16333 Lecture Notes - Lecture 6: Aust, Environment Court Of New Zealand, Wrecking Yard
Document Summary
Partial acquisition requires increase or decrease in the value of the retained land to be considered the assessment of compensation. Total acquisition this is to be disregarded in. Basis of compensation: total acquisition in these cases, there are two options that may exist. Value based on extinguishment of the business. Extinguishment: determining the value on this basis entails two steps, Value of the business as a going concern" in which the real estate is an asset of the business. The value of the real estate based on highest and best use, where the value of the real estate alone exceeds the going concern" value. Case: philby car wreckers pty ltd has a net operating profit of ,000 p. a. Car wrecking yard businesses are selling as going concerns at a rate of 15%: what is the value of philby wreckers, philby business (going concern, ,000 x 100/15 = ,000,000, n. b.
