JLL Argentina Capabilities - 2020

Valuation & Consulting
Case Studies
HSBC
Mass appraisal – freehold portfolio
ARG Realty
Shopping Center, office and vacant land appraisal
Challenge
Approach
Result
Challenge
Approach
Result
From 2015 to 2019, HSBC hired JLL to
carry out the valuation of its real estate
assets in Argentina.
The portfolio to appraise consisted of
more than 110 properties including
retail branches and office buildings,
distributed in over 30 cities all around
the country.
We have developed a mass appraisal
model that automates part of the
valuation workflow such as weighting
of attributes, sense–check and
automatic reporting for:
- time optimization
- strong Y-o-Y consistency
- securing the quality on every instance
of the process.
The mass appraisal model made
possible the challenge set by the client
to deliver the reports in two weeks. In
that period, we collected and analyzed
more than 430 comparables properties
covering over 115,000 sq. m.
During 2019, ARG Realty has engaged JLL
for the valuation of its major real estate
assets in Argentina, totalizing over 120,000
sq. m covered areas and 89,000 sq. m
projected areas.
The scope of work included the appraisal
one of the most important shopping
malls in Argentina, Tortugas Open Mall;
a Class-A major office complex named
Centro Empresarial Urbana and a plot of
land for commercial development.
The approach for the calculation of the
capitalization rate was using the formula
based in the Weighted Average Cost of
Capital (WACC) and the expected growth
rate of the market.
Considering a sample of 137 firms we
determined the WACC for the Retail
Industry in emerging countries.
Also, using proprietary GIS technology,
data and methodology we took the
traditional Qualitative Analysis.
The approach strengthened the
appraisal fundamentals as well as
the overall result of the report. Also,
the Client was very pleased with the
outcome of the implementation of GIS
technology for mapping enhancement.
As part of the services we provide to HSBC worldwide, we were required to appraise the
owned portfolio that the bank holds across several provinces in Argentina. From 2015 to 2019,
we helped our client by introducing mass appraisal models and tools which we developed in
order to provide accuracy and consistency year over year.
ARG Realty is a private business group that develops, manages and invests in real estate
-among other sectors- in Latin America. Our client hired us to make the assessment and
appraisal of one of the most important shopping malls in Argentina, Tortugas Open Mall;
a Class-A major office complex named Centro Empresarial Urbana and a plot of land for
commercial development.
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