As the supplier of asset valuation and risk advisory services to the Australian Department of Defence, we have conducted 10 years of valuations for their asset portfolio.
Client story
Valuing Australia’s single largest asset portfolio
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Since 2014, JLL has provided yearly valuations to the Australian Department of Defence. In addition to the Australian portfolio, we also value overseas Defence facilities.
Comprising parcels of land, buildings, infrastructure, heritage and cultural (H&C) assets and other plan and equipment assets, this is the single largest asset portfolio valuation undertaken in Australia.
Over our decade-long engagement, JLL’s team has made 10 valuations, ensuring the entire land, building and infrastructure asset portfolio is at fair value, annually.
How do you value a large number of assets?
“The most challenging aspect of a portfolio valuation like this is the sheer size and variant of assets and asset classes,” says Ty Noble, head of Public Sector Valuations at JLL. “As you can imagine, the logistics of an inspection process covering large number of sites each year, with hundreds of real property assets at the larger sites and potentially thousands of plant & equipment assets, involves a lot of complex project management and a mobile work-force.”
Due to the size of the portfolio, Mr Noble says they’ve implemented an efficient valuation sequence that runs on a three-year cycle. This sees a third of the portfolio subject to a full valuation each year, with the other two-thirds of the portfolio undertaken by desktop review. “By rotating through this process, we’re able to successfully maintain an accurate up-to-date valuation,” says Noble.
From armouries to runways
In comparison to other valuations, the Defence portfolio encompasses a huge variety of buildings and infrastructure, requiring a bespoke approach from JLL. From the building assets that fall under heritage and cultural category, to gyms, airport terminals, hangers, mechanical workshops, lab buildings, armouries, retail stores and more. Not to forget the infrastructure assets that also require valuation, such as roads, power and water distribution, lighting, paths and runways.
A team effort
During the 10-month process each year, JLL’s Defence valuation team follows a milestone schedule comprising monthly reports and weekly check-ins to discuss project progress. Based on our knowledge gained over this extensive contract, the team of twelve undertakes research and performs inspections to assist in evaluating the assets, most recently reporting a value of over $20 billion.
