Part 3Management of Scottish Crown Estate assets
Managers' powers and duties
I112Meaning of “market value”
1
In section 11, “market value” means the estimated amount which it would be reasonable to pay in respect of a relevant transaction based on the assumption that the transaction is agreed to—
a
on the day on which the determination of the estimated amount is made,
b
on an arm's-length basis,
c
after proper marketing,
d
between parties each of whom has acted knowledgeably, prudently and willingly,
e
on a day on which a person other than a manager is offering to make a transaction equivalent to the relevant transaction in relation to an asset which is similar to the asset to which the relevant transaction relates, and
f
where the relevant transaction is a grant of a lease, on appropriate terms of lease.
2
But where a manager enters into an agreement under which a relevant transaction may or is to occur more than 10 years after the day on which the agreement is entered into—
a
subsection (1)(a) does not apply, and
b
the estimated amount is to be determined on the day on which the relevant transaction may or is to occur.
3
In the application of section 11 to a relevant transaction made in pursuance of—
a
an agreement within the meaning of paragraph 15 of Part 3 of schedule 4 of the Crown Estate Transfer Scheme, “market value” has the meaning given in that paragraph,
b
an agreement within the meaning of paragraph 25(1) of Part 4 of that schedule, “market value” has the meaning given in that paragraph.
4
The Scottish Ministers may by regulations modify—
a
the definition of “market value” in subsection (1),
b
the application of that definition in subsection (2).
5
In this section, “relevant transaction” is to be construed in accordance with section 11(1).