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Acquired in joint venture with F&C REIT, this purchase marked a continuation of their partnership with BHP.
The property was fully leased to Allied Irish Bank & Qantas Airlines with both leases expiring in late 2015.
The common parts of the property were refurbished with a proportion re-charged through the service charge.
Additionally, due to poor reliability, all the FCU’s within the premises were replaced with new ‘like for like’ FCU’s which resulted in the majority of the M&E plant being renewed within two years of expiry, thereby optimising Landlord costs at that time.
With the emergence of Permitted Development Rights, allowing a change of use to residential to apply to the building, BHP made the decision to sell the asset in the Autumn of 2013.
- Excellent covenants
- Fully occupied
- Very positive market dynamics at the time of purchase
- To improve the market’s perception of ERV through selected improvements to the common parts
- To eliminate the potential of a void through joint marketing of the vacant suites prior to lease expiry
- To re-negotiate with the sub tenants for new reversionary leases
- Allied Irish Bank had recently vacated
- Sub leases had been granted by the occupiers at less than market rates
- The common parts of the property had lacked any investment for years
- The upgrades to the common parts would not be fully recoverable
- No joint marketing was possible and both tenants vacate
- The property was over rented at time of purchase