1. Real Estate education in Romania ANEVAR experience Dana ABABEI ANEVAR Cristian BANACU Bucharest Academy of Economics Study

2. Dana ABABEI - ANEVAR, Cristian BANACU - ASE2 ANEVAR history ANEVAR – National Association of Romanian ValuersANEVAR – National Association of Romanian Valuers 30 founders set up ANEVAR in January 199230 founders set up ANEVAR in January 1992 Privatization of the state owned companies has required business valuation;Privatization of the state owned companies has required business valuation; important opportunity for the profession developmentimportant opportunity for the profession development in April 1992 starts first training course in business valuationin April 1992 starts first training course in business valuation ANEVAR prepares and prints first Romanian course support in business valuationANEVAR prepares and prints first Romanian course support in business valuation

3. Dana ABABEI - ANEVAR, Cristian BANACU - ASE3 ANEVAR history in September 1996 starts first training course in real property valuationin September 1996 starts first training course in real property valuation April 2000 starts first course in machinery and equipment (personal property) valuationApril 2000 starts first course in machinery and equipment (personal property) valuation December 2001 granted first professional designations MAADecember 2001 granted first professional designations MAA February 2004 adopted IVS as ANEVAR standardsFebruary 2004 adopted IVS as ANEVAR standards Autumn 2007 starts first course in financial assets valuationAutumn 2007 starts first course in financial assets valuation

4. Dana ABABEI - ANEVAR, Cristian BANACU - ASE4 ANEVAR present Now, the association counts more than 5,750 full members and 270 associated legal entities. Its activity is carried out in 40 branches in the countryside, and 11 centers in the capital city, Bucharest.Now, the association counts more than 5,750 full members and 270 associated legal entities. Its activity is carried out in 40 branches in the countryside, and 11 centers in the capital city, Bucharest. The matrix structure of ANEVAR is divided into four sections:The matrix structure of ANEVAR is divided into four sections: –business valuation business valuationbusiness valuation –real estate valuation real estate valuationreal estate valuation –personal property valuation personal property valuationpersonal property valuation –financial assets valuation financial assets valuationfinancial assets valuation

5. Dana ABABEI - ANEVAR, Cristian BANACU - ASE5 ANEVAR present The education program include:The education program include: –training courses: training courses:training courses: basic training courses (120 hours)basic training courses (120 hours)basic training courses (120 hours)basic training courses (120 hours) in-house training courses (banks, governmental entities)in-house training courses (banks, governmental entities)in-house training courses (banks, governmental entities)in-house training courses (banks, governmental entities) – continuing education seminars (only for members): continuing education seminars continuing education seminars distance / on line seminarsdistance / on line seminars classroomclassroom

6. Dana ABABEI - ANEVAR, Cristian BANACU - ASE6 ANEVAR courses From 1992 ANEVAR has organised 530 courses with 18250 participants.

7. Dana ABABEI - ANEVAR, Cristian BANACU - ASE7 EDUCATIONAL SUPPORT ANEVAR is providing materials to support the training process:ANEVAR is providing materials to support the training process: –Instructor manual and student book –Bank of tests with more than 500 test questions –Collection of case studies –Collection of International Valuation Standards – IVS 2007 (Romanian translation) –Other reference books edited by IROVAL – the research arm of the association

8. Dana ABABEI - ANEVAR, Cristian BANACU - ASE8 ANEVAR COURSE STRUCTURE REV = real estate valuation MEV = machinery and equipment valuation BV = business valuation FAV = financial assets valuation BASIC MODULE M100 INTERMEDIARY MODULES REV 201 FINAL MODULE REV 202 INTERMEDIARY MODULES PPV 101 FINAL MODULE PPV 102 INTERMEDIARY MODULES BV 301 FINAL MODULE BV 302 INTERMEDIARY MODULES FAV 401 FINAL MODULE FAV 402

9. Dana ABABEI - ANEVAR, Cristian BANACU - ASE9 ANEVAR courses Basic module (30 hours) includes:Basic module (30 hours) includes: –General principles regarding property valuation –Time value of money –Valuation approaches –Legal aspects regarding property rights –Accounting for valuation –Valuation reporting and valuation reviewing

10. Dana ABABEI - ANEVAR, Cristian BANACU - ASE10 ANEVAR courses Intermediary modules REAL ESTATE VALUATION (60 hours) include:Intermediary modules REAL ESTATE VALUATION (60 hours) include: –Buildings description and inspection –Guidance Note IVGN1 – Real Property Valuation issued by International Valuation Standard Committee (IVSC) –Market analysis –Sale comparison approach –Income capitalization approach –Cost approach

11. Dana ABABEI - ANEVAR, Cristian BANACU - ASE11 ANEVAR courses Final module REAL ESTATE VALUATION (30 hours) includes:Final module REAL ESTATE VALUATION (30 hours) includes: –Commercial, industrial and residential property valuation –Valuation for tax purpose, for insurance, for bank guarantee, etc –Value reconciliation –Valuation report and reviewing report structure –Graduation project assistance

12. Dana ABABEI - ANEVAR, Cristian BANACU - ASE12 EXAMINATION system Project (fully self-sufficient valuation report) preparation under instructor supervisionProject (fully self-sufficient valuation report) preparation under instructor supervision Written exam – 80 test questions and 2 case studiesWritten exam – 80 test questions and 2 case studies Oral exam – valuation report presentationOral exam – valuation report presentation

13. Dana ABABEI - ANEVAR, Cristian BANACU - ASE13 TUTORING system Designated to supervise the skills acquiring processDesignated to supervise the skills acquiring process 800 hours of proved practice under the designated tutor supervision800 hours of proved practice under the designated tutor supervision Written exam – mainly from ANEVAR code of ethics and by-lawWritten exam – mainly from ANEVAR code of ethics and by-law Oral exam on the skills acquired during the practice periodOral exam on the skills acquired during the practice period

14. Dana ABABEI - ANEVAR, Cristian BANACU - ASE14 ANEVAR seminars For its members, association provides continuous education seminars :For its members, association provides continuous education seminars : –Real estate valuation methods (advance study) - 24 hours –Machinery and Equipment valuation methods (advance study) - 16 hours –Discounting rate and capitalization rate (8 hours) –International Valuation Standards (8 hours) –Valuation for lending purpose (16 hours) –Valuation report and reviewing report (8 hours) –Intangible assets valuation (8 hours)

15. Dana ABABEI - ANEVAR, Cristian BANACU - ASE15 ANEVAR seminars For applicants to MAA designation association provides the following seminars:For applicants to MAA designation association provides the following seminars: –Advance study in business valuation (26 hours) –Advance study in real property valuation (26 hours)

16. Dana ABABEI - ANEVAR, Cristian BANACU - ASE16 ANEVAR partnership ANEVAR has initiated and developed valuation courses in universities, showing openness towards the training carried out in the higher education institutions and accrediting these courses for its membershipANEVAR has initiated and developed valuation courses in universities, showing openness towards the training carried out in the higher education institutions and accrediting these courses for its membership These course cover business valuation and real property valuationThese course cover business valuation and real property valuation

17. Dana ABABEI - ANEVAR, Cristian BANACU - ASE17 ANEVAR partners Thus, the association has twelve cooperation agreements with faculties within:Thus, the association has twelve cooperation agreements with faculties within: –ASE (Academy of Economic Studies) Bucharest, –Universitatea de Vest Timisoara (Timisoara West University), –Universitatea Babes Bolyai (Babes-Bolyai University) in Cluj, –Universitatea Tehnica de Constructii (University of Civil Engineering) Bucharest, –Universitatea Ovidius (Ovidius University) Constanta etc.