For the last few decades, the ports industry has been in a state of revolution. This will only accelerate. Bigger ships, increasing competition between supply chains, the need for increased investment in infrastructure to process more cargo and faster from the same footprint, a heightened level of intermodal capabilities and pressures to modernise and expand is resulting in capital needs, outpacing traditional sources of funding. Yet, government's ability to properly fund the capital needs of port continue to diminish. This is forcing ports to reach financial self-sustainability. A port’s property portfolio will increasingly play a major role in reaching this critical state. To achieve this will require a cross-section of highly specialised and proven port real estate services. At Aegir, this is what we do - all of the time.
Aegir’s port real estate services are engineered to not only meet the unique property challenges faced by port authorities but achieve real estate asset’s highest and best use to meet optimum financial goals and create synergies that will raise overall port property portfolio performance and reach operational strategic goals.
Our services represent an excellent return on investment. This is accomplished through the delivery of the requisite type of data, analysis and independent, professional advice necessary to reach financial goals and objectives and exceed client expectations. This typically occurs in the short term through higher occupancies, significantly increased rent revenues by employing more accurate ‘market’ rents and through operational costs savings.
Services include:
- On and off port expansion strategies
- ‘Highest and Best Use’ development and building assessments of port and port related properties
- Analysing and structuring of port real estate leases from a rent and terms and conditions standpoint
- Analysing and structuring development joint ventures and build-to-suits for specialised port facilities
- Valuations that more accurately represent values of port properties
Port property has several interrelated business dynamics unknown by mainstream industrial real estate experts and appraisers. The best approach is focused and targeted, requiring in-depth knowledge and experience in all facets of industrial, commercial, development, and investment real estate, along with a wide spectrum of knowledge on how economic utility is generated for real estate employed at ports.
Port property has several interrelated business dynamics, unknown by mainstream industrial real estate experts and appraisers.
The best approach is focused and targeted, requiring an in-depth knowledge and experience in all facets of industrial, commercial, development, and investment real estate, along with a wide spectrum of knowledge on how economic utility is generated for real estate at ports.
Overwater transportation has become so efficient that it has reached commodity status, with the difference in service, reliability, and cost between major shipping lines and alliances now negligible. Further compression of supply and logistics chains and costs reductions will now result from efficiencies on the land side of the ‘sea-land’ equation.
Property is the integral, common element linking ports to the maritime and logistics industries. At Aegir, we have long recognised property as the most underutilised strategic asset at ports. This is the new frontier for more efficient client services, increased revenues and profitability for ports today. To achieve this, a wholistic approach is required in the employment and management of port property and to identify challenges, uncover opportunities, and to develop effective solutions.
At Aegir our advice has led to:
- Maximised property-based revenue streams
- Enhanced property asset values
- Reduced real estate carrying costs
- Increased comparative advantages to better attract and retain clients
- Leases structured to produce real returns and infrastructure cost recapture
- Specialised port facilities meeting exact client needs built for longer asset life spans
- Identifying meaningful port property asset values, producing higher yielding leases, joint ventures and public private partnerships
- Giving the port a more level playing field in real estate negotiations
- More optimal management of the port property portfolio
We continuously strive to effect change, in the port’s financial performance, competitive advantages and quality of servicing clients through the more strategic use of a port’s largest asset - property. Time and again Aegir’s consulting services have proven to be an excellent investment with rapid payback having clear positive impacts to your port’s property and overall performance.
We continuously strive to effect change, in the port’s financial performance, competitive advantages, and quality of servicing clients through the more strategic use of a port's largest asset - property. Time and again Aegir’s consulting services have proven to be an excellent investment with rapid payback having clear positive impacts to your port’s property and overall performance.
Property will increasingly play a major role in port profitability and funding expansion and modernisation need. Because of this management needs to have a realistic assessment of the true 'market' value if their port property assets. Developing values for their properties will allow more effectively set correct lease rates and better rationalize tariffs with rents and more effectively benchmark their performance as landlords.
The valuation and appraisal of port property is challenging. This is because of the specialised nature of ports, their assets and the impact port business dynamics have on creating value for port properties.
Additionally, ports typically do not sell property, nor do they readily share this kind of information. Therefore, there is a dearth of true like-kind sales transactions to benchmark. This results in flawed valuations using this approach to value and, often, results in benchmarking against other port's mistakes.
We surmount these challenges by accessing databases of operational, income and market and property data for the industry and having access to a team of proven port, logistics, shipping, and port property experts.
This ensures our clients receive the most comprehensive approach for producing relevant analyses and valuations of their real estate assets.
We are uniquely positioned to deliver independent opinions on the most realistic values of properties through a combination of in-depth understanding of ports and their business, along with the knowledge, experience and specialised skills insight to produce timely, corroborated and relevant valuations and of both port properties and ports themselves.
At Aegir, our comprehensive, multi-disciplined approach to port property valuations produce comprehensive and corroborated value assessments that is more meaningful and effective for making financial and business decisions.
Historically, ports worldwide have been subsidized by their government shareholders for their capital needs. To more rapidly, achieve an optimal level of financial self-sufficiency, it is critical that ports understand and implement best practices of asset management to their port property portfolios.
Specialised strategic port property asset management plans ensure that each real estate asset class generates the maximum revenue possible, while achieving heightened tenant mix synergies.
By overarching a port’s strategic plan and with its core business mission, senior management can more effectively execute its role of 'landlord'. Meaningful performance benchmarks and constant monitoring facilitated by appropriate plans allows for effective ongoing recalibration of 'fixed' (e.g., rent on real estate assets) and 'variable' (e.g., marine revenues) rents to achieve a balanced approach of revenue generation.
Property asset management is defined as: ‘The acquisition, administration, re-development, re-use and disposal of real property assets in such a manner that the owner’s business and financial missions, goals and objectives are supported and achieved in the long run and add economic value.’ In other words, port property asset management means ensuring a port's property portfolio operates at optimal efficiency to create maximum revenues, values and synergies supporting its core business goals and objectives. This should be one of the primary goals of landlord ports.
Our strategic port property asset management plans, effective roadmaps to better manage a port's property portfolio and benchmark its performance over time.