Commercial Property advice
Discussion
I'm posting this under a different Username owing to the sensitive nature of the topic.
Basically, the state of manufacturing in the UK and a non too positive forecast for future trading has started me thinking about selling my business. The business, IMHO, is not likely to sell as a going concern owing to the market factors mentioned earlier and it being very asset rich but trading at a loss the last 3 years.
I am toying with the idea of winding up my business, extracting the cash and selling the assets & property which are owned outright.
The main asset is the property which is not your usual industrial unit but a Character building (school building, 1904) set in an idyllic rural location. It is split 60/40 in favour of the old building with a 1960's built single storey industrial extension to the rear. The plot is approx. 10,000 sq/ft with the buildings currently occupying approx. 6,000 sq/ft. It is completely detached with rolling fields to all aspects.
My belief is that their is serious potential for the property to be converted into residential, either the existing building or to demolish and build on the plot.
Obviously there are planning issues and restrictions that may put the kybosh on the ideas but I am trying to explore all avenues of opportunity.
Any ideas where I should start to obtain the facts and figures? Is it worth talking to property development companies? At this early stage, I do not want to set any alarm bells ringing so need to keep things quiet. With regards to the value of the property, I am unsure. In the nearby villages, 3-4 bed detached houses fetch between £250k - £500k. This would place my building at £750k - £1m.
Thanks in advance for any pointers.
Basically, the state of manufacturing in the UK and a non too positive forecast for future trading has started me thinking about selling my business. The business, IMHO, is not likely to sell as a going concern owing to the market factors mentioned earlier and it being very asset rich but trading at a loss the last 3 years.
I am toying with the idea of winding up my business, extracting the cash and selling the assets & property which are owned outright.
The main asset is the property which is not your usual industrial unit but a Character building (school building, 1904) set in an idyllic rural location. It is split 60/40 in favour of the old building with a 1960's built single storey industrial extension to the rear. The plot is approx. 10,000 sq/ft with the buildings currently occupying approx. 6,000 sq/ft. It is completely detached with rolling fields to all aspects.
My belief is that their is serious potential for the property to be converted into residential, either the existing building or to demolish and build on the plot.
Obviously there are planning issues and restrictions that may put the kybosh on the ideas but I am trying to explore all avenues of opportunity.
Any ideas where I should start to obtain the facts and figures? Is it worth talking to property development companies? At this early stage, I do not want to set any alarm bells ringing so need to keep things quiet. With regards to the value of the property, I am unsure. In the nearby villages, 3-4 bed detached houses fetch between £250k - £500k. This would place my building at £750k - £1m.
Thanks in advance for any pointers.
i would get an architect to come round to give ideas for the potential and see if you can get a planning dept bod round to give a general thumbs up / down to the ideas that the architect is coming up with, prior to you parting with cash for architects fees. this is what i am doing with some land i own and am looking to develop on.
get a feel then of what your costs to build are going to be and what selling costs are likely to be and then decide whether you want to undertake the project.
if you don't, i might be interested in buying the land / building off you.
get a feel then of what your costs to build are going to be and what selling costs are likely to be and then decide whether you want to undertake the project.
if you don't, i might be interested in buying the land / building off you.
One thing you might want to bear in mind is that if you can sell the company in its entirety (the shareholding) it may well be more tax efficient. There are some fairly complicated Revenue rules regarding whether you are selling an investment asset or a trading company, if it's the latter you could get 75% Tax (Taper) Relief which means you'd only pay 10% Tax. It will depend on your individual circumstances, but if you could sell the company for its net worth, this may be more efficient than winding up the company. I'd get Tax advice if I were you.
>> Edited by srebbe64 on Tuesday 7th June 15:52
>> Edited by srebbe64 on Tuesday 7th June 15:52
Why not informally make a phone call to one of the building companies such as Redrow Homes, or whoever is local to you.
They will tell you if they are interested in the spot and if, in their view, it has potential.
It may be considered a 'brownfield site' and therefor could possiby get planning consent easier than an 'area of seach' or a 'greenfield' site.
Failing that, visit the local planning officer and ask him informally what he/she thinks.
They will tell you if they are interested in the spot and if, in their view, it has potential.
It may be considered a 'brownfield site' and therefor could possiby get planning consent easier than an 'area of seach' or a 'greenfield' site.
Failing that, visit the local planning officer and ask him informally what he/she thinks.
Anything with buildings or hardstandings on it already is a brownfield site.
Normally the problems start when you want to change the use of a building - from industrial to residential. It sounds as though residential would be more in keeping with the surroundings though, so I would image the planners would be OK with the change. You never can tell, though.
Normally the problems start when you want to change the use of a building - from industrial to residential. It sounds as though residential would be more in keeping with the surroundings though, so I would image the planners would be OK with the change. You never can tell, though.
911nutter said:
i would get an architect to come round to give ideas for the potential and see if you can get a planning dept bod round to give a general thumbs up / down to the ideas that the architect is coming up with, prior to you parting with cash for architects fees. this is what i am doing with some land i own and am looking to develop on.
get a feel then of what your costs to build are going to be and what selling costs are likely to be and then decide whether you want to undertake the project.
if you don't, i might be interested in buying the land / building off you.
911nutter said:
i would get an architect to come round to give ideas for the potential and see if you can get a planning dept bod round to give a general thumbs up / down to the ideas that the architect is coming up with, prior to you parting with cash for architects fees. this is what i am doing with some land i own and am looking to develop on.
get a feel then of what your costs to build are going to be and what selling costs are likely to be and then decide whether you want to undertake the project.
if you don't, i might be interested in buying the land / building off you.
Or, alternatively, you could get a professional opinion from a talented Architect who specializes in redeveloping historic buildings and PAY for his time to potentially INCREASE THE VALUE of your development opportunities.
I'm an Architect working for one of the major housebuilders.
If you are serious, contact me off-list via my profile. I can give you some basic advice on how the valuation for the land would be arrived at and/or put you in touch with one of our land buyers to see if we would be interested in making you an offer.
If you are serious, contact me off-list via my profile. I can give you some basic advice on how the valuation for the land would be arrived at and/or put you in touch with one of our land buyers to see if we would be interested in making you an offer.
you mutant rat.... i saw the opportunity first!
Thanks for all the advice.
I certainly wouldn't want to oversee the development to residential myself so would be looking at a sale as is now. Might have a word with a local builder who has recently completed build of 2 homes in the village.
The main problem is trying to acertain an accurate value so as not to get fleeced.
I certainly wouldn't want to oversee the development to residential myself so would be looking at a sale as is now. Might have a word with a local builder who has recently completed build of 2 homes in the village.
The main problem is trying to acertain an accurate value so as not to get fleeced.
Gassing Station | Business | Top of Page | What's New | My Stuff