The project to sell the former Belley Hospital site ran from 2018 until the end of 2022, when the sale was completed. What were the main difficulties you encountered on this project as the site owner?
In retrospect, there were several cumulative difficulties:
- A site with advantages but many disadvantages, including a floor space that was oversized in relation to the local real estate market. There was clearly a lack of interest in this site at the outset on the part of almost all real estate operators: it was “too big,” “too high,” “too complicated.”
- A lack of reliability on the part of certain real estate operators in terms of meeting commitments and deadlines
- Technical issues that penalized the sale: asbestos, localized pollution, underground tanks, ICPE (classified installation for environmental protection), etc
Based on your experience, what are the keys to success for a project of this type?
- Surround yourself with the necessary skills: real estate is not our business, and divestment and valuation even less so. We have technical expertise in construction and maintenance, but not in this type of project
- Coordinate the project in advance with local authorities (municipality and community of municipalities) as well as supervisory bodies (DREAL, DRAC, ABF)
- Having a “realistic” view of the market upstream, in order to target the most suitable scenarios. In our case, the decision to sell the site in blocks with a variety of real estate uses was one of the keys to the project’s success. This framework was developed with Lindea upstream to ensure the success of the sale
Lindea supported you from the preliminary studies right through to the building permit application. Why did you choose to have independent advice on the project?
We felt it was essential to have an independent outside opinion from someone “more competent than us.” We don’t have the skills, nor do we have the availability or resources to manage such a project. We sought advice that could be shared with all parties involved in the project: not only us, but also real estate operators, legal advisors, notaries, local authorities, and supervisory bodies.
What actions and interventions by Lindea had a particularly significant impact on the success of the project?
- The implementation of strong expertise in market analysis, real estate scenarios, real estate project processes, technical and heritage issues, coupled with a genuine understanding of all stakeholders and their challenges
- True day-to-day project management, with genuine availability and responsiveness, which is not always the case with our consulting providers! Lindea anticipates, warns, monitors, and follows up; they manage the project in an operational manner and are fully invested alongside us. They provide documentation and strategies for each important stage of the project.
- A focus on decision support: Lindea is not there to make decisions for us, but rather to help us make the right decisions by highlighting the advantages and disadvantages in response to our challenges. And by giving us time to properly consider our decision.
Duration : 2018-2022
Amount € VAT excluded : Confidential
Number of participants : 5
Would you be willing to recommend Lindea’s services to other industrial departments or organizations you know of for projects involving the sale and valuation of their assets?
Absolutely, yes. The project was ultimately a success…even though it wasn’t a sure thing at the outset.
Background and objectives:
- Propose principles for the conversion of a hospital (currently being vacated) that meet the owner’s valuation objectives and the urban objectives of local authorities.
- Determine a realistic valuation of a site located in a complex local market, based on redevelopment scenarios.
Lindea’s contribution: :
- Technical and urban planning assessment of the site, summary of key issues, proposed redevelopment options
- Target real estate scenarios and plans: estimation of the site’s value as is and multi-criteria assessment
- Perspective and recommendations concerning the project’s deployment phase
- Consultation on several lots, support in signing the preliminary agreement and monitoring of conditions precedent, support in closing and selling the site
Customer benefits:
- Upstream identification of the project’s sticking points
- Objective and substantiated opinion on the value of a complex site, rather than a “theoretical expert opinion.”
- Concrete action plan to optimize the value of the site
- Estimation of the site’s value for each scenario, to enable the owner to make a decision
- Effective sale of the site in a very weak real estate market
