Summary
Acquired in collaboration with a foreign private high net worth individual, this acquisition marks their first commercial property investment in the UK.
The property is multi-let with all tenants expressing a desire to remain within the premises.
BHP is currently undertaking the evaluation of a design led refurbishment for the reception area and parts of the office building, whilst at the same time re-negotiating the commercial terms with the tenants.
Its position and prominence will significantly improve once the £800 million refurbishment of the railway station is complete (Autumn 2013), designating the north side of the railway tracks (Vastern Road) as the principal access to the station.
Business Case
STRENGTHS
- Immediately adjacent to the railway station
- All the tenants confirmed an intention to remain in occupation
- Likely rental growth due to the improved pitch as a result of station improvements
OPPORTUNITIES
- To improve the rental value through limited refurbishment of the common parts
- To re-gear leases with the tenants all of whom have indicated an intention to stay
WEAKNESSES
- Multi-let with varying tenants’ break clauses and expiries
- M&E needed some renewal and recalibration
- Less than ideal car parking provision
THREATS
- Occupiers vacate at expiry or through effecting their tenants’ break clauses
- Void risk with existing vacant 2F suite
- Delays to completion of the Station improvements road works on Vastern Road impair marketing of the vacant suite