Foreword
With the aim of pursuing works of charity and relevant social function, the religious body has embarked on a course of enhancing its real estate assets, considering alienating a former convent, in a state of substantial neglect, and the adjacent portion for civil use.
The property complex, located in the historic center of Pavia, in addition to the total gross area of more than 3,000 square meters includes a large garden and a small church.
Previously, the religious body had vetted a project to transform the complex into a hub of residences, classrooms and university laboratories, which was later scrapped. At this stage, the need emerged for an analysis of possible hypotheses for the conversion of the property, and an estimate of the Market Value of the assets under consideration.
Project
The project developed by PRAXI consisted of two main phases:
- Preliminary feasibility study and evaluation of the complex
real estate; - Due diligence and transaction counseling.
In the first phase, the feasibility study identified hypotheses for the reuse/valorization of the property complex, defining possible transformation concepts, analysis of outlet markets and current zoning regulations, spatial framing of the property, and the state of affairs from the dimensional, functional, and architectural points of view, with evidence of strengths and weaknesses for the various conversion hypotheses considered (SWOT Analysis).
For the identified options, the real estate valuation of the complex then followed according to internationally recognized expert best practices, which refer to IVS and RICS standards, through the Transformation Value method.
In the second phase, PRAXI joined the religious body in the role of advisor for the marketing of the property, thus assisting the institute in the stages of promotion on the market and negotiation with interesting parties, while also providing the technical-administrative due diligence service for the verification of the requirements for the deedability and the indication of the necessary regularization activities.
At this stage, the Due Diligence and Valuations units of PRAXI Valuations and Advisory worked interdependently, operating a fruitful contamination of their respective skills, especially in transmitting the knowledge and information processed to those interested in the acquisition of the real estate complex, with accompaniment in direct inspections and the setting up of a virtual data room for consulting the technical-administrative material.
Results
The due diligence activity allowed a timely reporting of incomplete, missing or outdated building practices and an indication of all the regularization activities necessary to make the sale of the property possible. Thanks to the systematic collection of documentary material and the development of a digital data room (Virtual Data Room), it was possible to share information in an agile and immediate way with all parties involved, according to different degrees of confidentiality.
The possibility of acquiring the property was promoted by PRAXI through the main web and digital channels (institutional website, LinkedIn company page), and the news was later relaunched by Il Quotidiano Immobiliare, the most important online newspaper in the sector and a point of reference for investors, associations, companies and public bodies.
PRAXI, on behalf of the religious body, also negotiated advertising space in the area’s largest circulation newspapers, namely Corriere Milano-Lombardia and La Provincia Pavese. PRAXI set up a dedicated e-mail address for the collection of expressions of interest, with the sending of summary brochure (Information Memorandum) and credentials for access to the Virtual Data Room. Uniform templates for the non-binding proposal and irrevocable purchase proposal were then drafted and shared with interested parties.
Direct property surveys for stakeholders were organized and coordinated by PRAXI, providing first-level technical support.
Following the receipt of the irrevocable purchase proposals, PRAXI assisted the Client in the identification of the buyer and direct negotiation between the parties, analyzing the proposals received with the comfort of the feasibility study and valuation, the latter updated appropriately to capture market trends and macroeconomic variables in a timely manner.
The project was concluded in the fall of 2021 with the Client’s acceptance of a purchase proposal, bringing to fruition the set goal of asset enhancement.
Future
The activities carried out within the project enabled PRAXI to provide an efficient advisory service, from the preliminary feasibility study to the marketing of the property.
The relationship with the Client was continuous and fully collaborative, through frequent extemporaneous exchanges and intermediate meetings that marked the various stages of the project. The skills put in place and the information acquired enable us to be able to meet any further needs of the Client related to the enhancement of its real estate assets.
