The Valuator Advisory acquires Rode & Associates

Making news in the valuation sector, Rode & Associates Property Consultants and Valuers have sold the firm’s name, brand and intellectual property to The Valuator Advisory (TVA), renowned for its expertise in the field. This acquisition allows for an expanded service offering to a much broader client base, backed by TVA’s proven track record.

Rode Publishing & Media talks to Gavin Commins, Chairman of sister company The Valuator Group (TVG), TVG CEO Phill Ferreira, and incoming Rode & Associates CEO Bilaal Chand about the company’s new direction.

In a recent press release, Gavin said, “The Valuator Advisory has always been a market leader in the valuation business; this acquisition simply reinforces that position.” By adopting the Rode & Associates name (established in 1987) and property valuation foundations, and leveraging the combined experience and expertise of TVA and Rode Property Consultants & Valuers, the rebranded TVA, now Rode & Associates, emerges as a comprehensive asset valuation company. With a BEE level 2 and RICS membership, it offers a full spectrum of valuation services, spanning movable assets like plant and equipment, art and antiques, business valuations, and immovable assets, including listed and unlisted property companies and funds.

Gavin defines the importance of the valuation process: “The valuer’s role in the commercial property transaction cycle, as an example, is to determine value by providing an independent, arm’s-length valuation. Importantly, when the valuation is put on the table, it must be defendable. A valuation will always be subjective, so it must be motivated by research combined with economics, logic, and experience attached to methodology.” 

All property has value

“All assets, moveable and fixed, have value. In the commercial, retail, industrial high-end residential space, we look at whether it’s an income-earning asset and also whether it’s a lifestyle asset (a good example is a game lodge/reserve where the owner uses it for personal use), which is not a commercial characteristic. Commercial properties are generally valued on an income stream discount cash flow basis. The most magnificent building you’ve ever seen might be A-grade office space but if the cash flow is not there, it has no value to an investor. It’s straightforward: the valuer looks at the yield, along with the capital rate, drives the evaluation process and leads to the determination of the value.

”Rode & Associates is a multifaceted valuation company covering most specialised assets for both market and insurance purposes. “Anyone looking for an independent valuation can approach Rode & Associates – formally, the TVA has already worked for a diverse range of clients,” says Gavin. “One usually deals with someone in senior management, such as the financial manager or director. “Credibility and discretion are of the utmost importance. A valuation for market value, replacement value, and municipal valuations for rates and taxes all need professional input. From a banker’s perspective, mortgages and loans require a valuation by a valuer, and an attorney dealing with trusts and deceased estates requires an independent valuation to be given to SARS.”

Building on a legacy

Reinforcing the strategic thinking behind the acquisition, Phill says, “The 37-plus-year legacy that Erwin Rode as Founder of Rode & Associates Property Consultants and Erwin Rode Valuers has given the industry will now be enhanced by strategically integrating his intellectual property into the renamed Rode & Associates.”

“Rode & Associates accomplishes everything through experienced professionals with long-standing relationships with clients. For us as an industry to conduct our business, each of our valuers needs to be a member of South Africa’s governing body, the South African Council for the Property Valuers Profession (SACPVP), and many are members of the South African Institute of Valuers (SAIV).“The individual is the member, not the company, so there is a joint responsibility between the valuers and the company. Our valuers are part of professional institutions, and their valuations, including those for insurance purposes, must be defendable in a court of law. A valuation provides peace of mind by ensuring that an asset can be correctly valued, preferably annually.”

“We are regulated by the Royal Institution of Chartered Surveyors (RICS), and a company must comply to become a RICS member. RICS is the world’s leading professional body for qualifications and standards in land, property, infrastructure and construction. TVA and now Rode & Associates is audited annually by RICS Europe, which oversees Africa. The Code of Conduct (the Red Book) is a significant part of the RICS organisation, strengthening the industry’s professionalism from a company perspective. Many of our valuers are RICS members.”

Gavin outlines continuity: “As Chairman of Rode & Associates, Erwin will continue to provide consultancy services, adding value with his reputation of providing independent and insightful analysis of South Africa’s property industry. His unbiased views will form a solid base from which we will take our expertise in valuations across all asset classes and enhance the group’s horizons by including property valuations and advisory services in our investment assessments.”

“We are pleased to welcome Bilaal to head the venture as CEO,” says Phill. Former UCT graduate takes the reins Bilaal, the incoming CEO of Rode & Associates, describes his career path: “I was born in South Africa but lived and grew up in Botswana. Schooling was based on the British Cambridge system.”

“After finishing school, I enrolled at the University of Cape Town, intending to study chemical engineering. However, there were only 60 spots available, and I was number 61. Because my family is well-known in the property and hospitality sectors, I opted for a property-related degree and graduated with a BSC in property studies in 2014.

“Curiously, I was first aware of Rode & Associates when I read a journal that they had produced. I spoke to my mother and told her that the journal had piqued my interest. She replied, ‘You know, if you work hard in your life, pray, and set a goal for yourself, and you run with it, eventually you’ll be the boss of Rode & Associates.’ 15 years ago, I laughed it off.

“After completing my degree, I returned to Botswana and joined FNB as an executive intern. I underwent the executive training model with RMB, starting from the front desk and going all the way to XCO, handling the submission of annual returns, revenue generation, and corporate aspects. During my time there, I was introduced to various valuation forms, including Apex Properties, which I had dealt with during my university years.

“One of the directors at that time sought out Botswana students for a role in commercial valuations in New York. After leaving the bank, I joined Apex as a junior, keen on transitioning to the private sector. I felt there was more growth potential for me in the private sector, so I joined them. During my tenure with Apex, I was also the Secretary General of the Botswana Real Estate Association.

“Within a year, I was promoted to valuations manager and held that position for a little over eight years until I left, overseeing a team of fifteen, after which my wife’s career meant she was needed in Cape Town, so we left Botswana. Shortly after our move, in December 2022, I took up a newly formed position at The Valuator Group and became Manager – African Division and Business Development.

“What is going to be interesting now is, as CEO of Rode & Associates, I will be effectively competing with The Valuator Group; I will have my own management staff and valuers.” Given his background and experience, Bilaal will bring a younger yet knowledgeable drive to the existing business. He is planning to encourage and bring into the team a more youthful team that has graduated at the top of their respective valuation fields. He also aims to be a mentor and a CEO who can bring about change. He looks to his father-in-law, who has held several senior executive roles throughout Africa and on the Africa Ethics Committee, as an example of a great confidant who demonstrates empathy, wisdom and respect.

Quiet and unassuming, Bilaal will be the kind of CEO who listens first, contemplates a response to a conundrum, and draws from a team of experts the right response to any work-related issues there may be. He will guide his team towards a thoughtful, incentive-driven, and considerate way of working based on developing and improving the firm’s skill sets with a solid foundation of knowledge and expertise.

Commercially minded, Bilaal is well-positioned to cross the age divides; through his UCT studies and senior positions in valuation companies, he can relate to all spheres and levels of the valuation business. Whether CEO of a multi-faceted REIT or a connoisseur of fine arts, he will talk from a methodological perspective and offer sound, insightful objectives and analysis of a client’s assets.

Rode & Associates will be in good hands, and existing and future clients will be assured of the best quality and service delivery.

Rode reports to be under a separate company

Many property sector valuers use the Rode Reports to benchmark their valuations. These reports were published by the former Rode & Associates Property Consultants and Valuers publishing department. The department has been separated from the valuation company, has its own management and shareholders, and retains its core staff. This has been done to maintain the reports’ credibility and to remain a source of independent analysis and trends for the property sector.

The new publishing company, Rode Publications and Media, will give the reports—the Rode Report, Rode Retail Report, Rode Property Trends, Rode Property Review, Rode Time Series Lite, and Rode Time Series Pro—a new look and improve the online reader experience. The company aims to include market-related news as a go-to offering on its website.

A further announcement about Rode Publications and Media will be made in the coming months.