Summary
Having originally discounted the opportunity to acquire the vacant Lloyds TSB on the principal of price, it later became clear that the buyer had Country Casuals secured as a pre let.
Following an abortive sale, BHP made contact with Country Casuals who confirmed a continued interest in the site and an agreement to lease was signed within 1 week.
Simultaneously, BHP agreed to purchase the property unconditionally and upon completion of the purchase granted the new lease to Country Casuals.
Following purchase, BHP secured consent to redevelop the upper parts as apartments and constructed the same.
Following completion of the development, both the residential and retail elements were disposed of by private treaty.
Business Case
STRENGTHS
- Excellent pitch in Bury between Buttergate and the Abbey
- Known retailer demand from Country Casuals
- Partially income producing
OPPORTUNITIES
- To pre let the vacant Lloyds to Country Casuals
- To re-gear the lease on 17 Abbeygate
WEAKNESSES
- Maximisation of development of the upper parts required access from the rear for some of the apartments
- Poor covenant of tenant in No. 17 Abbeygate
THREATS
- Planning risk in relation to the change of use from offices to residential of the vacant upper parts
- Construction conflict with occupied retail units during the refurbishment of the upper parts to residential