Summary
The extensive upper parts of the vacant Lloyds TSB would determine that any successful bidder would need to maximise the residential value of this element of the property.
Having originally discounted the opportunity to acquire the vacant Lloyds TSB on the principal of price, it later became clear that the buyer had Country Casuals secured as a pre let.
Following an abortive sale, BHP made contact with Country Casuals who confirmed a continued interest in the site and an agreement to lease was signed within 1 week.
Simultaneously, BHP agreed to purchase the property unconditionally and upon completion of the purchase granted the new lease to Country Casuals.
Following purchase, BHP secured consent to redevelop the upper parts as 6 apartments which were subsequently built out and sold.
Business Case
STRENGTHS
- Partially income producing
- Extensive upper parts suitable for residential
OPPORTUNITIES
- To realise significant value through the development of the upper parts for residential
- Pre let the vacant Lloyds to Country Casuals
WEAKNESSES
- Maximisation of development of the upper parts required access from the rear for some of the apartments
- Any development would be carried out with partial occupation of the property
THREATS
- Planning risk in relation to the change of use from offices to residential of the vacant upper parts
- Construction conflict with occupied retail units during the refurbishment of the upper parts to residential