Fortune 500 Paint, Coatings and Chemical Company

Challenge
A Fortune 500 chemical conglomerate, through several mergers and acquisitions, was left with multiple sites that were either surplus land, vacant facilities, or actively operating sites with the potential for liquidation through a sale and leaseback transaction. The company recognized that these types of properties had accumulated the critical mass justifying an initiative to extract latent value on a portfolio-wide basis.

Solution
Allegro Realty Advisors was engaged to facilitate this substantial undertaking. Allegro’s role included management of the North America portfolio, property data collection and analysis, stratification and pooling of similar assets and opportunities, developing the disposition strategy and peripheral materials, and taking the various property tranches to market. Allegro developed models and conducted financial analysis to enable the client to understand the alternative approaches to disposition, the associated market values and the business case (strategic, financial and operational consequences) of each course of action. Ultimately, the client decided to forego the portfolio disposition approach and successfully completed many discrete property dispositions as a result of this initiative. Additionally, over several years, Allegro served as an in-house component of the client’s real estate department and was responsible for strategic projects, transaction management and real estate advisory services for a portfolio encompassing 900 facilities, comprising 6,000,000 sq. ft. in 10 countries and throughout all 50 U.S. states.