Summary
BHP was approached on a ‘confidential basis’ by the vendor’s agents as the vendor was keen to dispose of its asset very quietly
The below market price, size of the building in marketing terms, coupled with the possibilities for improvement of the aesthetics and net internal area, deemed it to be worthy of acquisition.
BHP unconditionally acquired the office building complete with fixtures, fittings and office furniture.
BHP’s business strategy, during early ownership, was to openly market the building on an existing use basis. In parallel, BHP embarked on scheme design for an office refurbishment and also one for residential development. Considerations included such matters as foundation design and integrity and the existing structure’s capability of accommodating an additional floor. Furthermore optimisation of the fire strategy was undertaken to ensure net area gains.
The open re-marketing resulted in an occupier being identified who had an allegiance to a residential developer and the property was sold in its existing condition without any upgrade.
Business Case
STRENGTHS
- Attractive VP price of £100 psf
- Good quality of fit out and furniture left ‘in situ’ which could be used by incoming tenants
- Was possible to re-market in existing condition
- ‘Off market’ acquisition due to vendor sensitivities
OPPORTUNITIES
- Rapid remarketing possible due to generally good condition of building
- Possibility of improvements in NIA due to fire strategy
- Ability of adding a further floor
- Possible residential development
WEAKNESSES
- West Byfleet not a premier SW M25 town
- At the time of purchase it was not the most aesthetically pleasing of buildings
- Limited parking provision
THREATS
- Tenants’ perceptions of West Byfleet as a location
- Limited parking provision
- Noisy construction in progress on the site adjacent to the building