Distressed Asset: Property Realisation Strategy for a 38-Apartment Portfolio
Director experience at Urbis
Director experience at Urbis
Director experience at Urbis
The Challenge: A company placed into liquidation due to shareholder disputes held a portfolio of 38 residential apartments. The challenge was to realise maximum value and provide a fair shareholder allocation. The portfolio faced significant constraints, including sub-optimal sizing and financing difficulties. Furthermore, disposing of all units simultaneously risked a 25% market discount due to oversupply.
Our Intervention: The Liquidator appointed us to develop a fiduciary de-risking and custom realisation strategy. We developed and managed a robust, multi-option strategy that provided an auditable justification for asset disposal. We converted the complex asset realisation into robustly modelled process.
Our impact:
Financial Strategy: We developed a comprehensive financial comparison detailing estimated returns, costs, and timing for phased Individual Sales versus a Group Sale.
Optimal Sale Mechanism: We recommended a sale strategy that allowed market response and the implications of releasing multiple properties.
Governance & Dispute Mitigation: We provided the framework for a non-cash allocation. Prepared property options and allocation information to inform the liquidator’s decisions.
Asset Management Consolidation: We oversaw the management of multiple operational liabilities, including five managing agents, maintenance defects, and Owners Corporation disputes. We also prepared asset allocations for car parks and storage to stabilise the portfolio prior to realisation.