A real estate private equity (REPE) firm approached Samara for an independent assessment of a proposed acquisition: a 120,000 sq. ft. multi-use retail site in the UK. The current owners had positioned the asset as an opportunity for solar PV investment, projecting it to become net cash flow positive by Year 4.

 

Samara was engaged to validate the assumptions made by the vendors. Upon analysis, we identified that the vendor had overestimated generation capacity by approximately 20% per year, which would have significantly impacted the investment’s projected returns. This insight enabled our client to appropriately adjust the asset's valuation, ensuring a more accurate financial forecast.

 

In addition, Samara proposed an alternative strategy: incorporating a Battery Energy Storage System (BESS). Our modelling demonstrated that this modest investment would accelerate the project's break-even point, making it net cash flow positive by Year 3.

 

Through our analysis and recommendations, the client gained a clearer picture of the asset’s potential, enabling them to make an informed investment decision while maximizing value creation.