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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.
- Very attractive pricing
- Partially income producing
- Site has potential for residential development with views of River Thames
- Good parking allocation
- 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
- Building was in need of a substantial refurbishment
- Position is slightly removed from the Chertsey town centre
- Income was compromised by void costs
- US $ / GB £ currency fluctuations were threatening to destabilise the purchase
- Void risk