Institutions
Bracken Park & Overland Industrial Estate, Leeds
In June 2008 CBRE Investors as Fund Managers on behalf of Electricity Supplies Nominees Ltd (Pension Fund) approached FAM to devise and implement an asset management strategy for their ailing 150,000 sq ft, 13 acre estate on the outskirts of Leeds.
Principal challenge
Revitalise an ailing industrial estate in a prominent location
Objectives
- Preserve / increase value
- Improve existing buildings, demolish part and construct new buildings on vacant land.
- Attract new and superior tenants
Results so far….
- Submitted and obtained approval of business plan
- Negotiated vacant possession of estate including surrender and dilapidation premiums
- Formed professional team
- Coordinated the design and specification for part refurbishment together with part new build
- Applied and obtained planning consent for the new scheme
- Formalised budget to meet business plan
- Development now proceeding
Stonehill Business Park & Lea Valley Business Centre, London, N18
In November 2008, LaSalle Investment Managers, as fund managers on behalf of a UK PLC pension fund, approached FAM to asset manage this 33 acre, 900,000 sq ft, multi-let industrial estate in North London.
Principal challenge
Declining income, deteriorating building stock and capital expenditure issues
Objectives
- Halt rapid decline in net income
- Increase income over 5 year period through:-
- Refurbishment and improvement works
- Rebranding and fresh marketing
- Tenant engineering
- Re-gearing existing leases, re-marketing vacant space and seeking new revenue sources
Results so far…
Stabilised income by:-
- meeting key existing tenants and instilling confidence through direct landlord interface
- Implementing immediate essential roof repairs to two important blocks, enabling retention of tenants and providing a base for future lettings
- Removal of loss making self-storage facility, enabling reconfiguration works to allow:-
- the relocation of a major trade counter tenant, negotiating a surrender of an existing lease and a new lease on larger space
- the retention and relocation of the principal storage tenants on exclusive leases to maintain and enhance net revenues
- the reletting of the space vacated by the trade counter tenant to ensure 100% occupancy of the block
- Lease renewals agreed on space previously vulnerable due to disrepair and water ingress
Implementation of strategy for growing net revenues, including:-
- Fresh branding for the estate
- New marketing website and brochure
- New management office incorporating an on-site marketing suite
- New signage for site and additional facelift to the exterior of prominent buildings
- Planned programme of basic refurbishment works for previously unlettable units with 12 months payback
- Stabilised gross income position over last 12 months with projected increases over the next 3 to 4 years
