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s y n t e t ic<br />
e v a l u a t i on<br />
c r I t e r i a<br />
Palazzetto inside Palazzo Albertoni Spinola<br />
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FROM APPRAISAL IN ENGLISH<br />
CHAPTER 4,12,13,14 (PAGES 31,49,50,51)
appraisal<br />
1 – Introduction<br />
First of all It is necessary to clarify that considering the historical significance, the absolute uniqueness and<br />
the value of the property, any economic assessment object is considered very difficult.to reach also due to<br />
the absence of benchmarks with the features of these kind of building projected and built by two of the<br />
most important architects of the italian Reinassance: Giacomo Della Porta (https://<br />
en.wikipedia.org/wiki/Giacomo_della_Porta) and Girolamo Rainaldi (https://en.wikipedia.org/wiki/<br />
Girolamo_Rainaldi )<br />
The task entrusted to us is to complete the rough estimation of the property, considering an overall<br />
intervention of functional redevelopment with the ‘turn-key’ formula.<br />
This preliminary technical assessment is the culmination of a series of investigations, analyses and processing<br />
the collected data. These enabled us to conclude findings and results of value hereby referred to,<br />
at the issue date of this document.<br />
The preliminary technical assessment was conducted on the basis of the available documentation and<br />
information received from the client, which we considered to be true.<br />
In some cases, it was necessary to find some information or documents otherwise not being available. In<br />
particular, the land registry records and the hypocadestral records of the complex were traced through a<br />
computer search, and preliminary investigations were carried out in order to identify the types of intervention<br />
that are compatible with the governing town-planning regulations.<br />
Therefore, in this document we have also indicated - in relation to the main topics discussed - the source<br />
documents that have led to the conclusions presented here.<br />
The state of affairs of the property is represented by the processed planimetric data that were available to<br />
us from information we received and from what was established during the site visit.<br />
The owners’ intention is to carry out a redevelopment, aimed at establishing three interdependent, yet at<br />
the same time autonomous, luxury suites, each equipped with fitness, wellness, and relaxation areas. The<br />
three residences will be equipped with shared security services, an office and a movie-theatre for private<br />
screenings.<br />
The decision to carry out this redevelopment – a rather simple one, for that matter, given the current<br />
structure of the property – was made with the aim of alienating the property, taking exclusively the foreign<br />
demand into consideration, from the ultra-high-net-worth (uhnw) segment.<br />
As shown by the most renowned research of the sector conducted by credit suisse (https://www.Worldwealthreport.Com),<br />
over the last five years there has been a steady increase in this segment, putting the<br />
increase between 2000 and 2014 at no less than +300 percent.<br />
Obviously, one may not get the meaning of the above statements without considering the unique features<br />
of the property, its prestigious location in the very center of the capital of italy, and especially rome itself<br />
– being the foremost city in the world as to the presence of monumental and historical-artistic treasures,<br />
and global center of Christianity due to the presence of the Vatican City and the Apostolic See of the Pope.<br />
In addition, there is the ‘network’ represented by the main characters of international show-business as well<br />
as of public or private institutions, regularly visiting this city to enjoy its features as described above. Their<br />
presence offers a live and global advertisement of such features, and it keeps spreading - within the UHNW<br />
segments - a potential desire to possess a jewel of this kind.<br />
In this regard, it is also necessary to remark on some important investments that in 2014-2015-2016<br />
(ANN.14 press review) took place in Rome by Mid-Eastern and USA-based hotel chains, as well as on the<br />
North American commitment towards the most important soccer club in Rome (A.S. Roma).<br />
Lastly, the ever growing appeal for products ‘made in Italy’ and the Italian way of life in the ‘luxury brand’<br />
and ‘luxury food’ segments also played a role in strengthening this determination of the owners. In fact, this<br />
appeal confirms that those who can afford to appreciate the use and consumption of Italian products and<br />
services incurring high-end costs, want to experience these sensations themselves.<br />
A proof of the above said, as well as a further confirmation of the ‘appeal’ experienced by buyers is the<br />
comparison between the amounts of property taxes collected by the Italian tax authorities and those collected<br />
by Anglo-Saxon countries, and in particular in the United States of America, where tax revenues on<br />
properties of such value are at least 10 - or even 20 - times higher.
appraisal<br />
4-MARGINAL NOTES<br />
a) The following criteria were applied for the measurement of the areas of the property:<br />
UNI 10750 standard on Real Estate Services. Requirements of Service.<br />
4.4 Criteria for property appraisal<br />
The UNI 10750 standard contains the following criteria for calculating “the surface of commercial<br />
areas”. For further information we suggest considering to purchase the documentation of UNI<br />
standards.<br />
Calculating the surface of the commercial area, depending on whether the real estate it is intended<br />
for residential use or for commercial use (offices, industrial or touristic use) the following should<br />
be considered:<br />
– the sum of passable covered areas including the surfaces occupied by interior and perimeter<br />
walls;<br />
– the weighted averages on surfaces for the exclusive use of terraces, balconies, patios and<br />
gardens;<br />
– the weighted surfaces of appliances (basements, indoor and outdoor car parking areas, boxes,<br />
etc.).<br />
The calculation of the covered surfaces must be based on the following criteria:<br />
a) 100% of the passable surfaces;<br />
b) 100% of the areas within internal non-bearing walls providing separation;<br />
c) 50% of the areas within internal bearing walls and perimeter walls.<br />
In the case of detached and / or single-family buildings, the percentage of point c) should be considered<br />
as 100%. The calculation of the areas referred to in point c) shall not, however, exceed<br />
10% of the sum referred to in points a) and b).<br />
For the calculation of uncovered surfaces, the following weighting criteria are to be used:<br />
25% of uncovered balconies and terraces;<br />
35% of covered balconies and terraces (by covered we mean closed on three sides);<br />
35% of patios and porches;<br />
60% of verandas;<br />
15% of apartment gardens;<br />
10% of villa and cottage gardens.<br />
The indicated percentages may vary according to the particular location of the real estate property,<br />
and to its external surfaces which may be roughly at the same level as the overall external<br />
sur-faces, and which may never exceed 30% of the covered surfaces - except for all those<br />
incremental or decreasing factors that characterize their particular level of environmental quality.<br />
Obviously, the property subject to estimation belongs to the category that would determine a<br />
strong variation of the aforesaid percentage quotas. However, the prudential and conservative<br />
criteria suggested by the property to the professional in charge have not allowed for timely<br />
adoption.
perizia<br />
12-SEARCHING FOR THE MARKET VALUE:FEATURES IN COMMON<br />
The features of the property compared to the features of the units that we have considered as<br />
parameter for evaluation criteria are:<br />
- 3 units-apartments with maximum flexibility of use, which are independent real estate units.<br />
- The general prestige of the property and its common monumental areas.<br />
- The location at the historic heart of Rome, in a historically and architecturally unique city zone.<br />
- The structure has been subject to thorough remodeling.<br />
- The amenities available to each suite-apartment and the rarity of such offering.<br />
- The condition of the individual units after remodeling.<br />
- 4 parking spaces available in the courtyard of the building.<br />
- The recent roster of prestigious residents.<br />
- Low property taxes based on Italian tax law.
appraisal<br />
13 – SEARCHING FOR THE VALUE:EXTRAORDINARY FEATURES OF THE PROPERTY<br />
First of all It is necessary to clarify that considering the historical significance, the absolute uniqueness<br />
and the value of the property, any economic assessment object of the following appraisal is<br />
considered very difficult.<br />
The extraordinary features of the property that are not comparable with the features of the units that<br />
we have considered as parameters of evaluation criteria are:<br />
1-An architectural masterpiece erected by men of genius. Both the project and its execution bear the<br />
mark of two great 17th century architects in Rome: Giacomo della Porta and Girolamo Rainaldi. The<br />
property features the following exclusive characteristics:<br />
A) They integrated the new construction into the ancient preexisting Palazzetto, allowing this unit<br />
to extend and merge into the new construction without being able to recognize that you are in one side<br />
or in the other part of the Palazzo;<br />
B) They created and maintained a direct view of the entry of Santa Maria (which is the Campitelli<br />
Church located in front of the Palazzo Albertoni Spinola) from the original door of the Palazzetto,<br />
despite having built the great Palazzo in front of what preexisted building;<br />
C) They have made possible the use of the old roof secret garden of the Palazzetto with the first<br />
floor of the Palazzo, making this unit a unique property of its kind.<br />
2- The “chameleonic” quality of a property, both at the urban-legal and the physical levels, that<br />
features multiple entrances and thus constitutes one and at the same time multiple units that are<br />
completely autonomous, hence the emphasis on “privacy” but at the same time the usability of the<br />
common monumental areas.<br />
3- In regards to such setup, the possibility of touristic-residential use and therefore of the<br />
development of projects that are particularly profitable and that, thanks to current regulations on the<br />
matter, can be carried out without altering the urban physiognomy, thus allowing for private residential<br />
use at any moment.
appraisal<br />
14 – THE AVERAGE OF VALUES<br />
In the previous sections we were conducting a search for the value of the redeveloped real estate<br />
property. Based on statements made in the preciding paragraphs, the evaluation of the properrty<br />
goes as follow(in euros):<br />
VALUABLE COMMERCIAL SURFACE SUITES IN SQUARE METERS(SUB 1,2,3,4,5,7,8,11)<br />
1221,32 x 24000 = 29311600<br />
COMMERCIAL STORAGE SURFACE IN SQUARE METERS(SUB 12,13) 24<br />
24x 4000 = 96000<br />
GARDEN SURFACES(SUB 1) 177,65<br />
177,65 x 8000(one third of the full price per square meter) = 1422880<br />
SURFACE OF ROOFTOP & TERRACES WITH VIEW(SUB4,6) 259,19<br />
259,19 x 12000 (half of the full price per square meter) = 3110280<br />
SURFACE OF SUITE'S EXTERNAL UNITS(SUB 9,10) 124<br />
124 x 8000=992000<br />
CAR PARKING AREAS AT THE ENTRANCE HALL OF THE ‘PALAZZO’<br />
n. 4 x100000=400000<br />
Value of property redeveloped as real estate NON CONSIDERING features on Chapter N.13: 35332760<br />
However, considering the characteristics of the property from the standpoint of it being a work of art and having<br />
other uncommon features (see ‘Historical notes’ and Chapter N.13), I would not be surprised if the value of such<br />
a rare property were to appreciate to the point of doubling or trebling.<br />
15-ANNEXES<br />
1- RESTORING THE WHOLE PALAZZO:LAST WORKS<br />
2- ALBERTONI SPINOLA BOOK<br />
3- GOVERMENT LAW OF 1933 ABOUT<br />
4- CADASTRAL CERTIFICATE AND FLOOR PLANS<br />
5- POLLUTION AND ENERGETICH CERTIFICATE<br />
6- ALL THE PERMITS<br />
7- HOSPITALITY PERMIT<br />
8- TITLE OF PROPERTIES<br />
9- CONDO RULES<br />
10- BOOK ABOUT THE BUILDING IN ACCORDANCE WITH PAST LAW<br />
11- ALL THE FLOOR PLANS AND DESIGNES<br />
12- PICTURES<br />
13- DESCRIPTION INTERVENTION OF DEVELOPMENT<br />
14- RECENT REVIEW<br />
Ivan Mammuccari
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C o m p a r a b l e<br />
u n i t s i n R o m e<br />
( E X C L U D I N G A R T W O R K<br />
F E A T U R E S C H A P T E R 1 3 )<br />
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Palazzo Maffei dei Borghese (sold)<br />
It is the only 16th century building in Rome which has been totally and extensively renovated to offer the most innovative<br />
and luxurious 21th century condominium in Rome.<br />
It is located in one of Rome’s most exclusive areas and close to all famous boutiques and fashion stores, top restaurants<br />
and most important sights. The Spanish steps are few meters away, Piazza Navona and the Pantheon a stone’s throw.<br />
The original facade has been returned to its authentic color and the communal areas, such as the majestic entrance hall,<br />
are covered with Michelangelo’s white Pietrasanta marble.<br />
The building has different types and sizes of apartment, some of which are already turnkey (Loft apartment) others can<br />
still be designed and tailor made at the client’s request.<br />
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different types of apartments<br />
V = Penthouse apartment 258 sqm at € 9,500,000 (euro 36821 /sqm)<br />
Loft = 174 sqm at € 4,400,000 (euro 25287 /sqm)<br />
N1 = 170 sqm at € 3,600,000 (euro 21176 / sqm)<br />
N2 = 85 sqm apartment at € 2,300,000 (euro 27058 /sqm)<br />
The above prices include all fittings with floors and ceilings and top home automation system and the most advanced<br />
technologies.<br />
The property has a doorman and 24h security service.<br />
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Collosseo Apartment (sold)<br />
On January 7, 2015 we witnessed an important transaction in the heart of Rome.<br />
Here is the statement released to the press by the major international news agencies: “Yesterday, PSG striker soccer<br />
player Edinson Cavani completed the purchase of a penthouse in the center of Rome for the amount of 8.7 million Euros<br />
– reveals a statement released by the British association.<br />
The property - located on the third floor of a building from the 1700’s - consists of four bedrooms, a three living rooms,<br />
3 bathrooms, a private gym, and relaxation area, extending over a total of 450 square meters. The deal was completed in<br />
a few days and was formalized by the Notary Giuliani in Rome.”<br />
Therefore, as you can see, even though we do go into the details, there was a transaction for a per square meter amount<br />
around 20,000 Euros
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Luxury Penthouse in the Heart of Rome<br />
Penthouse over Piazza Venezia Advertised by Christies Real Estate<br />
Surface: 5.220 sq ft/485 m2<br />
Asking Price: 15.000.000 Euro<br />
Price/m2: 30.927 Euro/m2<br />
Price/sq ft: 2.873 Euro/sq ft<br />
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Apartment in Via dei Condotti<br />
Villa at Piazza di Spagna Advertised by Christies Real Estate<br />
Surface: 3659 sq ft/340 m2<br />
Asking Price: 7.000.000 Euro<br />
Price/m2: 20.588 Euro/m2<br />
Price/sq ft: 1.913 Euro/sq ft<br />
Palazzo Sacchetti A pearl of the<br />
late Reinassance in the heart of Rome (to remodel) Advertised by Sotheby's Realty<br />
Price: 57.000.000 €<br />
Price / Sq. M.: 19.000 € (excluded remodeling plan)<br />
Bedrooms: 15<br />
Full Baths: 10<br />
Partial Baths: 1<br />
Interior: 3,000 m²<br />
Exterior: 700 m²<br />
Property Type: Single Family Home<br />
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E c o n o m i c s<br />
Palazzetto inside Palazzo Albertoni Spinola<br />
q<br />
Base Price 35,332,760 Euros turnkey<br />
Property taxes: 27,664.77euros /year<br />
Maintenance fee: 17,624 euros /year<br />
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Garden suite<br />
Cover space: mq. 437,78<br />
Secret private Garden sub 1: mq. 177,65<br />
1 main entrance from common monumental stairs from Piazza Campitelli n.2<br />
2 private entrances from Vicolo Capizucchi<br />
1 private entrance from Piazza Capizucchi<br />
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Ambassador Executive suite<br />
Cover space sub 4,5,7,8: mq. 669,54<br />
Rooftop&Terraces sub5,6: mq. 259,18<br />
Little chapel and spiral stairs included<br />
2 main entrances from common monumental stairs from Piazza Campitelli n.2<br />
4 private entrances from courtyard of the “Palazzo”<br />
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Theatre: mq.92+basement<br />
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Little office with fresco: mq.32<br />
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Private entrance with the car and concierge with 2 bathrooms on piazza Capizucchi: mq. 114<br />
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Small wharehouse sub 12: mq.12<br />
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Small wharehouse sub 13: mq.12<br />
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Parking spaces in the courthyard 4 available<br />
final note<br />
In regards to such setup, the possibility of touristic-residential use and therefore of the<br />
development of projects that are particularly profitable and that, thanks to current regulations<br />
on the matter, can be carried out without altering the urban physiognomy, thus allowing for<br />
private residential use at any moment.
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THE AUCTION : O F F E R C R I T E R I A<br />
Palazzetto inside Palazzo Albertoni Spinola: the estate worldwide market has never seen this type of structure ever<br />
before. This architectural artwork, a stunning mansion with a magnificent view and amenities built by the genuises of<br />
the Italian Renaissance Giacomo Della Porta and Girolamo Rainaldi, is located in the center of Rome, having the<br />
greatest number of historial artistic assets in the world. For this reason,in the absence of any precedents, the Palazzetto is<br />
in a class by itself, its owners have agreed with Hilton & Hyland to organize a special Auction in order to identify a new<br />
owner who lives up to such a residence. The reserve price has been defined by taking into account strictly real estate criteria<br />
(see <strong>Economics</strong>, appraisal Chapters 4, 12, 13, 14) that place it at €35,332,760 (redevelopment plan included), plus a small<br />
amount for artistic value, for a total of €38,000,000. However, considering the characteristics of the property from the<br />
standpoint of it being a work of art and having other uncommon features (see Historical Notes and Appraisal chapter N.13),<br />
it should come as no surprise if the value of such a rare property were to appreciate to the point of doubling or trebling in<br />
relation to the value based solely on real estate criteria.<br />
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