An offshore fund unconditionally acquired the property with BHP from LPA receivers with the benefit of a short unexpired term. The receivers had recently failed to sell the property to an institution with adjacent ownership considering land assembly and their reduced pricing aspirations reflected this situation.
The original asset plan was to re-gear with the existing tenant who were in long-term occupation of the office park. The tenant decided to enact their break and we obtained vacant possession. BHP were happy that the future supply of offices in the area was limited and off the purchase price a comprehensive refurbishment was feasible.
BHP put an empty rates mitigation scheme in place whilst working with a full design team on a comprehensive refurbishment and redevelopment of the building. This included an extension to reconfigure the entrance and core as well as add a new floor increasing the size from 27,000 sq ft to 40,000 sq ft. Planning was achieved within four months and development commenced on site five months later.
- Receivership sale
- Institutional grade tenant with Freehold HQ in adjacent building
- Business park setting
- Excellent car parking ratio
- Re-gear the occupational lease with the tenant
- Refurbish the M&E plant to modernise the air-conditioning and replace R22
- Opportunity to provide Grade A accommodation should the tenants vacate
- Short unexpired term
- Tenants desire to re-gear lease not yet ratified by US parent
- R22 within the air conditioning system
- Location remote from tenant amenity
- Void risk a possibility if parent authorisation for re-gear not forthcoming
- Business park location lacks amenity
- Exact CAPEX and timing uncertain