Pipeclay establishes its estimate of unit value using the following methodology:
1. Pipeclay will calculate the Net Asset Value of each unit in a Trust. The NAV to be determined by:
a. Estimating the value of the property assets of the Trust.
Where there is a recent bank valuation of the property asset(s) then that value will be used. Where there is no recent bank valuation then Pipeclay will seek guidance from reputable and professional valuers and real estate agents on the likely current market value of the property.
b. Deducting any debt(s) owed by the Trust.
c. Adding or Subtracting any break costs associated with terminating interest rate swaps undertaken by the Trust.
d. Adding or subtracting any other contingent liabilities or assets of the Trust.
e. Deducting any performance fees which would be payable to Pipeclay should the Trust assets be realised for the values set out above.
f. Dividing the sum of (a) through (e) by the total number of units issued by the Trust.
2. Pipeclay will also determine a Capitalised Value of the units in each Trust. The Capitalised Value to be equal to the forecast distributions of the relevant Trust for the following financial year divided by the appropriate underlying income yield applicable to that Trust having regard to its circumstances.
3. The lower of the Capitalised Value or the NAV will be adopted as Pipeclay's estimate of unit value.