Optimising Cash Generation
The Company will always seek to add maximum value to its property assets before considering disposal and often this will lead to the Joint Venture opportunities referred to in Project Worth.
However, there will be occasions where cash can be realised from sites for re-application into more appropriate parts of the development portfolio.
Examples of where sale without future development will be considered include:-
• Where following substantial review and appraisal, the Company sees little or no future potential to add value to the site.
• Where the property development would involve an unacceptable level of risk.
• Where the nature of the development is outside our core expertise and is of insufficient scale to justify joint development, e.g. small housing sites.
• Where a special purchaser situation occurs, i.e. where a property may have special attributes in its form or location that makes it especially attractive to a special purchaser and a premium price can be obtained above the market norm.
• Where properties in the agricultural estate have been worked for surface mining operations and there is no realistic long term development potential.