Rental Agreement Case study - Brookshire Capital LLP

Challenge

Vail Williams was appointed by Brookshire Capital to advise on the disposal of an industrial investment in Portsmouth, which was part of a larger portfolio we helped the client to acquire in 2016.

We originally advised Brookshire Capital on the off-market acquisition and leaseback of the wider portfolio to SIG Trading Limited.

This included the sale and leaseback of a 0.7-acre site made up of 5,711 sq ft of existing warehouse buildings known as The Roofing Centre in Portsmouth, let to SIG Trading Ltd for 15 years with no breaks.

Drawing on the strength of the industrial investment market and the fact that there was still a long term left on the lease, our client had now decided to dispose of the investment.

How we helped

• Originally introduced the sale and leaseback opportunity to the Brookshire; a portfolio of 11 industrial and builders merchant investments to be let to SIG Trading for 15 years from completion
• Provided detailed asset specific investment advice on each of the assets in the portfolio
• Between 2016 and 2022, supported Brookshire Capital with the sale of a number of the assets
• Subsequently appointed to dispose of The Roofing Centre site to maximise return on investment in a strong industrial investment market
• Site had future residential development potential, subject to planning
• Lease advisory team brought in to advise on rent review
• Worked with tenant and client, negotiating a close to 40% uplift in rent to £52,350 pa
• Investment was then marketed, securing strong interest

Result

• Supported client in end-to-end investment advice – from acquisition to subsequent disposal
• Secured significant rental uplift of 40%, creating a good rental yield for prospective buyers
• Three credible buyers enabled swift sale following best bids, at just over £1m
• Equated to net initial yield of 4.9%, with 9 years remaining on tenant lease
• Increased the value of the asset by over 100%.