FSC has broad experience supplying value to their clients that need to expand, consolidate their real estate, renew or restructure their leasing contracts, or disinvest or obtain revenue from real estate they are not currently occupying.
Our transactional services are:
- User representation: Organised and planned search for the offices and/or industrial locations for either lease or purchase.
- Office unification projects: Office unification aimed at improving productivity, reducing occupation costs and improving productivity, organization and the efficiency of the work environment.
- Turnkey implementations: Location and construction of office buildings and production centres and warehouses tailored to the clients’ needs.
- Sale & Leaseback: Use of company real estate assets to obtain non bank financing.
- Investment and disinvestment of assets: Specialised advice on acquisition and sales of
offices, production centres, warehouses, and any other kind of real estate assets.
Each of the aforementioned services follows a procedure designed by FSC. As an example, following is an explanation of the steps that would be followed in a disinvestment project:
As an example, following are the processes in a disinvestment project. FSC advises the following steps:
Note: All terms can change substantially depending on the complexity and the type of property.
a) Consultancy / due diligence:
Due diligences must be carried out prior to the sale, thus avoiding, once a purchaser has been selected, that the price be modified due to last minute surprises.
FSC will be responsible for providing and coordinating the data relating to the Due Diligence and the selection of any technical specialist that may participate in the operation.
This, of course, does not rule out that the investor will want to check any of the data for themselves, or that, after the purchase, they have a period of time to place any claims.
Moreover, this transparency in the analysis process allows the purchasers to carry out their own investigation in a serious way and not include risk premiums which would reduce the price.
The estimated time for conducting a due dilligence prior to purchase is three weeks. However, it must be taken into account that it may be necessary to carry out an environmental audit, thus increasing that time frame.
b-c) Market research and value opinion process
The objective of the opinion on value is marketing, since the idea is to establish the market value of the property under normal sales conditions.
The market value is the price at which the property could be sold under private contract between a willing seller and an independent buyer at the date of valuation in the event that the property is publicly exposed to the market, that the market conditions allow disposal of it in an orderly manner and in a normal period, having regard to the nature of the property, to negotiate the sale.
In order to carry out a value opinion, it is necessary to understand the product from the technical, urbanistic and market perspectives. In other words, once the product has been conceptualized in a market contexts, a purchaser can be defined. Once you know how the purchaser thinks, you can achieve the maximum amount of money by identifying the group of purchasers that will pay the most for the asset
In order to carry out the market research, the property is contrasted with the properties currently on the market in the area (availability, prices, currently under construction, planned constructions), as well as the offer and demand in the same area of influence.
Market valuation can be affected if the property does not comply with certain regulations. Thus, as we mentioned earlier, it is recommended to carry out a prior due diligence. It is important to anticipate possible problems in the sales process due to technical issues, pollutants, etc. which could potentially generate reticence in the purchaser or a renegotiation of the price. It is also highly recommended to carry out an environmental audit, analyse the presence of asbestos in the roofing, etc.
d) Sales book
The purpose of a sales book is to summarize, in just one document, all the necessary information pertaining to the property and the transaction, which allows potential purchasers to present their offers. In any case, it is a way of clearly defining the opportunity.
Among other aspects, the sales book must include:
- Minimum closing sales price range: FSC establishes a minimum closing sales price for the property hand in hand with the client, offers below will not be accepted.
- Letter of confidentiality, if considered necessary.
- Acceptance of the conditions of the process. The client will be able to alter any of the
conditions at any point of the process, even paralyse it if they deem it necessary. The client will not accept any kind of liability.
Once the product is known and opinion on value has been formed, the best strategy to minimize time to market and maximize the final price of sale shall be determined.
Marketing will have a greater chance of success if we have a high knowledge of the product and its market. Especially, if a trading strategy is designed to give greater visibility to the property, making potentially interested parties aware of it.
FSC is backed by several marketing tools, such as:
- Sinergias Grupo Ferran
- Publishing in the major real estate portals
- Publicity in written press (newspapers and specialized magazines)
- Mailing lists
- Network of agents and real estate consultants
f) Formalization: negotiation and closing
The formalization phase has the following steps:
- Drawing up contracts
- Coordinating lawyers/solicitors
- Coordinating purchaser’s due dilligence
- Coordinating signing at the notary
The service includes support provided by Ferran legal department. It is general practice for the client to have their own legal advisor, to whom Ferran’s legal department will report directly. The idea is for us to put our experience and specialization in real estate matters at the service of the client, for subsequent ratification by their own legal advisor.