Melita House

Bridge Road
Chertsey

Following a substantial re-pricing, BHP acquired the property from a distressed over-seas vendor in conjunction with Milroy Holdings Ltd.

Under the vendor’s stewardship, the property had lacked investment for a number of years and an urgent refurbishment of the communal areas and vacant office accommodation was required to ensure correct presentation to the occupational market.

Given the over-seas nature of the vendor, communication with the existing tenants was lacking and BHP were in a position to capitalise upon this with early lease re-gears and expanded lettings with existing occupiers.

Given the medium term ability of a complete residential redevelopment of the site, which benefits from views of the River Thames and an improving investment market, BHP sold the asset in the Summer of 2013.

STRENGTHS

  • Very attractive pricing
  • Partially income producing
  • Site has potential for residential development with views of River Thames
  • Good parking allocation

OPPORTUNITIES

  • Acquisition from a distressed vendor
  • Potential to reposition the building through a communal area upgrade
  • Limited supply of competing accommodation in the town
  • An opportunity to secure lettings to occupiers of the adjacent serviced office premises

WEAKNESSES

  • Building was in need of a substantial refurbishment
  • Position is slightly removed from the Chertsey town centre
  • Income was compromised by void costs

Threats

  • US $ / GB £ currency fluctuations were threatening to destabilise the purchase
  • Void risk