Case Background
Pursuant to the “Notice of the Communist Youth League Committee of XX District, Guangzhou City, on Issuing the ‘Work Plan for the Transfer of Operating Rights for the XX District Youth Palace,’” “XX Culture and Tourism Group” intends to acquire the operating rights. To this end, the group plans to assess the market value of the 30-year operating rights for the XX Youth Palace to serve as a reference for calculating the value of relevant assets in connection with this economic transaction.
Basic Case Information
Subject of Valuation: Market value of the 30-year operating rights for the XX Youth Palace, located at 22 Aimin Avenue, Lihu Street, XX District, Guangzhou City
Valuation Date: December 31, 2025
Valuation Method: Income Approach
Project Scale: Total floor area of 56,625.09 square meters, comprising 32,978.88 square meters above ground and 23,646.21 square meters underground; the primary functional layout of the assets included in this valuation consists of commercial, educational and training, catering, and auditorium facilities.
Scope of Services: 1. Determine the market value of the 30-year operating rights for the XX Children’s Palace
2. Provide professional services to ensure the smooth progress of the transaction;
3. Complete state-owned asset filing following expert review.
Lessons Learned
In this valuation service, the confirmation of the intrinsic value of the 30-year operating rights—including operating conditions, ownership of on-site facilities and equipment, and responsibilities regarding real estate lease renewal—were key factors in determining the value.
