Level 3 - Ammanford

Question 1

Tell me about this property?

Answer 1

Detached property that has been extended, with extension of office unit, and two detached modern store units built
1970s build, 2000s extension and 2010s new build
Spec - asbestos in part, metal clad in other
Brick in part, Steel portal frame i part
70,000 sq ft total
8.6M eaves height
30% site cover
8 roller shutters

Question 2

What contamination issues may you find in an industrial property?

Answer 2

Asbestos
Pollution
Deleterious materials
hazardous materials (odour, liquid)
Tanks
Invasive species

Question 3

What would you do if you came across contamination issue?

Answer 3

Desktop review on statuary matters (flooding etc)
Note down all signs of contamination
Include in my report to client
Advise to undertake specialist survey or report for further investigation

Question 4

How does contamination impact value?

Answer 4

Cost of remediation
Risk associated with contamination

Question 5

Why were you required to commission a Groundsure Report?

Answer 5

Necessary for client
also included in VPGA 2 that additional information may be environmental considerations

Question 6

What did a Groundsure report show you?

Answer 6

Desktop assessment of the asset
Overview of contamination considerations with a risk attached

Question 7

How did you conclude no obvious signs of contamination?

Answer 7

No sign of pollution, tanks, invasive species
Not fully qualified, so i also refered to Groundsure

Question 8

Why did you not find evidence, but Groundsure concluded moderate-high risk?

Answer 8

My conclusion was based on physical evidence of contamination on site at the time
Groundsure assessed historic use of the site

Question 9

Why does previous industrial use impact value?

Answer 9

May have left ground contamination
Remediation costs associated
may limit potential redevelopment

Question 10

Why did this not impact security of loan?

Answer 10

Established industrial site
recently been built on
Likely to be industrial for short to medium term

Question 11

What other types of contamination are there?

Answer 11

Buried tanks

Question 12

How do buried tanks impact value?

Answer 12

Risk associated with tanks failing and spilling in to ground
Remediation cost

Question 13

What are the boundaries of expertise in loan secuirty?

Answer 13

I can advise on the aspects of the property which impact value, but cannot provide advice on issuing the loan

Question 14

How do you know your expertise before taking on an instruction?

Answer 14

Assess competence
Familiar with market
Within service line

Question 15

What specialist advice did you recommend?

Answer 15

Referred to Groundsure which stated further investigation required
advised my client this

Question 16

What extent of contamination issues did you recommend looking in to?

Answer 16

Historic use of the asset

Question 17

Tell me about your valuation in Ammanford?

Answer 17

Point 1 – I was instructed to gather a contamination report as part of my instruction and I understand the impact contamination can have on value and security of a loan
Point 2 – Although I found no physical evidence of contamination, the Environmental report considered a moderate-high risk due to historic industrial use of the site
Point 3 – I was of the opinion that this did not impact loan security, as the site has limited scope to be change of use in short-medium term and there has been additions to the site that have not been disrupted. However, I advised my client to seek further specialist environmental advise into the extent of contamination issues.