Ravindra Chaturvedi
In one of our liquidation cases, asset block with huge land parcel with a factory building structure were to be sold. Even after many rounds of auction no buyer was willing to invest in the land & building.
During investor meets, an idea popped up to sell the land separate and the building structure as an independent block. The reserve price was the average liquidation value. Surprisingly there were 6 bidders who participated in the auction process for the factory building. In the 2 thrilling hours of e-auction process, 6 bidders competed head on. The bid closed at almost 2 ½ times the reserve price.
After receipt of sales consideration, the successful bidder excavated and removed the building structures from the land. The successful bidder informed that he made good profits from dismantling and selling the building structures. It was a unique experience and the stakeholders were delighted with the unexpected returns. And who would have imagined that a factory building structure was sold without land!
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