Deep experience in every facet of commercial, industrial, investment and retail real estate experience along with an in-depth understanding of the ports, maritime and related logistics industries is the basis to start developing meaningful strategies towards making ports’ largest asset their most strategic ones.
Approaching each challenge through a multi-disciplined prism of professional expertise ensures that solutions will not only be innovative, but will represent practical and measurable strategies that will be, above all else, market driven. Only in this fashion can you be assured that the investment in our advice will render real returns for your organisation.
Examples of some of the port related property challenges we offer clients include:
Port users, clients and ports themselves are constantly looking to exceed widely available, and readily understood, key performance indicators for their operational assets. Why then is looking to maximize your port’s property based revenues, develop more competitive advantages and enhance the overall value of your port not managed in the same meticulous fashion? Aegir will provide you with the type of comprehensive, multi-disciplined expert port property advice for you to be able to ‘sweat your real estate assets’ in the most optimal fashion.
Port Real Estate Services
The ports industry has been in a state of revolution. This will not soon change. Big ships, increasing competition between supply chains, the need for increased investment in infrastructure to process more cargo, faster from the same footprint, a heightened level of intermodal capabilities and pressures to expand is resulting in capital needs outpacing traditional sources of finance and government’s increasing inability to properly fund ports. This is forcing ports to make sure that all operating and capital assets financially perform at peak efficiency, including their largest one – property. To ensure this occurs, you need 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 address the unique challenges and needs of entities and companies such as port authorities and related maritime sectors such as shippers, shipping and distribution companies, maritime service providers, stevedores, terminal operators and others needing to be located at or near ports. We do this with focused, innovative, practical and market driven strategies that key in on each client’s specific needs. From a tenant’s perspective, this includes overall cost management, effectively addressing their facilities and respective client servicing and future growth needs. From a port’s perspective, this includes considering an asset’s highest and best use, financial goals and objectives and how the asset and its potential use will impact the port portfolio performance and the port’s overall strategic goals.
Our services are not only cost-effective, but represent an excellent return on the investment through the delivery of the type of data, analyses and independent, professional advice necessary to ensure that meaningful financial goals and objectives are achieved and clients’ service expectations exceeded. For ports, our services ensure that port property assets will achieve meaningful, real returns of and on capital invested with terms and conditions that adequately safeguard the port’s interests.
These services include:
- Acquisition or disposal and leasing of port related properties
- Highest and Best Use development and building assessments port and port related properties
- Conducting lease analysis and structuring and lease administration plans for ports
- Analysing and structuring development joint ventures and build-to-suits for specialised port facilities
Port property challenges have several interrelated business dynamics not readily understood, in a comprehensive manner, by either the traditional port or property expert. Most challenges require the ability to develop, manage and execute well defined and targeted disposal, acquisition and leasing campaigns for port related properties. The ‘shotgun’ approach will cost time and money and rarely produce desired results. This requires an in-depth knowledge of not only industrial, commercial, development and investment real estate, but of the business dynamics and the spectrum of a port’s revenue streams and business model.
Port Property Valuations and Appraisals
Property will increasingly play a major role in the profitability and the way ports finance their expansion and modernisation needs. Because of this, senior port management needs to have a realistic assessment of the true ‘market’ value of their port property assets. Developing corroborated base line values for their properties will significantly allow ports to better run their business, make better decisions on setting appropriate lease rates and tariffs and allow them to more effectively benchmark their financial performance.
The valuation and appraisal of port property presents a unique challenge because port business dynamics, the specialised nature of port assets and the impact port operations have on real property asset values are issues not readily understood by mainstream real estate valuers and appraisers. Essential elements inherent in developing market values through the comparable or sales benchmark approach often result in flawed valuations, as comparable sales and leases for port properties are typically hard to find. This is mainly because ports typically do not sell land or facilities. Without the requisite knowledge of both the property and ports industries, results from real estate valuations and appraisals often do not reflect true market values and produce appraisals of little relevance.
Without the ability to determine appropriate reproduction cost estimates, define what constitutes functional and economic obsolescence at ports, the use of unrealistic land valuations and a lack of experience and knowledge in identifying current and potential income streams for ports will also most assuredly result in meaningless results using the income approach to value as well.
We surmount these challenges by having access to a comprehensive international database of operational, income and market data for the ports’ industry worldwide, access to a team of proven port, maritime logistics and shipping experts and experienced appraisers in port real estate. We also work in tandem with local appraisers to access timely local market intelligence and data. All of this ensures that clients are given the full spectrum of the port and non-maritime property market information necessary to produce the most relevant analysis and results possible.
We are uniquely positioned to offer a combination of in-depth understanding of ports and their business, along with the requisite knowledge, skills and insight into making real estate generate revenues to produce timely, corroborated and relevant valuations and of both port properties and ports themselves.
At Aegir, our focus always is to meet your unique port property challenges through a comprehensive, multi-disciplined approach for producing measurable, effective, feasible, timely and practical solutions.
If you need a valuation or appraisal that will be meaningful, reflecting the actual value of a property asset located within your port, hire the people who truly understand your business, from the inside out – Aegir
Strategic Port Property Asset Management
Historically, ports worldwide have been subsidized by their government shareholders for their capital needs. Today, the ability of governments to fund the modernization and expansion needs of ports is rapidly diminishing. Ports increasingly will need to be self-funding and this will require the optimal financial performance of all their assets – especially property. Additionally, with the ever-increasing complexities of managing ports and the growing competition between them and their respective supply and logistics chains, it is increasingly critical that ports need a more effective tool to manage their largest asset – property – in a more strategic and effective manner.
Specialized strategic port property asset management plans ensure that each real estate asset generates the maximum revenue, achieves the highest value and produces the most competitive advantages possible for the port.
By overarching a port’s strategic plan and core business mission, and with proper processes in place, senior management can more easily and effectively manage their business from both a time and cost standpoint. Meaningful performance benchmarks and constant monitoring allows for manageable assessment of portfolio performance and re-calibration of the assets to ensure that optimal financial efficiency is maintained.
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 an organization’s property portfolio operates at optimal efficiency to create maximum revenues, values and synergies with its core business goals and objectives.
Port properties may range from any type of industrial or commercial facility with single or multiple tenancies to vacant land. Port property asset management plans ensure that port authorities are saving money on real estate operating and holding costs and that client/tenant satisfaction and revenues are maximized.
Our strategic port property asset management plans take into account a comprehensive assessment of the property portfolio, current and targeted markets, a port’s overall strategic plan and the short, medium and long term goals and objectives of the port, especially its capital expenditures, in a comprehensive yet concise document that is easy to understand and implement.