*602
"A."
T. HOWARD, Esq.
HONGKONG, 28TH DECEMBER, 1898.
DEAR SIR, In accordance with your instructions we have gone very care- fully into the question of the value of Marine Lot 184 first as a Marine Lot in 1895 before any interruption of your Godown business by the New Praya Reclamation Works and second as to the value to-day as an Inland Lot.
The Lot is held from the Crown under a Lease dated 13th September, 1884, for the term of 999 years from the 25th June, 1861, and is therefore practically a freehold subject only to the usual Crown Rent or ground tax.
It is situated on the Old Praya West and contains an area of 32,481 square feet and had a sea frontage of 100 feet. The whole area is covered with substantial two-storied Godowns (Warehouses), the ground floor being built of granite the first floor of brick and the roof tiled.
These Godowns were built in 1886 and are to-day in a first rate state of repair.
The net storage capacity of these Godowns after making allowance for walls, passage-ways, pillars, etc., is 15,000 tons.
The Wharf in front of the Lot was removed by Government in 1895 and since that date the Praya Reclamation Works have been proceeded with and the land in front is being reclaimed for a distance of 260 feet thus converting the area into an Inland Lot in a back street.
We have valued the property as it was in 1895 as a Marine Lot in three different ways and have been at considerable trouble to ascertain what is the real value to-day as an Inland Lot.
The following are our Valuations :—
Valuation No. 1.
Marine Lot 184.
As a Marine Lot in 1895 before the commencement of Praya Reclamation Works.
Area 32,481 square feet at $5 per foot, Buildings value, .............
Add 10 per cent. for compulsory purchase,
...$162,405.00 55,600.00 21,800.00
Total, ......$239.805.00
The above price per foot, we consider was about the value of land in the neighbourhood at the time.
Valuation No. 2. Marine Lot 184.
As a Marine Lot in 1895 before the commencement of Praya Reclamation..
Net capacity of Godowns for Cargo, 15,000 tons
Per annum.
at 10 cents per ton per month,
Deductions:-
Crown Rent,..................
Rates,
Fire Insurance,
Repairs,
Wages,
.$18,000.00
$ 249.00
$58.00
95.75 150.00 1,200.00
$ 2,552.75
Net income,......
$ 15,447.25
Say,.
$ 15,450.00
Capitalised at 6 per cent.-16 years' purchase, Add 10 per cent. compulsory purchase,
$257,500.00 25,750.00
Total.......$283,250.00