A N D E R S O N + AN D E R S O N VALUATION SURVEYORS

REPORT AND VALUATION

prepared for

MR. ANGELO KULENI MONDOKA

Executive Summary

Instructions: To prepare for the benefit of the property owner, a valuation report on
Subdivision D of Lot No. 2624/M, New Kasama Area, Lusaka; for purposes of
collateral/loan security.

Interpretation
of Instructions: As the valuation required is to support an application for a credit facility,
instructions are that we inspect the property, buildings and improvements; assess
and provide advice and comments, on amongst other matters:
 the open market value;
 forced sale value;
 estimated replacement cost of buildings and improvements for insurance
purposes;
 title and ownership, land use classification and annual ground rent (lease
charges);
 suitability of the property and improvements as security for purposes of
lending, and whether there would be difficulties if realization by the a lending
institution became necessary; and
 likely changes in the market value of the property.

Property and
Assets Valued: Land, buildings and ancillary improvements comprising Subdivision D of Lot
No. 2624/M; including service installations which form a permanent part of the
property; and which would ordinarily pass with the premises, on a sale or letting.
The property has been demarcated into two sections which are at present not
defined by cadastral surveying, and as instructed we have assessed the two as
separate entities:
(i) Portion A (1.000 acre portion), and is developed with double storey
dwelling house, guest cottage, swimming pool, servants quarters and
ancillary improvement; and
(ii) Portion B the remainder of the land extending to approximately 4.000 acres
actively utlilized, on a small scale, for growing of rain-fed crops, which for
the preceding season, included maize, groundnuts and sweet potatoes and
rearing of chickens and guinea fowls.
A section of the 4 acres is developed with an orchard, with over 20 different
varieties of fruit trees, including oranges, mangoes, lemons and guavas.
Buildings on portion B include workers’ living accommodation, pit
latrine/washroom, chicken/guinea fowl run with an enclosed yard, storeroom
(for stock feeds), guard room and ancillary improvements.

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 2

Items Excluded: Household furniture and equipment, motor vehicles, stock feeds and livestock
and all moveable items, are excluded from the assessment.
Location: On the corner of a gravel road popularly known as Forest Road and an un-named
road, about 200 metres off Musokolobe Road, and less than a kilometre off the
south side of Leopards Hill Road, within New Kasama Area, approximately
twenty kilometres from the City’s Commercial Centre.

Site/Plot Area: Rectangular shaped land parcel, extending to 2.0234 hectares (approximately
5.0000 acres), delineated and described on Diagram No. 600 of 2012.

Fencing: The site is enclosed to rear and north side by a two and half metre-high concrete
block wall, topped with electric fencing. The boundary wall to front and south
side incorporates steel palisade fence between brick pillars, topped with electric
fencing.
The grounds of each portion are screened by an internal wall. Two sets of
entrances, each with double opening steel gates provide access. The driveway
and parking yard on Portion A are brick paved. Walkways are kerbed and
concrete paved. Grounds are well landscaped with good lawns, and there are
various ornamental shrubs, a variety of flowers, exotic and indigenous trees and
light bushes have been preserved.
Much of the land on Portion B is undeveloped and utilised for growing of rain-
fed crops and rearing of chickens and guinea fowls. A small portion is developed
with an orchard of over 20 different fruit trees. Improvements on this portion
include workers’ living accommodation, chicken/guinea fowl run with an
enclosed yard and ancillary improvements.

Land Use: Shown as being zoned for “agricultural” use; having previously formed part of a
large farm. The annual lease charge (commonly referred to as ground rent)
which is calculated based on the land use and extent of a property is currently at
K93.10 per annum
For purposes of payment of rent, the year end is 31 st December, and for the
current year ending 31st December 2021, ground rent due (K93.10) has not yet
been paid.

Title and
Ownership: Title is a State lease for a period of ninety nine (99) years from 1st August 1981,
vested in Angelo Kuleni Mondoka (in trust for Angelica Anna Mondoka);
Certificate of Title No. 4628; dated 29th January 1986.

Occupation
and Lettings: The two portions are wholly owner occupied. Workers’ housing is provided to
employees, and no occupational leasehold interests are created.

Mortgages: An entry in the Lands and Deeds Register (at the Ministry of Lands) indicates a
mortgage in favour of AB Bank Zambia Limited, to secure K350,000.00 plus
interest registered on 12th March 2018.

Caveats: Save for the State lease and the mortgage mentioned above, and the reversion
vested in The President who holds the in perpetuity for and on behalf of the
Zambians, we are not aware of other interests; or any unusual restrictions or
encumbrances, statutory or otherwise, likely to have an adverse effect upon the
market or other values of the property.

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 3

Council Rating: We have not had the opportunity to make inquiries with Lusaka City Council,
(who are the Rating Authority for the area), to establish whether the property is
listed in the Council’s Valuation Roll for purposes of levying local authority
property rates.
However, and in accordance with the Rating Act, No. 21 of 2018 (as amended),
land and buildings which are occupied and utilised primarily for purposes of
residential use (as is the subject), including ancillary buildings and other
structures situated on such land are subject to payment of local authority property
rates.

Buildings: As mentioned, the site has been demarcated into two sections which are not
defined by cadastral surveying, Portion A is developed for residential use and
Portion B is actively utlilized as smallholder farm. Buildings and improvements
include:

Portion A
Double storey Dwelling House, Lock-up Garage, Guest Cottage, Swimming
Pool, Pool Pump Room, Servants’ Quarters, and Dog Kennel/Store.
Portion B
Workers’ Living Accommodation, Pit Latrine/Washroom, Chicken Run,
Enclosed Yard for Chickens and Guinea Fowls, Concrete Base (for Water
Storage Tank), Storeroom, Dog Kennel and Guard Room and an Orchard.

Services: These include:

(i) Electricity
Mains three phase electricity is connected, and supply is reticulated to
almost all buildings.
A three phase generator has been installed as back-up.
(ii) Water Supply
Is from 2No boreholes, each equipped with a submersible pump and booster
pumps.
To improve reticulation for domestic use, 2No storage tanks each with
capacity of 5,000 litres tank one supported on high level steel and other on
a concrete base have been installed sited in Portion A.
For irrigation of the gardens and the orchard, a storage tank with a capacity
of 10,000 litres on a concrete base has been installed sited in Portion B.
(iii) Disposal Waste
Disposal of waste from sanitary fittings is to septic tanks and soakaways.
Pit Latrine/Washroom to Workers’ Living Accommodation.
Rain water (from both run-off and roof surfaces) is channelled through
gutters/down pipes and discharged to concrete drains.
(vi) Access to the Property
Is from an un-named gravel road (popularly known as Forest Road),
branching off Musokolobe and Leopards Hill Road.
(vii) Security

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 4

Security lights mounted on steel posts within the grounds and around the
perimeter fence have been installed.

Condition: The Double storey House is quite old, but was recently extended and at the date
of inspection being remodeled and renovated to a good standard of workmanship
and refurbishment works were at approximately 90% complete. The
accommodation is being finished with good quality fittings and finishes
‘Victorian type’ rustic and high-end bathroom and kitchen fittings , is in a good
condition and state of repair, with no material defects apparent, save only for
minor defects and items of incomplete works.
Other buildings (including guest cottage, servants quarters, workers’ living
accommodation and storerooms) are in a good condition and state of repair, and
there are no material structural defects or signs of mechanical failure apparent;
save for various items of routine repair and maintenance. The storeroom (for
stock feeds) and guard room are under construction.

Bases of
Valuation: As the valuation is required to support an application for a credit facility, bases
adopted to arrive at opinion of values are:-:
(i) to assess market value
“Open Market Value”, being the estimated amount for which an asset or
liability should exchange, on the date of valuation; between a willing
buyer and willing seller in an arm’s length transaction, after proper
marketing and where parties acted knowledgably, prudently and without
compulsion; and assuming that the property has been adequately exposed
to the market.

(ii) to assess forced sale value

“Estimated Restricted Realisation Price” being an amount of cash
consideration before deduction of costs of sale of the property which the
Valuer considers, on the date of valuation, can reasonably be expected to
be obtained (in an arms-length transaction) on the basis that the time
allowed for marketing is unduly short, publicity and market exposure is
inadequate, compared to the period and promotional measures necessary to
achieve the best price on the market.

(iii) to assess replacement cost

“Estimated Reinstatement Cost” in respect of buildings and improvements
only, and refers to the total cost of re-constructing existing structures on a
property, including the replacement of fixtures, fittings and service
installations, in a condition equal to, but not better or more extensive than
their condition when new.

Uncertainty from
Novel COVID 19 Although the Country faces a marked decline in COVID-19 infections; a
recovery rate reported to be over 80%, and life is starting to return to a
semblance of normality, the outbreak Virus at the start of 2019 has had a major
impact on the Country’s economy. The outbreak of COVID-19, was declared
by the World Health Organisation as a “Global Pandemic”, has continued to
heightened uncertainties in both local and global market conditions. Since the
beginning of 2019, global financial markets have evidenced steep declines,
largely on the back-drop of the pandemic, and arising from concerns of supply

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 5

chain disruptions and a decline in demand. Many countries across the globe
have during the preceding twenty/thirty months implemented strict travel
restrictions; and a range of quarantine and “social distancing” measures.
Economic uncertainty as a result of the COVID-19 outbreak is having an
unprecedented impact on market activity in the real estate sector. Making ‘fair’
assessments in today’s unusual and fast-changing environment is proving
problematic for the majority of property appraisers amid the decline in
transactions. In the prevailing environment, we have therefore considered
various performance parameters and have attached less weight to past market
evidence (property sales in particular) for comparison purposes.
The response to COVID-19 imply that we are faced with an unprecedented set
of circumstances on which to base appraisal judgements. Consequently, due to
reduced certainty, a higher degree of caution is attached to valuations than
would normally be the case. Values may change more rapidly and significantly
than during standard market conditions. Given the unknown future impact that
frequent reviews of property values, particularly those being adopted for
lending purposes, should be deemed necessary.

Suitability for
Loan Security: Despite the country’s already difficult economic circumstances and the hype
arising from the intended August 2021 Presidential and Parliamentary elections,
coupled with uncertainties that face real estate markets world-wide midst fears
of the Covid-19 pandemic, we hold the view that the subject property provides
good security for lending purposes.
Material aspects or factors to note include the following:
(a) Locality of the Property - New Kasama Area
New Kasama and the Leopards Hill are considered the most affluent suburbs
in Lusaka. Property in these areas boasts a range of stylish mansions, proud
farmhouse-style villas and a number of newer mid-to-upmarket residential
developments. Most properties have large, beautifully landscaped gardens
and are occupied by Lusaka's elite and successful business people.
The Area's architecture ranges from top-end luxury homes to smaller mid-
market developments consisting of duplexes and two to four bedroom
houses. Due to the neighbourhood’s spaciousness, easy access to good
schools and sense of community, residential properties in New Kasama and
Leopards Hill areas have become well sought-after by families at the higher
end of the income spectrum.
Landmarks such as the American International School, the President's retreat
at State Lodge and several retail and leisure facilities such as Leopards Hill
Polo Club and Oxygym located on Leopard's Hill Road convey a high status
to its residents.

(b) Location and Accessibility

The property is a corner plot and one of the few such sites in the Area. It is
in a good position, less than a kilometre off Leopards Hill Road, which has
over the recent years became one of the City’s busiest roads, with heavy
vehicle traffic flow.
The subject site enjoys easy and direct access to a designated road reserve a
factor which would prove attractive to any potential purchaser.

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 6

(c) Extent of the Property

The subject boasts a large site (2.0234 hectares or approximately 5.0000
acres) and existing buildings only take up a small portion of the total land
area, and therefore the property offers tremendous potential for subdivision
into two or three land parcels, which can be sold at high prices should
circumstances dictate an added advantage to any potential purchaser.
(d) Level of Development
Approximately 80% of the subject constitutes a green site, with no major
structures except for boundary wall and worker’s living accommodation.
thus offers potential for additional improvements as well as maximum
flexibility in siting of new improvements. Because improvements on are
light, and any developer would not incur the burden of demolition costs and
debris removal.
(e) Quality of Improvements
Although old, the double dwelling house and ancillary improvements are
well designed, and have been constructed to a good standard of
workmanship, the accommodation the house is remodeled and being
renovated to a good standard, using quality fittings and finishes. Upon
successful completion, the House will provide spacious and well laid out and
secured living and sleeping accommodation; and has the added advantage of
a swimming pool.

(e) Proximity to Social Facilities

The property is located in close proximity to several retail and leisure
facilities which include Jackal and Hide Café at Sugarbush Farm, the
Leopard's Hill Polo Club, Oxygym, (a modern fitness gym, located on
Leopard's Hill Road), Several schools including the American International
School and the President's retreat at State Lodge.

(f) Proximity to Other Residential Areas & the City Centre

This part of New Kasama enjoys relatively easy accessibility to other areas,
including Leopard Hill, State Lodge, Ibex Hill, Woodlands and Kabulonga;
as well as the City Centre – which renders properties in the area attractive to
high-income groups.

(e) Demand for Development Land

Despite the current economic challenges, supply of development land falls
far short of demand. There is a shortage of serviced land for development in
all parts of Lusaka and areas in close proximity, particularly in easily
accessible or prime positions. The result is that sites that become available
change hands quickly and usually at market prices. Even land held under
customary tenure, with limited or no security of tenure (as is the case in
parts of Chibombo, Ngwerere and Chongwe), now change hands at
commercial prices.
The part of the City in which the subject is located, is popular and well
sought after by the high-income groups; and properties and accommodation
in the area continue to be in high demand.
In addition, we can state that:

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 7

(i) based on information obtained from searches undertaken and inquiries

made, the leaseholder has security of tenure by way of a long term lease,
with an option, provided under the Lands Act, to renew his 99-year
leasehold interest; and
(ii) except for the mortgage to AB Bank Zambia Limited (which is a normal
business arrangement), there are no onerous or unusual restrictions or
encumbrances, statutory or otherwise, which would have an adverse effect
upon values of the property, or which could cause difficulties if a sale was
attempted.

Opinion
of Values: Subject to the foregoing and assumptions made, we are of the opinion that values
for the property would be in the region of:
Category of Assets Open Market Forced Sale Replacement Cost
Land $ 65,000 $ 50,000 not applicable
Portion A Buildings & Improvements $ 550,000 $ 510,000 $ 680,000
Total Value for Portion A $ 615,000 $ 560,000 $ 680,000
Land $ 260,000 $ 200,000 not applicable
Portion B Buildings & Improvements $ 50,000 $ 40,000 $ 60,000
Total Value for Portion B $ 310,000 $ 240,000 $ 60,000
TOTAL for Portion A & Portion B $ 925,000 $ 800,000 $ 740,000

Notes (1) The assessment of replacement cost is restricted to buildings and ancillary
improvements, and includes only service installations which form a
permanent part of the site, the figure does not take account of the market
value of the land, since it is not normal practice to insure against loss of
land.
(2) Due to frequent fluctuations in the value of the Kwacha against major
currencies, we have expressed opinion of values in United States Dollars.
We are advised that the exchange rate which was prevailing as at the date of
valuation was US $1 = K22.50 and should the need arise, above figures can
be converted to Kwacha at this rate.

Date of
Valuation: As the date of valuation has not been specified, opinions of values stated above
are assessed as at 1st May 2021, this being the date of inspection of the property.

Confidentiality: The Report is provided for the sole use of Mr. Angelo Kuleni Mondoka and for
the specific purpose to which it refers. The information is confidential to him
and his professional advisors in this matter; and no responsibility whatsoever is
accepted to other parties, for any loss or financial obligation, direct or
consequential, which might arise from reliance on the document or any part of its
contents.

Disclosure: If, for whatever reason our opinions, including that on values is disclosed to
persons other than the Owner of the Property, then the bases of valuation,
assumptions made in arriving at opinion, as well as exclusion clauses contained
in the Report should also be disclosed in full.

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 8

M. S. Kasase
PRINCIPAL CONSULTANT
ANDERSON + ANDERSON VALUATION SURVEYORS

MSK/MSK/VAL – 5936

4th May 2021

Mr. Angelo Kuleni Mondoka

Lot No. 2624/M/D
Off Leopards Hill Road
Forest Road
New Kasama Area
LUSAKA

Dear Sir,

Re: VALUATION OF SUBDIVISION D OF LOT No. 2624/M

NEW KASAMA AREA, LUSAKA

We refer to your instructions issued on 31st April 2021, requesting us to provide you with a
valuation report, on Subdivision D of Lot No. 2624/M, New Kasama Area, Lusaka; and for which
instructions we are greatly thankful.

We have inspected the property, undertaken inquiries necessary for purposes of the valuation, made
the assessment and now have pleasure in submitting our Report.

1.0 Purpose of Valuation

We are informed that Subdivision D of Lot No. 2624/M (for purposes of this Report
abbreviated as Lot No. 2624M/D), as well as improvements thereon are the subject of a
credit facility to be provided by a bank or similar lending institution; and that in accordance
with the conditions prescribed for such transactions, independent professional advice is
required on the property’s market value to assist in the formulation of a strategy for the
advances to be secured on the property.

2.0 Interpretation of Instructions

As the valuation is required to support an application for a credit facility, we understand
instructions to be that we inspect the property and improvements, and:
(1) assess and provide advice in respect of the following values:
(i) the current open market value;
(ii) forced sale value; and

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 9

(iii) an estimate of the replacement cost of the buildings and improvements for
insurance purposes
(2) provide brief details or comments on various matters, including:
(a) a description of the property, buildings and ancillary improvements;
accommodation, floor areas and services installations available as well as
photographic evidences;
(b) the property location, including a location and site layout plan;
(c) title and ownership, land use classification (zoning) and confirmation whether the
land parcel is agricultural or no agricultural, annual lease charges (ground rents),
City Council property rates, as well as encumbrances, charges, caveats and
leases, if any;
(d) confirm that the property ‘s boundary line with that shown the Certificate of Title
and confirm that if there are no reports of encroachments or evidence of
boundary disputes;
(e) suitability of the property and improvements as security for purposes of
collateral; and whether there would be difficulties if realisation by a lending
institution became necessary; and
(f) assumptions made and matters considered in formulating our opinion of values
reported, together with bases of assessment adopted.

3.0 Format of the Report

In the absence of specific guidelines on how the Report should be presented, the format
adopted is in accordance with standard practice, and intended to provide essential
information usually required by a bank or lending institutions, including a description of the
property, as well as matters considered in arriving at our opinion of values.

4.0 Property and Assets Valued

The assessment is restricted to land, buildings and ancillary improvements; and includes
only service installations which form a permanent part of the property, and which would
ordinarily pass, with the premises, on a sale or letting.

5.0 Items Excluded from the Valuation

We have excluded from the assessment various moveable items, including the following:
(i) household furniture and equipment;
(ii) motor vehicles and building materials; and
(iii) stock feeds and livestock.

6.0 Inspection of the Property

6.1 Date of Inspection
1st May 2021.

6.2 Extent of the Inspection

The Report is not the result of a structural or soil survey, since it is not standard practice to
undertake such surveys when inspecting a property for purposes of assessing market or other
values unless specific instructions are issued, and such surveys are therefore considered to

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 10

be outside the scope of the instructions, nor have the services been tested. We cannot
therefore give guarantees in these respects.
In accordance with standard practice, we restricted the inspection to a visual survey of the
land and buildings, noting the design and construction of each structure, layout of
accommodation, ancillary service installations, and the condition and the state of repair.
We did not inspect parts of the property and buildings which are covered, unexposed or
inaccessible (such as foundation walls and footings; roof timbers; pipe work and electrical
conduits and cables within roof voids, walls and floors), and for purposes of assessing
market and other values, such parts have been assumed to be in good structural repair and
condition and free from hazardous materials, rot and infestation. We cannot express an
opinion about or advice on the condition of parts not inspected and except for matters
mentioned or referred to, this Report should not be taken as making any implied
representation or statement about such parts.
In the above respects only, the valuation is carried out on the assumption that parts not
inspected are in good structural repair and condition, do not contain any deleterious or
hazardous materials and that available services function satisfactorily. No account has been
taken for inherent latent defects, if any.

6.3 Floor Areas

Considering that the subject is a residential property, design of buildings, the purpose for
which the valuation is commissioned and in accordance with standard practice, we took
measurements of buildings over external walls, and floor and covered areas are calculated on
gross external basis. For purposes of conversion, one square metre is taken as being
equivalent to 10.764 square feet.

6.4 Property Boundary

We have not surveyed the property to confirm beacon positions, as due to time and cost
constraints, it is not standard practice to undertake such surveys when inspecting a property
for purposes of assessing market or other values; unless circumstances dictate, or specific
instructions are issued, with incidental cost agreed with all concerned. This aspect is
therefore considered to be outside the scope of instructions. However, we have assumed, in
the absence of evidence to the contrary, that the concrete block wall enclosing the site is
erected along boundary lines; and further, we have not observed any encroachments, and we
have not been informed of any boundary disputes with adjoining sites.
We have relied on information contained in the Certificate of Title and confirmed by
searches made at the Ministry of Lands, as to the extent of the site; and the area stated in the
Report is as provided by the Ministry. For purposes of conversion, we have taken one
hectare to be equivalent to 10,000 square metres or 2.471 acres.

7.0 Description of the Property and Improvements

We provide under various Sections of Paragraph 6, factual data relating to the property, as
usually required by the banks and lending institutions.

7.1 Physical Location

On the corner of a gravel road popularly known as Forest Road and an un-named road, about
200 metres off Musokolobe Road and less a kilometre off the south side of Leopards Hill
Road, within New Kasama Area, approximately twenty kilometres from the City’s
Commercial Centre.
Global Position System Reference is 15°28'55.01"S and 28°23'51.43"E.

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 11

For ease of identification of location, an extract from Google Earth Map showing the
position of the property boarded in red is provided at Appendix I.

7.2 Legal Description

Under the Lands and Deeds Registry Act, Cap 185, the property is described as:
“ALL that piece of land in extent 2.0234 hectares more or less being Subdivision D of Lot
No. 2624/M situate in the Lusaka Province of Zambia which piece of land is more
particularly delineated and described on Diagram No. 600 of 1995 except and reserved all
minerals oils and precious stones whatsoever upon or under the said land……….....”
A copy of the Certificate of Title is provided at Appendix IV.
7.3 Site and Fencing
The site which as stated extends to 2.0234 hectares (approximately 5.0000 acres), is
rectangular shaped, and enclosed by a two and half metre high concrete block wall to rear
and northern side, topped with electric fencing. The wall to front and the southern side of the
boundary incorporates steel palisade fence between brick pillars, also topped with electric
fencing.
The site has for administrative purposes, been demarcated into two sections, which are at
present not defined by cadastral surveying. The two portions are screened off each other by
an internal concrete block wall. Two sets of entrances, each with double opening steel gates
provide access.
Portion A (about 1.000 acre), is developed with double storey dwelling house, guest
cottage, swimming pool, servants quarters and ancillary improvement; and Much of the
grounds of Portion A are brick paved, including the driveway and parking yard. Walkways
are also kerbed and concrete paved. Grounds are well landscaped with good lawns, and
there are shrubs, variety of flowers, indigenous and exotic trees.
The reminder of the land comprises Portion B extending to approximately 4.0000 acres.
This is actively utlilized, on a small scale, for growing of rain-fed crops, which for the
preceding season, included maize, groundnuts and sweet potatoes and rearing of chickens
and guinea fowls. A small portion is developed with an orchard of over 20 varieties of fruit
trees.

7.4 Land Use Classification

We have been informed by the Ministry of Lands that the property is shown as being zoned
for “agricultural” use, having previously been developed and occupied for agricultural
purposes and that the annual lease charge (commonly referred to as ground rent, which is
calculated based on the land use and a property’s plot size) is currently at K93.10 per annum
For purposes of payment of rent, the year end is 31st December, and for the current year
which ends 31st December 2021, ground rent charged for the year (K93.10) has not yet been
paid.
As the property is developed and is occupied for dwelling purposes, we suggest that
applications be made to the Planning Authority for change of use; or if change of use has
already been obtained, the Ministry of Lands be advised to record the correct zoning.

7.5 Title and Ownership

We have been provided with a copy of the Certificate of Title, and we have also made
searches at the Lands and Deeds Registry (Ministry of Lands) to confirm title and
ownership, and establish interests held in the property or restrictions, if any, attaching

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 12

thereto. We are informed that title is a State lease, for a period of ninety-nine (99) years
from 1st August 1981. The registered title holder is Angelo Kuleni Mondoka (In Trust for
Angelica Anna Mondoka); Certificate of Title No. 4628, dated 22nd January 2015.

7.6 Occupation of the Property

The two portions (A and B) are wholly owner occupied. Workers’ housing is provided to
employees, and no occupational leasehold interests have been created.

7.7 Mortgages/Charges and Caveats

An entry in the Lands and Deeds Register (at the Ministry of Lands) indicates a mortgage in
favour of AB Bank Zambia Limited, to secure K350,000.00 plus interest registered on 12th
March 2018.
Save for the interest stated above, and the reversion vested in The Republican President who
holds the land in the country perpetuity for and on behalf of the people of Zambia; we are
not aware of any caveats, or unusual restrictions or encumbrances. However, should
detailed information or assurances on title be required, we suggest that legal advice be
sought.

7.8 City Council Rating Assessment

We have not had the opportunity, to make inquiries with Lusaka City Council who are the
Rating Authority for the area, to establish whether the property and improvements have been
assessed, and is listed in the Council’s Valuation Roll, for purposes of levying local
authority property rates.
However, and in accordance with the Rating Act, No. 21 of 2018, land and buildings which
are not developed/occupied and used primarily for purposes of agriculture (as is the subject),
including ancillary dwelling houses and other structures situated on such land are not exempt
from payment of rates. We believe that although shown as being zoned for agricultural use,
Lot No. 2624/M/D would not qualify for exemption.

7.9 Services
Are a major aspect of any property, and if not available or inadequate, can render use of the
accommodation inefficient. For the subject, services include:
(i) Electricity
Mains three phase electricity is connected.
A three phase generator has been installed as back-up.
(ii) Water Supply
Supply is from 2No boreholes, each equipped with a submersible pump.
To improve reticulation for domestic use, 2No storage tanks each with capacity of 5,000
litres; one supported on high level steel and another supported on a concrete base have
been installed sited on Portion A.
For irrigation of gardens and the orchard, a storage tank with a capacity of 10,000 litres
on a concrete base has been installed sited on Portion B

(iii) Disposal of Waste

Waste From Sanitary Fittings
Disposal is to a septic tank and soakaway.

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 13

Pit Latrine/Washroom to Workers’ Living Accommodation.

Surface Water
From roof tops through gutters and down pipes is discharged to concrete lined drains;
and then to mains storm drains.
(vi) Access to the Property
The main access is from the unnamed gravel road, off Musokolobe Road, and the
second access is from Forest Road the boundary on the south side.

(vii) Security
Security lights, mounted on steel posts within the grounds and around the perimeter
fence have been installed.
7.10 Buildings and Improvements
The site is demarcated into two sections which are at present not defined by cadastral
surveying, Portion A and Portion B;
In addition to the boundary wall, parking areas and walkways as well as service installations
referred to above, the portions are developed with the following:
Portion A
(1) Double storey Dwelling House
(2) Lock-Up Garage
(3) Guest Cottage
(4) Swimming Pool
(5) Pool Pump Room
(6) Servants’ Quarters
(7) Feeder Pillar Room/Generator Shed
(8) Dog Kennel No. 1 and Storeroom
Portion B
(9) Workers’ Living Accommodation
(10) Pit Latrine/Washroom
(11) Chicken Run
(12) Enclosed Yard (for Chickens and Guinea Fowls)
(13) Storeroom (for Feeds)
(14) Concrete Base (for Water Storage Tank)
(15) Dog Kennel No. 2
(16) Guard Room
(17) An orchard, with over 20 different varieties of fruit trees
For purposes of identification, a site and accommodation layout plan (not drawn to scale)
and a few pictures buildings and sections of the property, are provided as part of the Report.

7.11 Brief Description of Buildings and Accommodation

(1) Dwelling House
Double storey and self-contained. Constructed of hipped roof of concrete tiles on
timber trusses and purlins. Roofs over verandas and balconies additionally supported
on brick pillars. Timber fascia boards to eaves. Concrete block walls, rendered
externally and painted. Timber framed glazed sliding and opening windows. Timber
framed glazed and timber framed top-hang revolving doors to external entrances.

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 14

Reinforced concrete floors. Access to upper floor is by a concrete staircase with steel
balustrades. Decorative steel railing to balconies.
Internal fittings and finishes include high quality suspended acoustic ceilings; fitted
with recessed and chandelier type light fittings to upper floor, plastered ceiling to
ground floor beneath upper floor slab. Walls are plastered and painted, and there are
full height glazed wall tiles to ensuite bathrooms, and splash area in the kitchen.
Ceramic tile and wood parquet type floor finishes. Double bowl stainless steel sink
and wall mounted eye-level cupboards, cooker unit and dish washer to kitchen.
Double bowl stainless steel sink, granite topped cupboards and wall mounted eye-
level cupboards, electric cooker unit and smoke hood to scullery. Fitted timber
shelves to pantry/stores. Built-in wardrobes to bedrooms. Water closet and wash
hand basin to guest toilet. Shower cubicle, bath tub water closet and two wash hand
basin to one ensuite main bedroom on the first floor (Victorian type modern, rustic
and high-end fittings). Shower cubicle, water closet and wash hand basins to
bathrooms of each of the two self-contained bedroom on the first floor. Electric
towel rails with thermostats to each bathroom. Electric and solar geysers for hot
water supply.
Accommodation comprises:
Ground Floor: lounge, entrance foyer, dining room, TV room ensuite guest
bedroom, guest toilet, fully fitted kitchen with server, breakfast nook,
scullery, pantry/stores, wine cellar, office, gymnasium, stairway and
landing, passage, entrance hall, patio/veranda and enclosed yard
First Floor: self-contained main bedroom with walk in dressing room, second,
and third bedrooms, study, stairway/landing, circulation area
passageway and balconies.

(2) Lock-Up Garage

Adjoins the Dwelling House. Constructed of a hipped roof of concrete tiles on timber
trusses and purlins. Timber fascia boards to eaves. PVC gutters and down pipes for
rain water drainage. Concrete block walls, rendered externally, plastered internally
and painted. Top hang steel roller shutters to entrances. Concrete floor.
Designed to accommodate three cars.

(3) Guest Cottage

Detached, single storey and self-contained. Constructed of a hipped roof of concrete
tiles on timber trusses and purlins. Concrete flat roof over verandas supported on brick
pillars. Concrete block walls, rendered externally; and painted. Timber framed glazed
windows. Timber framed timber door to main entrance. Timber framed timber flush
doors internally. Concrete floors.
Internal finishes and fittings include plastered rhinoboard ceilings in all rooms. Walls
are plastered and painted, and there are full height glazed wall tiles to bathrooms and
kitchen. Double bowl stainless steel sink unit, granite topped fitted cupboards and wall
mounted eye-level cupboards to kitchen. Water closet, shower cubicle and wash basin
to each bathroom/toilet. Built in cupboards to both bedrooms. Wall-mounted electric
geyser for hot water.
Accommodation comprises two self-contained bedrooms, living/dining room, kitchen
area, passageway and front veranda.

(4) Swimming Pool

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 15

Rectangular shaped family size pool, measuring about 11.00 metres by 3.00 metres.
Constructed of painted concrete base and walls; with a mosaic tiled rim. Concrete
apron and brick paved surround and walkways. Complete with pump and filtration
system.

(5) Pool Pump Room

Small structure erected against screen wall, of a monopitched roof, of concrete tiles on
timber purlins. Concrete block walls, rendered externally and plastered internally.
Door opening. Concrete floor.

(6) Servants Quarters

Erected close to the entrance gate. Constructed of a hipped roof, of concrete tiles on
timber purlins and trusses. Hardboard ceilings in all rooms. Timber fascia boards to
eaves. Concrete block walls, plastered internally, rendered externally and painted.
Timber framed glazed windows. Timber framed timber door. Concrete floor, with
ceramic tile finish. Built in cupboards, topped with granite and single bowl stainless
steel sink to kitchen area. Water closet, wash hand basin and shower to
toilet/washroom.
Accommodation comprises two bedrooms, living room/kitchen and toilet/shower.

(7) Feeder Pillar Room/Generator Shed

Constructed of a concrete flat roof of on concrete block walls, rendered and plastered.
Steel framed steel grille gates to entrance. Lean to roof of concrete tiles to generator
shed. Reinforced concrete floors.

(8) Dog Kennel No. 1 and Storeroom

Erected against boundary wall adjacent to the entrance gate. Concrete flat roof, on
concrete block walls, rendered externally and plastered internally. Steel framed steel
grille gate to each room. Concrete floor.
Accommodation comprises one dog kennel and storeroom.

(9) Workers’ Living Accommodation

Constructed of a monopitched roof of IT4 iron sheets on timber purlins. Concrete
block walls, plastered internally and rendered externally. Wall to front elevation clad
with decorative flat stone. Steel framed glazed windows, fitted with burglar bars.
Steel framed timber doors, fitted with steel grille gates. Concrete floor with cement and
sand screed finish. Wash trough to each unit. Water closet, wash hand basin and
shower to each washroom/toilet.
Consists of 3No dwelling units; and accommodation in each comprises two living
rooms, a kitchen, washroom/toilet and veranda.

(10) Pit Latrine/Washroom

Monopitched roof of corrugated iron sheets. Concrete block walls, rendered externally
and plastered internally. Steel famed timber door. Concrete floor with cement sand
screed finish. Shower to washing area.
Accommodation comprises toilet/washroom.

(11) Chicken Run

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 16

Low level building, constructed of a monopitched roof, of IT4 iron sheets on timber
trusses. Concrete block walls, not rendered externally or plastered. Large window
openings to front covered with wire mesh. Concrete floor with cement sand screed
finish.

(12) Enclosed Yard (for Chickens and Guinea Fowls)

Immediate area in front of chicken/guinea fowls run is enclosed by diamond mesh wire
fencing, supported on steel posts. Compacted earth floor.

(13) Concrete Base

Design to support water storage tank, built to a height of about 100mm above ground
level, of reinforced concrete floor.

(14) Storeroom (for Livestock Feeds)

Currently under construction, and built to window level, of stone walls; and a concrete
floor.
Incomplete building work includes, but not limited to the following:
(1) roof structure and covering;
(2) door frame and door;
(3) floor screed/finish;
(4) electrical cables and light fittings and switches; and
(5) painting internally and externally;

(15) Dog Kennel

Low level building erected against screen wall. built of a monopitched roof of versatile
iron sheets on timber trusses. Concrete block walls, not rendered or plastered.
Entrance steel grille gates. Immediate area in front of dog kennel is enclosed by chain-
link fencing on steel posts.
(16) Guard Room
Currently under construction, built to roof level. Concrete block walls, not rendered or
plastered. Concrete floors
Incomplete building work includes, but not limited to the following:
(1) roof structure and covering;
(2) windows frames, door frames and door;
(3) floor finishes; painting internally and externally; and
(4) light fittings and switches.

(17) Orchard
A relatively large orchard, planted with various fruit trees, mostly mature and
flowering at time of inspection, and well tendered. Trees total about 20, and include
mangoes, oranges, guavas, lemons and pawpaw.

7.12 Condition and State of Repair

As mentioned, the Report is not the result of a structural, soil or geophysical survey; since
these surveys do not form part of a standard valuation exercise, unless specific instructions
are issued, and these are therefore considered to fall outside the scope of usual instructions,
nor have the boreholes nor other service installations been tested. We cannot therefore give
any guarantees in these respects.

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 17

However, from the extent of our limited inspection carried out as described above, and
which we considered adequate for the purposes of assessing market and other values, we can
mention that the dwelling house is quite old, but was recently renovated and refurbished to a
good standard of workmanship. The accommodation is finished with modern, rustic and
high quality Victorian type fittings and finishes, is in a good condition and state of repair,
with no material defects apparent, save only for minor incomplete works and items of
routine repair. As at the date of inspection, approximately 90% of the works were
completed.
Other buildings (including the guest cottage, garage, servants quarters and workers’ living
accommodation) are in a good condition and state of repair, and there are no material
structural defects or signs of mechanical failure apparent; save only for various items of
routine repair and maintenance. The storeroom (for stock feeds) and guard room are under
construction.

7.13 Floor Areas

Calculated on a gross external basis from measurements taken, approximate floor and
covered areas are as follows:
Buildings/Accommodation square metres square feet
Portion A
Dwelling House
Ground Floor 343.80 3,701
Front Veranda/Patio 13.20 142
(1) Side Veranda 32.50 350
Rear Veranda 28.20 96
Upper Floor 221.30 2,943
Balconies 57.90 862
(2) Garage 45.60 432
(3) Guest Cottage 105.50 1,136
Veranda 12.50 135
(4) Swimming Pool -- --
(5) Pool Pump Room 3.50 38
Servants’ Quarters 32.00 344
(6)
Veranda 2.70 29
(7) Feeder Pillar Room 4.00 43
Generator Shed 5.20 56
(8) Dog Kennel No. 1 and Storeroom 6.50 70
Portion B
(9) Workers’ Living Accommodation 103.10 1,110
Verandas 6.20 67
(10) Pit Latrine/Washroom 4.00 43
(11) Chicken Run 39.00 420
(12) Enclosed Yard (Chickens Guinea Fowls) -- --
(13) Storeroom (for Feeds) 4.60 50
(14) Concrete Base (for Water Storage Tank) 6.80 73
(15) Dog Kennel No. 2 3.30 36
(16) Guard Room 11.00 118
Total 1,094.20 12,294

8.0 Other Key Factors Usually Requested by Banks and Lending Institutions
8.1 Details on Internal Improvements of Buildings

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 18

In Section 7.11 on page s 13 to 16, we have given a detailed description of each building or
structure on the property; and stated where applicable, internal finishes and fittings,
including those in toilets. In addition, ancillary improvements are described in relevant
sections of the Report. We have also provided colour photographs of buildings and
improvements; these are given for external sections of buildings and improvements.

8.2 Copy of Official Search

It is becoming standard practice for property owners and lending institutions, to require an
official search as part of a valuation report. We have obtained from the Lands and Deeds
Register at the Ministry of Lands, Computer Print-Outs which at the present time are
considered as evidence of official search on title and related matters. Copies are attached at
Appendix V.

8.3 Site Plan Identifying Building/Accommodation Layout of the Valued Property

A single-lined site and building/accommodation layout plan is provided at Appendix II.
This is not drawn to scale, but is included as part of the Report for identification purposes
only.
8.4 Confirmation that Property Boundaries Confirm to the Certificate of Title
We took measurement of the Site using roll up tape measure; and we have also used Google
Earth Map, GPS Coordinates Application and the Zambia National Spatial Infrastructure
Map to obtain and ascertain the actual boundary lines of the property as it appears on the
Certificate of Title. We have further also made verbal searches at the Ministry of Lands to
confirm the existence of the subject as it appears on the Certificate. We have conducted
these exercises as part of our due diligence so as to confirm that the inspected property is not
different from the one delineated on the Certificate of Title.
Due to time and cost implications it is not standard practice to engage Certified Government
Surveyor to undertake the verification exercise unless circumstances dictate and specific
instructions are issued. In addition we note that most Customers do not expect this aspect to
form part of a valuation exercise, as would any property owner unless circumstances
dictated otherwise.

8.5 Outstanding Land Rent and Property Rates

Our findings on the Land Rent (lease charges) are given under Sections 7.4 of the Report.
Property rates refer to local authority rates administered by the City Council under the
Rating Act. Details are provided under Section 7.8.

8.6 Assumptions and Limitations

Based on searches and inquiries, the assumptions and limiting conditions we have adopted in
the appraisal of the property and improvements are listed at paragraph 17.0 of the Report.

9.0 Planning and Building Regulation Approvals

Based on inquiries made, we have assumed that necessary statutory consents and approvals
have been obtained; that the property is developed and occupied in accordance with valid
planning and building regulation approvals, to the full satisfaction of the authorities
concerned; and that there are no Statutory or other development proposals likely to adversely
affect the property or its present use.
However, if reassurance is required, we recommend that further advice be sought to confirm
that:-

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 19

(i) the position is correctly stated in our Report;

(ii) the property is not adversely affected by other decisions made or conditions prescribed,
by public authorities; and
(iii) there are no outstanding statutory notices.

10.0 Approach to Assessment of Values

10.1 Valuation Methodology
The subject property, including land and buildings, are currently occupied for residential
purposes, which use we have assumed will continue for the foreseeable future. We have
been instructed to advise on the market value but as the Report is required for purposes of
collateral, we have also assessed forced sale value as well as reinstatement cost (buildings
and improvements) for insurance purposes.
Starting with reinstatement cost, the obvious approach to assessment of value is to establish
current buildings costs of materials and labour, based on the nature of the improvements on
site. Our approach has been to establish the type of improvements, identify materials used
and type of construction, and calculate floor and covered areas. Taking account of changes
in construction techniques and improved availability of building materials, we have then
applied current costs to arrive at total estimated cost as reported.
There are common attributes to the assessment of market and forced sale values; both
assume a transaction between seller and buyer and the appraisal entails establishing a value,
but based on different sale conditions. Market value assumes a normal transaction, between
a willing seller and willing buyer, with each party acting prudently and not under duress.
Under a forced sale scenario, the intention usually is to achieve a disposal quickly, and
therefore time allowed for marketing is normally unduly short.
There are four possible approaches to estimating the value (market or forced sale) of a
property; namely: -
(1) Land Value by Market (Sales) Comparison;
(2) Property Value by Market Comparison;
(3) Property Value by the Cost Approach; and
(4) Property Value by Income Approach.
(1) Assessment of a Property by the Land Value by Market (Sales) Comparison is normally
adopted in situations where the objective is to establish the value of the site; for
example a vacant un-developed plot; or if the economic value of the buildings is lower
than redevelopment value.
(2) Property Value by Market Comparison would be appropriate if the assessment is
intended to produce a value for both the site and improvements; normally for properties
which have evidence of sales and rental is adequate.
(3) Assessment of the Property Value by the Cost Approach is normally applied for
properties for which there is no comparable evidence, or evidence is limited, for
example in the case of churches, incomplete buildings and other specialized properties.
This method is usually applied as a last resort.
(4) Assessment of value by the Income Approach is normally adopted for properties held as
long term investments and often producing (or would produce) regular income by way of
rent. Examples include office developments held by pension funds or shopping centres.
The assessment is based on the income inflow (rental stream) over the period of the
investment.
Considering the extent of the site, nature and design of buildings and ancillary
improvements; we are of the view that Approach Nos. 1, 3 and 4 are not in the present

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 20

instance appropriate methods to be adopted in the appraisal of the property. The nature of
the property dictates that the assessment be based on a “Comparative Method”, based on
prices paid for similar properties within the area or similar locations.

10.2 Classification of the Property

The property comprises a relatively large site which is developed with buildings and
improvements developed primarily for dwelling purposes. Structures are of standard
construction; and the property is therefore not specialized.
Specialized properties are those which, due to their specialized nature, are rarely, if ever,
sold on the open market for single occupation for a continuation of their existing use, except
as part of a sale of the business in occupation. Their specialized nature may arise from the
construction, arrangement of the accommodation, size or location of the property, or a
combination of these factors, or may be due to the nature of the plant and machinery and
items of equipment which the buildings are designed to house, or the function or the purpose
for which the buildings are constructed.
Examples of Specialized properties include oil refineries and chemical works where
buildings are no more than housing for highly specialized plant; hospitals, universities,
museums, libraries and other similar establishments.
Non-Specialized properties are those for which there is a general demand, and which are
commonly bought or sold on the open market for their existing or similar uses, either with
vacant possession for single occupation, or (whether tenanted or vacant) as investments or
for redevelopment.
Examples of Non-Specialized properties include dwelling houses and residential flats,
commercial units such as shops, warehouses, offices and light industrial properties; as well
as agricultural smallholdings.

10.3 Valuation Considerations

In selecting the bases of valuation adopted, we have considered various factors, including:-
(i) that the property is located in a good position;
(ii) the extent of the site (a large plot), and the level of development (with potential for
additional improvements or possible subdivision);
(iii) design of the dwelling house and ancillary improvements and the condition of state of
repair;
(iv) available evidence of sales of similar properties;
(v) demand for land in Lusaka and nearby areas in general; and residential properties in
the New Kasama Area particular;
(vi) current construction costs of various types of up market residential buildings, as well
as availability of building materials and;
(vii) factors affecting values of property in this part of the City.

11.0 Bases of Valuation

In accordance with standard practice, the bases of assessment adopted to arrive at opinion of
the values are:
(a) to assess value of land, buildings and other structures:- open market value
(market/sales comparison);
(b) to assess replacement cost of buildings and ancillary improvements:- estimated
reinstatement cost; and
(c) to assess forced sale value:- estimated restricted realization price

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 21

These are defined as follows:

11.1 Open Market Value

An opinion of the estimated amount for which an asset or liability should exchange
unconditionally on the date of valuation, assuming:-
(a) a willing seller;
(b) that, prior to the date of valuation, there had been a reasonable period (having regard to
the nature of the property and the state of the market) for the proper marketing of the
leasehold interest, for the agreement of the price and terms and for the completion of
the sale;
(c) that the state of the market, level of values and other circumstances were, on any
earlier assumed date of exchange of contracts of sale, the same as on the date of
valuation;
(d) that no account is taken of any additional bid by a prospective purchaser with a special
interest; and

(e) that both parties to the transaction had acted knowledgeably, prudently and without
compulsion.
11.2 Estimated Restricted Realization Price
An opinion as to the amount of cash consideration before deduction of costs of sale; which
the Valuation Surveyor considers, on the date of valuation, can reasonably be expected to be
obtained on future completion of an unconditional sale of the interest in the property
assuming:-
(a) a willing seller;
(b) that, completion will take place at a future date specified by the Client, which does not
allow a reasonable period for the proper marketing (having regard to the nature of the
property and the state of the market);
(c) that no account is taken of any additional bid by a prospective purchaser with a special
interest; and
(d) that both parties to the transaction (the sale) will act knowledgeably, prudently and
without compulsion.

11.3 Comment on Assessment of Forced Sale Value

The Royal Institution of Chartered Surveyors and other professional organizations whose
members are involved in the appraisal of real estate, have following the economic melt-
down, and many of the fore-closures that took place in the not too distant past, particularly
in Britain and the United States, expressed great reservations on the provision, to lending
institutions, of an opinion of forced sale value.
The principal argument is that an opinion of forced sale value amounts to no more than a
forecast, and is based on many variables, some of which are difficult to quantify with a fair
degree of accuracy. Professional organizations are now encouraging property Valuation
Surveyors and other related property consultants not to undertake such assessments or
provide opinions of forced sale values.
With regard to the local environment, demand for land is high despite current economic
circumstances, particularly in urban areas, and has been so for many years. For property in
areas well sought after by high and mid-income groups, including sites in good areas which
have development potential, there may be little difference between market and forced sale

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 22

value. Where there is a marked difference, experience has shown that in most cases,
potential buyers often offer lower than market prices because they are aware that the owner
of the property and assets which are being sold is acting under duress (as is often the case
with property repossessed and advertised by banks and similar lending institutions), bidders
therefore tend to adopt a vulturous approach, and will offer and negotiate for the lowest
price possible.
Another aspect of disposal under forced sale circumstances is litigation, and the lengthy
procedures a mortgagee or receiver in possession may have to follow in selling the property.
These procedures tend to be quite costly, and in the end, the disposal takes far much longer
to conclude than a normal sale.
We therefore suggest that this position be borne in mind with regard to the opinion of forced
sale value stated.

11.4 Estimated Reinstatement Cost

The cost of reconstructing buildings and improvements on a property, in the event of
complete destruction, for example by fire, in a condition equal to but not better or more
extensive than the present condition.
Damage caused to buildings and ancillary improvements on a property, for example by fire
or storm, is usually partial, and not total destruction. The assumption made of complete
destruction of existing structures is therefore hypothetical, and made only for purposes of the
valuation.
Accordingly, our opinion of reinstatement cost assumes complete destruction of the dwelling
house and all ancillary improvements on site, including service installations. The
assessment reflects an allowance for debris removal at a percentage of the building costs.
Our opinion does not include allowances for inflation in either building costs or labour
charges, nor does it take account of costs which might be incurred in connection with
matters relating to environmental issues or complying with exceptional conditions which
may be specified by public authorities.
The assessment does not reflect the market value of the site (land) since it is not standard
practice to insure against loss of land, and land per-se cannot, in the ordinary sense, be
destroyed unless due to substantial contamination or un-planned excessive quarrying; and
neither can it be “replaced” except in instances of land reclamation or the acquisition of an
alternative property or site.

12.0 Highest and Best Use

We have made inquiries and have been advised by the Planning Authority that the land use
class for New Kasama, State Lodge and Leopards Hill was originally “agricultural
smallholding”. However, due to demand, the Planning Authority has rezoned New
Kasama/State Lodge and nearby areas from primarily residential to mixed use. Several sites
have now been developed for residential purposes, subject to compliance with the planning
requirements, and some properties on Leopards Hill Road are now used for commercial
purposes.
Taking relevant factors into account, including location, extent of the plot and design of
existing improvements, as well as current demand for up-market residential sites, we are of
the opinion that use of the site for residential purposes is the highest and best, and we have
assessed the property on this basis.

13.0 Likely Changes in the Market Value of the Property

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 23

When commissioned to value property for various purposes, including for collateral or
possible sale, We are often requested or expected to advice on whether the market value of
the subject is likely to change either positively or negatively.
Despite the current economic challenges and a weak economy, demand for serviced
development land and developed property in all parts of Lusaka and areas in close proximity
in general (a radius of thirty to thirty five kilometres), and for residential and commercial
properties in easily accessible locations in particular, is high. For areas such as Ibex Hill,
Leopards Hill, New Kasama and State Lodge high prices continue to be paid for properties
or sites which become available. A sustained high demand over the past several years for
sites has led to substantial increases in prices.

Limited availability of land for development is compounded by Government’s bureaucratic

and lengthy land administration and delivery system, because even though sites with
development potential can be rezoned and subdivided for commercial or residential
occupation, the process is lengthy and cumbersome. The result is that plots which are
available for re-development remain in short supply, leading to high prices for property
offered for sale, even during times of economic difficulties.
Considering the location, design of buildings and type of accommodation, the extent of the
property, the purpose for which the premises are held; as well as current demand for
residential accommodation, we are of the opinion that the market value of the subject, like
for many properties in New Kasama and Leopard Hill, are likely to increase in real terms, or
remain stable in the foreseeable future.
14.0 Opinion of Values
Subject to the assumption made, we are of the opinion that, values of the property and
improvements thereon, would be as follows:
(i) Open Market Value: US$925,000
(Nine Hundred and Twenty Five Thousand United States Dollars)
(ii) Forced Sale Value: US$800,000
(Eight Hundred Thousand United States Dollars)
(iii) Estimated Replacement Cost: US$740,000
(Seven Hundred and Forty Thousand United States Dollars).

15.0 Taxes, Legal and Other Charges

We have not made allowances in our valuation for:
(i) any tax or statutory liability, whether existing or which may arise in connection with
the property;
(ii) arrears of ground rent or similar charges, if any, arising under the terms of the State
lease;
(iii) arrears of property rates or charges due, if any, to the City Council;
(iv) payment of arrears, if any, for services supplied to the property, including water and
electricity; and
(v) legal or other charges which may be incidental to the sale of the subject or settlement of
matters connected thereto.

16.0 Sources of Information

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 24

We accept as being complete and correct the information provided to us by the various
sources, as to details of tenure, land use, services, planning consents, evidence of value and
other related matters summarised in our Report.
These sources include:-
(i) the Owner of the Property;
(ii) the Ministry of Lands;
(iii) Lusaka City Council; and
(iv) Property Consultancy Firms and Real Estate Agents.

17.0 Summary of Assumptions and Limitations

Our opinion of market and other values is prepared on the assumptions and limitations
summarized below. In the absence of information that adversely affect the property; these
assumptions and limitations are usual; and do not negatively impact on the valuation.
(i) information provided to us by various parties is complete and correct in all respects;
but we assume that where appropriate, advice will be sought to confirm the accuracy of
these details.
(ii) a soil survey of the site or structural survey of buildings and ancillary improvements is
beyond the scope of our instructions; we cannot therefore give any guarantees in these
respects.
(iii) boundaries are established and clearly defined, and there are no encroachments or
boundary disputes with adjoining sites.
(iv) inspection of parts of the property and improvements that have not been inspected
would neither reveal material defects nor cause the Valuation Surveyor to alter the
valuation materially.
(v) the property is developed and improvements constructed in accordance with valid
statutory consents and building regulation approvals, to the full satisfaction of the
Authorities.
(vi) a good and marketable title can be shown; and there are no onerous or unusual
outgoings, restrictions or encumbrances, likely to have an adverse effect upon the
market value of the premises.
(vii) all documentation relating to the property is satisfactorily drawn and there is no
material litigation pending.
(viii) no deleterious or hazardous materials were used in the construction of buildings or
have since been incorporated.
(ix) no contamination or potentially contaminative use has ever been carried out on site or
on adjoining properties.
(x) an appropriate and adequate insurance policy has been obtained, and that there are no
acts or omissions on the part of the insured or the occupants of the premises which
would render the policy void or voidable.
We wish to mention that we are not aware of any variance between information we have
obtained from searches and inquiries made, and facts relating to the property, and further; we
have no reason to believe that information provided by various sources, including the
Owners and Occupants of premises, the Ministry of Lands and the City Council is
inaccurate.

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)
A N D E R S O N + A N D E R S O N VALUATION SURVEYORS 25

However, should we subsequently become aware that any of these or other assumptions are
incorrect, we may choose to revise our opinions, and if need be, advise the Addressees
accordingly.

18.0 Publication
Neither the whole nor any part of this Report, or any reference thereto, may be reproduced
or included in any published document, circular, advertisement or statement without the
prior written agreement of the Valuation Surveyor as to the form and context in which it
may appear.

19.0 Certification
I, Musonda Sakeni KASASE, do hereby certify as follows:-
(a) that we have inspected the property and considered relevant factors affecting its market
and other values;
(b) that I and Anderson + Anderson Valuation Surveyors and its employees have no
undisclosed or contemplated interest in the property valued, either at the present time or
in the future;
(c) that I have relevant experience and knowledge required to value this type of property in
this locality; and
(d) that I am a qualified Valuation Surveyor and licensed to practice by the Valuation
Surveyors Registration Board in accordance with the Valuation Surveyors Act, Cap.
207 of the Laws of Zambia.
20.0 Confidentiality
The Report and opinion of values are provided for the stated purpose and for the sole use of
Mr. Angelo Kuleni Mondoka to whom it is addressed. The information and opinions are
confidential to him and his professional advisers in this matter. Consequently, Anderson +
Anderson Valuation Surveyors and its employees accept no responsibility whatsoever to
any other party, for any loss or financial obligation, direct or consequential, which might
arise from reliance on the Report or any part of its contents.
If however, our opinion of values are disclosed to persons other than the Addressees and the
Owners of the property, then the bases of valuation and assumptions made, as well as
exclusion clauses contained in the Report should also be disclosed in full.

We trust the Report will be useful, but should anything further be required or if there are points to
be clarified, please let us know.

Yours faithfully
ANDERSON + ANDERSON VALUATION SURVEYORS

M. S. Kasase
PRINCIPAL CONSULTANT

MSK/May 2021 Sub D of Lot No. 2624/M, New Kasama, Lusaka (A. G. Mondoka)