(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).