COLL 12.5.6 Annual and periodic valuation of immovables—QFC retail property funds

(1) The following provisions apply in relation to the valuation of interests in immovables (including investments in intermediate holding vehicles for the purpose of holding immovables) held as part of the scheme property of a QFC retail property fund:
(a) the operator must ensure that the standing independent valuer:
(i) values, at least once a year, all the interests in immovables held as part of the scheme property, on the basis of a full valuation with physical inspection (including, if the immovable is or includes a building, internal inspection of the building); and
(ii) gives the operator and independent entity a report on the valuation;
(b) for paragraph (a), any inspection in relation to adjacent properties of a similar nature and value may be limited to the inspection of only a single representative property;
(c) the operator must ensure that the standing independent valuer:
(i) values, at least once a month, all the interests in immovables held as part of the scheme property, on the basis of a review of the last full valuation (unless the valuer decides that the valuation of an interest in an immovable should be made on the basis mentioned in paragraph (a)); and
(ii) gives the operator and independent entity a report on the valuation;

Note Subrule (1) (c) does not apply to a REIT (see table 12.6.4A).
(d) if the operator or independent entity becomes aware of any matter that appears likely:
(i) to affect the valuation of an interest in an immovable; or
(ii) to cause the standing independent valuer to decide to value on the basis mentioned in paragraph (a) instead of on the basis mentioned in paragraph (c);
it must immediately notify the standing independent valuer about the matter;
(e) the operator must use its best endeavours to ensure that any other affected person immediately notifies the standing independent valuer if the affected person becomes aware of a matter mentioned in paragraph (d).
(2) The valuation of an interest in an immovable under this rule has effect for these rules until the next valuation of the interest under this rule.
Inserted by QFCRA RM/2016-1 (as from 19th September 2016)