Paragraph 10.04 of the Main LR requires a valuation to be conducted when a transaction involves an acquisition or disposal of any real estate, and when the percentage ratio of the transaction is 5% or more for a related party transaction or 25% and more for a transaction falling under Part D of Chapter 10 of the Main LR. What will be considered as a transaction which "involves an acquisition or disposal of any real estate"?
This will be the
acquisition or disposal of real estate or corporation(s) with real estate.
The following table
further clarifies the requirement on valuation report pursuant to paragraph
10.04 of the Main LR:
development or redevelopment of real estate; or
real estate with development potential,
and includes those rights to develop pursuant to a joint venture agreement, privatisation agreement or some other forms of joint arrangement.
"property investment corporation" means a corporation whose core business is in –
the holding of investment properties for letting and retention as investments; or
the purchase of investment properties for subsequent sale.