Summary
BHP acquired the lock up shop on a subject to planning basis.
Simultaneously, BHP had agreed an agreement to lease with Jennings Bookmakers subject to obtaining A2 consent.
Upon receipt of consent, obtained through delegated powers, BHP simultaneously completed the purchase and lease with Jennings.
The property was subsequently sold by private treaty.
Business Case
STRENGTHS
- Regular floor plate
- Seller was incentivised to agree a subject to planning sale given its lengthy marketing period to date
- Pre- let in place subject to planning
OPPORTUNITIES
- To secure a pre let to an improving covenant
- To benefit from a significant value arbitrage with only planning fees at risk
WEAKNESSES
- Secondary pitch
- Many vacant units in Friar Street
THREATS
- Planning risk
- Covenant strength of Jennings Bookmakers
- Rent would be perceived as high at point of sale