Property asset management of a Portsmouth office.
Secured two new 10-year leases, with rental uplift.
Achieved over £30,000 per annum additional rental income, maintaining 100% occupancy, to enhance asset value.
Commercial Property Asset Management – Forelle Estates
20,000
sq ft
multi-let office building, Shore House.
10
year
leases secured for two new tenants.
£30,000
additional rental income.
Challenge
Vail Williams provides proactive commercial property asset management services to Forelle Estates Ltd at Shore House. Through a combination of asset management, rent review, occupier engagement, lease restructuring and office agency advice, our team increased rental income, secured full occupation and enhanced the long-term investment value of the property.
Vail Williams has managed Shore House on behalf of Forelle Estates Ltd for many years. In 2024, the firm was instructed to advise the landlord on a rent review relating to approximately 10,000 sq ft of office accommodation. The tenant occupied more space than it required.
Having identified this as a potential risk to our client, the property asset management team worked with them, their tenant and our internal agency team to maximise rental income, retain the existing occupier and identify a solution that would improve the long-term performance and value of the asset.
How we helped
- Negotiated the rent review, securing a 27% rental uplift to £19.14 per sq ft, and identified that the tenant had surplus space and no immediate requirement to occupy the full demise.
- Worked with our agency team to identify a prospective occupier seeking fitted office space with immediate availability and facilitated discussions between all parties, arranging viewings.
- Structured and negotiated simultaneous lease reorganisation, including a surrender of the existing lease with premium paid, a new 10-year lease to the existing tenant at £21.58 per sq ft and a new 10-year lease to the incoming occupier at £24.70 per sq ft.
“We are delighted at the outcome of this transaction and grateful to the property asset management team at Vail Williams for their proactive approach to the management of Shore House. By identifying the opportunity and working it through to a successful conclusion, they significantly enhanced the value of our asset.“
Andy Goodridge, Asset Manager, Forelle Estates Limited.
Result
- Through proactive asset management, occupier engagement and collaboration between our property management and agency teams, we delivered a value-enhancing solution.
- Our client achieved two new long-term leases secured on 10-year terms, with full occupation of the available accommodation.
- This secured more than £30,000 per annum of additional rental income for our client, whilst improving rental tone across the building and enhancing the investment value.
- A valued occupier was retained and a new tenant attracted to the building.
Get in touch
If you think you may need similar support to that described here, or you would simply want to have an informal chat with a member of our team to discuss your property needs, get in touch.
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