SBM was instructed to produce a strategy for the disposal of a 105-hectare old chemical plant for the leather industry in Zatare, Argentina, following the closure of the production facility at the site.

Left image depicts before Right image depicts after

Our client’s property scenario

The site had no decommissioning plan, and environmental records were missing/inadequate.

Due to the difficulties with the sudden closure of the plant, official attention on the site was high from all angles; the legacy of the closure was that the environmental status of the site was high profile with OPDS (equivalent to the Environment Agency in the UK).

Property challenges

The site had been in use as a production facility associated with the treatment of leather and other products since developed in the late 1970s, and the wastewater treatment plant, in particular, presented challenges in terms of the chemical contamination contained within this area.

Furthermore, the production facilities were still to be decommissioned, and the environmental status of the overall site were yet to be resolved.

Left image depicts production facilities Right image depicts treatment plants and settlement lakes on-site     

Property solution

The first stages of the project considered the key issues; identifying the potential gaps in documentation, the initiation of discussions with in-country specialists, the consideration of possible solutions for the environmental issues, consideration of the market conditions, and proposing the next steps in preparation for a site visit and the organisation of meetings with specialists in country.

Site visits were then made to understand the details of the buildings, the plant and the wider site. These meetings were held with our client, brokers, lawyers, environmental specialists and others to review how to optimise the value of the site.

SBM had identified at an early stage that the potential for creation of a shipping facility as a unique selling point for this property and directed the marketing accordingly.

Image depicts the prime location of the site for a commercial shipping berth due to the river frontage.

It was also established at an early stage that the environmental liability would remain with our client even if the site was sold in advance of remediation.

A detailed examination to determine the most economically viable way in which to decontaminate the lakes and plant was negotiated with and eventually accepted by the OPDS.

Resolving the decommissioning and environmental matters paved the way for a sale to a suitable company with plans for the development of a new port facility. Shortlisting, selection and verification of the proposed buyer was absolutely fundamental. The site was on the other side of the world. Our client was based in Switzerland and was owned by international investors. Reputation was everything.

Results

It was a significant achievement to close the sale agreement in the prevailing economic climate in Argentina at the time. The local market conditions were generally dormant, with little activity, set against a background of decreasing economic expectations and political uncertainty with national elections as we were closing the sale agreement.

If not for the successful management of the site disposal, the client’s value would have been affected by this site.

Its disposal achieved three key outcomes:

  • The cost and liability of holding the site were eliminated, as the new owner assumed responsibility for decommissioning and certifying the site.
  • The business could move forward operationally and as a valuable asset without the unknowns and on-going series of liabilities and costs attached to this form of chemical plant.
  • The successful sale of the property not only alleviated the cost and liability of holding the site, but also generated a capital receipt, contributing positively to our client’s financial position.

If you need advice and guidance on the safe disposal of manufacturing sites, contact us below.

Download Case Study

We would be delighted to discuss your requirements.

Please complete your details in the form and a member of the team will contact you shortly.

LinkedIn

2nd Floor, Berkeley Square House,
Berkeley Square, London, W1J 6BD

© Copyright 2025 SBM Corporate Real Estate Privacy Legal

Consent Preferences Privacy policy Cookie policy

 

RICS