Commercial Scale Broiler Unit For Sale

Salopian_Will

Member
BASE UK Member
Location
Shropshire
With interest rates at 6% + it looks risky but there are plenty out there with cash looking for a home, I suppose. We're in the business and am surprised by the number coming to the market - almost as many as commercial arable farms.
 

Chickcatcher

Member
Mixed Farmer
Location
SG9
Big farm to have no staff accommodation, looks around 400K birds needs me plus 4 full time staff to do it "nicely". To borrow money would be more like 7%, invest money say 4.5% looking minimal finance cost of £300K. No PV is it wood pellet heating? I don't see any ways of heating so perhaps underfloor? Washing gang need a kick up the pressure washer! but, I better go and have a look. Agh forgot no heat exchangers either.
Now looked it up on Agent website all a lot clearer, better get in the car quick.
 
Last edited:
Location
Scotland
At £1/bird is interest costs alone, I think they are being a little ambitious on the price. Unless there is such a shortage of bird space that growers are able to demand decent returns!! Set against that, what is the cost of new build? Integrator might think it is a reasonable price to ensure 8000 tonnes of livebird per year.
 

mixedfarming6910

Member
Mixed Farmer
In our local area it is almost impossible to get planning for broiler sheds now, and the planning will usually cost a fortune and they usually make you put air scrubbers in which are also very costly, from my math's its costing new builds north of £40 per square foot from what im been told, this site is all clearspans and looks fairly up together, pellet boilers which aren't the cheapest but better than gas with the RHI, and has a nice house, looks like it could benefit from solar, in our area these are usually bought by expanding farmers with many other sites
 

midlandslad

Member
Location
Midlands
In our local area it is almost impossible to get planning for broiler sheds now, and the planning will usually cost a fortune and they usually make you put air scrubbers in which are also very costly, from my math's its costing new builds north of £40 per square foot from what im been told, this site is all clearspans and looks fairly up together, pellet boilers which aren't the cheapest but better than gas with the RHI, and has a nice house, looks like it could benefit from solar, in our area these are usually bought by expanding farmers with many other sites
Are you in Shropshire/Herefordshire?
 

Fogg

Member
Livestock Farmer
At £40 per square foot is it possible to make it pay? Even if you don't borrow how long is it going to take to see your money back? And if you do, if you're paying £2.60 per sq ft interest. If it pays there has to be more money in the job than I thought there was.

I guess a thing I'm missing is I've never considered broiler sheds to be an asset class that could possibly appreciate. The site in this advert could only have cost £15 or so /sq ft a generation ago, and you've maybe £1m of biomass plant that'll have paid for itself perhaps twice over already. It's perhaps a better business to be in than I imagined. Apart from all the flu, and heatwaves of course.
 

mixedfarming6910

Member
Mixed Farmer
In our local area it is almost impossible to get planning for broiler sheds now, and the planning will usually cost a fortune and they usually make you put air scrubbers in which are also very costly, from my math's its costing new builds north of £40 per square foot from what im been told, this site is all clearspans and looks fairly up together, pellet boilers which aren't the cheapest but better than gas with the RHI, and has a nice house, looks like it could benefit from solar, in our area these are usually bought by expanding farmers with many other site
Are you in Shropshire/Herefordshire?
We are actually in Powys but very close to the Shropshire/Herefordshire borders.
 

mixedfarming6910

Member
Mixed Farmer
At £40 per square foot is it possible to make it pay? Even if you don't borrow how long is it going to take to see your money back? And if you do, if you're paying £2.60 per sq ft interest. If it pays there has to be more money in the job than I thought there was.

I guess a thing I'm missing is I've never considered broiler sheds to be an asset class that could possibly appreciate. The site in this advert could only have cost £15 or so /sq ft a generation ago, and you've maybe £1m of biomass plant that'll have paid for itself perhaps twice over already. It's perhaps a better business to be in than I imagined. Apart from all the flu, and heatwaves of course.
So some integrators will offer what is known as a new build premium which is paid per KG produced for a number of agreed years when signing a contract with them, from what I've heard this is not high enough at the moment with current interest costs and build costs and lack of attractive renewable schemes, but our local firm is looking for extra growers at the moment, as regards to the site up for sale there is many different ways off looking at it, if you compare it to buying land this site would probably be able to pay its own interest and make a profit in its own right if its ran well, could you do this with land? but on the other hand in 20 years time you will have some tired sheds which only really have purpose to grow chicken, and will the demand still be there?
 

Fogg

Member
Livestock Farmer
They do, but when you consider build costs are around £30/sq.ft, and you've missed the boat on FIT and RHI, perhaps they're not?

Especially if a move towards 30kg/M results in a dearth of growing space.

It's enough to make someone like me, with a comparable set of assets, contemplate cashing in my chips and embracing a new life with somewhat less stress. I just don't have a clue what you'd be left with after negotiation, CGT, sale of plant being treated as income, and agents fees etc, but I imagine it's nothing close to those asking prices. Consequently, I'll near certainly die with my boots on.
 

mixedfarming6910

Member
Mixed Farmer
I would agree these do look rather expensive, on both of the sites there's a proportion of the sheds which look like they could do with been refurbed in the near future, one of these larger farmers/growers will surly buy them, seems like there's a snowball effect with some, maybe some farmers making good profit wouldn't worry about older sheds as the repairs would work quite tax efficient against profits?
 

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