The quarry market can be characterised by unique challenges sellers face, which is where Insitu Advisory and Real Estate’s experience and knowledge comes to the fore.
The quarry market has undergone a period of sustained growth over the past three to five years, off the back of Federal and State government-backed infrastructure projects across the majority of the eastern states.
However, with a shift in the cost of borrowing, inflationary pressures and a continued COVID-19 supply chain and labour hire hangover, there are some headwinds on the horizon to navigate.
As an Australian business InSitu Advisory and InSitu Real Estate believes its end-to-end corporate advisory and real estate offering can help provide tailored solutions to suit specific needs.
InSitu Advisory and InSitu Real Estate’s directors have more than 75 years of combined experience in valuation, corporate advisory, and real estate in the quarry and extractive industry markets across Australia, New Zealand, the United Kingdom, Europe, the USA, and Asia.
This broad exposure to local and international markets in the quarrying sectors enables the team at InSitu Advisory and InSitu Real Estate to deliver relevant, effective and timely solutions to clients who are at different stages in their business life cycle.
Todd Clark, general manager of InSitu Advisory and director of Real Estate said the company was able to offer the complete package for clients.
“From being able to help you acquire a suitable site, to undertaking the greenfield development feasibility, all the way to assisting in the disposal and sale, we can assist across the whole lifecycle which really sets us apart,” Clark said.
“From a real estate perspective, we’re working in a specialist space, but given our experience and working in coincidence with the Advisory business, it really allows us to put our own touch on things.
“Given we’re in the market from a valuation and corporate advisory perspective and also on the real estate front, we understand what quarrying businesses are looking for because we are dealing with them daily.
“We’re assisting groups who are wanting to diversify some ‘non-core’ assets in their portfolio, or looking to retire and trade out of their assets at the right time and we’re also talking to other who are seeing upside in their business off the back of infrastructure and construction projects and looking to bolt in new quarry sites or businesses into their existing operations.”
Darren Herdman, director of InSitu Advisory and Real Estate said the market had several aspects clients needed to navigate.
“It’s a really interesting market dynamic at the moment,” Herdman said.
“We’ve got a lot of rhetoric in the media around the current economic climate, inflationary pressures, interest rates at a ten-year high, we’ve got diesel prices at an all-time high, a minimum 12-month wait times for plant and equipment off the back of the COVID-19 supply chain hangover, however, we’re still seeing buoyancy at the moment for good quality assets in core markets.
“I think there are some headwinds, but businesses are navigating them the best they can, will be interesting to see where we’re at in the next twelve months.”
The Reserve Bank has revealed it expects economic growth and domestic demand to stall this year due to price pressures. Meanwhile, Commonwealth Bank chief executive Matt Comyn said recently while he expects 2023 to be better for the construction industry, however, it will still face “challenges”.
Further to this, Alan Dyer, director or InSitu Advisory and Real Estate echoed the same sentiment on the market.
“From a corporate advisory and due diligence perspective, we’re seeing clients doing more feasibility and analysis work up front prior to acquisition or disposal, including additional resource quantification, market depth reporting on infrastructure projects and waste arisings.
With these factors in mind, Clark said the value of InSitu Advisory and InSitu Real Estate’s experience comes to the fore.
“In a changing market it is so important to get the right advice,” Clark said.
“Partner with someone that can tailor a strategy to suit you to drive value.”
Insitu Advisory and Real Estate is open to working with anyone in the quarry and extractive industry who wants end-to-end support for their real estate needs whether they are entering, exiting or expanding in the market.