Abstract:

The purpose of this paper is to solve the problem of validation of the market rental rate for specialised movable and immovable property. It uses the method of iterative calculations in the framework of the cost approach.

The paper presents a step-by-step algorithm for the implementation of the method of assessing the market rental payment for specialised property of the enterprise in underdeveloped market, where there are no proposals for renting of such objects. It allows to develop a methodology for assessing market rental rate. To determine the rental rate of surplus and non-core property, it is necessary firstly to calculate the market value of such property, and then at a known value of the object and the market rate of return on capital to choose rental payment that will allow recouping capital investments and ensuring regular income. In the construction of cash flows of the rental business, tax payments and management costs are taken into account. The obtained value of the rate of return on equity for cash flow can be used in the calculation of the current value of cash flows of rental income. The paper clarifies the market rental payment for specialised property of the enterprise received using the cost approach. The paper calculated the discount rate on the models of the CAPM and the WACC and received rental income for the transfer of specialised property for rent.