Would a private equity firm invest in closed manufacturing facility?
I know a manufacturing facility that cost $50 million to build. The company ran out of money. Would private equity be intersted in this? Like they could buy it it $10 million and sell it few years later at $30 million.
Real estate private equity...maybe
Traditional private equity: No. Prefer operating businesses and some don't even like buying the real estate of those.
Are there any particular firms that I could contact? The facility is brand new and I believe it's just a matter of the right marketing to find a buyer. It could also be the owner wants the equipment removed. This equipment cost maybe $30 million. I believe someone could buy it for far less and then resell it.
yeah ive seen versions of this happening on the debt side with special situation, "credit opportunity" funds
This is exactly what real estate private equity does. If you’re actually selling at an 80% discount to cost (assuming no hidden liabilities, environmental problems, or super unique architecture) in anything that remotely resembles civilization, you’ll have REPE firms lined up for days
I looked into it in detail. The company paid close to $30 million for the equipment. It produces a type of fuel. This equipment must be relocated. They are willing to sell the equipment for $10 million. They are selling the land itself to build an office park. Would the equipment alone be of interest to a private equity or other investment firm?
What does it manufacture? If it is highly specialized products like gene or cell therapy, sure.
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