Valuation, sale, and relocation of the AARAV Suisse SA offices
AARAV Suisse SA, active in the research and manufacturing of food flavourings, owns its premises.
The 3’000 sqm plot, owned in freehold, is located in the ZIMEYSA (Meyrin-Satigny industrial area), in an area of industrial and artisanal development (ZDIA). SPG Intercity was commissioned to valuate the good, then sell it, and relocate AARAV Suisse SA’s new offices.
We thus put in place a teamwork project, with all the departments of SPGI (Valuations, Investments, and Tenant & Landlord Representation), supervised by the specialised division for industrial surfaces. The first phase of valuation presented 2 scenarios: on one hand, the sale value for the vacant building based on the intrinsic value of the developed plot, valued at CHF 3‘100‘000.- ; on the other hand, a valuation based on the “yield” methodology of CHF 4‘600‘000. Since it is a sale in a ZDIA, there was a risk that the State of Geneva, through the FTI (Foundation for industrial grounds), decided to pre-empt the sale if they considered the price to be speculative. The real estate agent’s role is then fundamental to negotiate with the local authorities and to avoid that risk. The minimum price of CHF 3‘600‘000 was required by the seller. We also had to deal with an additional constraint of time (maximum 8 months, for fiscal reasons); thus, the sale process was put in place in record time. A marketing campaign and invitations to tender targeting industrial users were done in less than a month time, which generated many visits. They were exposed to the same rules concerning the price offer (the sale price not being communicated); a proposition had to be made quite quickly.
The process was a success; 3 offers were made in the short given period of time. Then started a phase of negotiations going a quick pace, given the very short period of time imposed for the presentation of counter-offers. The site was sold to the highest bidder for CHF 4‘100‘000, and it will be refurbished for the activities of a foundation which provides help for the poor. The State of Geneva will not pre-empt. Our client, benefitting from all the services of SPGI, finally found new premises to relocate the AARAV Suisse SA company in new offices on rental.