Feasibility Study of Villa Kazouli, Kifissia
on the instructions of the Green Fund of the Ministry of Environment
Savills Hellas has been instructed to proceed with the study for the development of the historic landmark building of Villa Kazouli, in the high class suburb of Kifissia, North Attica. The main target of this task was to determine on the potential development of the facilities and to derive development scenarios that could produce a good outcome for the Green Fund (Institutional body of the Ministry of Environment, Energy and Climate Change).
The Villa covers a total area of 2,257.50 sq.m. and it was built in 1902 as a vacation home of the Greek merchant Nikolaos Kazoulis. Today it is a listed building and both the Villa and its surrounding plot are protected by Presidential Decree, due to their unique architectural, historic and aesthetic value.
As part of the valuation process Savills were required to calculate the development value of the property in several different scenarios based on market data and forecasts and then to further qualify the outcome by calculating indices such as IRR and NPV.
Firstly, Savills conducted extensive research about the property and its history, its importance for the community as a historical monument, the restrictions of the Preservation Decree, as well as the particular characteristics of the surrounding area. Subsequently, in order to analyze all the potential poles of competition to the proposed development schemes, Savills conducted a survey on the economy of the area surrounding the property. Furthermore, what was required was information regarding the rental levels for commercial properties as well as market trends related to the supply and demand factors. Information was gathered also from local agents in order to get a better understanding of each location’s particulars.
After analyzing the local market in the context of the above task six feasible development scenarios were concluded. The main difference between the scenarios came from the mix of use.
The six scenarios were quantitatively analysed based on indices such as IRR and NPV in order to derive the best scenario under a long leasehold agreement. The input collected in the course of our survey (rental levels etc.) was used also in the above-mentioned calculations.