A Rural Jigsaw:Traditional and newchallenges to valuationand estate management:trees, energy andecosystem servicesCharles ...
Valuation of trees foramenity and relatednon-timber uses•   RICS Guidance Note•   Part of the Red Book suite•   Guidance o...
The Red Book•   RICS Valuation Standards•   Suite of:     – Practice Statements     – Guidance Notes     – Information Pap...
Why?• The need to value trees  for various  requirements• Emergence of various  methods• Need for guidance on  their relat...
How?Valuation Basics:• Methods• Skills and knowledge• Terms of engagement• Specific information which   may be needed• Val...
How?The Facts• Site and legal interest• Statutory designation and  other forms of protection• Current and proposed site  u...
METHODS          Charles Cowap          MBA MRICS FAAV
Tree valuation is big newsBig figures are touted to end the chain saw massacre                                            ...
1. CAVATCapital Asset Value for AmenityTreesChris Neilan                                  Charles Cowap                   ...
CAVATCapital Asset Value for AmenityTrees• Basic value: unit value x size• Community Tree Index Value: population, use,  a...
How CAVAT (probably) worked:Tree Diameter of 184 cm x Unit Value Factor of £13.18     £350,285Community Tree Index Factor ...
2. Amenity Valuationof Trees &WoodlandsDR Helliwell                       Charles Cowap                       MBA MRICS FAAV
HelliwellUnit value per individual tree, 1.6.08                            £25Size of crown, 200 sq m: score 8 (max)      ...
3. Guide for PlantAppraisalCTLA                     Charles Cowap                     MBA MRICS FAAV
CTLA is not a method, but a bodyPublishing guidance on both Replacement Cost Methods…                                     ...
…and Cost of Cure methodsValue may be optimised without full replacement (cf Macklin)                                     ...
Charles CowapMBA MRICS17          FAAV
Species    XConditionX Location Charles Cowap MBA MRICS18           FAAV
CTLAInstalled cost for 184 cm diameter tree @ £12.55/sq            £333,541cm (unit rate)Environmental adaptability: v sui...
One Tree• 3 Values?• £38,400• £75,000• £750,000            Charles Cowap            MBA MRICS20                      FAAV
• Helliwell: Visual Amenity Valuation• CAVAT: Management of trees as public assets  rather than liabilities, value directl...
COMPARISON• A standard unit is weighted (multiplied) for various factors• Nil value is possible• Negative value is impossi...
APPLICATION?• Assessment of Worth (investment value)• Compensation claims   – Damages   – Compensation on compulsory purch...
FORMING A VIEW• The need to ‘stand back’ and judge ‘reasonableness’• Bryant and Macklin (2005)   – Cost of replacement (DR...
Renewable EnergyValuation•   RICS Information Paper•   Part of the Red Book suite•   Guidance on the valuation of    Renew...
Scope•   Landlord’s Interest•   Owner-operator’s interest•   Separately identified asset•   As part of a larger asset, eg ...
Adapting ValuationPrinciples andMethods•   Direct Comparison and the    problems of unique    differences•   Some use for ...
Investment Method•   Assessment of Rent Levels•   Reversionary Aspects•   Layered Rents•   Choice of All Risk Yield(s?)•  ...
Layered RentsLayered Rent               Different Risk                   Rates?                                What happen...
Profits Method•   Identify a separate rental    income stream for separate    capitalisation?•   Arms’ length?•   Veracity...
DepreciatedReplacement Cost•   Extreme caution!!•   Depreciation rates?•   Relationship to market or    other basis of val...
Residual Method•   All the previous problems …•   Plus Developer’s Profit•   Uncertainties over planning,    grid connecti...
DCF Methods•   In practice widely undertaken    for larger developments•   Market Value??•   Appraisal of worth to investo...
BACK TO BASICS•   Purpose of Valuation•   Scope of investigations to be undertaken•   Assumptions and Special Assumptions•...
Clients             Purposes                                              Valuation Methodology                           ...
REPORTING• Rationale for chosen method(s)• Detailed consideration of instructions,  assumptions, sources and reliability, ...
Some Common Issues•   Development Proposals for    new Sites•   Hope Value•   Operator Risk•   Complex lease or agreement ...
Some Common Issues•   Reporting Requirements•   Detailed instructions•   Market evidence                             Charl...
Investment Example    10 ha site for 7 wind turbines on 28 year lease, 3 years expired    Turbines: 7 x 2.3 MW x 27% capac...
BASIC RENTTerm: 11 years remainingRent                        7,000YP for 11 yrs @ 8%          7.139   49,973Reversion:Ren...
TURNOVER RENTTurbines                      7Installed capacity          2.3Capacity Factor           0.27£/MWh            ...
REVERSION TO FARMLAND10 ha @ £2,000             20,000PV of £1 in 25 yrs @ 3%     0.478        9,560                      ...
SUMMARYBase RentTerm                  49,973     3%Reversion             31,030     2%                      81,003     5%T...
WIDER VALUATION ISSUES .....•   Worth and Value in Use v Market Value and Value in Exchange v    Fair Value•   Valuation a...
Find out more …..www.rics.orgRural e-newsFarmland Market, Autumn 2011   edn.                               Estates Gazette...
New land managementRequirements are emergingNew marketsNew challenges toprofessional practice                        Charl...
Peat’s Story               Charles Cowap               MBA MRICS FAAV
Charles CowapMBA MRICS FAAV
Wimbleball Resr &Context: Exmoor example             R Haddeo                         R Exe    Exmoor             R Barle ...
Top 10 Business Opportunities1= Biodiversity Offsetting (BDO) andConservation Banking• Estimated size of market £50 – 300 ...
2. Woodfuel and Woodburning Stoves3. UK ecosystem knowledge economy4. Layered PES   – Different Environmental Services    ...
6. Carbon sequestration7. Sustainability certification   – Opportunities for      intermediaries8. Sustainable tourism    ...
9= Global centre of excellence inESS certification9= Water re-use technology11 Reducing insurance risk   through green inf...
NEW VALUATIONREQUIREMENTS AREEMERGING                   Charles Cowap                   MBA MRICS FAAV
Charles CowapMBA MRICS FAAV
Charles CowapMBA MRICS FAAV
SOME WORK HAS BEENDONE ALREADY                     Charles Cowap                 MBA MRICS FAAV
Charles CowapMBA MRICS FAAV
Charles CowapMBA MRICS FAAV
Charles CowapMBA MRICS FAAV
We face challenges to valuationECONOMIC APPRAISAL                                  Charles Cowap                          ...
Charles CowapMBA MRICS FAAV
And NowECOSYSTEM SERVICES                     Charles Cowap                     MBA MRICS FAAV
Charles CowapMBA MRICS FAAV
Charles CowapMBA MRICS FAAV
ECOSYSTEM SERVICES   Charles Cowap   MBA MRICS FAAV
From TEEB Foundations, Chapter 5APPROACHES FOR THEESTIMATION OF NATURE’SVALUES                                   Charles C...
Market             Contingent           Cost      Analysis            Valuation          Methods                          ...
ValuationWHERE DOES IT FIT?                     Charles Cowap                     MBA MRICS FAAV
Foresight Land UseFutures 2010                     Charles Cowap                     MBA MRICS FAAV
Key Questions for RICS•   Is this anything to do with us?•   Our Public Interest Function    in this area?•   Our Member S...
Thinkpiece•   Royal Charter     – Promote the usefulness       of the profession to public       advantage•   New opportun...
And we should offer:•   Our expertise•   In Land Tenure and its    relationship to land    management and    development• ...
Keeping up with latest RICS Developments                                  Renewables                                   Val...
Web Classes              Charles Cowap              MBA MRICS FAAV
Questions?             Charles Cowap             MBA MRICS FAAV
Charles CowapMBA MRICS FAAV
Contact DetailsTranslating new knowledge for rural professional practice             cdcowap@gmail.com             07947...
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Rural Jigsaw: conventional and unconventional valuations of amenity trees, renewable energy and new challenges for land agents

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Slides for RICS Wales Rural Conference at Llandrindod Wells on 4 December 2012. Covers Vauation of trees for amenity purposes, valuation of renewable energy installations and the importance of Ecosystem Services (and their valuation) to future rural professional practice

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  • Introduce concept of RICS Guidance Note and stress relationship to Red BookCoverage of valuation of trees and groups of trees.Although the scope of the published guidance is the UK, it has attracted interest from abroad, notably USA.
  • Reminder of what the Red Book is
  • RICS has prepared new guidance note because trees have to be considered in relation to property value in a variety of situations.Against this background, various methods have emerged in recent years.But the relationship between these methods and long-established principles and methods of property valuation is far from clear. The Guidance Note therefore seeks to bridge this gap.
  • Guidance note addresses some basic points that apply to all property valuations, as listed.In particular, the need to establish the purpose and BASIS of valuation.Also note the comments in the guidance on skills and knowledge. Red Book PS 1.5 requires valuer to have the necessary skills and knowledge.These would cover knowledge of tree spp, habitat preferences, growth characteristics, timber characteristics, longevity, structural integrity, landscape character, industry standard methods of measurement.Terms of engagement will also have to be considered carefully where trees are a significant component for consideration in the valuation, including for example: identify the trees concerned, purpose of valuation, information to be made available to the valuer, specific research which the valuer may need to undertake, assumptions and special assumptions which might be applicable – see PS 2.1 and 2.2 for special assumptions.Reminder of the need to agree acceptable basis of valuation.
  • Three methods have come into prominence in UK recently.Will be explained by reference to a particular tree valuation which had caught the headlines at the start of this project.
  • CAVAT was the method used to arrive at the high valuation reported for the Berkeley Square plane tree.It has been developed by members of the London Tree Officers Association and its main focus has been on asset management considerations and in particular claims which arise against local authorities when trees are blamed for subsidence in nearby buildings. There is some evidence from practice that CAVAT is being accepted by insurers as the basis for settlements in such cases.
  • This is how a CAVAT valuation is built up. The following example should make it clearer.
  • Published guidance from CAVAT shows how these factors are built up.The Berkeley Square plane tree is large, so its initial value is large. Essentially, this is a replacement cost, factored for the size of the existing tree.Community Tree Index reflects population density and accessibility – both factors are high for this central London site.Functionality is based on crown size and condition, both good in this case.Various ‘add ons’ follow for amenity value. Although the total available for each of the three points is 50%, the maximum add on allowed is 40%.As an older tree, the Plane has a limited life expectancy and this has reduced the value slightly, to 80%.Hence the total valuation of £750,000.CAVAT has been criticised for not adequately reflecting depreciation.
  • Helliwell method was one of first to be used in UK.
  • Taking the same tree, Helliwell would look like this.Again it starts with a unit value per individual tree and adjustments are made.The adjustments are all on a fixed scale. In this case, the maximum of the scale has been used for each factor except life expectancy – 3 rather than 4.The maximum Helliwell valuation would therefore be £57,600, but in this case is £38,400.Much lower than CAVAT – but are they valuing the same thing in our terms?
  • 3rd and final method: CTLA an American based organisation which leads the publication of plant appraisal methodologies. The US Guidance has recently been adapted/developed for use in UK conditions.
  • CTLA publishes guidance on a range of methods, but Replacement Cost Methods are the ones which have crossed the Atlantic.
  • CTLA also considers a number of other approaches, eg cost of cure, or remedy.
  • Adam Hollis has prepared guidance notes on the use of DRC for amenity tree valuation, adapting the US guidance to UK conditions.
  • The basic approach is Species x Condition x Location
  • The DRC approach to the Plane Tree would have looked like this.Adjustments are then made for environmental suitability, growth characteristics and pest and disease susceptibility.Further adjustements are made for condition and age, site, frequency, dominance and placement.Total: £75,000 – again quite different from the previous valuations!
  • This shows the different emphases of the methods. CAVAT specifically excludes any measure of exteranl liability associated with a tree, which would need to be a ‘special assumption’ in Red Book terms.
  • Standard unit is a cost for two of the methods and a simple unit for the other (Helliwell).Lindsay v Lindsay: LT case. Claim included separate items for land value and the trees upon it (Helliwell). LT considered that the figures used for the land value already reflected the present of trees and rejected the separate claim for their value. Underlines the importance of correct identification and categorisation of assets under consideration, and importance of handling and analysing transactional evidence.
  • Leads to question of circumstances in which these methods might be worth considering.Assessment of Worth is basically worth to the individual client and, provided the client understands the basis on which the valuation has been prepared, one or other of these methods may be helpful.The methods have also been used in compensation claims, both general and on CP&C, successfully despite Lindsay v Lindsay.
  • Bryant and Macklin: CA case.Wilful destruction of trees by neighbour.Reasonableness:“The judge must stand back, when he has done his arithmetic, and ask himself whether the figure achieved by his findings is fair both to the plaintiff and to the defendants” (Chadwick LJ quoting Russell LJ in Farmer Giles Ltd v Wessex Water Authority and another.£44,500 awarded. Per Chadwick LJ“That represents less than ten percent of the value of the property in question. In my view it is impossible to say that a reasonable person with ample funds at his disposal would not think it reasonable to lay out that sum in restoring an amenity to his home; provided, of course, that the expenditure would lead to a benefit worth having. Mr Gilbert thought it would; and the judge made no finding that it would not. It is important to keep in mind that Mr and Mrs Bryant want to continue living in their property. They do not want to sell up and move on. I find it difficult to accept that they would not think that the prospect of restoring trees to their boundaries – even if that would take some time – was not a benefit worth having. The alternative – to do nothing – would, I think, be rightly rejected as unacceptable.” Emphasising the need to stand back, have regard to the value of trees in the context of the property as a whole and with regard to the likely actions and motivations of real owners.
  • Rural Jigsaw: conventional and unconventional valuations of amenity trees, renewable energy and new challenges for land agents

    1. 1. A Rural Jigsaw:Traditional and newchallenges to valuationand estate management:trees, energy andecosystem servicesCharles CowapLlandrindod Wells4 December 2012 Charles Cowap MBA MRICS FAAV
    2. 2. Valuation of trees foramenity and relatednon-timber uses• RICS Guidance Note• Part of the Red Book suite• Guidance on the valuation of: – Trees – Groups of trees – As part of property – As separate asset• Scope: UK• Interest: worldwide! Charles Cowap MBA MRICS FAAV
    3. 3. The Red Book• RICS Valuation Standards• Suite of: – Practice Statements – Guidance Notes – Information Papers Charles Cowap MBA MRICS FAAV
    4. 4. Why?• The need to value trees for various requirements• Emergence of various methods• Need for guidance on their relationship to Red Book concepts like Market Value Charles Cowap MBA MRICS FAAV
    5. 5. How?Valuation Basics:• Methods• Skills and knowledge• Terms of engagement• Specific information which may be needed• Valuation Basis – Market Value – Worth – Fair Value – Existing Use Value Charles Cowap MBA MRICS FAAV
    6. 6. How?The Facts• Site and legal interest• Statutory designation and other forms of protection• Current and proposed site uses• Health and condition, signs of stress• Liability issues• Assumptions and special assumptions Charles Cowap MBA MRICS FAAV
    7. 7. METHODS Charles Cowap MBA MRICS FAAV
    8. 8. Tree valuation is big newsBig figures are touted to end the chain saw massacre Charles Cowap MBA MRICS FAAV
    9. 9. 1. CAVATCapital Asset Value for AmenityTreesChris Neilan Charles Cowap MBA MRICS FAAV
    10. 10. CAVATCapital Asset Value for AmenityTrees• Basic value: unit value x size• Community Tree Index Value: population, use, accessibility• Functional value• Adjusted value/amenity factors (+/-)• Full value/safe life expectancy Charles Cowap MBA MRICS10 FAAV
    11. 11. How CAVAT (probably) worked:Tree Diameter of 184 cm x Unit Value Factor of £13.18 £350,285Community Tree Index Factor based on pop density of 284.4/ha and relative accessibility of 200% x 100%Functionality based on crown size and condition of 1100%Amenity and appropriateness based on 1.4Townscape and visual importance + 10%Local Designation + 10%Veteran status + 30% (but total limit of +40%)Safe useful life expectancy of 20 to 40 years: 80% .8Total Tree Value £750,000 Charles Cowap MBA MRICS11 FAAV
    12. 12. 2. Amenity Valuationof Trees &WoodlandsDR Helliwell Charles Cowap MBA MRICS FAAV
    13. 13. HelliwellUnit value per individual tree, 1.6.08 £25Size of crown, 200 sq m: score 8 (max) 8Safe useful life expectancy, 40 – 100 yrs, (max score 4) 3Importance in landscape: score 4 (max) 4Presence of other trees: some (max score 2) 2Suitability to setting: score 4 (max) 4Form (thick stem): score 2 (max) 2Total tree value (compared to a maximum Helliwell value £38,400of £57,600) Charles Cowap MBA MRICS13 FAAV
    14. 14. 3. Guide for PlantAppraisalCTLA Charles Cowap MBA MRICS FAAV
    15. 15. CTLA is not a method, but a bodyPublishing guidance on both Replacement Cost Methods… Charles Cowap MBA MRICS FAAV
    16. 16. …and Cost of Cure methodsValue may be optimised without full replacement (cf Macklin) Charles Cowap MBA MRICS FAAV
    17. 17. Charles CowapMBA MRICS17 FAAV
    18. 18. Species XConditionX Location Charles Cowap MBA MRICS18 FAAV
    19. 19. CTLAInstalled cost for 184 cm diameter tree @ £12.55/sq £333,541cm (unit rate)Environmental adaptability: v suitable @ 100% 1.0Growth characteristics: an average of scores for size, 1.0longevity and maintenance: 100, 50 and 70%respectivelyPest and disease susceptibility 0.9 0.96Condition (90%) and Age / Asset Life (70%) 0.6Location, based on site rating (100%) x frequency 0.4(65%) x dominance (65%) x placement (100%)Value £75,000 Charles Cowap MBA MRICS19 FAAV
    20. 20. One Tree• 3 Values?• £38,400• £75,000• £750,000 Charles Cowap MBA MRICS20 FAAV
    21. 21. • Helliwell: Visual Amenity Valuation• CAVAT: Management of trees as public assets rather than liabilities, value directly related to public benefits• CTLA: Depreciated Replacement Cost: asset valuation – amenity value Charles Cowap MBA MRICS21 FAAV
    22. 22. COMPARISON• A standard unit is weighted (multiplied) for various factors• Nil value is possible• Negative value is impossible without further deductions• All are intrinsically capped• Scope for substantially different figures• No, or little, explicit recognition of land value itself – See Lindsay and Lindsay• No Basis of Valuation in terms easily reconciled with Red Book• DRC approaches – Do the assumptions really work with trees? Charles Cowap MBA MRICS FAAV
    23. 23. APPLICATION?• Assessment of Worth (investment value)• Compensation claims – Damages – Compensation on compulsory purchase Charles Cowap MBA MRICS FAAV
    24. 24. FORMING A VIEW• The need to ‘stand back’ and judge ‘reasonableness’• Bryant and Macklin (2005) – Cost of replacement (DRC): £190,000 – Diminution of freehold value: £25,000 – Cost of replacement with young whips: £44,500• With regard to: – Likely behaviour of property owner – Overall context of property market value Charles Cowap MBA MRICS FAAV
    25. 25. Renewable EnergyValuation• RICS Information Paper• Part of the Red Book suite• Guidance on the valuation of Renewable Energy Installations: – Wholesale – Own Use – Domestic – Electricity – Heat Charles Cowap MBA MRICS FAAV
    26. 26. Scope• Landlord’s Interest• Owner-operator’s interest• Separately identified asset• As part of a larger asset, eg rural estate or farm Charles Cowap MBA MRICS FAAV
    27. 27. Adapting ValuationPrinciples andMethods• Direct Comparison and the problems of unique differences• Some use for wind turbines? Charles Cowap MBA MRICS FAAV
    28. 28. Investment Method• Assessment of Rent Levels• Reversionary Aspects• Layered Rents• Choice of All Risk Yield(s?)• Choice of capitalisation period• A role for sensitivity analysis? Charles Cowap MBA MRICS FAAV
    29. 29. Layered RentsLayered Rent Different Risk Rates? What happens here? Reversion Term Charles Cowap MBA MRICS FAAV
    30. 30. Profits Method• Identify a separate rental income stream for separate capitalisation?• Arms’ length?• Veracity of estimated or stated profits Charles Cowap MBA MRICS FAAV
    31. 31. DepreciatedReplacement Cost• Extreme caution!!• Depreciation rates?• Relationship to market or other basis of value? Charles Cowap MBA MRICS FAAV
    32. 32. Residual Method• All the previous problems …• Plus Developer’s Profit• Uncertainties over planning, grid connections etc Charles Cowap MBA MRICS FAAV
    33. 33. DCF Methods• In practice widely undertaken for larger developments• Market Value??• Appraisal of worth to investor• Would the market make same assumptions? Charles Cowap MBA MRICS FAAV
    34. 34. BACK TO BASICS• Purpose of Valuation• Scope of investigations to be undertaken• Assumptions and Special Assumptions• Preliminary Information• Capacity and assumed duration• After uses, continuation, redevelopment• Reporting Requirements Charles Cowap MBA MRICS FAAV
    35. 35. Clients Purposes Valuation Methodology (in no particular order)Site owners Loan finance Discounted cash flowSite developers Sale and purchase InvestmentSite occupiers Option agreements ProfitsFinance providers Development appraisals ComparableStatutory Asset distribution, e.g. probate, estate Residual reorganisation, succession, divorce, administration Depreciated and winding-up procedures replacement cost Taxation, e.g. inheritance tax, capital gains tax, rating Business reorganisation Financial statements Compensation for compulsory purchase Compensation to other interests, e.g. tenants, etc. Charles Cowap MBA MRICS FAAV
    36. 36. REPORTING• Rationale for chosen method(s)• Detailed consideration of instructions, assumptions, sources and reliability, extent of independent verification• Sensitivity• Commentary on Risk? Charles Cowap MBA MRICS FAAV
    37. 37. Some Common Issues• Development Proposals for new Sites• Hope Value• Operator Risk• Complex lease or agreement terms• Performance data Charles Cowap MBA MRICS FAAV
    38. 38. Some Common Issues• Reporting Requirements• Detailed instructions• Market evidence Charles Cowap MBA MRICS FAAV
    39. 39. Investment Example 10 ha site for 7 wind turbines on 28 year lease, 3 years expired Turbines: 7 x 2.3 MW x 27% capacity. Output (Elec + ROC) = £83/MWh Basic Rent: £7,000 + RPI for 14 years; £12,000 + RPI thereafter Turnover Rent: 5% of gross income for 14 years; 9% thereafter Lease is taken from a larger site , rough grazing, of 100 ha in total Let to a large well established generator See Estates Gazette 18 August 2012 Charles Cowap MBA MRICS FAAV
    40. 40. BASIC RENTTerm: 11 years remainingRent 7,000YP for 11 yrs @ 8% 7.139 49,973Reversion:Rent 12,000YP for 14 yrs @ 10% 7.367PV £1 in 11 yrs @ 10% 0.351 31,030 Charles Cowap MBA MRICS FAAV
    41. 41. TURNOVER RENTTurbines 7Installed capacity 2.3Capacity Factor 0.27£/MWh 83Gross Income 3,160,617 Term: Turnover 11 yrs remaining Rent @ 5% of turnover 158,031 YP for 11 yrs @ 10% 6.495 1,026,410 Reversion Rent @ 9% of turnover 284,456 YP for 14 yrs @ 13% 6.303 PV £1 in 11 yrs @ 13% 0.261 467,953 Charles Cowap MBA MRICS FAAV
    42. 42. REVERSION TO FARMLAND10 ha @ £2,000 20,000PV of £1 in 25 yrs @ 3% 0.478 9,560 £1,584,926REMAINDER OF SITE, FH VP90 ha @ £2,000 £180,000GRAND TOTAL £1,764,926 Charles Cowap MBA MRICS FAAV
    43. 43. SUMMARYBase RentTerm 49,973 3%Reversion 31,030 2% 81,003 5%Turnover RentTerm 1,026,410 65%Reversion 467,953 30% 1,494,363 94%Reversion to Ag Use 9,560 1%Total 1,584,926 100% Charles Cowap MBA MRICS FAAV
    44. 44. WIDER VALUATION ISSUES .....• Worth and Value in Use v Market Value and Value in Exchange v Fair Value• Valuation and other appraisal methods Charles Cowap MBA MRICS FAAV
    45. 45. Find out more …..www.rics.orgRural e-newsFarmland Market, Autumn 2011 edn. Estates Gazette 18 August 2012 Charles Cowap MBA MRICS FAAV
    46. 46. New land managementRequirements are emergingNew marketsNew challenges toprofessional practice Charles Cowap MBA MRICS FAAV
    47. 47. Peat’s Story Charles Cowap MBA MRICS FAAV
    48. 48. Charles CowapMBA MRICS FAAV
    49. 49. Wimbleball Resr &Context: Exmoor example R Haddeo R Exe Exmoor R Barle Replenishment Exebridge Pumping Pumping Approx 5 miles, Station lifting water from 120 to 240 m CO 2 AOD Charles Cowap MBA MRICS FAAV
    50. 50. Top 10 Business Opportunities1= Biodiversity Offsetting (BDO) andConservation Banking• Estimated size of market £50 – 300 million pa from housing, plus other sectors• Brokerage, certification and registration• Additional costs to builders/developers deducted from land value1= Peatland Carbon Code and Carbon Credits• Peat restoration for carbon storage• Management schemes and incentives• Certification and brokerage Charles Cowap MBA MRICS FAAV
    51. 51. 2. Woodfuel and Woodburning Stoves3. UK ecosystem knowledge economy4. Layered PES – Different Environmental Services to different buyers – Eg  Charles Cowap MBA MRICS FAAV
    52. 52. 6. Carbon sequestration7. Sustainability certification – Opportunities for intermediaries8. Sustainable tourism Charles Cowap MBA MRICS FAAV
    53. 53. 9= Global centre of excellence inESS certification9= Water re-use technology11 Reducing insurance risk through green infrastructure12 Environmental bonds http://www.valuing-nature.net/opportunities-uk-business- protect-and-value-natures-services-report-published- today [accessed 19 July 2012] Charles Cowap MBA MRICS FAAV
    54. 54. NEW VALUATIONREQUIREMENTS AREEMERGING Charles Cowap MBA MRICS FAAV
    55. 55. Charles CowapMBA MRICS FAAV
    56. 56. Charles CowapMBA MRICS FAAV
    57. 57. SOME WORK HAS BEENDONE ALREADY Charles Cowap MBA MRICS FAAV
    58. 58. Charles CowapMBA MRICS FAAV
    59. 59. Charles CowapMBA MRICS FAAV
    60. 60. Charles CowapMBA MRICS FAAV
    61. 61. We face challenges to valuationECONOMIC APPRAISAL Charles Cowap MBA MRICS FAAV
    62. 62. Charles CowapMBA MRICS FAAV
    63. 63. And NowECOSYSTEM SERVICES Charles Cowap MBA MRICS FAAV
    64. 64. Charles CowapMBA MRICS FAAV
    65. 65. Charles CowapMBA MRICS FAAV
    66. 66. ECOSYSTEM SERVICES Charles Cowap MBA MRICS FAAV
    67. 67. From TEEB Foundations, Chapter 5APPROACHES FOR THEESTIMATION OF NATURE’SVALUES Charles Cowap MBA MRICS FAAV
    68. 68. Market Contingent Cost Analysis Valuation Methods Deliberative Avoided Valuation Group Replacement CostValuation Cost Methods Regime Shift Methods Analysis Insurance Resilience Ecological Value Value Risk Footprint Analysis Joint Mitigation Analysis Input/Output Production Cost Analysis Function Method Charles Cowap MBA MRICS FAAV
    69. 69. ValuationWHERE DOES IT FIT? Charles Cowap MBA MRICS FAAV
    70. 70. Foresight Land UseFutures 2010 Charles Cowap MBA MRICS FAAV
    71. 71. Key Questions for RICS• Is this anything to do with us?• Our Public Interest Function in this area?• Our Member Services Function in this area?• Our Global Positioning?• What, if anything, needs to be done? Charles Cowap MBA MRICS FAAV
    72. 72. Thinkpiece• Royal Charter – Promote the usefulness of the profession to public advantage• New opportunities in land management• New ways of working in development• New points to reflect in conventional valuations• New types of valuation Charles Cowap MBA MRICS FAAV
    73. 73. And we should offer:• Our expertise• In Land Tenure and its relationship to land management and development• Our experience of valuation in challenging commercial markets• Our expertise in brokerage Charles Cowap MBA MRICS FAAV
    74. 74. Keeping up with latest RICS Developments Renewables Valuations Community Farm Infrastructure Business Levy Tenancies Charles Cowap MBA MRICS FAAV
    75. 75. Web Classes Charles Cowap MBA MRICS FAAV
    76. 76. Questions? Charles Cowap MBA MRICS FAAV
    77. 77. Charles CowapMBA MRICS FAAV
    78. 78. Contact DetailsTranslating new knowledge for rural professional practice cdcowap@gmail.com 07947 706505Twitter: @charlescowapBlog: http://charlescowap.wordpress.com/Slideshare: http://www.slideshare.net/cdcowap Charles Cowap MBA MRICS FAAV

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