Case Study: Optimal value, right next door

Excess Inventory Optimized through Corporate Trade

The client’s challenge

A major home and building supply retailer was in possession of several real estate parcels adjacent to existing stores.  These parcels had been on the market for several years with market values below their book values. They represented a significant liability for the retailer.

The Active International answer

Active purchased the entire portfolio of properties, paying a premium to market value and assuming all financial obligations and operating covenants and restrictions with potential tenants and buyers. In exchange, the retailer placed their media through the Active media team receiving the exact same media placement their media plan specified.

The results

  • Liability lifted: Active relieved the retailer of its burdensome real estate liabilities.
  • Market value exceeded: The marketplace couldn’t deliver adequate value for the portfolio, but Active did far better, paying a significant premium above market value.
  • Competitive sphere protected: As a condition of the transaction, the retailer retained development approval over the properties, assuring that competing businesses didn’t set up shop next door.
  • Selling Assets through Corporate Trade – Active International

    Industrial-sized value

    An international CPG company had been trying to sell a large industrial facility with outdated capital equipment that had become costly to maintain.

  • A Client Success Story - Active International Helps Eliminate Excess Inventory

    A real estate rescue

    A major retailer owned an office building that was to become its corporate headquarters, but instead became a significant financial liability.

  • Case Study: Maximizing the Value of Unused Real Estate through Corporate Trade

    Maximizing the value of unused real estate

    A major national retail chain owned several properties that were no longer viable as storefront locations.