Food Production Portfolio

The Challenge

We were instructed to value a portfolio of meat and fish processing facilities, abattoirs and a farm. The properties were owner occupied and formed part of the company’s business of seafood and pork products production.

The properties were located throughout the UK. Those in Scotland were valued by Martin Forbes in the Glasgow office; those in England were valued by Richard Glenwright in the London Office; and the Irish properties were outsourced to Gerald Eve’s Irish affiliate – RHM Commercial.

The Solution

All properties were inspected and measured on a gross internal area basis. They were assessed for flood risk, asbestos and other potential environmental issues; and planning and tax enquiries were conducted.

The properties mainly comprised meat and fish processing facilities and were therefore highly bespoke. This meant that comparable evidence was limited, and we therefore opted to value the properties using the Depreciated Replacement Cost means of valuation. This is done by:

• Valuing the land
• Adding the cost of replacing the buildings
• Adding fees
• Decreasing the value to account for depreciation.

The Result

We determined land value using our internal databases and advice from our Planning Team. We then determined the correct build costs for each facility using BCIS and advice from our Building Surveying team. We decreased this value to account for depreciation (physical, technical and economic obsolescence) taking into account the age, condition, configuration and utilisation of each property. Having then accounted for fees this gave us our final value of circa £60 million, which we reported to the client alongside suggested wording for inclusion in their company accounts.