Case Studies

Below are selected case studies highlighting our achievements and challenges across various sectors. It should be noted that Asset Management goes beyond lease transactions and capturing new rental levels.

While the ultimate goal of most Landlords is to enhance Cash Flow and NOI by improving covenant profiles, driving rents and extending leases, the key to value creation is often finding inventive solutions to complex issues as well as dealing with non-lease-related initiatives. This is fundamental to strategic portfolio management and may include rethinking a tenant mix or maximising space utilisation, such as adding amenities for example, fitness centers or Event/Public/Green spaces which improve sustainabilty credentials. Initiating ways to boost foot traffic, customer satisfaction and tenant retention with lateral thinking will improve occupancy rates across a portfolio.

It is also imperative to work closely with the property and facilities management teams, understanding buildings from the ground up as well as agreeing cap-ex levels in advance to undertake a cost/benefit analysis of any initiative or works. This will increase the chance of tenant retention whilst ensuring peak property performance, maintaining the asset over the long term.

Hyde Trading Estate, Manchester

We were instructed to act on behalf of an Institutional Fund to manage a 16-unit Industrial Estate in Hyde, Greater Manchester. Given the bouyancy of the Industrial property market particularly since the pandemic, there was an opportunity to increase rents, re-let voids and carry out refurbishments.

In two and a half years, we carried out 5 Lease Renewals/Regears, 3 Rent Reviews and refurbished and let 4 units. The overall rent increased from £367,000 to £583,000 (+59%) and the capital value rose from £8.2m to £11.9m (45%). The AWULT to expiry moved from 2.35 years to 6.34 years.

The key was seizing the opportunity whilst the maket was strong, conducting performance analysis of each property and restructuring / renewing leases. We cultivated close relationships with the local letting agents and contractors, inspecting the site regularly together, assessing the buildings, gathering market data, whilst maintaining dialogue with tenants to ascertain their intentions in order to move quickly.

Headingly Business Park, Leeds

A northern business park where we were retained by a private investor to oversee an impending void. With a capital value of £8.17m we not only mitigated the void but increased the capital value to £8.92m within 9 months. The tenant was a beverage distributer with £50m+ turnover who had ESG targets that they were keen to achieve. Further to several in-person on-site meetings, we agreed to share the cost of Solar Panels (PV) and Electric Vehicle (EV) chargers as part of the deal.

The tenant had indicated throughout negotiations that they were prepared to seek alternate premises however by communicating and negoitiating at an early stage, finding creative solutions, we were able to prevent a void and secure a 6.8% rental uplift whilst extending the term by a further 10 years ensuring a quality covenant was maintained for the next decade, thus creating £750,000 of additional value whilst enhancing the buildings', and Clients, ESG credentials.

Retail, Market Street, Edinburgh

Acting for a Family Office, the task was to agree a lease renewal with a prominant national Supermarket on a prime corner pitch in Edinburgh. Whilst we were able to increase the rent only modestly from £195k to £205k pax, the comparables were limited and the particular location had been in decline. Using the tools at our disposal, goodwill and the removal of the Index-linked rent review, we were able to keep the unit occupied with pragmatic negotiations. With little room to manouvre, an extended lease to a premium covenant allowing the Client more time to assess the longer term strategy was a significant achievement.

Offices, City of London

We were recommended by a City letting agency to an Institutional Client who had purchased a block 2 years prior and which had performed poorly due to aging infrastructure, lack of management and neglect by the previous owners. The block was situated in the heart of the City of London and had a high vacancy rate, 71%.

The remit consisted of re-letting the voids, attracting high-quality tenants via targeted markting campaigns alongside the joint agents whilst carrying out lease renewals and regears to stem the exits, whilst implementing and overseeing a refurbishment project. Following a tender process where several contractors were interviewed and one formally instructed, over a 6 month period, we replaced 3 lifts, HVAC throughout, modernised the entrance and end of trip facilities (showers/bathrooms) to a high quality standard whilst installing bicycle racks and sustainable features such as PV panels on the roof. We refurbished 6 floors to a CATA+ standard, ensuring fibre and tech connections, so each floor was ready for immediate occupation.

Within 3 months of completing the project, we had reduced the vacancy rate significantly letting 4 out of the 6 floors exceeding the ERV's we had forecast. The total cost of the project was £3.6m. With the avearge annual rent per floor totalling £475k pa, letting 4 floors so quickly justified the outlay, offset the void costs including reducing the service charge burden whilst being a catalyst and providing leverage, in negotations with adjacent incumbant tenants, two of whom had planned to vacate prior to our instruction. As a result, the buildings and Clients reputation had been enhanced and the tenant satisfaction increased significantly.