As Managing Principal of Cresa’s India office, S C oversees the provision of advisory services throughout the region’s five locations.
216, B Wing, 2nd Floor
M G Road
Bangalore – 560 001, India
The India team did an exemplary job of negotiating the sale of our industrial land and building in Chennai in a Special Economic Zone. We were extremely pleased with the final terms of the agreement and recognize that we could not possibly have achieved the outcome without Cresa’s expertise. We look forward to working with the India team in the future.Stephen L. Clarke | Vice President, Environmental Affairs and Real Estate
Member, Royal Institute of Chartered Surveyors (MRICS, UK)
Member, Institution of Valuers
Client: Emerson Virgo
Size: 15 acres of land with a 200,000 square foot industrial manufacturing facility
Nature of Assignment: To negotiate the sale of an industrial manufacturing facility in a Special Economic Zone (SEZ).
Preamble to the Assignment: Emerson acquired the Vales & Controls business of Virgo and with it, the Chennai SEZ manufacturing facility. Emerson decided to dispose of the facility and hired Cresa’s India team for the job.
SEZs are still new in India. Many companies are setting up manufacturing, technology, software and research and development labs in these parks and to take advantage of the incentives offered by the Government of India. This project marked the first time that a company chose to exit the SEZ park.
Value Add: The main objective of this project was to identify a suitable buyer who intended to set up a manufacturing facility in a SEZ.The location of this SEZ was remote (about a two-hour drive from Chennai); as there are many similar properties closer to Chennai, the site proved to be difficult in attracting investors. After a robust three-month marketing campaign directed towards possible manufacturing companies, we succeeded in identifying a German supplier of kitchen equipments.Cresa’s India team represented Emerson in commercial negotiations & documentation.
Our team of real estate experts represented Emerson in commercial negotiations and documentation as they sought to sign over the property’s contract to a new occupier. Emerson was in a lease with the SEZ developer and there were many restrictions and caveats in selling the land with building. For one, the land had to be surrendered back to the developer at no cost and the developer was at liberty to pick or not pick the superstructure. At the same time, the purchaser wanted a clean deal and to have rights to the land and building.
Together with Emerson’s legal advisors, and after rounds of discussions with the top executives and SEZ Commissioners, all parties came to a sound agreement in terms of the transaction structure for the sale of the building where everyone’s interests were met. In all, the assignment was complete within 15 months.
Status: Emerson was extremely pleased with their representation during the transaction. Based on our success in this project, Emerson awarded our team with two more disposal assignments – one in Coimbatore involving a 300,000-square foot manufacturing facility sited on 25 acres and a second in Chennai involving a 100,000-square foot facility sited on seven acres of land.
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