The office building was a three storey, modern purpose building in Stevenage.
Having gone into administration, the company that owned the building failed to fulfil the conditions of the loan provided by the lender, so the lender took control of the building in order to recover money owed.
The aim of the lender was to secure the rental income of the building and get the maximum value out of the property possible.
Shortly after the LPA Receiver was appointed, the property was valued at £900,000 because it was circa 30% vacant. An early unsolicited offer of £550,000 was received. This offer was rejected by the LPA Receiver.
The LPA Receiver decided to put in place a medium term hold strategy in order to asset manage the property, and attempt to enhance its value.
The Receivers instructed Vail Williams to provide LPA Receivership advice to collect the rent and administer the service charge.
Using its cross-departmental expertise, Vail Williams’ building consultancy team was also consulted to aid the refurbishment of the property in order to bring it back up to a high standard for any future tenants and buyers.
At the time of appointment, each lease had either entered what is known as the ‘holding over’ period, or was close to expiry, and the market boasted in excess of 500,000 sq. ft. of alternative office space which was available for the tenants to relocate to.
With a lack of capital expenditure, the building had also been neglected, which resulted in the need to refurbish it in order to retain the existing tenants and attract new ones.
- LPA Receivership advice
- Property asset management advice
- Commercial lease advice
- Facilities management
- Advice in relation to commercial property for sale
- Commercial property investment advice
As a result of the LPA Receivership advice, the LPA Receivers were able to retain the existing occupiers and renegotiate improved lease terms.
The lender’s interest payments were covered throughout the duration of the appointment, and surplus rental income was used to pay for the capital expenditure needed to bring to building back up to standard.
As a result, the building was sold on by the Vail Williams investment team as a virtually fully let office investment with 97% occupancy for well in excess of £1M and some 50% over and above the original valuation.
For further information please contact our team.
Other LPA Receivership Case Studies
- Gilmore House The Law of Property Act (LPA) Receivership team was appointed to work with the lender on a £10 mill... Read more