Fairacre

Brunel House, a 225,000 sq ft office building in central Cardiff, was one of the distressed assets from the collapse of Dawnay Day.

Under Fairacre’s guidance, LPA Receivers were appointed in 2009. Fairacre was brought in to take control.  Fairacre’s agreement with the Receiver and the Bank ensures that each party’s interest is fully aligned.

The building had a precarious short-term cash flow problem with a number of major tenants’ leases close to or beyond expiry.  Fairacre set about stabilising the short and medium-term income stream. 

Lease extensions were agreed at levels that would cover the various shortfalls and service the debt. Placing the asset into LPA Receivership had eliminated the Landlord’s empty rates liabilities, helping the property to get back on its feet.

Furthermore, in a difficult occupational market Fairacre’s letting team has secured a major tenant for over 40,000 sq ft of previously vacant space.

From a position of relative stability, Fairacre is now analysing the potential enhancement opportunities. The building is tired and in need of a significant overhaul.  It is clear that the “do-nothing” option will see Brunel House become increasingly uncompetitive in the market. 

Our view is that this “iconic” building can be successfully contemporised,thereby creating an opportunity to deliver an attractive and saleable investment into an improving market.