Done at a low but fast improving point in the market, this building in Cornhill was the jewel in the crown of a client who used to occupy much more space in the building but had gone through a significant rationalisation programme.
They moved out of most of the space, and I had found a number of sub tenants for them using a city based
The building comprising 1965 sq m (21,150 sq ft) office and 30.47 sq m (328 sq ft) retail, therefore a significant proportion of the building was sub-let to external tenants. This created the opportunity to progressively refurbish and let space into a rising market, as well as the possibility of utilising ‘swing space’ in the building to accommodate internal moves and
We were appointed having managed the various lettings and refurbishments internally as well as the creation of the retail unit, to investigate the options for minimising on going liabilities and maintaining a flexible position for the client in terms of its future occupancy and to dispose of the building at a price sufficient to cover early loan repayment penalties and also it's book value.
A primary theme to the marketing campaign was the opportunity to refurbish and move tenants around in the 'swing space' which with the rising market became the main focus of the marketing campaign.
Although 40% of the building was vacant, and there was a major shortfall on service charge recoveries plus a high book value, this was a classic traders lot where there was a clear opportunity to ‘work’ the building and the leases.
Agents were appointed by me and an investment package prepared to include:
We also prepared cash flows and options analysis to identify the likely outcomes / scenarios.
I managed the entire process including the negotiations with the ultimate buyer, and oversaw the legal stages once we had ‘done the deal'; to the point at which the cash hit the clients bank account.