Summary
Purchased from Lloyds TSB as an office investment with an Inside the Act lease to the Secretary of State. The old banking hall on the ground floor was vacant providing the opportunity to re-let the retail unit.
The neighbouring retailer was approached about extending into the retail unit and an agreement for lease was signed whilst works were carried out.
A s.25 notice was served to renew the office lease to the Secretary of State and, after protracted negotiations and use of the 1954 Act lease renewal process, a new lease was signed for 10 years to the Secretary of State.
Business Case
Strengths
- Town centre location
- Existing office income with ability to renew the lease
Weaknesses
- Questionable retail location
- Office retail tenant may not have renewed
Opportunities
- Agree new lease with neighbouring retailer
- Potential to convert the upper parts to residential and develop the car park to the rear
Threats
- Retail unit remains empty
- Delayed recovery of monies for works to the offices under the service charge