$15.2 billion, real estate pension fund – port related investment analysis.
East Coast US
Fund owned two large tracts of land earmarked for luxury planned unit developments. The onset of the Great Recession made this type of development unfeasible. Client was looking for alternative use for the sites which were located adjacent to major port facilities.
A comprehensive analysis of the maritime and cargo market was undertaken along with a SWOT analysis of the port in question. This identified as a lack of on and near dock intermodal capabilities significantly negatively impacting this port facility, a function which both sites could easily take on.
THE NET RESULTS:
A comprehensive market and financial analyses, inclusive of projected revenue streams and pricing for services, was undertaken for two major intermodal projects. Based on the results of the analysis, the designs for the proposed projects were changed to attain millions in capital expenditures. The projected internal rate of return estimates, which were extensively corroborated with market data and analysis, exceeded the pension fund’s established financial and timing thresholds. Both projects were approved by the pension’s investment committee in a collective amount exceeding $800 million.