Our Client, a highly respected and successful property fund management business, engaged PEP to prepare Tax Depreciation Schedules for a portfolio of 46 service stations, located throughout Australia in urban and rural areas.
The initial phase of this project involved the preparation of desktop indicative depreciation schedules for financial modelling purposes. We were able to complete this task by reviewing the provided valuation reports and utilizing aerial photographs to estimate building age and improvement dates.
The second stage involved detailed inspections of the properties to identify the various depreciable assets on the site and estimating the various ages of improvements which are subject to different Building Allowance claims. This involved identifying specialist equipment including fuel systems, underground tanks and sewerage treatment systems installed in sites not connected to town sewer systems. As part of any property we analyze, we undertook assessments of the historic dates and costs of the original buildings with future extensions and refurbishments. This is particularly common with service station sites as they undergo re-branding upgrades on a routine basis, in a lot of cases.
As an extension to our involvement, our Client had an opportunity to add another 18 properties into their portfolio. This scope involved the preparation of condition audits and capital expenditure forecasts for a 5 year period which also involved roof inspections and fuel tank life cycle cost forecasts. A bespoke report format was created for this project to suit the client’s requirements and we were able to complete the exercise within a four week period.