Summary
BHP purchased this asset in the knowledge that Threshers were in financial difficulty and with the intention of obtaining VP of the entire.
Through its retail agency contacts, BHP was aware of a local food-store requirement.
Upon the demise of Threshers, BHP secured possession of the entire property and re let the off licence to an operator through the Threshers’ receivers and took back in hand the first floor apartment.
Vets for Pets was subsequently identified for a pre let development upon the vacant site and upon securing the necessary planning consent, BHP has constructed the facility.
Upon completion of the residential apartments above the Vets for Pets facility, it is the intention to dispose of the entire asset.
Business Case
STRENGTHS
- Partially income producing
- Under developed site & suitable for redevelopment
- Threshers in known difficulty
OPPORTUNITIES
- To secure VP of the site by negotiation with Threshers
- To secure a planning consent for more comprehensive development on site
WEAKNESSES
- Threshers demise included the shop, apartment and vacant site
- Timing of ability to develop unknown
THREATS
- Vacant possession of the site could not be guaranteed in the immediate future
- Planning risk
- The retail pitch was considered secondary as it was a local neighbourhood precinct