In 2024, we reviewed a property that had once housed the family's headquarters. It remained important to several owners, but its current use was limited and a proposed redevelopment would have required approximately €22 million of further capital. The asset team presented a new-use concept; some family members preferred to retain the building regardless of the immediate return. I asked for retention, conversion and sale to be examined as distinct ownership choices, with the funding consequence of each made clear.
The board agreed to test a sale while continuing to assess the conversion assumptions. The eventual offer was €46 million, compared with a recent €49 million appraisal. After €27 million of related debt repayment and approximately €1 million of transaction costs, the sale produced €18 million of net cash. I did not present the gross sale price as funds available for reinvestment or describe the unspent €22 million redevelopment concept as a realised saving.
The decision was emotionally difficult for some owners, and I did not treat that response as a failure to understand the numbers. The separate chair led the ownership discussion, while I provided the operating and capital recommendation. We documented the basis of approval and the reasons for accepting the offer below the appraisal. The transaction ended the company's ownership of that property and released management attention as well as cash, although the latter could not be quantified credibly.
The sale did not establish a rule that historically important assets should always be disposed of. It demonstrated a way to make the choice explicit. If the owners had preferred retention for reasons beyond the commercial case, the enterprise would still have needed to understand and fund that decision. My responsibility was to provide a complete account, respect the proper decision-maker and execute the outcome without pretending the property meant only one thing to everybody involved.
I would begin the conversation about family significance before presenting a disposal recommendation, giving owners time to separate the building’s history from the capital decision.