Protected Collateral Value : an Approach to Valuation of Commercial Properties for Loan Guarantees

• Autorzy: Lutemberg Florêncio , Claudio Tavares de Alencar
• Języki publikacji: EN

Abstrakty

EN

The valuation of commercial properties for the guarantee of loans is extremely relevant for financial institutions, since it directly impacts the calculation of the loan to value ratio (LTV). However, despite the vast literature on the subject, the choice of methodological basis and the definition of the type of value to be employed are not pacified issues among researchers and practitioners. In this sense, the main objective of this paper is to present a methodological approach, as well as a suggestion of the type of value for the valuation of commercial properties bound collateral. The main methods and types of values related to the valuation of bound collateral commercial properties are presented below. Next, we propose a refinement of the income method, based on the concept of the value of the investment opportunity and under the principle of value at risk. Finally, we promote a case study with data from the Brazilian market to illustrate the application of the proposed approach. Based on the case study, it was evidenced that the valuation approach proposed in this paper, anchored in the potential of the income generation of the property, reduces the risk of exposure to banks' credit. (original abstract)

Słowa kluczowe

EN

Real estate valuation; Value at Risk Analysis; Credit guarantee

PL

Wycena nieruchomości; Analiza wartości zagrożonej; Gwarancje kredytowe

• Czasopismo: Real Estate Management and Valuation
• Rocznik: 2020
• Numer: vol. 28, iss. 3
• Strony: 1--11

Twórcy

autor

Lutemberg Florêncio

• University of São Paulo

autor

Claudio Tavares de Alencar

• University of São Paulo

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Identyfikatory

DOI

doi.org/10.1515/remav-2020-0019