Special Value

Question 1

How does the Red Book Global define a Special Purchaser?

Answer 1

A particular buyer for who a particular asset has special value because of advantages arising from its ownership that would not be available to other buyers in a market

Question 2

How does the Red Book Global define Special Value?

Answer 2

An amount that reflects particular attributes of an asset that are only of value to a special purchaser

Question 3

Provide examples of when a Special Purchaser would arise?

Answer 3

• Tenant purchasing the freehold interest

- Association with the property e.g. owning an adjacent property

Question 4

How does Market Value reflect Special Value?

Answer 4

Ignores any price distortions caused by Special Value