Fortune 50 Pharma company’s real estate portfolio included numerous “at risk” and non-performing real estate assets, but the Pharma company could not accept unsecured business credits as a form of payment. The Pharma company required all business credits to be guaranteed via contract, with explicit analytics, goals and KPIs attached to agreement.
Sherwood agreed to attach media spends, and other specs to act as a guarantee whereby all unused business credits could be cashed out by Sherwood based on agreed upon opportunity. Sherwood, after due diligence, agreed to take immediate title to the property, effectively removing the property from the client’s real estate portfolio.
Sherwood worked with Cushman & Wakefield to remediate and re-sell the property. Pharma company was able to remove “risky” properties from portfolio while guaranteeing the amount and form of payment received.
A client was going through major changes to their business model and closed their manufacturing plant in December 2015; the last piece of their major restructure which was supposed to be completed by December 31, 2016. The client actively marketed their property for two years with no interested buyers despite reducing their asking price from $14.9MM to $9MM.
The client signed a contract allowing Sherwood to purchase the plant in October 2016 for a price of $9MM cash. Sherwood took title to the property on March 1, 2017 and further agreed to have Sherwood secure and activate media schedules within their budgeted media spend at a multiple of the purchase price.
The client completed its restructuring by year-end while receiving significant above market value for their plant. In turn, Sherwood purchased $54MM cable TV spend on behalf of the client, which was planned by their media agency.