Galtier Valuation in 9 questions
1) What is Galtier Valuation’s business?
Good question! There is often confusion between “a real estate property expert” (carrying out diagnostic examinations) and “a real estate property valuation appraiser”. The latter determines the value of an asset (a house, building, factory, retail unit, retirement home, clinic, hotel, etc.) for clients as varied as an individual, a property fund, a mutual insurance company or a municipality. These clients all have a common goal: to know the value of all or part of their holdings within the framework of accounting, regulatory, sale, purchase, etc.
Galtier Valuation understands every type of property in the market. Thanks to its specialists, Galtier Valuation is capable of valuing an office tower, an automobile track, a hypermarket or a factory.
2) How is Galtier Valuation positioned within the real estate property valuation market?
This market, relatively limited, includes a dozen or so large actors and numerous smaller firms which are entirely dedicated to valuation or propose a range of activities. Groupe Expertises Galtier is the number one French company for the valuation of tangible and intangible assets. Within the real estate property valuation market, Galtier Valuation is the premier independent French company.
3) Why is independence important for asset valuation?
Over the years, banks and the principal French brokers have developed a range of real estate services, offering sales, leasing and financing. They then added property asset valuation, often considered to be a secondary activity, less profitable for these actors but complementary within their range of services. We do not believe in this global offer of services. For us, valuation is not an add-on activity, offered just to attract clients for more lucrative missions such as sales or financing but, instead, constitutes the heart of our business.
Since the eruption of the financial crisis in 2008, the supervisory authorities have begun to exert more stringent control over the relations between appraisers and their clients. For us, it appears impossible for a company to appraise an asset that it also offers for lease or sale or it finances. How is it possible to evaluate the financial risk of a real estate asset that also is the subject of a loan when the appraiser works for that very bank? How is it possible to determine the rental value of an asset when an appraiser belongs to a group with the mandate to lease that same asset? The Chinese walls do not often withstand overriding economic interests.
“Words of a large institutional owner”
4) How does Galtier guarantee its independence?
By not owning any commercialization activity, or having any financial connection with brokers or banks. Galtier is majority owned by its employees. Many of the appraisers are partners, holders of shares that cannot be sold during their employment within the company. No client portfolio may exceed 10% of our sales revenue, and no company business by itself may represent 50% of our sales revenue. With thousands of clients each year, Galtier has established the conditions to ensure total independence.
5) What is Galtier’s experience in terms of valuation?
Galtier, created during the 19th century, is the oldest valuation company in France. Over the years, it has acquired a reputation and market knowledge renowned by all the actors in the sector. Some noteworthy numbers: 70% of the companies in the CAC 40, and one out of every two industrial and commercial companies in France have already called upon Groupe Galtier’s services.
6) How can we be confident in Galtier’s appraisals?
Galtier Valuation is engaged within an ISO 9001 procedure around a “quality” process founded on approximately twenty indicators, among which are the respect for deadlines, the reliability of values and continued training (20 to 30 hours on average per year for each appraiser) but, above all, the market is the judge. Each appraiser is evaluated on the quality of his or her work. In addition to a visa system for reports, valuation matrices by type of asset are established by our appraisers in concert with the professionals. These appraisers follow the markets for the assets under their supervision and maintain their high level of expertise. We have established multiple departments, each one dedicated to a specific market category (retail, residential, warehouse, hotel, healthcare, land, etc.).
7) What are the RICS, Tegova, IFEI and Valiews labels and do they guarantee the reliability of appraisers’ values?
These organizations all work toward advancing the appraiser’s profession, to respect a common baseline, professional standards and a code of ethics. Contrary to the idea sometimes held, these associations are not certified by the governments or supervisory authorities. It is useful to note that our profession is not currently regulated.
8) What does Galtier’s work do?
We intervene in ongoing property issues by proposing the assistance of our engineers and technicians when needed for evaluations. A doubt over soil pollution, a surface area, a construction cost, regulatory compliance? The employees of the Groupe can be mobilized at the same time as the property appraisers. Our response to these questions: an integrated team, without the need for external structures. Our experts intervene on missions with strong added value: conversion of industrial sites, unusual fixed assets (valuation of quarries, ports, infrastructures, horse farms, wine estates, etc.).
In conclusion, we reaffirm the necessity for a global approach in determining value. This is a chain where each link is key: technical audit, soil pollution, multi-year renovation plans. At the time of green value and RSE, real estate property must must integrate all of the components well beyond the simple evaluation of rent, rate of return or price per square meter.
9) Where are your offices located?
Expertises Galtier has 15 regional offices throughout France: for this reason, 80% of our missions are located, on average, less than 1 ½ hours from our offices. Therefore, it is the regional experts who appraise the properties located within their regions. Abroad, Galtier relies upon the Galtier International structure.