CAI File No.

02-2021-0108
Page 1 of 11

FAIR VALUE APPRAISAL

Property exhibited to us by the

AC COLLEGE OF ENTERPRISES AND TECHNOLOGY, INC.
Located in
Barangay Tungkong Mangga
San Jose Del Monte City, Bulacan
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02 March 2021

AC COLLEGE OF ENTERPRISES AND TECHNOLOGY, INC.

33rd Floor, Tower One and Exchange Plaza
Ayala Triangle, Ayala Avenue
Makati City, Metro Manila

Attention : MS. GEMA O. CHENG

Executive Vice President and Chief Finance Officer

We express our professional statement of opinion on the valuation of certain assets

described in the attached Independent Valuation Report dated 02 March 2021. Our
Independent Valuation Report was made on the basis of certain information and
internal data provided to us by the AC COLLEGE OF ENTERPRISES AND
TECHNOLOGY, INC., as well as on our inspections, research and analyses of market
data which we have deemed reasonable, appropriate and applicable based on our
experience as valuation professionals.

Management Responsibility of Client

The Client and its management are responsible for the preparation and fair
presentation of information and internal data provided to us. Where the valuation
requires actual property inspections, Client warrants that all properties inspected
properly refer to the actual and only subjects of this valuation report. While we verify
information and data in cases where such verification is required, our services do not
cover certification on the accuracy and completeness of information provided to us by
the Client and its management.

Responsibility of the Valuation Professional

Our responsibility as valuation professionals is to come up with an appropriate

reasonable valuation for the subject assets and properties based on information,
internal data and market data available to us, as well as on actual inspections, where
such are required. Our valuation reports are made based on reasonable and adequate
data that support our conclusions to establish the fair value of the subject assets as of
the stated date.

Our valuation procedures have been performed in accordance with the International
Valuation Standards (2017 Edition) and Philippine Valuation Standards (2 nd Edition,
2018), that represent accepted or best practice in the valuation profession, also known
as Generally Accepted Valuation Principles (GAVP). The development of the
International Valuation Standards serves as a professional benchmark, or beacon, for
valuation professionals globally, thereby enabling them to respond to client
requirements for reliable valuations.

Prohibitions

Neither the whole nor any part of this report, any reference thereto may be published,
included in or with, attached to any document or used for any purpose other than that
specifically stated in this report, without the written consent of Cuervo Appraisers, Inc.
in accordance and exclusively for the purpose, form and context in which it may
appear.
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Representations

Cuervo Appraisers, Inc., through its Manila, Cebu and Davao offices, has been in the
business of providing asset valuation solutions for companies across all industries for
40 years in the Philippines and overseas. Cuervo Appraisers, Inc. has been involved in
numerous valuation projects for various assets and enterprises, both tangible and
intangible and is well qualified to undertake the work required.

The final valuation report shall not be valid without the dry seal of Cuervo Appraisers,
Inc. properly affixed thereto.

CUERVO APPRAISERS, INC.

By:

LIBERTY SANTIAGO-AÑO, IPA, MRICS

Vice President and General Manager
Real Estate Appraiser
PRC Registration Number: 0000167
IPREA Membership No. 18849
Receipt No. 1628 - 01/21/2019
PTR No. 5242992
14 January 2021
City of Pasig
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02 March 2021

AC COLLEGE OF ENTERPRISES AND TECHNOLOGY, INC.

33rd Floor, Tower One and Exchange Plaza
Ayala Triangle, Ayala Avenue
Makati City, Metro Manila

Attention : MS. GEMA O. CHENG

Executive Vice President and Chief Finance Officer

Subject : CAI File No. 02-2021-0108

Fair Value Appraisal of Property

Gentlemen :

As requested, we appraised of certain real property exhibited to us by the AC

COLLEGE OF ENTERPRISES AND TECHNOLOGY, INC., for the purpose of
expressing an opinion on the fair value of the property intended for financial reporting
use as of 17 February 2021.

The appraised property consists of three (3) vacant lots, located within Altaraza
Town Center, Barangay Tungkong Mangga, San Jose Del Monte City, Bulacan.

The term Fair Value, as used herein, is defined as:

the price that would be received to sell an asset or paid to

transfer a liability in an orderly transaction between market
participants at the measurement date.

Market Value is understood as the value of an asset estimated without regards to costs
of sale or purchase and without offset or any associated taxes.

We personally inspected the property, investigated local market condition and gave
consideration to the --

Extent, character and utility of the property;

Sales or listings and offerings of comparable land; and

Highest and best use of the property.

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Premised on the foregoing and as supported by the accompanying narrative report, it is

our opinion that the fair value of the property appraised as of 21 February 2021 is
reasonably represented in the amount of THREE HUNDRED THIRTY EIGHT MILLION
THREE HUNDRED SEVENTY FOUR THOUSAND (Php338,374,000) PESOS.

We made no investigation of and assume no responsibility for titles to or liabilities

against the appraised property.

WE CERTIFY that we have neither present nor prospective interest on the appraised
property or on the reported value.

Respectfully submitted,
CUERVO APPRAISERS, INC.
By:

CARMELA M. TORBELA
Department Manager - Real Estate
Real Estate Appraiser
PRC Registration Number: 0004270
Valid Until: 10/04/2022
IPREA Membership No. 181001
Receipt No. 1622 - 01/21/2019
PTR No. 3883178C
05 January 2021
City of Bacoor

MPR:mfm

CAI File No. 02-2021-0108

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LIMITING CONDITIONS

1. All existing liens and encumbrances, if any, have been

disregarded and the property is appraised as though free
and clear under responsible ownership.

2. Cuervo Appraisers, Inc., by reason of this appraisal, is

not required to give testimony or attendance in court or to
any government agency with reference to the subject
property unless arrangements have been previously
made.

3. Any erasure on appraisal date and/or value invalidates

this valuation report.

4. Neither the whole nor any part of this report and valua-
tion, nor any reference thereto, may be included in any
document, circular or statement without our written ap-
proval.

5. The valuation fee is not contingent upon a predetermined

value conclusion or a percentage of the valuation.

6. This appraisal report is invalid unless it bears the service

seal of Cuervo Appraisers, Inc.

CAI File No. 02-2021-0108

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NARRATIVE REPORT

I. GENERAL

This report covers an appraisal of certain real property located within Altaraza Town
Center, Barangay Tungkong Mangga, San Jose Del Monte City, Bulacan. The
appraisal was made for the purpose of expressing an opinion on the fair value of the
property as of 17 February 2021.

The term Fair Value is defined as the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the
measurement date.

In this definition, it is assumed that any transaction shall be based on cash or its
equivalent consideration. The price, which the property would fetch if offered for sale in
the open market, would undoubtedly be affected, should the sale be on terms, whether
favorable or unfavorable.

It is further assumed that the titles to the property are good, marketable, and free from
liens and encumbrances, and that fee simple ownership is transferable.

The rights appraised in this report are the property rights in fee simple, free and clear.
Fee Simple is defined as the absolute fee without limitation to any particular class of
heirs or restrictions, but subject to the limitations of eminent domain, escheat, police
power and taxation.

II. PROPERTY LOCATION AND IDENTIFICATION

Based on the previous appraisal report under CAI FILE No. 12-2019-1116 dated as of
27 December 2019, the appraised property consists of three (3) vacant lots all located
within Altaraza Town Center, Barangay Tungkong Mangga, San Jose Del Monte
City, Bulacan.

The property consists of adjoining lots, Lots 14 and 26 both of Block 6-A, and Lot 8 of
Block 5 just across Lot 14.

Altaraza Town Center is located on the east side of Quirino Highway beside SM City –
San Jose Del Monte City and across Gate 1 of Pleasant Hills Subdivision,
approximately 1.30 kilometer southeast from Gov. Fortunato Halili Road; 6.20
kilometers southeast from the intersection of Gov. Fortunato Halili and M. Villarica
Roads; and about 8.0 kilometers southeast from San Jose Del Monte City proper.

Subdivision roads are 15 to 20 meters wide, concrete-paved and provided with

concrete curbs and gutters, concrete sidewalks, and underground drainage.

III. NEIGHBORHOOD DATA

The property is located in Altaraza Town Center, an area where land development is
for commercial use.
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Generally, the roads in the neighborhood are designed to accommodate light to heavy
vehicular and pedestrian traffic loads. Major thoroughfares are concreted with widths
ranging from 10 to 20 meters and partly lighted with streetlamps.

Some of the important improvements in the vicinity are:

Avida Settings Altaraza

Amaia Steps Altaraza
Qualimed Hospital
Pleasant Hills Subdivision
Shell Service Station
Diamond Crest Subdivision
Colinas Verdes Residential Estates and Country Club
Toyota San Jose del Monte
McDonald’s Savano Park
STI San Jose del Monte

SM City-San Jose Del Monte, Star Mall San Jose Del Monte and Puregold serve as the
commercial and shopping center in the area. This is a short distance from the subject
property. Other community centers like the post office, churches/chapels,
hospitals/clinics, and private and public schools are likewise accessible from the said
thoroughfare.

IV. COMMUNITY FACILITIES AND UTILITIES

Electric power, water supply and telecommunication facilities are available in the area.

Public transportation connecting to various sections of San Jose Del Monte City and
other parts of the Province of Bulacan as well as to other parts of Metro Manila is
available along Quirino Highway where the subdivision fronts. Streetlights, garbage
collection, foot and mobile patrols of the Philippine National Police, and other
community facilities and utilities are maintained by the city government.

V. LAND DATA

No copy of the titles was provided to us. However, based on lot plans provided to us
the land consists of three (3) lots containing an aggregate total area of 6,098 square
meters, technically identified as follows:

Lot Nos. Block Nos. Area (sq.m.)

   
14 6-A 2,530
8 5 2,118
26 6-A 1,450
  Total - 6,098 sq.m.

Attached is a replica plan of the property furnished us by the client. As shown, the lots
are irregular in shape and have road frontage.

The terrain of the land is slopes downward from west to east direction.
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No title verification was conducted to confirm the existence of the owner’s original copy
of the titles supposedly on file with the Registry of Deeds since it is not included in the
assignment.

Government Assessment

BIR Zonal Value of Real Property within Barangay Tungkong Mangga, San Jose Del
Monte City, Bulacan as per Department Order No. 014-18, effective 09 May 2018:

5th Revisional Zonal

Street Name Classification Value (Php/sq.m.)
Quirino Highway and
Provincial Road Commercial 12,000
All Other Street Commercial 10,000

VI. HIGHEST AND BEST USE

Based upon an analysis of the property itself and the prevailing land usage in the
neighborhood, we are of the opinion that a commercial utility would represent the
highest and best use of the property.

Highest and Best Use is defined as the most probable use of a property which is
physically possible, appropriately justified, legally permissible, financially feasible, and
which results in the highest value of the property being valued.

VII. VALUATION

The value of the land was estimated by using the Sales Comparison Approach. This
is a comparative approach to value that considers the sales of similar or substitute
properties and related market data and establishes a value estimate by processes
involving comparison. Listings and offerings may also be considered.

Land Value

For purposes of comparison, the following market data are considered sufficient to
provide a reasonable indication of value.

Listings -

1. Currently, a property having an area of 2,100 square meters,

located along a road, within Altaraza Town Center, Barangay
Tungkong Manga, San Jose Del Monte City, Bulacan, is be-
ing offered for sale by Mr. Kenn Erese (Contact No. 0917-
5747531) at an asking price of Php60,143 per square me-
ter.
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2. Currently, a property having an area of 2,400 square meters,

located along a road, within Altaraza Town Center, Barangay
Tungkong Manga, San Jose Del Monte City, Bulacan, is be-
ing offered for sale by Ms. Tina Laviña (Contact No. 0929-
8886303) at an asking price of Php52,083 per square me-
ter.

3. Currently, a property having an area of 2,105 square meters,

located along a road, within Altaraza Town Center, San Jose
Del Monte City, Bulacan, is being offered for sale by Mr.
Mark Marca (Contact No. 0915-3477531) at an asking price
of Php58,432 per square meter.

Comparative Analysis for Lot 8, Block 5 (thru lot) – Quirino Highway and Altaraza
Spine Road - Area = 2,118 square meters

 Comparables
Factors Affecting Value 1 2 3
2,100 sq.m. 2,400 sq.m. 2,105 sq.m.
@Php60,143/sq.m. @Php52,083/sq.m. @Php58,432/sq.m.

External Factor -5% -5% -5%

Net Price (Php/sq.m.) 57,136 49,479 55,510
Internal Factor
Location (including road frontage
influence) +5% +5% +5%
Size 0% 0% 0%
Shape 0% 0% 0%
Time Element 0% 0% 0%
Algebraic Sum of Internal Factor +5% +5% +5%
Computed Value (Php/sq.m.) 59,993 51,953 58,286

Market Value = (Php59,993/sq.m. + Php51,953/sq.m. + Php58,286/sq.m.) / 3 = Php56,744/sq.m.

Say – Php56,700 per square meter

Comparative Analysis for Lot 14, Block 6-A (thru lot) – Altaraza Spine Road
Area = 2,530 square meters

 Comparables
Factors Affecting Value 1 2 3
2,100 sq.m. 2,400 sq.m. 2,105 sq.m.
@Php60,143/sq.m. @Php52,083/sq.m. @Php58,432/sq.m.

External Factor -5% -5% -5%

Net Price (Php/sq.m.) 57,136 49,479 55,510
Internal Factor
Location (including corner lots) +2% +2% +2%
Size 0% 0% 0%
Shape 0% 0% 0%
Time Element 0% 0% 0%
Algebraic Sum of Internal Factor +2% +2% +2%
Computed Value (Php/sq.m.) 58,279 50,468 56,621

Market Value = (Php58,279/sq.m. + Php50,468/sq.m. + Php56,621/sq.m.) / 3 = Php55,123/sq.m.

Say – Php55,100 per square meter
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Comparative Analysis for Lot 26, Block 6-A (regular lot) – Altaraza Spine Road -
Area = 1,450 square meters

 Comparables
Factors Affecting Value 1 2 3
2,100 sq.m. 2,400 sq.m. 2,105 sq.m.
@Php60,143/sq.m. @Php52,083/sq.m. @Php58,432/sq.m.

External Factor -5% -5% -5%

Net Price (Php/sq.m.) 57,136 49,479 55,510
Internal Factor
Location (including corner lots) 0% 0% 0%
Size 0% +2% 0%
Shape 0% 0% 0%
Time Element 0% 0% 0%
Algebraic Sum of Internal Factor 0% +2% 0%
Computed Value (Php/sq.m.) 57,136 50,469 55,510

Market Value = (Php57,136/sq.m. + Php50,469/sq.m. + Php55,510/sq.m.) / 3 = Php54,372/sq.m.

Say – Php54,400 per square meter

Explanatory Notes:
1. If subject property is superior as compared with the comparables, use positive (+) sign. If
otherwise, use negative (-) sign.
2. Historical data are inferior to current data.
3. Small area is superior to big area. This pertains to the unit price (Php/sq.m.). The principle of
economies of scale is based on the idea that the greater is the area of an item, the less each
incremental area should cost to develop.
4. Main road is superior to secondary road.
5. Rectangular shape is superior to any other shapes.
6. Flat terrain is superior to any other type of terrain.
7. To consider comparables, adjustment on each factor must not be more than 20%.
8. External Factor is from 0 to -20%. A comparable sale is superior to a comparable listing.
External Factor pertains to negative externalities. The principle of externalities holds that
there are four major forces outside the property limits that influence value namely: social,
economic, environmental and governmental.
9. The market value must be within the range of the computed value; otherwise, the
comparative analysis becomes moot and academic.

In the appraisal, we considered the market reactions between buyers and sellers. An
analysis is necessary since sellers would normally look forward to sell their properties
at the highest price, while typical prudent buyers would bargain for the least price.
Considering the foregoing and such factors as the property location, desirability,
neighborhood, utility, size and the time element involved, the fair value of the
appraised land is estimated as follows:

Area Unit Land Fair Value

Lot/Block Nos. Road Frontage (sq.m.) Value (Php)

Quirino Highway and

Lot 8, Block 5 2,118 56,700 120,090,600
Subdivision Road
Lot 14, Block 6-A Subdivision Road 2,530 55,100 139,403,000
Lot 26, Block 6-A Subdivision Road 1,450 54,400 78,880,000
Total – Php338,373,600
Say – Php338,374,000