SIOR members close big deals in a big way. Select transaction case studies are featured in the SIOR Report so readers can learn both about and from the expertise of our members.
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TRANSACTION TYPE & DETAILS
Date: May 1, 2021
Transaction Type: Open Market Lease & Investment Sale
Property Type: Industrial
Size: 13,044 sq. ft.
Sale Price: Rent £60,000 per annum
Investment Sales Value £940,000
Participants & Information Provided By: Paul Danks, SIOR
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Client Objective
- The client acquired the company that owned and occupied the property, but did not wish to own its operational real estate.
- The client wished to maximize capital asset value by selling the property via a sale & leaseback transaction.
Transaction Profile
- Open Market Transaction-Marketing details were prepared and a selection of local investors were approached. They were invited to submit tenders to purchase the asset.
- The building was marketed as an investment transaction with the local operating company remaining in situ. That company would then enter into a 10-year lease at the current open market rent with the identified investment purchaser.
Solution
- Paul Danks, SIOR, referred the deal to a local expert broker, Carl Bradley, Director of Clark Weightman, Hull, U.K. who provided an initial "brokers opinion of value" and marketing recommendations. The local market experts then ran an open market tender/bid process on behalf of the client, approaching local investors whom he anticipated would be interested in the asset. The local broker reported back both directly to the client and to Danks, in his role as the primary coordinating broker.
- The property was successfully sold on a sale and leaseback basis with the client achieving substantially in excess of the estimated initial capital value.
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