How to improve your capital gain with an EQSTRUC retrofit solution

If you are a building owner, chances are you are interested in hearing of ways to improve your capital gains from your investment.

Getting your building assessed, and potentially retrofitted, could prove to be a costly process and you may feel reluctant to spend the money. The truth is, however, that the price of a retrofit solution can in fact provide more opportunity for increasing your capital gain potential.

At EQSTRUC, we are dedicated to offering a quality service and will work hard to achieve a solution that is both affordable and practical.

Case Study 1: Queen Street, Auckland
Building TypeUn-Reinforced Masonry (URM)
Age1900s
%NBS before retrofit<20%
%NBS after retrofit>67%
Valuation before retrofit$4,500,000
Estimated retrofit cost$2,500,000
% rental gain+600%
Estimated valuation after retrofit$8,500,000
Capital Gain+20.0%

To keep the character of the building, a decision was made to retain the existing façade and perimeter walls, and to construct a ‘new building’ within the existing to improve the usability of the space. The retrofit achieved a seismic rating of greater than 67% NBS and resulted in a four storey build with new ground-level retail space, second-floor office space, and two inner-city apartments.

The result was a capital gain increase of 20%. More noticeably, the % rental gain increased by +600% given that the client was now able to lease out the upper two floors.

Case Study 2: Drews Ave, Whanganui
Building TypeUn-Reinforced Masonry (URM)
Age1911
%NBS before retrofit<20%
%NBS after retrofit>67%
Valuation before retrofit$330,000
Estimated retrofit cost$300,000
% rental gain+1,000%
Estimated valuation after retrofit$750,000
Capital Gain+15.0%

EQSTRUC managed to apply a cost-effective below solution by tying the two buildings together and focusing the retrofit on the URM building. The retrofit achieved a seismic rating of greater than 67% NBS. As a result, rental return has increased from zero to ~$35,000 per annum. A payback on the retrofit cost of less than five years.

The result was a capital gain increase of 20%. More noticeably, the % rental gain increased by +600% given that the client was now able to lease out the upper two floors.

These are just some examples of how a retrofit solution can improve your capital gain.

Our team of engineers works hard to provide our clients with solutions that raise the NBS rating as high as possible whilst still working within the boundaries of a budget. Although the cost of a retrofit solution may seem daunting, the long-term payoff is well worth the initial investment.

You can find out more about our seismic engineering services by clicking here. Alternatively, to find out how we can help you with your project, contact us here.

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