A N D E R S O N+A N D E R S O NVALUATION SURVEYORS

REPORT AND VALUATION

prepared for

AFRICAN BANKING CORPORATION ZAMBIA LIMITED

Executive Summary

Instructions: To prepare for the benefit of the Bank and the Company, a valuation report on
Stand No. 3765,Olympia Park Area, Lusaka; for purposes of collateral/loan
security.

Interpretation
of Instructions: As the valuation is required to support an application for a credit facility,
instructions are that we inspect the property, buildings and ancillary
improvements; assess and provide advice and comments, on amongst other
matters:
 the current open market value;
 forced sale/liquidation value;
 estimated monthly market rental value;
 estimated replacement cost of buildings/improvements for insurance
purposes;
 annual ground rent (lease charges), title and ownership;
 suitability of the property and improvements as security for lending purposes,
and whether there would be difficulties if realization by 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 Stand No. 3765;
including service installations which form a permanent part of the property; and
which would ordinarily pass, with the premises, on a sale or letting.

ItemsExcluded: Moveable items, including motor vehicles, household furniture and equipment.

Location: Fronting onto ChakulekaRoad (west side) and off Manda Hill Road, to the east
side of the Great East Road, within a short distance of Manda Hill Shopping
Centre, Olympia ParkArea, and approximately four kilometres from the City’s
Commercial Centre.

Land Area: Rectangular shaped plot, extending to about 1,578 square metres (approximately
0.3899 of an acre), delineated and described on Diagram No. 6803 of 2001.

Fencing: The site is enclosed to boundary by a two and half metre high concrete block
wall, topped with electric fencing. A single opening sliding steel gate provides
vehicular access to a kerbed brick paved driveway and parking yard. Walkways
are kerbed and concrete paved.

Land Use: Zoned for “residential high cost” use, with the annual lease charge (commonly
referred to as ground rent) which is assessed based on the land use and extent
(plot size) of a property currently at K333.30 per annum.

MSK/Oct 2022Stand No. 3765, Olympia Park, Lusaka (Finecop Enterprises Ltd)
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For purposes of payment of rent, the year end is 31 st December, and for the
current year ending 31st December 2022, ground rent due, including arrears and
penalties on arrears, amounts to K749.93 which we suggest be paid in full.
Title and
Ownership: Title is a State lease, for a period of ninety-nine (99) years commencing 1 st June
1997, and vested in Maheswari Rajendran; Certificate of Title No. 51557; dated
13thNovember 2018.

Mortgages: An entry in the Lands and Deeds Register (at the Ministry of Lands) indicates a
mortgage in favour of African Banking Corporation Zambia Limited(T/A Atlas
Mara),to secure US $790,000.00plus interest registered on 2 ndDecember 2019.
The mortgagors are Maheswari Rajendran and Finecop Zambia Limited.

Caveats: An entry in the Lands and Deeds Register (at the Ministry of Lands) indicates a
caveatby African Banking Corporation Zambia Limited (T/A Atlas Mara), “…
Claiming Estate or Interest as per Attached copy of Mortgage Deed…”.
We are not aware of other interests; save the above or any unusual restrictions or
encumbrances, statutory or otherwise, likely to have an adverse effect upon the
market or other values of the property.

Council Rating: Lusaka City Council has advised that in accordance with the Rating Act, No. 21
of 2018; Stand No. 3765 and improvements thereon are subject to payment of
local authority property rates, and is listed in the Council’s Valuation Roll,
described as “Dwelling House, Cottage & Premises” with a rateable value of
K1,364,800assessed as at October 2013.
Rates charged on the property for the period to 31stDecember 2022 have been
paid.

Buildings: Double storeyBlock of Flat (2No. Units) [Block A], Double storey Block of Flat
(4No. Units) [Block B], Workers’ Toilet/Washroom and Guard Room.

Services: Mains three phase electricity is connected.

Water supply is from a borehole, equipped with a submersible pump. To improve
distribution, supply is fed to 2No storage tanks (each with a capacity of 2,500
litresand both mounted on a 6-metre-high level steel stand).
Disposal of waste from sanitary fittings is to a mains sewer system.
Storm water is discharged to concrete lined open drains.
CCTV surveillance camerasplaced in strategic positions within the premises.
Access is from Chakeluka Road, to which the property has a frontage; branching
off Manda Hill Road.

Condition: Buildings and improvements are constructed to a good standard of workmanship,

the accommodation in each flat is fitted, using high quality fittings and finishes
(high-end and rustic bathroom and kitchen fittings), and is in a good condition
and state of repair, with no material defects apparent, save only for minor items
of routine maintenance.

Bases of
Valuation: To arrive at opinion of values, bases adopted are:
(i) to assess market value

MSK/Oct 2022Stand No. 3765, Olympia Park, Lusaka (African Banking &Finecop Enterprises)
A N D E R S O N+A N D E R S O NVALUATION SURVEYORS 3
“Open Market Value”, assuming an arms-length transaction, between a
willing seller and willing buyer; that the property is adequately exposed to
the market; that there is no additional bid by a prospective purchaser with
a special interest; and both parties had acted knowledgeably, prudently and
without compulsion.

(ii) to assess rental value

“Open Market Rental Value” assuming that the property is vacant and
available to let, and that the letting is at arms-length, between a willing
landlord and willing tenant; that no premium is paid and there is no
additional bid by a prospective tenant with a special interest; and that both
landlord and tenant had acted knowledgeably, prudently and without
compulsion, taking account of the nature of the property and purposes for
which the tenancy is taken.

(iii) to assess forced sale or liquidation 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.

(iv) to assess replacement cost

“Estimated Reinstatement Cost” in respect of the building 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.

Opinion
of Values: Subject to the foregoing and assumptions made, we are of the opinion that for
purposes of collateral, values for the property and improvements (as assessed in
Kwacha and converted to United States Dollars) would be in the region of:
(i) open market and forced sale values:
Category of Assets Open Market Forced Sale
(i) Land US $637,000 US $530,000
(ii) Buildings and Improvements US $183,000 US $150,000
Total Value US $820,000 US $680,000

(ii) the market rental value would be in the range of US $4,200.00 (Four
Thousand Two Hundred United States Dollars)per calendar month,
assessed on the basis of a yearly tenancy; and on terms normally applicable
in lettings of this class of property, and assuming that the accommodation is
vacant and available to let.

(ii) opinion ofestimated reinstatement cost is US $890,000(Eight Hundred and

Ninety Thousand United States Dollars).
This assessment is restricted to buildings and improvements, and includes
only service installations which form a permanent part of the site, the figure

MSK/Oct 2022Stand No. 3765, Olympia Park, Lusaka (African Banking &Finecop Enterprises)
A N D E R S O N+A N D E R S O NVALUATION SURVEYORS 4
does not take account of the market value of the land since it is not normal
practice to insure against loss of land.
Damage caused to buildings and ancillary improvements, for instance by
fire or storm, is usually partial, the assumption made of complete
destruction is therefore only for purposes of this valuation

Currency: Due to frequent fluctuations in the value of the Kwacha against major
convertible currencies, we have stated opinion of values in United States
Dollars. Should the need arise to express values in Kwacha, above figures can
be converted at a rate (US $ = Kwacha) which may be prevailing as at the
material date.

Date of
Valuation: As the date of valuation has not been specified, values stated are assessed as at
20thOctober 2022, this being the date of inspection of the property.

Confidentiality: The Report and opinion of values are provided for the sole use ofAfrican
Banking Corporation Zambia Limitedand for the specific purpose to which
the Report refers. The information is confidential to the Bank and Finecop
Enterprises Limited;and their 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
When prepared for our clients, reports should not be used by third parties, and
any opinions or advice contained in such reports shouldbe acted upon only after
proper and adequate consultation with the author.

Disclosure: If, for whatever reason our opinion of values is disclosed to persons other than
the Bank and the Company, then the bases of valuation adopted, assumptions
made as well as exclusion clauses stated in the Report should also be disclosed in
full

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

MSK/Oct 2022Stand No. 3765, Olympia Park, Lusaka (African Banking &Finecop Enterprises)
A N D E R S O N+A N D E R S O NVALUATION SURVEYORS 5

MSK/GM/VAL-5756/C

10thOctober2022

Securities Management Officer -Credit Administration

African Banking Corporation Zambia Limited
Atlasmara House
Corner of Church and Nasser Roads
P. O. Box 37107
Ridgeway
LUSAKA

Dear Sir,

RE: VALUATION OF STAND No. 3765, OLYMPIA PARK,LUSAKA

We have been requested by the Directors of Finecop Enterprises Limited; to prepare for the benefit
of African Banking Corporation Zambia Limited and themselves, a valuation report on Stand No.
3765, Olympia Park, Lusaka; and for which instructions we are greatly thankful.

In accordance with their request made on 19 thOctober 2022, 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 Stand No. 3765as well as improvements thereon are subject of a credit
facility to be provided by the Bank to Finecop Enterprises Limited, 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 management
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/liquidation value;
(iii) an estimate of the replacement cost of the buildings and improvements for
insurance purposes; and
(iv) estimated rental income of the accommodation.
MSK/Oct 2022Stand No. 3765, Olympia Park, Lusaka (African Banking &Finecop Enterprises)
A N D E R S O N+A N D E R S O NVALUATION SURVEYORS 6

(2) provide comments and details on various matters, including:

(a) a description of the property, including its location; details of improvements and
accommodation; floor areas, services, and colour photographs;
(b) age and condition of structural, electrical and mechanical components, type of
construction and an indication of the buildings’ likely useful economic life;
(c) title and ownership; land use classification (zoning) and annual lease charges
(ground rent);
(d) whether there is potential for change of use or other development potential;
(e) comments on planning, highway and other statutory considerations;
(f) comments on environmental issues and contamination, either on the subject site
or on adjoining sites; and
(g) suitability of the property and improvements as security for purposes of
collateral; and whether there would be difficulties if realisation by the Bank or
lending institutions became necessary.

3.0 Format of the Report

The format of reporting adopted is in accordance with standard practice; and is intended to
provide, as far as is possible, information usually required by the Bank; including a
description of the property and improvements as well as matters considered in arriving at our
opinion of values. In this respect, we have attempted to follow as far as practical, headings
(but not necessarily the sequence) which are being stated in Letters of Instructions issued by
the Bank.

4.0 Property and Assets Valued

The assessment is restricted to land, buildings and ancillary improvements; and reflects only
service installations which form a permanent part of the property, and which would
ordinarily pass, with the premises, on a sale or letting.
Household furniture and equipment, motor vehicles and all moveable items, are excluded
from the assessment.

5.0 Inspection of the Property

5.1 Date of Inspection

20thOctober 2022.

5.2 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
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 siting, within the plot, design and construction of each
structure, layout of accommodation, material fittings and finishes, service installations
available and the condition and the state of repair.

MSK/Oct 2022Stand No. 3765, Olympia Park, Lusaka (African Banking &Finecop Enterprises)
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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 were assumed to be in good structural repair and
condition and free from hazardous materials, rot and infestation. We cannot express an
opinion about or offer advice on the condition of parts we did not inspect 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.
5.3 Floor Areas
Considering that the subject is a residential property, 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.

5.4 Property Boundary

We did not survey the extent of the site 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 values, unless specific instructions are issued; and this aspect is
therefore considered to fall outside the scope of our instructions. However, we observed, in
the absence of evidence to the contrary, that the concrete block wall enclosing the subject 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.

6.0 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 Bank.

6.1 Physical Location

Fronting onto ChakulekaRoad and off Manda Hill Road, to the east side of the Great East
Road, within a short distance of Manda Hill Shopping Centre, Olympia Park, approximately
four kilometres from the City’s Commercial Centre.
Global Position System Reference is 15°23'42.38"Sand 28°18'21.62"E.
For ease of identification of location, a Street Plan and an extract from Google Earth Map
showing the position of the property boarded in red, are provided at Appendix I.

6.2 Legal Description

Under the Lands and Deeds Registry Act, Cap 185, the property is described as:
“ALL that piece of land in extent 1578 square metres more or less being Stand No. 3765
situate at in the Lusaka Province of Zambia which piece of land is more particularly and
described on Diagram No. 6803 of 2001 except and reserved all minerals oils and precious
stones whatsoever upon or under the said land............................”

MSK/Oct 2022Stand No. 3765, Olympia Park, Lusaka (African Banking &Finecop Enterprises)
A N D E R S O N+A N D E R S O NVALUATION SURVEYORS 8
A copy of the Certificate of Title is provided at Appendix IV.

6.3 Site and Fencing

The site which as stated extends to 0.1578 hectare or approximately 0.3899 of an acre, is
rectangular shaped, and fully enclosed to boundary by a two and half metre-high concrete
block wall, topped with electric fencing. A single opening steel motorized sliding gate
provides vehicular access to a kerbed brick paved driveway and parking yard. Walkways
are also kerbed and concrete paved.
Grounds are well landscaped, and there are good lawns, many shrubs as well as variety of
flowers and water features. Grounds to road frontage are also well landscaped and
maintained. Walkways are kerbed and concrete paved.
Solar security lights, mounted on steel posts within the grounds and around the perimeter
fence and some to walls of ancillary buildings have been installed.

6.4 Land Use Classification

The Ministry of Lands have advised that the site is zoned for “residential high cost” use, 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 K333.30 per annum.
For purposes of payment of rent, the year end is 31st December, and for the current year
ending 31st December 2022, ground rent due, including arrears and penalty on arrears,
amounts to K749.93 which we suggest be paid in full.

6.5 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
thereto. We are informed that title is a State lease for a period of ninety-nine (99) years from
1st June 1997. vested inMaheswari Rajendran; Certificate of Title No.51557; dated
13thNovember 2018.

6.6 Occupation of the Property

We are aware that the property is leased. However, we have not been provided with a copy
of the lease agreement or advised of the terms of letting, and we cannot therefore comment
on the lease terms, or their effect, if any, on the value of the property. In assessing market
value, we have assumed that the tenancy is on terms normally applicable on the lettings of
this class of residential property, and that there are no onerous or unusual conditions or
outgoings which would have a negative effect on the value of the property.

6.7 Mortgages and Charges

An entry in the Lands and Deeds Register (at the Ministry of Lands) indicates a mortgage in
favour of African Banking Corporation Zambia Limited (T/A Atlas Mara), to secure US
$790,000.00 plus interest registered on 2nd December 2019.
The mortgagors are Maheswari Rajendran and Finecop Zambia Limited.

6.8 Mortgages/Charges and Caveats

An entry in the Lands and Deeds Register (at the Ministry of Lands) indicates a caveat by
African Banking Corporation Zambia Limited (T/A Atlas Mara), “…Claiming Estate or
Interest as per Attached copy of Mortgage Deed…”.

MSK/Oct 2022Stand No. 3765, Olympia Park, Lusaka (African Banking &Finecop Enterprises)
A N D E R S O N+A N D E R S O NVALUATION SURVEYORS 9
Save for the State lease and mortgagereferred to above, and the reversion vested in The
President who holds the land in perpetuity for and on behalf of the people of Zambia; we are
not aware ofotherinterest any unusual restrictions or encumbrances, statutory or otherwise
likely to have an adverse effect on the market value of the property. However, should
detailed information or assurances on title be required, we suggest that legal advice be
sought.

6.9 City Council Rating Assessment

Lusaka City Council has advised that in accordance with the Rating Act, No. 21 of 2018; the
property is subject to payment of local authority property rates, and is listedin the Valuation
Roll, described as “Dwelling House, Cottage& Premises” with a rateable value of
K1,364,800assessed as at 3rd October, 2013.
We are further informed that rate levies charged on the property for the period to 31
December 2022 have been paid in full.

6.10 Services
(i) Mains three phase electricity is connected.
(ii) Mains water is connected. Additional supply from a borehole, equipped with
submersible pump. To improve reticulation, 2No storage tanks have been installed
(10,000 litreson a concrete base and 2,500 litres supported on a high level steel stand).
(iii) Disposal of waste from sanitary fittings is to a mains sewer system.
(iv) Storm water is discharged to concrete lined open drains.
(v) To improve security 8No Channels CCTV surveillance cameras have been placed in
strategic points within the premises.
(vi) Access is from Chakeluka Road, to which the site has a frontage, off Manda Hill Road.

6.10 Buildings
In addition to the boundary wall, paved parking areas as well as service installations referred
to above, the property is developed with the following:
(1) Double storey Block of Flat (2No. Units)
(2) Laundry Room (2No)
(3) Double storey Block of Flat (4No. Units)
(4) Workers’ Toilet/Washroom
(5) Guard Room
For purposes of identification, a single – line building and accommodation layout plan (not
drawn to scale) and a few pictures, are provided as part of the Report.

6.11 Description of Buildings and Accommodation

(1) Double storey Block of Flat (2No. Units)
Double storey and self-contained. Constructed of a monopitched roof of IT4 iron
sheets on timber purlins. Roof structure concealed to all sides by parapet walls with a
concrete coping. Roof over veranda additionally supported on concrete pillars.
Concrete block walls, rendered externally and painted. Aluminium framed glazed
sliding windows. Aluminium framed glazed doors to external entrances. Access to
upper floor is by a concrete staircase with steel balustrades. Decorative steel railing to
balcony.

MSK/Oct 2022Stand No. 3765, Olympia Park, Lusaka (African Banking &Finecop Enterprises)
A N D E R S O N+A N D E R S O NVALUATION SURVEYORS 10
Internal fittings and finishes include high quality suspended rhino board 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 bathrooms, and splash area in the kitchen, scullery and
bathrooms. Porcelain tile floor finishes. Wall-mounted split type air conditioning
units to bedrooms and lounge. Double bowl stainless steel sink and wall mounted eye-
level cupboards, cooker unit to scullery. Triple bowl stainless steel sink, granite
topped cupboards and wall mounted eye-level cupboards, electric cooker unit and
smoke hood to kitchen. Built-in wardrobes to bedrooms. Water closet and wash hand
basin to guest toilet. Shower cubicle, water closet and wash hand basin to ensuite main
bedroom on the first floor (modern, rustic and high-endfittings). Shower cubicle,
water closet and wash hand basins to bathrooms of each of the two self-contained
bedrooms. Electric geysers for hot water supply.
Accommodation in each of the 2No. dwelling unit comprises:
Ground Floor: lounge, foyer, dining room, ensuite guest bedroom, guest toilet, fully
fitted kitchen with server, scullery, pantry/stores, stairway and landing,
passage and veranda
First Floor: self-contained main bedroom with a dressing area, second bedroom,
stairway/landing, circulation area and balcony.

(2) Laundry Shed

Adjoins the rear of the Block of Flats. Constructed of a lean-to roof of IT4 iron
sheets on purlins. Timber fascia boards to eaves, which are closed by soffits. PVC
gutters and down pipes for rain water drainage. Concrete block walls, rendered
externally, plastered internally and painted. Double opening timber motorized
sliding gate Timber framed timber hang steel shutters to entrances. Concrete floor.
(3) Double storey Block of Flat (4No. Units)
Of similar design and construction Double storey and self-contained. Constructed of a
monopitched roof of IT4 iron sheets on timber purlins. Roof structure concealed to all
sides by parapet walls with a concrete coping. Roof over veranda additionally
supported on concrete pillars. Concrete block walls, rendered externally and painted.
Aluminium framed glazed sliding windows. Aluminium framed glazed doors to
external entrances. Access to upper floor is by a concrete staircase with steel
balustrades. Decorative steel railing to balcony.
Internal fittings and finishes include high quality suspended rhino board 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 bathrooms, and splash area in the kitchen, scullery and
bathrooms. Porcelain tile floor finishes. Wall-mounted split type air conditioning
units to bedrooms and lounge. Double bowl stainless steel sink and wall mounted eye-
level cupboards, cooker unit to scullery. Triple bowl stainless steel sink, granite
topped cupboards and wall mounted eye-level cupboards, electric cooker unit and
smoke hood to kitchen. Built-in wardrobes to bedrooms. Water closet and wash hand
basin to guest toilet. Shower cubicle, water closet and wash hand basin to ensuite main
bedroom on the first floor (modern, rustic and high-endfittings). Shower cubicle,
water closet and wash hand basins to bathrooms of each of the two self-contained
bedrooms. Electric geysers for hot water supply.
Accommodation in each of the 4No dwelling unit comprises:

MSK/Oct 2022Stand No. 3765, Olympia Park, Lusaka (African Banking &Finecop Enterprises)
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Ground Floor: 2No units each with lounge, dining room, ensuite guest bedroom, guest
toilet, fully fitted kitchen with server, scullery, pantry/stores, stairway
and landing, passage and veranda
First Floor: 2No units each with self-contained main bedroom, second and third
bedrooms, lounge, dining room, fully fitted kitchen, pantry/stores,
stairway/landing, circulation area and balcony.

(4) Workers’ Toilet/Washroom

Monopitched roof of IT4 iron sheets on purlins. Roof concealed to sides by parapet
walls. PVC ceilings. Concrete block walls, rendered externally and plastered
internally, with full height glazed wall tiles to washroom. Aluminum framed glazed
obscure type windows. Steel framed steel doors. Water closet and wash hand basins
to toilet and shower to washroom. Concrete floor with anti-slip porcelain tile finish.
Accommodation compriseswashroom and toilet.

(5) Guard Room

Erected against boundary wall adjacent to the entrance gate. Monopitched roof of IT4
iron sheets on steel purlins. Hardboard ceilings. Roof structure concealed to three
sides by parapet walls. Concrete block walls, rendered externally and plastered
internally. Aluminium framed glazed sliding window.Aluminium framed glazed door
Concrete floor with porcelain tile finish.

6.12 Floor Areas

Calculated on a gross external basis, approximate floor areas are as follows:
Buildings/Accommodation square metres square feet
Block of Flat (2No Units)
Ground Floor 210.00 2,260
Front Veranda 6.80 73
(1)
Rear Veranda 28.30 304
Upper Floor 210.00 2,260
Balconies 6.80 73
(2) Laundry Shed 23.10 248
Block of Flat (4No Units)
Ground Floor 251.50 2,707
(3) Front Veranda 21.00 226
Rear Veranda 15.30 164
Upper Floor 251.50 2,707
Balconies 21.00 226
(4) Workers’ Toilet/Washroom 7.20 77
(5) Guard Room 4.80 48
Total 1,057.30 11,373

6.13 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 borehole nor other service installations been tested. We cannot therefore give
any guarantees in these respects.

MSK/Oct 2022Stand No. 3765, Olympia Park, Lusaka (African Banking &Finecop Enterprises)
A N D E R S O N+A N D E R S O NVALUATION SURVEYORS 12
However, based on the extent of our inspection undertaken as described above and which we
considered adequate for purposes of assessing assessing market and other values, we can
state that the block of flats and ancillary improvements are well designed, and have been
constructed to a good standard of workmanship. The accommodation in each flat is finished
with quality fittings and finishes, and is in a good condition and state of repair, with no
material structural defects or signs of mechanical failure apparent, save only for minor
defects and items of routine repair.

7.0 Other Key Factors Usually Requested by the Bank

7.1 Details on Internal Improvements to Buildings
In Section 6.11, we have given a detailed description of each building or structure on the
property as well as ancillary improvements; 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 within the property; these are given for external sections only.

7.2 Copy of Official Search

We obtained from the Lands and Deeds Registry 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.
7.3 Site Plan Identifying Buildings/Accommodation Layout of the Valued Property
A single-lined site accommodation layout plan is attached at Appendix II. This is not
drawn to scale, and is provided as part of the Report only for purposes of identifying
structures and improvements on site.

7.4 Confirmation that Property Boundaries Confirm to the Certificate of Title

We took measurement of the property 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
delineated on the Survey Diagram. We have further 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 so as to confirm that the inspected property is not different from
the one described on the Certificate of Title.
Due to time and cost implications, it is not standard practice to undertake a cadastral or
satellite survey as a verification exercise, unless circumstances dictate and specific
instructions are issued. In addition, we believe that few if any Customers expect this aspect
to form part of a valuation exercise, as would any property owner, unless circumstances
dictated otherwise.

8.0 Planning and other Building Consents

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

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A N D E R S O N+A N D E R S O NVALUATION SURVEYORS 13
(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.

9.0 Contamination, Pollution and Environmental Considerations

Due to cost and time constraints, we do not, unless specifically instructed, commission as
part of our inspection of a property, investigation into environmental matters or issues of
contamination or pollution, and any observations we may make are expressed strictly on the
understanding that we have not undertaken any formal environmental investigation/study.
In the absence of specific investigations and where there is no apparent reason to suspect
potential for contamination, our valuation is made on the basis that the subject property is
not affected.
We are not aware of the content of any environmental audit or other environmental
investigation or similar study, which has been carried out on the property, or adjoining sites,
and which may draw attention to contamination or the possibility of any contamination.
Further, we have no reason to suspect that the property has at any time in the past been
exposed to contamination.
In undertaking the valuation, we have based on the site visit, assumed but can give no
assurances that no contamination or contaminative uses have ever been carried out on the
subject property or on neighbouring sites and have therefore that the subject and adjoining
sites are not contaminated.
10.0 Site Conditions and Flooding Risks
A standard valuation exercise does not normally extend to investigations in site conditions as
such an exercise is costly and time consuming. We do not therefore carry out or normally
commission a site investigation or geophysical survey in order to determine the suitability of
ground conditions and services, nor do we undertake archaeological or environmental
surveys. In the absence of information that indicates there are adverse ground conditions
affecting a subject property, we assume, but can give no assurances that the ground has
sufficient load bearing strength for the existing structures or any structures, proposed or
planned.
In addition, we can mention that information available at the City Council indicates that the
area in which the subject is located is not prone to flooding and available public drainage
systems are fairly adequate to deal with the volume of waste generated in the area; as well as
the level of storm water experienced each year.

10.0 Approach to Assessment of Values

11.1 Valuation Methodology

The subject property, including land and buildings, are developed for residential purposes,
which use we have assumed will continue for the foreseeable future. We have been
instructed to advise on the market value and forced sale values 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.

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A N D E R S O N+A N D E R S O NVALUATION SURVEYORS 14
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 is to achieve a disposal quickly, and therefore
time allowed for marketing is normally unduly short.
Assessment of rental value assumes a letting of a property, from owner to tenant, with the
terms of occupation stated, which specifies rights and obligations of the tenant’s otherwise
limited occupation of the property.
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 if there is
no comparable evidence, for example in the case of specialized properties. This method
is usually applied as a last resort.
(4) Assessment by the Income Approach is normally applied for properties which are held
as long term investment 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 income inflow (rental stream) over the period of
the investment.
Considering the extent of the site, design and condition of buildings; we are of the view that
Approach Nos. 1, 3 and 4 are not in the present instance appropriate methods to be adopted
in the appraisal of the property. The nature of the property, dictates that the assessment be
based ona “Comparative Method”, based on prices and rentalspaid for similar properties
within the area or similar locations.

11.2 Classification of the Property

Stand No. 3765, including buildings and ancillary improvements, is zoned and developed
primarily for residential use; and structures, and ancillary service installations are of standard
specification and construction. 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.

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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.

11.3 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, less than a kilometre off one of the
City’s major roads;
(ii) the large extent of the site, and the level of development;
(iii) design of buildings and 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
particular;
(vi) current construction costs of various types of residential buildings, as well as
availability of building materials; and
(vii) factors affecting values of property in this part of the City.

11.4 Property Risks

We are sometimes requested to rate a subject property in terms of lettability, marketability,
saleability, locality and building quality based on BAGL’s standard rating scale. We wish to
state that we are not qualified to assess the capital or income risks that might be related to
the subject property during the loan period, but we can comment on the future prospects for
the movement in the values of the property in comparison to similar properties over short
term period. The nine-point evaluation scale is as follows (1 - unlettable, 2 - very poor, 3 -
poor, 4 - below average, 5 – average, 6 – above, average, 7 – good, 8 - very good and 9 -
excellent).
Factor Rating Scale Comments
The property is well positioned, less than two
kilometre metres off Great East Road and is
expected to benefit from the ongoing
1 Location/Situation 8 regeneration and development of the area as
well as the forecasted increase in commercial
activities and surging population in the
surrounding areas.
We have not been provided with building
survey report on the condition of buildings and
improvements, but based on our inspection we
can state that the existing buildingsare
constructed to a good standard of
2 Building Quality 9 workmanship, the accommodation is fitted to a
good standard, using high quality fittings and
finishes. Structures are in a good condition,
save for minor defects and various items of
routine repair and maintenance

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A N D E R S O N+A N D E R S O NVALUATION SURVEYORS 16
State lease for 99 years from 1 st August 2015.
Our opinion is that the registered title holders
3 Title 9 have a long-term leasehold interest; with an
option to renew for a further term; and
therefore, tenure is secure.
The number of willing purchasers for prime
property is uncertain given the decline in the
Market Value overall transactions in the market as a result of
4 8
Volatility the COVID-19 pandemic which has exerted
downward pressure on prices of property.

Rental Value We are of the view that rentals will at least

5 7
Volatility remain stable through the course of the loan.
Should the property be marketed for sale, we
would expect a reasonable number of
6 Liquidity 8 prospective purchasers interested in the
property in view of its location, extent of the
site and development potential

12.0 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;
(c) to assess forced sale value:- estimated restricted realization price; and
(d) to assess rental value of the property and accommodation thereon:- open market rental
value.
These are defined as follows:

12.1 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.

12.2 Open Market Rental Value

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An opinion of the bestrentat which a new letting of the accommodation would have been
completed unconditionally at the date of valuation, assuming:-
(a) a willing landlord;
(b) that, prior to the date of valuation, there has been a reasonable period (having regard to
the nature of the property and the state of the market) for the proper marketing of the
interest, for the agreement of the rent and other letting terms and for the completion of
the letting;
(c) that the state of the market, level of values and other circumstances were, on any
earlier assumed date of entering into an agreement for a lease, the same as on the date
of valuation;
(d) that no account is taken of any additional bid by a prospective tenant with a special
interest;
(e) a stated length of term and stated principal conditions, applying or assumed to apply to
the letting and that the other terms are not exceptionally onerous or beneficial for a
letting of the type and class of the subject property;
(f) that no premium passed and that any rent free period is in respect only of the time
which would have been needed by the incoming tenant to make the subject property fit
for occupation; and
(g) that both parties to the transaction had acted knowledgeably, prudently and without
compulsion.

12.3 LeaseTerms Assumed in Assessing Rental Value

In assessing rental value, we have assumed, considering the nature and extent of the
property, the level of development, quality of accommodation as well as demand for
residential accommodation, a lease at arms-length, on a year to year basis, with an option to
renew and terms normally applicable in lettings of this class of residential property. In
addition to standard terms, such as grant of quiet enjoyment, the Landlords would be
responsible for structural repairs and payment for insurance of the property as well as
property taxes, including local authority rates. The tenant, in addition to compliance with
normal terms, such as payment of rent as agreed under the lease, would be responsible for
routine repairs and maintenance, and settlement of charges for services supplied to the
premises, including electricity.

12.4 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.

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12.5 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 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
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 which is being sold is acting under duress (as is often the case with property
repossessed and advertised by 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 the Bank takes account of this position with regard to the opinion
of forced sale value stated.
12.6 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, the assumption 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
units and ancillary improvements on site, and includes 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 quarrying; and neither can
it be “replaced” except in instances of land reclamation or the acquisition of an alternative
property or site.

13.0 Highest and Best Use

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A N D E R S O N+A N D E R S O NVALUATION SURVEYORS 19
We are aware that there is a high demand in areas such as Olympia Park, Fairview and
Longacres for commercial accommodation, and that several residential properties have been
redeveloped for office or retail use.
Considering location and extent of the plot, age and condition of buildings and ancillary
improvements, level of development in relation to the extent of the site, demand for
commercial sites as well as the prevailing state of the economy, we are of the opinion that
for purposes of ascertaining market and force sale values, use of the property for residential
purposes is the highest and best, and we have reflected this aspect in the assessment.

14.0 Potential for Change in Use

The Bank often expects that we advise whether there is any significant prospect of or
potential for change of use, or other development on the subject or neighbouring properties
which might materially affect the value of the subject. The effects referred to can be either
negative or positive.
Based on our knowledge of Olympia and nearby areas, as well as the inspection and
inquiries made, we can mention that the majority of properties in Olympia Park originally
comprised residential properties. However, due to demand for commercial accommodation,
the Planning Authority has permitted in several instances where applications are tendered,
change of use from residential to mixed or commercial use. Several sites have been
redeveloped or old houses have been extended or renovated and converted to commercial
use (primarily offices), subject to compliance with the planning requirements.
We are not aware of any major development being undertaken in the vicinity of the subject
or neighbouring areas which might have a material negative bearing on the value of the
subject or other properties.

15.0 Likely Changes in the Market Value of the Property

When commissioned to value property, including for collateral or possible sale, Banks often
request or expect advice on whether the market value of the subject is likely to change either
positively or negatively.
Despite current economic challenges, demand for serviced development land and developed
property in all parts of Lusaka and areas in close proximity in general, and for residential
and commercial properties in easily accessible locations in particular, is high. For areas
such as Olympia Extension, Northmead and Longacres, high prices continue to be paid for
properties which become available or which have development potential. 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 Olympia Park, is likely to increase in real terms, or remain stable in
the foreseeable future.

16.0 Opinion of Values

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A N D E R S O N+A N D E R S O NVALUATION SURVEYORS 20
Subject to the assumption made, we are of the opinion that for purposes of collateral, values
of the property and improvements thereon, would be as follows:
(i) Open Market Value: US$820,000
(Eight Hundred and Twenty Thousand United States Dollars)
(ii) Forced Sale Value: US$680,000
(Six Hundred and Eighty Thousand United States Dollars)
(iii) Open Market Rental Value: US $4,200.00
(Four Thousand Two Hundred United States Dollars) per calendar month
(iv) Estimated Replacement Cost: US$890,000
(Eight Hundred and Ninety Thousand United States Dollars).
Note: The assessment of replacement cost is restricted to buildings and ancillary
improvements, the figure does not take account of the market value of the land.

17.0 Buildings’ Useful Economic Life

We are often requested that we advise if the buildings and improvements on a property can
retain a useful economic life covering the term of a credit facility. However, in almost all
cases, the period of the loan is not been disclosed.
Buildings and service installations are new, constructed during 2020/2021, and to a good
standard of workmanship; and are to designer’s specifications. Structures are constructed of
permanent materials and to a good standard of workmanship. Fittings and finishes are of
good design and modern; have been well maintained; and there are no structural defects
apparent. We are of the opinion that taking account of the design and quality, structures will
retain a useful economic life spreading over many years.

18.0 Age and Condition of Structural, Electrical and Mechanical Components

18.1 Age and Condition
As earlier stated, we have not inspected parts of the property or buildings which are covered,
unexposed or inaccessible, nor have we tested service installations. It is not standard
practice to undertake structural surveys or detailed examination of services when assessing
market, rental or forced sale value, unless evidence or circumstances dictate. However,
based on our inspection conducted as earlier described, buildings and service installations
are new, constructed in 2021/2022, and to a good standard of workmanship, the
accommodation is in a good condition, and there are no material defects or signs of
mechanical failure apparent.

18.2 Carrying Out Immediate Repairs

Buildings can suffer different types of defects, either structural or of a minor nature. The
latter require only routine repair and maintenance, such as repainting, fixing of leaking taps
or replacement of small items such as electrical fittings, broken window panes or various
pieces of iron mongery. On the other hand, structural defects are those that may affect the
stability and safety of a building; examples include structural cracks, sinking foundations,
defective electrical installations and termite infestation.
We have not observed any material structural defects to buildings and ancillary
improvements, but only various items of routine maintenance are apparent. We believe that
these repairs are of a routine nature.

19.0 Suitability of the Property as Security for Lending Purposes

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A N D E R S O N+A N D E R S O NVALUATION SURVEYORS 21
Despite the difficult economic circumstances prevailing in the country arising from both
internal and external factors, and coupled with uncertainties being experienced in the real
estate market due to the adverse effects of COVID-19 pandemic, we hold the view that the
subject property provides good security for lending purposes.
The subject’s advantages and material aspects or factors to note include the following:
(a) Locality of the Property – Olympia Area
Olympia Park is conveniently located residential areas – being within short distance of
the City’s Commercial Centre and the Industrial Area as well as Mass Media's eastern
retail and commercial hub. The area’s central position has resulted in an extremely high
demand for property from both commercial developers and families. Due to its
historically well-planned layout, and reasonably sized plots, demand for development
sites is extremely high, and even old houses fetch high prices when offered for sale. The
suburb is a short drive from two major commercial growth areas (Thabo Mbeki and
Great East Road zones) and as a result, the land use in the area has moved from
primarily residential to mixed use (commercial/retail/residential/leisure).
Olympia Park has in the recent past evolved from an older residential suburb into a mix
of commercial and high-end residential area. Businesses have opted to relocate to the
area from the Central Business District. The area has since been transformed into a
residential-cum-business district, and now boasts a number of office developments being
constructed.

(b) Location and Accessibility

The property is located in a good part of Olympia Park, and just about a kilometre off
the Great East Road, makes it easily accessible. The area has a network of recently
tarred roads. It is within short distances of the City’s Commercial Centre, the
Showgrounds, Mass Media's commercial hub and City’s major retail centres along
the Great East Road.

(d) Quality of Accommodation and Improvements

The double storey flats and ancillary improvements are well designed, and have
been constructed to a good standard of workmanship. The accommodation in each
unit is fitted to a good standard, using high quality fittings and finishes. The flats
provide spacious well laid out, secured living and sleeping accommodation.

(e) Proximity to Social Facilities

The property is strategically located – it is in close proximity to Major Embassies,
Central Government Offices, Banks various Schools, and most the City’s major
Shopping Centres, includingManda Hill, Northmead, Arcades and East Park. In
addition it has relatively easy access to office parks on Thabo Mbeki Road, the
Showgrounds, the Tawheed Mosque,Medland Hospital, major hotels and the
University of Zambia.
(f) Proximity to Other Residential Areas, the City Centre & Industrial Area
Relatively easy accessibility to other areas, including Roma Park, Kalundu,
Jesmondine, Northmead, Longacres and the Showgrounds; as well as the City’s
Industrial Area - renders properties in Olympia Park and Extension 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 in supply of serviced land for development in all

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A N D E R S O N+A N D E R S O NVALUATION SURVEYORS 22
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.
This 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:
(i) based on information obtained from searches undertaken and inquiries made, the
leaseholders have security of tenure by way of a long term lease, with an option,
provided under the Lands Act, to renew their 99-year leasehold interest; and
(ii) except for the mortgage to African Banking Corporation Zambia Limited, there
are no onerous 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

20.0 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.

21.0 Sources of Information

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 Owners of the Property;
(ii) the Ministry of Lands;
(iii) Lusaka City Council; and
(iv) Property Consultancy Firms and Real Estate Agents.

22.0 Summary of Assumptions and Limitations

Our opinion of market value 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.

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A N D E R S O N+A N D E R S O NVALUATION SURVEYORS 23
(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. 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.

23.0 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.

24.0 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 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

MSK/Oct 2022Stand No. 3765, Olympia Park, Lusaka (African Banking &Finecop Enterprises)
A N D E R S O N+A N D E R S O NVALUATION SURVEYORS 24
(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.

25.0 Confidentiality
The Report and opinion of values are provided for the stated purpose and for the sole use of
Africa Banking Corporation Zambia Limitedto whom it is addressed. The information
and opinions are confidential to the Bank and Finecop Enterprises Limitedand their
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/Oct 2022Stand No. 3765, Olympia Park, Lusaka (African Banking &Finecop Enterprises)