Briqwise Value Assessment (BVA)

Every commercial investment opportunity is carefully analysed with the Briqwise Value Assessment (BVA). Using this tool, we measure the strength of the real estate security and the reliability and quality of the borrower/small business owner. The result is a profile that determines the risk profile.

This risk profile sets the interest rate and therefore the return on investment. There are four profiles with different interest rates, ranging from 5.95 to 13.95 percent.

Class Interest Score Profile
 A    5.95% – 7.95%  20 – 25 pnts  Defensive
 B    7.95% – 9.95%  15 – 20 pnts  Careful
 C    9.95% – 11.95%  10 – 15 pnts  Aggressive
 D  11.95% – 13.95%    5 – 10 pnts  Speculative

 

Valuation of real estate and assessment of borrower

Briqwise applies the following five criteria when assessing a loan application.

Real estate criteria:

  • Loan-to-Value ratio
  • Location
  • Use 

Borrower criteria:

  • Track record
  • Financial information

To obtain a reliable and objective overview of the loan application we use among other things; credit scores, company and personal financials (if available), panel valuers, and other generally available information.

The quality of the security property is crucial in the assessment process. For that reason, we always use an independent, registered panel valuer.

The evaluation and scoring per criterion are as follows:

Loan-to-Value Ratio (loan amount/valuation of the real estate)
5 points LVR <50%  The investment is well protected against changes in the value of the property.
3 points LVR 50%-75% The investment is sufficiently protected against changes in the value of the property.
1 point LVR >75% The investment has limited protection against changes in the value of the property.
 
Location
5 points The property scores high in terms of location (Metro A), functionality, appearance and facilities (parking, access to public transport, etc.).
3 points The property scores well in terms of location (Metro B), functionality, appearance and facilities (parking, access to public transport, etc.).
1 point The property scores average in terms of location (Metro C), functionality, appearance and facilities (parking, access to public transport, etc.).
Use
5 points The exploitation of the property is in line with current use (rented property with continuous leases, refinancing of existing use, etc.).
3 points The exploitation of the property changes compared to the current use or the property is being redeveloped (renovation, etc.).
1 point Any other property use
Track record
5 points The borrower is an experienced business owner with a strong track record.
3 points The borrower has experience and a track record that is sufficient.
1 point The borrower has limited experience and a less robust track record.
Financial information
5 points Solvency and profitability are excellent and the cash flow is stable.
3 points Solvency and profitability are good and the cash flow is more or less stable.
1 point Solvency and profitability are sufficient.


The return on an investment depends on the profile

Example 1: An investment in a ‘Class A Loan’ receives a lower return because the quality of the real estate is deemed high and the risk profile of the borrower is low. This represents a conservative, low risk investment.

Example 2: An investment in a ‘Class D Loan’ receives a higher return because the quality of the real estate is deemed lower and the risk profile of the borrower is less conversative. This increases the risk for the investor.