Wokingham

Emmbrook House
Molly Millar’s Close

Acquired from KPMG, acting as receivers for a former owner occupier, the Phoenix Company occupied the offices and had vacated the warehouse.

Planning consent was obtained to physically separate the warehouse from the office and the works were undertaken.

The warehouse was sold and the office investment marketed through LSH. Within days of exchange the tenant was placed in receivership, and understandably, the buyer withdrew.

Within a short period of traditional marketing and, in the face of a very poor office market, BHP made the decision to change tack and operate the premises as a serviced office with a local partner.

Having secured nearing 100% occupancy, BHP has traditionally leased the entire building to its local partner.

STRENGTHS

  • Receivership sale
  • Low entry price psf
  • Offices occupied by a subsidiary of a major US software concern

OPPORTUNITIES

  • To split the industrial unit and sell
  • To re-gear the office lease
  • To improve the passing rent on the offices as the office market improved

WEAKNESSES

  • Semi detached to an office building
  • CAPEX required to split the offices from the industrial unit
  • Shared access not ideal for the office user

Threats

  • Acoustic threats for office tenants from the industrial
  • Investment performance of the offices could not be influenced as dependent on the market