Contaminated properties are rarely understood by businesses, and always a significant problem for businesses to manage.
They can also be opportunities!
Selling your business or property (or needing to increase property asset value for borrowing): Leverage lenders with a fully itemised remediation program in stages from start to finish with low, and high cost ranges, after receiving a few offers to show market value based on the site being fully cleaned up. Many lenders will see the business case, and fund the clean up after which the business or property can be sold for a higher (unincumbered) value.
Purchasing a business or property: Leverage contamination as part of the purchase price negotiations. There are many options for ongoing use of a site where you don’t need to clean up the site quickly if risk permits, but you can get the full cleanup cost deducted from the sale price. Whether purchasing or selling, you can also utilise the sales contract remediation amounts to be placed in escrow and withdrawn only for successfully completed stages of remediation (all in the purchase price). The director’s liability and risk will be diminished post-sale as the liability of the polluter remains post-sale in most states of Australia if contamination has not been cleaned up (no matter what terms are put in the contract of sale).
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