Legacy environmental contamination is a reality for many shuttered industrial plants and facilities. Environmental conditions often prevents sites from being sold or redeveloped and can drastically complicate mergers and acquisitions.

With Forsite’s Environmental Liability Risk Transfer (Risk Transfer) program, these contingent liabilities can be removed from company’s balance sheets, freeing up capital and allowing them to focus on their core business. Many investors shy away from environmentally impaired properties however Forsite believes these liabilities can be transformed into assets.

For Risk Transfer transactions, Forsite will assume full responsibility from the owner or responsible party for all environmental liabilities or obligations related to the legacy environmental condition of a site. These liabilities can include environmental conditions on or emanating from the site, both known and unknown. We execute new permits and replace any and all financial assurance obligations.

We provide the financial strength, environmental insurance, bonding of work, and other financial instruments as may be required to ensure long-term risk is managed. This approach frees up capital for companies that are carrying liabilities on their books.

A key element of our Risk Transfer approach is to create a thoughtful redevelopment plan that is compatible with the sites condition while ensuring human health and the environment are protected. Often we are restoring sites back to their natural state by creating and monetizing Eco-Assets including conservation easements, stream and wetland mitigation, habitat restoration, and others. The key to our Risk Transfer approach is to ensure the redevelopment plan is economically and environmentally responsible thereby ensuring it will be viewed favorably by regulators, neighbors, and communities.

Benefits Include:

  • Removal of contingent liabilities from balance sheet and quantifying financial uncertainty
  • Creation of real estate value for non-performing assets
  • Reduced management distraction on non-core operations
  • A clearly defined exit strategy and transfer of some or all of the site’s environmental liability.
  • A focused and positive public relations message promoting the site’s reuse.

We view our Risk Transfer approach as an opportunity to “recycle” real estate. While challenging, contaminated sites do not have to be liabilities. Forsite views these sites through a different lens and our experience enables us to create value from non-traditional approaches which can pave the way for a sites rebirth. If your company is dealing with the challenges of legacy sites, we would welcome the opportunity to explore possibilities. Contact Tom McKittrick at 704-717-5520 or tmck@forsiteinc.com.

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