Valuation & Advice – Five household waste & composting sites
Acting on behalf of : Duff & Phelp – International firm of accountants and business rescue specialists
Administrators of Project Compost
The Brief
Lead director, Chris Price was instructed to value and advise on five household waste and composting sites totalling in excess of 1,000,000sq ft in Avonmouth, Sharpness, Maidstone, Leicester and Poole. Time was very much of the essence as the Administrators, due to potential liabilities arising from the handling of household waste, wanted to sell the property at the earliest opportunity while being sure that maximum value had been extracted from the sites.
Challenges included:
• The dangerous nature of the sites; health & safety was of paramount importance
• Sites subject to unusual ownership structures
• Perceived potential negative value of sites leading to discounted offers received for the whole
• Insufficient time available for advertising
The Solution
• The first step was to inspect all sites, obtain full property, contract and financial data and compile a register of all plant and equipment. All surveyors receiving detailed health & safety briefing before commencing any works and entering site facilities.
• Carrying extensive research about the sites seeking to establish details of the contracts for waste and financial performance and compiling a full and detailed report for the administrator’s consideration. This initial report was used to benchmark the initial offers that had been received for all the sites as a whole.
• Receiving substantially discounted offers for the whole due to perceived negative value of some sites and implementing a rapid marketing campaign seeking offers for individual sites, in order to establish if the whether the sum of the individual sites was higher than the operation as a whole.
• Due to restricted timescales for marketing a list was prepared of potential buyers and carrying out a targeted marketing strategy to identified interested parties. Accompanied viewings were undertaken at all the sites and offers received within 10 days of the commencement of marketing
The Result
Having obtained a range of offers for the sites as a whole and on an individual basis the administrators were able to assess the strengths and weaknesses of individual sales compared to a single sale. The individual offers enabled the administrators to renegotiate upwards the sale as a whole to a single purchaser who completed the purchase within 6 weeks of the administrators being appointed
Back to Waste, Energy & Renewables
Lead Director: Chris Price MRICS
Chris is an RICS Registered Property Valuer
with 30 years experience in the corporate
recovery / asset debt recovery sector
e: chris.price@pactproperty.co.uk
t: 0117 456 8775 | m: 07979 541215