APPRAISAL REPORT

For the property of:

N.V. TEVES REALTY, INC

Located at:
Pamalihe, Pagatpat, Cagayan de Oro City, Misamis Oriental,
Island of Mindanao, Philippines

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 U.S. APPRAISERS & VALUATION (INT’L). CO.,INC
RF No.2019-01
23 April 2019
MR.NIBOCAR V. TEVES
President
N.V. TEVES REALTY, INC
Room 206 RT De Leon Bldg., Pabayo-Pacana Sts.,
Cagayan de Oro City

Dear Mr. Teves:

In connection with your request, we had inspected and appraised your

property located at Pamalihe, Pagatpat, Cagayan de Oro City, Misamis
Oriental, Philippines consisting of 47,043 square meters more or less covered
by Transfer Certificate of Title No.137-T-143168 in the name of Josefa D.
Serina duly registered with the Registry of Deeds for Cagayan de Oro City
for the purpose of expressing an opinion of its Fair Market Value as of April
23, 2019.

Based on our examination, study and evaluation, the Fair Market Value
of the subject property as of the date above mentioned is ONE HUNDRED
ONE MILLION TWO HUNDRED THIRTY SIX THOUSAND FIVE
HUNDRED THIRTY SIX PESOS ONLY(Php 101,236,536.00)Philippine
currency.

We have presented in this report consisting of Eight (8) pages excluding

annexes, the data and information as well as the system and procedure we had
conducted in accordance with the generally accepted universal standards in
appraisal in order to arrive at the said Fair Market Value.

Likewise, we have determined that the highest and best use of the
subject property would be residential and commercial development.

Very truly yours,

ALBERT D. MERCADO
Real Estate Appraiser
REA License No.378

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 I

PURPOSE AND SCOPE OF APPRAISAL

This Appraisal was conducted in order to determine the Fair Market

Value of the property of N.V.TEVES REALTY, INC as hereinafter
identified. Our appraisal is limited to the condition of the property appraised
as of April 23, 2019.

II

DEFINITION OF FAIR MARKET VALUE

The term “Fair Market Value” as used herein is defined as the “highest
price in terms of money which a property will bring if exposed for sale in the
open market, allowing a reasonable time to find a purchaser who buys with
knowledge for all the uses to which it is adapted and for which is capable of
being used”.

“Fair Market Value” may also be defined as the “warranted price

expressed in the terms of money which the property is expected to bring at a
given time and place where a buyer and seller act without compulsion and with
full knowledge of all the uses to which the property is adapted and for which it
is capable of being used.”

The warranted price is further contingent on the seller’s ability to convey

the title all the rights inherent in the property and on allowing sufficient time
for the transaction to mature normally under cash or equivalent sale. Should
the sale be on terms, the price would undoubtedly be affected whether
favorable or unfavorable.

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 III
IDENTIFICATION OF THE PROPERTY
1.Technical Description
The subject property is a residential land located at Sitio Pamalihe,
Barangay Pagatpat, Cagayan de Oro City, Misamis Oriental, Island of
Mindanao, Philippines more particularly bounded and described as follows:
“A parcel of land (Lot 3161-B, PSD-10-006186, being a portion of Lot
3161, CAD-237, Cagayan Cadastre), situated in the barrio of Pagatpat, City of
Cagayan de Oro, Island of Mindanao. Bounded in the NE., along Line 1-2 by
Lot 3161-C, of the subdivision plan PSD-10-006186; on the SE along line 2-3
by Lot3162, CAD 237, Cagayan Cadastre., on the SW., along Line 3-4 by Lot
3161-A, of the subdivision plan PSD-10-006186., on the NW., along Line 4-5-
1 by Forest Zone xxx containing an area of Forty Seven Thousand Forty
Three(47,043) square meters more or less.

2. Title trace back and encumbrances

The historical trace back of title as per verification with the Registry of
Deeds for Cagayan de Oro as of April 5, 2019 is as follows:
# Title Number Date Issued Registered Owner
1 OCT-P-892 October 28,1970 Heirs of Paulino Demetrio
2 TCT-137-T-143168 January 24, 2001 Josefa D. Serina

The following encumbrances appeared in the pages of TCT No.137-T-

143168, to wit;

# Entry Number Date Type/Nature Remarks

1 303742 6/25/1999 Letter of Lis Cancelled already as
pendens per Entry No.6702
2 6701,Vol.46 12/16/2004 Entry of Final Pertains to entry 303742
Judgment
3 6702, Vol.46 12/16/2004 Resolution Cancelling entry 303742
4 2014001185 2/12/2014 Affidavit of Loss By Lope Cabasagan
5 2017000416 1/13/2017 Issuance of New As per court order in
Owner’s Duplicate Misc. Case no.2016-098
6 2019001027 1/28/2019 DAR conversion By N.V. Teves Realty,Inc
order

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3.Ownership, relevant circumstance, lien and proprietary interest

Based on the documents presented, the subject property is no longer

owned by Josefa D. Serina as early as of December 4, 1989 because it was
purchased by Lope D. Cabasagan as per Deed of Absolute Sale dated
December 28, 1989 and entered as Doc.No.63, Page No.13 Book No.VIII,
Series of 1989 of the Notarial Book of Notary Public Oscar P. Rabanes.

However, when Lope D. Cabasagan decided to transfer the title in his

name sometime in the year 2014 upon going back home to the Philippines after
several years as immigrant to the United States, he found out that the title was
missing thus prompting him to report the loss as appearing on the title as entry
number 2017000416 and thereafter filed a petition for issuance of new owner’s
duplicate which was approved by the court thus a new owner’s duplicate was
issued by the Register of Deeds last January 13, 2017.

Earlier on June 9, 2016, N.V. TEVES REALTY, INC acquired the

subject property thru a Joint Venture agreement for the development into a
subdivision and in order to facilitate the developmental terms and conditions,
an IRREVOCABLE SPECIAL POWER OF ATTORNEY was executed by
Lope D. Cabasagan and the said authority is entered as Doc.No.213, Page
No.43, Book No.XII, Series of 2016 of the Notarial Book of Notary Public
Macodi M. Agus.

Further, the property is subject to the lien of the City of Cagayan de Oro
City for RROW(Road Right of Way) wherein an area of more or less 3,997
square meters had been delineated and portion of which was already occupied
and concreted in connection with the 16 meters wide City Road that is
traversing in the southern portion of the property.

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 IV
DESCRIPTION OF THE PROPERTY
1.Location
The subject property is strategically located in the urban expansion area
of Cagayan de Oro City covering Barangays Pagatpat and Canitoan. The
western portion is encroached by the National Highway while the southern
portion is being traversed by the 16-meters wide City Road.

2.Neighborhood
The subject property is in the middle of the housing projects undertaken
by the Local Government of Cagayan de Oro City and the National Housing
Authority. Within the One(1) kilometer radius are existing subdivisions such
as Mahogany Village, Lessandra Subdivision and housing relocation sites of
the City government of Cagayan de Oro.

3.Land Use and Zoning

The subject property is zoned and classified as Residential as per the

City Planning and Development Office. Further, the property’s land use was
already converted from agricultural to Residential as per conversion order
issued by DAR Regional Office No.X dated September 7, 2018 which already
became final and executory.

4.Utilities

Electricity is being supplied by MORESCO, the power supplier

franchise in the area whose electrical posts are traversing in the property.
Likewise, the area is within the water franchise of the Cagayan de Oro Water
District which has an on-going water pipeline works going to the subject
property. The subject property has an existing source of water from the
spring that is encroaching in the property.

5. Transportation and Community Facilities

Walking distance from the property is the Pamalihe Elementary School,

churches and chapels. Malls and shopping centers and other commercial
establishments are around 10-15 minutes travel from the property. Mode of
transportation in the area is motorized riders, jeepneys and taxis.

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 V
BASES AND METHOD OF VALUATION
The Fair Market Value of the subject property is determined through
the Market Data Approach by considering the actual and present use of the
subject property and comparing its value to those similar properties. The
following data and information had been the bases of our analysis and
comparison thereby considering the sizes, characteristics, locations, quality,
utility and availability:
1. A Four(4) hectares raw land classified as agricultural located Purok
2, Calaanan, Cagayan de Oro City which is around 2 kilometers away
from the subject property is being offered for sale at the price of Php
20 Million or around Php 500/sq.m.(Agent:B. Bayubay)
2. A Twenty One(21) hectares raw land classified as agricultural
located at Pagatpat and Canitoan, Cagayan de Oro City which is
around One(1) kilometer away from the subject property that is good
for housing project is being offered for sale at the price of Php
1,000.00 per square meter.(Trovit website)
3. A Twelve(12) hectares raw land classified as agricultural located at
Pagatpat and Lumbia, Cagayan de Oro City which is around Three(3)
kilometers away from the subject property planted with coconuts and
fruit trees is being offered for sale at the price of Php 75 Million or
around Php 625 per square meter.(Lamudi website)

4. A Five Thousand One Hundred Eight(5,108) square meters

residential lot located along Barangay Road, Pagatpat, Cagayan de
Oro City which is around One(1) kilometer away from the subject
property was sold for Php 2,500 per square meter. (Nestoria)

5. A Five(5) hectares raw land classified as residential located adjacent

to Oro Vista Subdivision, Upper Carmen, Cagayan de Oro City and is
about Four(4) kilometers radius away from the subject property was
offered for sale for Php 600 Million or about Php 10,000 per square
meter.(Locanto)

*Notes: All properties in this listing are titled properties.

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 VI

VALUATION ANALYSIS

Listing No. 1 2 3 4 5
Selling Price 500 1000 625 2,500 10,000
Discount 0 0 0 - 3,000
Net Price 500 1000 625 2,500 7,000
Less: Adjustment Factors
Location -2 -1 -1 0 -1
Size 0 0 -2 -2 -1
Utility 0 0 0 -1 -1
Frontage 0 -1 -1 0 -2
Characteristics 0 0 -2 -1 -5
Total Adjustments -2 -2 -6 -4 -10
Adjusted Value 490 980 588 2,400 6,300
Average Value 2,152

VII

COMPUTATION OF VALUES

Total Land Area of Subject property(sq.m.) 47,043

Average Valuation price/square meter Php 2,152
Total Market Value of subject property Php 101,236,536

Based on the above analysis and after considering some other

factors mentioned in this report, the Fair Market Value of the subject
property of N.V.TEVES REALTY, INC as of April 23, 2019 is
estimated at ONE HUNDRED ONE MILLION TWO HUNDRED
THIRTY SIX THOUSAND FIVE HUNDRED THIRTY SIX PESOS
ONLY (Php 101,236,536.00)Philippine currency.

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 VIII
HIGHEST AND BEST USE

Based upon an analysis of the foregoing data, we believe that the

subject property can be best utilized as residential and commercial
considering its present condition, neighborhood and location.

The highest and best use is the most profitable use of a given
property. The opinion on such use is arrived at by considering the
property’s present use, adaptability, need, future, and expected use
which would produce the greatest return of the property over a given
period of time.

IX

CERTIFICATION AND STATEMENT OF DISINTEREST

We hereby certify that we have actually inspected the subject

property and that we have neither present nor prospective interest on the
said property or of the value reported.

Signed this ___th day of April 2019 at Cagayan de Oro City,

Philippines

U.S.APPRAISERS AND VALUATION(INT’L),CO.,INC

By:

ALBERT D. MERCADO
Real Estate Appraiser
REA License No.378

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Annexes

1.Vicinity Map

2.Sketch Plan duly certified by Geodetic Engineer

3.Site Development Plan of the proposed CUP Village project

4.Photo copy of Title

5.Photo copy of Tax Declaration

6.Environmental Compliance Certificate

7.Zoning Certification

8.DAR Conversion Order

9.Certification of City Engineering Office

10. Irrevocable Special Power of Attorney of N.V. TEVES

REALTY,INC

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