CLIENT:

Port Authority

LOCATION:

US Inland waterways

CHALLENGE:

State port authority with various state-wide port facilities was reviewing its five-year appraisal and lease pricing process for its property portfolios. They were looking for reports and analyses that would be more relevant and useable for their pricing needs as they felt that past exercises in this regard had accomplished and added little value to their land pricing.

SOLUTION:

A review of their last appraisal reports indicated that the port authority’s pricing was based on erroneous capitalisation rates based on ground lease capitalisation rates for fast food restaurants. Comprehensive valuation analysis of each major port facility was undertaken and every individual land parcel.

A comprehensive review and analyses of their lease administration and asset management practices were undertaken to develop a comprehensive strategic port property asset management plan for all port facilities and the port authority in general.

Appropriate capitalisation rates were developed along with a simple yet effective port pricing schedule ensuring that real returns of and on capital values would be achieved.

THE NET RESULTS:

The net results were upwardly revamped lease rates at every facility and the development of an asset management plan that would make managing of port property assets more effective and simpler for port directors and senior management, benchmark financial performance and overarch the port authority’s core business strategies.