Strategy for Redundant Real Estate Assets
Have you ever considered how you could improve the value and cost base of your redundant commercial real assets?
For a number of years, Connell Brothers have been helping owners and occupiers of redundant commercial real estate, do just that.
Why have a strategy for redundant commercial property assets?
• To mitigate annual financial liabilities
• To reduce associated legal liabilities
• To present the best opportunity of the site finding its way back into economic use.
• To reduce opportunities for crime, vandalism and other antisocial behaviour
Redundant Industrial properties are very expensive
• Since 1st April 2008 owners or occupiers of empty industrial premises are (in most cases) no longer entitled to relief from business rates.
• Often insurers require much higher levels of protection, (with associated cost) for vacant premises.
• Generally, utility service providers are reluctant to reduce the fixed charges associated with their supply, (unless the services are fully disconnected).
• Empty and derelict buildings tend to have an adverse impact the reputation of the site owner or occupier.
Connell Brothers can assist your organisation to successfully deal with these issues.
INDUSTRIAL SITE EAST MANCHESTER
Acting on behalf of a subsidiary of a US based global chemical group, Connell brothers have played a key role in the delivery of a strategy to eliminate virtually all the financial liabilities associated with a redundant chemical processing plant in East Manchester.
When Connell brothers became involved with the site owners, the premises had been in a de-commissioned state for almost two years. The site owners were paying significant annual property related costs, for such things as business rates, security, insurance and for utility site and systems charges. In total, these costs amounted to more than £270, 000.
The site owners, their advisers and Connell Brothers worked together to:
• Remove the redundant plant and buildings , (So positioning the site for a higher value future use)
• Eliminate virtually all of financial liabilities and many of the legal abilities associated with the premises.
The total cost of this project was approximately £140, 000.
However the annual savings resulting from the project were in excess of £270,000. As a result of the project, the value of the residual asset increased as it was now better positioned for its future higher value use.