Inspection
Thoroughly inspect all aspects of the factory, ideally with experts, focusing on (civil and engineering structures, machinery if available, factory utilities and surrounding infrastructure, legal documents, ownership papers, and licenses). Also, assess roads, facilities, and services in the area, as well as transportation accessibility for workers.
Newly Allocated Land
Exercise caution when buying newly allocated industrial land, as you may encounter legal challenges with licensing and ownership transfer.
Hire a Professional Team
Engage certified financial experts for valuation, an engineering consultancy firm to assess construction quality and fire safety systems, and specialized legal advisors.
Cost Calculation
Estimate production costs, including raw materials, labor, logistics, storage, and other expenses.
Raw Materials and Market
If the waste volume is greater than the final product, choose a location near raw material sources. If the final product is bulkier or multiple raw materials are used, prioritize proximity to the target market. For labor-intensive industries, ensure easy access to residential areas and public transport.
Managerial Expertise
Buying a factory is a long-term dual investment (real estate and industrial) with high profitability when managed professionally. Reselling a factory is not as quick or easy as selling residential property, so carefully evaluate your decision.
Reason for Sale
Factories are sold for various reasons (partner disputes, mismanagement, relocation, business expansion, etc.). A sale does not necessarily indicate losses—some factories simply need restructuring. Investigate the reason for sale, check for outstanding debts, and negotiate accordingly.
Feasibility Study
Conduct a realistic feasibility study with specialists before completing the purchase, considering future expansion possibilities.
Best Locations
Prioritize locations near major roads, highways, and ports. Avoid non-essential factors like corner plots. Proximity to national projects (e.g., New Delta, New Alamein, Red Sea Ports) is beneficial. Do not base your decision on your home’s location, as an unsuitable factory location may lead to high operational costs.
Overpricing
The current industrial real estate market has more supply than demand due to government support for the sector. Fair pricing benefits all parties and accelerates the sale process.
Market Analysis
Conduct a market study of the targeted province and nearby areas before making a purchase decision.