SPECIALIST AGRICULTURAL REAL ESTATE AND ASSET VALUATIONS

INTRODUCTION

The Professional Property Valuers industry is regulated in South Africa through the Property Valuers Act, No. 47 0f 2000 as amended. All professionals with the appropriate academic qualifications or those in process of gaining such qualifications, combined with prescribed practical experience need there for to register with the South African Council for the Professional Property Valuations Profession - SACPVP.

Notwithstanding these regulations regarding academic qualification, practical experience, as well as the SACPVP admission examination it is a mutual accepted fact within the property valuation industry that the valuation of agricultural real estate and assets requires an in-depth understanding of agriculture and the inherent risks own to this industry. As the Agricultural Sector in South Africa have traditionally being dominated by a small minority of productive farms comprising of approximately 25% of the total market, very few property valuers specialized in valuating agricultural properties. The implementation of Land Reform Legislation however turn this part of the professional valuers industry in a very lucrative market and most registered valuers suddenly became interested in gaining a share. The inexperience leads to inconsistency and vast differences confusing financiers, risk managers and above all contributed to turmoil within the Land Reform program. Government publicly and to some extend justifiably claiming that different standards being applied in valuing agricultural land for Land Reform purposes.

SPECIALISATION

Agri Land Projects (Pty) Ltd – ALPRO - since its incorporation in 2005 only specialized in valuating agricultural real estate and assets as well as agricultural related processing industries. Professional Valuers registered with the SACPVP have been recruited and internally trained by agricultural economist; financial risk managers and agricultural commodity specialists with vast experience within the Agricultural Sector. These selected few changed their focus to specialist agriculture real estate and asset valuers. As the Agricultural industry tends to be a very dynamic ever changing industry the internal training is an ongoing crucial aspect within ALPRO. To our knowledge ALPRO is the single only provider of such specialist agricultural valuation methodology training in South Africa, providing this training now to Government; Private Banks; Agricultural Co-ops, Risk Managers and other professions. It is believed that ALPRO, yet again, is the single only specialist agricultural valuation service provider operating on a national basis within South Africa.