Industrial land valuation

[MyM2006]

We've got a 9500sqft factory near Wembley, developers have bought 80% of our estate and are pushing us to sell to them so they can knock the estate down and build flats, part of the Wembley area regeneration.

We aren't really sure what we should be getting with respect to value, it's not one of the big companies developing and we don't think they are being overly generous with the offers they've made and they are now talking about CPO. The buildings they have bought seem to go for standard price rather than considering they are developing it so maybe we have got our ideas messed up.

Who helps with this sort of thing so I can make sure we don't lose out?

[Jockman]

Can you put it in your pension? Very quickly?

Few good people on here, maybe chrisgr31 or surveyor can help.

[surveyor]

Lots I don’t really get here..

But on the face if it you need an experienced development surveyor to give you advice - preferably paid for.

I’ll try and add more when I can.

[Chrisgr31]

This sort of thing is not my speciality.

I think an enhancement of facts would help though. If I read the post correctly you own the freehold of a unit that forms part of a larger estate. Most of that estate is now owned by a developer who wants to buy your property?

Seems to me that you are in a good position, if not buying yours creates issues for the redevelopment. On the other hand if your piece of land is in the nice to have but not essential you are not as well off.

You certainly need specialist advice. Fees would normally be based on a %age of the sale price, but as you already have an offer might want to base it on the enhancement to that offer.

If compulsory purchase is ti be used then it would appear the local council is involved somewhere. Thy wont be rushing to issue a CPO though due to time and cost.

[MyM2006]

Thanks for the advice.

For anybody that knows it, we are along from the Ace Cafe, the council has had this area marked for redevelopment for a long time, various private developers have bought the plots and started development as per Brent's masterplan, the industrial units near the Ace cafe are gone and we are next on the proposed schedule. We own the freehold to two units, about 12-13,000 sqft total on an estate of maybe 170,000 sqft, the larger unit in prime location.

The council want the industrial estate removed as we are surrounded by residential streets, in part the developer wouldn't be able to develop the site without our plot of land due to this and where we are situated in relation to the estate.
A slightly smaller size estate near to us had about 450 1-3 bedroom flats built with up to 14 floors, the developers haven't submitted planning but we assume it will be similar.

How do I go about finding someone suitable to do this? I know I can look on the RICS site but how do I pick someone reliable, I don't really know anybody that could recommended someone for this area.

[Ean218]

MyM2006 said:

Thanks for the advice.
How do I go about finding someone suitable to do this? I know I can look on the RICS site but how do I pick someone reliable, I don't really know anybody that could recommended someone for this area.

Surely your accountant would know good local solicitors dealing in commercial property, one of those would then point you towards a decent surveyor. You would need the pair to work in harness to get you the best deal.

[MyM2006]

I think we are over paying the accountant, they are on holiday for 6 weeks!

Anyway someone from Pistonheads is helping me.

[TimCrighton]

I hope you've got this sorted, but if not I'd be happy to make some suggestions, both of strategy and people to talk to.

There are a number of fundamentals you need to consider here:

Wembley land values are getting quite steamy, and alternative use opportunities, whether Residential or any other will be complex pieces of valuation to properly appraise.

You have two intrinsic valuations to your current property, Its 'Existing Use' valuation, and a valuation based on its potential for Alternative Uses and this would include some value from the fact its allocated for development but no hard and fast consent is in place. To truly appraise the latter can be complex and difficult as you may be reliant on the assembly of neighbouring land.

If your estate has been largely acquired by a developer already then you have an opportunity to look at the 'Marriage Value' of the plots - that is the value benefit to the purchaser in owning the whole, unencumbered site and not just the small parcels that make it up.

I work in Commercial Real Estate, but for a major occupier and whilst we do a lot of the sort of thing you are talking about, I'm not in a place to offer you any 'professional' advice, but I can point you to some of those that can and I would recommend based on seeing some good results and some very average ones in situations like yours.