underground Tank (18,000 litres) RM120,000 2 unit 15% RM204,000
Signages RM30,000 1 unit 10% RM27,000
Air Pump RM25,000 1 unit 10% RM22,500

RM1,409,500

Total value RM3,399,180

Say RM3,400,000

MARKET VALUE RM15,222,625

Say RM15,000,000

Assumption :-

 Assuming the land value per square feet from range of comparable evidence (RM252.50-RM401.13)
 Assuming the building cost from interview with the manager
 Assuming the depreciation 10% for building and 15% for pump island and underground tank.

35
Challenges faced during the valuation process

 Lack of data and information

Due to a lack of transaction data and resources, obtaining reliable proof from JPPH may
be challenging. This is because the proof must be less than two years old and within a
five-kilometer radius of the relevant property. Furthermore, the qualities of the evidence,
such as market value, land area, and tenure, must be related to those of the subject
property, or an adjustment must be made.

Besides, some aspects of appraisal call for knowledge that is beyond our area of
expertise. We require in-depth investigation or expert assistance. For instance, when
employing the cost technique of valuation, valuers are not experts in calculating
construction costs. For large or complex properties, the client should ideally present a
qualified report from a quantity surveyor. I had to speak with friends who work for
construction and quantity surveying companies. There were not price comparison
websites like the ones you have now. Every method of valuation has its own restrictions,
thus it's critical to have a discussion about these issues.

 Compliance from the client

Because I am an intern with no professional credentials, it is difficult for me to win the
client's trust and compliance. When I tried to contact the customer to learn more about
the subject property, they constantly denied my calls and emails. It's because I require
specific information and facts to complete this case. As a solution, I have to ask my
officer to contact the customer on my behalf because they only work with those who have
an official qualification.

 Valuation time period

For this company, the valuation report must be completed within 14 working days.
Handling numerous properties at once while meeting tight deadlines can be exhausting
because gathering all of the essential information takes time. In some cases, the valuer

36
must complete the assessment report the following day. Time constraints may have an
effect on valuation accuracy.

37