An investment technique that splits income into a secure base layer (hardcore) and a riskier layer above it (top-slice), applying different yields to each to value reversionary or over-rented interests.
Related terms
- Income approach
Valuing an asset by capitalising or discounting the income it produces.
- Insurance reinstatement value
The estimated cost of rebuilding a property to its existing condition following total loss, including demolition, professional fees, and inflation over the reb…
- Investment value
The value of an asset to a specific owner, given their particular circumstances and assumptions.
- Market rent
The estimated rent at which an interest would let on the valuation date between willing parties on appropriate lease terms in an arm's-length transaction; the…
- Market value
The estimated price an asset would fetch in an arm-length transaction on the valuation date.
- Marriage value
The uplift when combining interests or adjacent sites is worth more than the sum of the parts.
- Prime yield
The lowest, keenest yield achievable on the best-quality asset in the strongest location, let to a strong covenant; the benchmark for a market's pricing.
- Profits method
A valuation approach for trade-related property (hotels, cinemas, petrol stations) that derives value from the sustainable earnings the business generates, rat…