Direct Asset Management
Normanton
Acquired for around £3 million in 2008, this transaction comprises two modern industrial units built in the early 1990’s totalling some 53,000 sq ft.
We were attracted to the properties due to their excellent location and the good quality modern construction.
The properties were held under one head lease and underlet on 2 short term tenancies.
The following asset enhancement initiatives have now been successfully completed:
- Settling rent reviews
- Negotiating with the head lessee (not in occupation) for a surrender
- Entering into a direct relationship with the sub tenant on a 20 year lease without breaks at an increased rent over 5 years
The property is to be held on a 3 to 5 year business plan.
Chichester
On acquisition, this comprised some 40,000 sq ft of industrial buildings on the principal industrial estate in Chichester.
The site was held on a short head lease from Chichester District Council and offered development potential.
To date we have achieved the following:-
- Negotiated a new 150 year lease with the Council subject to a modest gearing
- Obtained planning consent to create 30,000 sq ft of new warehouse and business units
- Obtained vacant possession and cleared the site
Agreed a pre-sale of the first phase of the development.
