An investigation of development appraisal methods employed by valuers and appraisers in small and medium sized practices in Brazil

Purpose – Whilst the real estate development appraisal practices of large national and international real estate companies are well understood, relatively little is known about how development appraisals are conducted by indigenous appraisers and valuers in developing countries. The purpose of this paper is to investigate how development appraisal is conducted in Brazil, compared to the UK, focusing primarily on the methods employed by small- and medium-sized real estate practices and their appraisers to appraise the viability of commercial real estate developments in the State of Sao Paulo. Design/methodology/approach – The study employs a two phase Delphi Method to capture and analyse empirical data from small- and medium-sized real estate appraisers in Brazil. Using the long established and relatively transparent UK Residual Method of development appraisal as a template against which to compare Brazilian appraisal methods, guidance and practice. To understand how indigenous development appraisers operate the Brazilian development appraisal methods, the research was conducted in Portuguese by a bi-lingual real estate expert who was familiar with both UK and Brazilian practice. Findings – The research establishes that appraisers working for small- and medium -sized real estate practices in Brazil rarely use the Residual Method. Instead, they employ a range of methods, the choice of which is heavily influenced by the availability of comparable market data, with Direct Comparison of market data and the Capitalisation of Income being the methods of choice when sufficient comparable evidence is available. Appraisers rarely employ the Residual Method as the principal development appraisal technique, using instead the Comparative Method and Discounted Cash Flow (DCF) analysis. Land prices are usually agreed or already known and developer’s profit is usually determined using DCF analysis and is highly sensitive to fluctuations in construction costs. Research limitations/implications – The research engaged with a small number of appraisers and valuers in small- and medium-sized practices in the State of Sao Paulo using a two-phase Delphi Method. The long established UK Residual Method of development appraisal was used as a template against which to compare practice in Sao Paulo State. There is potential therefore to replicate the research in other Brazilian States and transfer the methodology to other developing countries. Practical implications – In Brazil, when development land in urban areas is acquired on the basis of plot exchange, land is often sold at less than market value and the original landowner retains an equity stake in the development and shares in the development overage. The practice of “permuta física”, giving landowners the freehold of part of the development, or “permuta financeira”, whereby the landowner receives an enhanced land price, indexed against development value, is of potential relevance to the UK and other developed countries that need help in urban unlocking land markets

An investigation of development appraisal methods employed by valuers and appraisers in small and medium sized practices in Brazil

Purpose – Whilst the real estate development appraisal practices of large national and international real estate companies are well understood, relatively little is known about how development appraisals are conducted by indigenous appraisers and valuers in developing countries. The purpose of this paper is to investigate how development appraisal is conducted in Brazil, compared to the UK, focusing primarily on the methods employed by small- and medium-sized real estate practices and their appraisers to appraise the viability of commercial real estate developments in the State of Sao Paulo. Design/methodology/approach – The study employs a two phase Delphi Method to capture and analyse empirical data from small- and medium-sized real estate appraisers in Brazil. Using the long established and relatively transparent UK Residual Method of development appraisal as a template against which to compare Brazilian appraisal methods, guidance and practice. To understand how indigenous development appraisers operate the Brazilian development appraisal methods, the research was conducted in Portuguese by a bi-lingual real estate expert who was familiar with both UK and Brazilian practice. Findings – The research establishes that appraisers working for small- and medium -sized real estate practices in Brazil rarely use the Residual Method. Instead, they employ a range of methods, the choice of which is heavily influenced by the availability of comparable market data, with Direct Comparison of market data and the Capitalisation of Income being the methods of choice when sufficient comparable evidence is available. Appraisers rarely employ the Residual Method as the principal development appraisal technique, using instead the Comparative Method and Discounted Cash Flow (DCF) analysis. Land prices are usually agreed or already known and developer’s profit is usually determined using DCF analysis and is highly sensitive to fluctuations in construction costs. Research limitations/implications – The research engaged with a small number of appraisers and valuers in small- and medium-sized practices in the State of Sao Paulo using a two-phase Delphi Method. The long established UK Residual Method of development appraisal was used as a template against which to compare practice in Sao Paulo State. There is potential therefore to replicate the research in other Brazilian States and transfer the methodology to other developing countries. Practical implications – In Brazil, when development land in urban areas is acquired on the basis of plot exchange, land is often sold at less than market value and the original landowner retains an equity stake in the development and shares in the development overage. The practice of “permuta física”, giving landowners the freehold of part of the development, or “permuta financeira”, whereby the landowner receives an enhanced land price, indexed against development value, is of potential relevance to the UK and other developed countries that need help in urban unlocking land markets

Striving to overcome the economic crisis: Progress and diversification of Mexican multinationals’ export of capital

The Institute for Economic Research (IIEc) of the National Autonomous University of Mexico (UNAM) and the Vale Columbia Center on Sustainable International Investment (VCC), a joint initiative of the Columbia Law School and the Earth Institute at Columbia University in New York, are releasing the results of their third survey of Mexican multinationals today. The survey is part of a long-term study of the rapid global expansion of multinational enterprises (MNEs) from emerging markets. The present report focuses on data for the year 2010. Highlights In 2010, the top 20 Mexican MNEs had foreign assets of USDD 123 billion (table 1 below), foreign sales of USDD 71 billion, and employed 255,340 people abroad (see annex table 1 in annex I). The top two firms, America Movil and CEMEX, together controlled USDD 85 billion in foreign assets, accounting for nearly 70% of the assets on the list. The top four firms (including FEMSA and Grupo Mexico) jointly held USDD 104 billion, which represents almost 85% of the list’s foreign assets. Leading industries in this ranking, by numbers of MNEs, are non-metallic minerals (four companies) and food and beverages (another four companies). All but two of the 20 are firms whose shares are traded on a stock exchange. The exceptions are PEMEX, Mexico’s fully state-owned oil and gas firm, and Xignux, a diversified family-owned enterprise. The top 20 MNEs had 223 foreign affiliates (branches, subsidiaries, et al). As with their counterparts elsewhere in Latin America, Mexican MNEs show a very strong regional orientation. As annex table 2 makes clear, the top 20 overwhelmingly prefer to invest in Latin America. The next region of choice, with a substantial presence of Mexican affiliates, is North America. Europe (mainly the European Union) is a somewhat distant third. The presence of Mexican MNEs in Asia seems to be growing, if slow. In 2008, four of them had affiliates in Asia; in 2010, seven did

The nature of economic development zones in China:an empirical study based on data from the Yangtze River Delta

Development zones, born in the course of China’s economic transition, are the carriers of both the favorable institutions and the foreign advanced technology. They are now at the stage of transferring from the concentration of firms to being industrial clusters. Based on data of firms in development zones along the Yangtze River obtained through micro-level investigation, this paper studies the effects of local factors special to development zones as well as the influence of technology promotion on the economic performance of those firms “locating” in development zones, and thus discloses the nature of firms concentrating into development zones and their trend of transferring into industrial clusters. The empirical study suggests that firms locating on development zones mainly aim at obtaining “policy rents”, which results in that firms concentrating in development zones do not possess the industrial cluster effect in the general sense: the benefits of closing to the supply or demand market. However, although firms in a develop zone do not necessarily concentrate with related firms in space, their technology and market activities are inevitably to produce relations with factors such as local governments and related industrial elements and thus affect the economic performance of firms and nurture the clustering effects of development zones. Therefore, as “policy rents” fade away due to industry transfer and adjustment of favorable economic policies, the key to keep development zones sustainable is to enhance their clustering effects.development zones along the Yangtze River, spatial concentration of firms, industrial clustering effect, technology promotion, policy rents

Opportunities and challenges to mass customise low-income housing in Brazil

Mass Customization (MC) stands for the ability to develop high value-added products within short time frames and at relatively low costs. Although this strategy has been successfully applied in several industries, in construction it has been mostly limited to a few companies that produce factory-built and manufactured homes. In Brazil, where traditional construction techniques are majorly adopted in low-income housing programs, there have been many critics regarding the excessive standardization and thus, non-consideration of the increasing diversity of households and their specific needs. Such standardization is mainly due to the use of mass production core ideas as a way to achieve low costs. The aim of this paper was then to explore the possibilities of adopting mass customization in this context. Two existing low-income housing programs in Brazil were investigated. The discussion on the opportunities and challenges to introduce mass customization ideas in these programs are based on the analysis of the product development process, as well as an analysis of household profiles and needs. The results indicated that the household profile is very diverse in low-income housing. Thus, demand for customization is high, as well as attributed to different products’ characteristics. However, the product development process in this context was found to be very different from a process of mass customized products. Despite the need to modify such process, it was identified that mass customization can be achieved in a variety of ways, and does not necessarily imply on the modernization of construction techniques. However, a major challenge for achieving higher customization in this context seems to be related to the programs’ rules and how it restraints innovation and diversity. Keywords: product development process, low-income housing, mass customization, value managemen

Environment, health and safety management in mining and other industries

Thesis (Ph.D.) University of Alaska Fairbanks, 2014While environment and health and safety may appear to be two different areas, they may be integrated into Environment, Health and Safety (EHS). This study is to investigate the impact of the environment and Occupational Health and Safety Management System (OHSMS) on health and safety. Three case studies were conducted. The first one is to study the impact of abandoned mines on soils, water and crops. The second one is to examine the effect of OHSMS implementation on reducing occupational safety risk. The third one examines the impact of environment on health. The abstracts of these three case studies are as follows: THE INVESTIGATION OF ARSENIC AND HEAVY METAL CONCENTRATIONS IN SOIL, WATER AND CROPS AROUND ABANDONED METAL MINES. Soils, water and crops around abandoned metal mines can be contaminated by heavy metals from adjacent tailings and waste rocks accumulated during mining operations. The results indicate that the As, Zn, Cd and Cr concentrations exceed the soil contamination standard in many soil samples of the nearby farmlands as well as the tailings sites. In the case of water quality, the As concentrations in the Okgae and Youngchen Mines show a decreasing trend with increasing distance from the mine, which is similar to that of the soil samples. The Cd and Pb concentrations in the crops near the Okgae Mine show a decreasing trend with increasing distance from the mine which is also similar to that of soil samples. In addition, the Cd and Pb concentrations in the rice samples and the Cd concentration in the corn samples increase with the Cd and/or Pb concentrations in the soil. EFFECT OF OHSMS ON WORK-RELATED ACCIDENT RATE AND DIFFERENCES OF OHSMS AWARENESS BETWEEN MANAGERS IN SOUTH KOREA's CONSTRUCTION INDUSTRY. The study was conducted to investigate the status of the occupational health and safety management system (OHSMS) in the construction industry and the effect of OHSMS on accident rates. Differences of awareness levels on safety issues among site general managers and occupational health and safety (OHS) managers are identified through surveys. The accident rates for the OHSMS-certified construction companies from 2006 to 2011, when the construction OHSMS became widely available, were analyzed to understand the effect of OHSMS on the work-related injury rates in the construction industry. The Korea Occupational Safety and Health Agency (KOSHA) 18001 is the certification to these companies performing OHSMS in South Korea. The questionnaire was created to analyze the differences of OHSMS awareness between site general managers and OHS managers of construction companies. The implementation of OHSMS among the top 100 construction companies in South Korea shows that the accident rate decreased by 67% and the fatal accident rate decreased by 10.3% during the period from 2006 to 2011. The survey in this study shows different OHSMS awareness levels between site general managers and OHS managers. The differences were motivation for developing OHSMS, external support needed for implementing OHSMS, problems and effectiveness of implementing OHSMS. Both work-related accident and fatal accident rates were found to be significantly reduced by implementing OHSMS in this study. The differences of OHSMS awareness between site general managers and OHS managers were identified through a survey. The effect of these differences on safety and other benefits warrants further research with proper data collection. THE ASSOCIATION BETWEEN CHILDHOOD ASTHMA AND RESIDENTIAL ENVIRONMENTAL RISK FACTORS THROUGH CASE-CONTROL STUDY IN ANDONG, KOREA. Using the International Society for Augmentative and Alternative Communication (ISAAC) questionnaire, we surveyed the childhood asthma prevalence and related socioeconomic and residential environment on 887 elementary schoolchildren in Andong, Korea. We selected asthma case group (29) and control group (26) and performed the exposure assessment for the personal exposure for Volatile Organic Compounds (VOCs) and formaldehyde level for 3 days. As a result, 814 schoolchildren completed the questionnaire. It was found that the asthma prevalence was 19.9% and gender (male, OR; Odds Ratio=1.55), age (younger, OR=1.60), family history of asthma (OR=3.70), passive smoking (OR=1.53), and odor from nearby house (OR=2.01) were affective factors. There was no significant difference between the case and control groups in VOCs and formaldehyde exposure level. In the logistic regression analysis, family income (aOR; adjusted OR =3.20, 95% CI=1.41-7.24) and amount of house sunlight (aOR=2.14, 95% CI; Confidence Interval =1.00-4.58) were significant after adjusting gender, age, and family history of asthma. In conclusion, socioeconomic factors including family income and residential environmental factors such as passive smoking, odor from nearby household, and amount of house sunlight are associated with the prevalence of childhood asthma

Cidades inteligentes e a mensuração de indicadores urbanos de economia e empreendedorismo: o caso de Passo Fundo/RS

Purpose - The intense urbanization process has transformed the urban dynamics. Such phenomenon is the cause of some of the main problems of contemporary cities, in social, environmental, and economic dimensions. Therefore, planning and managing cities have been a challenge for public managers. The concept of Smart Cities is an initiative that seeks to assist in this process, using Information and Communication Technology (ICTs) as agents of transformation in the urban environment. One tool used by Smart Cities is the measurement through indicators, serving as a basis for decision making. The objective of this article is to analyze the urban indicators of Economy and Entrepreneurship of Passo Fundo / RS. Design/ methodology/approach - In the methodology, the indicators of the Connected Smart Cities Ranking were used as a reference, adopting a regional cut of medium-sized cities, located in the South Region, classified among the first 20 in the Ranking. Multimethod research, collection, and data collection procedures were applied. Findings - The results show that the majority of the Passo Fundo indices are lower than those of the cities analyzed, as well as the indices related to employability and the growth of companies. However, the city has satisfactory rates, such as the workforce in the Education and R&D sector, and the creation of technology centers and incubators in the municipality. Originality/value - From this analysis, the results obtained may serve as subsidies for public management in the formulation of more assertive strategies for Passo Fundo / RS in the quest to become a more intelligent and sustainable city.Objetivo - O intenso processo de urbanização tem transformado a dinâmica urbana. Tal fenômeno ocasiona algumas das principais problemáticas das cidades contemporâneas, nas dimensões social, ambiental e econômica. Por conseguinte, planejar e gerir as cidades têm sido um desafio aos gestores públicos. Uma iniciativa que busca auxiliar neste processo é o conceito de Cidades Inteligentes, que utiliza as Tecnologias da Informação e Comunicação (TICs) como agentes de transformação no meio urbano. Uma ferramenta utilizada pelas Cidades Inteligentes é a mensuração por meio de indicadores, que servem como subsídio na tomada de decisões. O objetivo deste artigo é analisar os indicadores urbanos de Economia e Empreendedorismo de Passo Fundo/RS. Metodologia - Na metodologia, utilizou-se como referência os indicadores do Ranking Connected Smart Cities, adotando-se um recorte regional das cidades de médio porte, localizadas na Região Sul, classificadas entre as 20 primeiras do Ranking. Foram aplicados procedimentos multimétodos de pesquisa, coleta e levantamento de dados. Resultados - Os resultados demonstram que a maioria dos índices de Passo Fundo, são inferiores àqueles das cidades analisadas, como os índices relacionados à empregabilidade e ao crescimento de empresas. Entretanto, a cidade apresenta índices satisfatórios, como a força de trabalho no setor de Educação e P&D, e a criação de pólos tecnológicos e incubadoras no município. Originalidade - A partir desta análise, os resultados obtidos poderão servir como subsídios para a gestão pública na formulação de estratégias mais assertivas para Passo Fundo/RS na busca por tornar-se uma cidade mais inteligente e sustentável.

Small business, big markets, one world

Dit rapport is een introductiepaper van het International Small Business Congress 2002, dat gehouden zal worden in Amsterdam van 27 tot en met 30 oktober 2002. Aangezien de euro op 1 januari 2002 geïntroduceerd wordt, zal speciale aandacht worden besteed aan de economische integratie in Europa en de gevolgen daarvan voor het kleinbedrijf.

Liquidity Crises and Corporate Cash Holdings in Chile

This paper addresses the way optimal cash holdings decisions may be affected in episodes of adverse liquidity shocks. Motivated by the recent financial crisis, we are particularly interested in understanding how firm characteristics can explain differences in the adjustment speed to desired cash holdings, and how these characteristics determine whether a firm is more or less affected during a liquidity crisis. To address those issues, we use a large panel dataset with quarterly information of Chilean firms during the period 1996 through 2009. In line with some previous empirical evidence, our findings show that leverage, banking debt, liquid assets, size and volatility affect cash holdings. We also find that liquidity crises have had an overall negative and economically significant effect on the firms’ cash holdings and this effect varies across firm size. In addition, our results reveal other important component of heterogeneity across firms: we find that medium-sized firms are less capable of adjusting cash holdings than do small and large firms.