Multi-let commercial investment

A multi-let, commercial investment comprising 80,000 sq ft of industrial space, with bank debt of £2 million. A very poor-quality building in a deprived Birmingham location which was approximately 60% occupied with a rent roll of circa £105,000 per annum. The site was highly management intensive and had numerous repair issues falling under landlord’s responsibility (few service charges in place). These dilapidations were a cause of real concern.

Work undertaken

Through Eddisons – a Begbies Traynor Group consultancy of chartered surveyors and property management specialists – we were able to halt a tenant exodus and restore confidence by undertaking essential repairs and organising nightly security patrols. We implemented an intensive management strategy to ensure that rents were collected in full. We commissioned multiple surveys (asbestos, gas, electric) to ensure health and safety and insurance compliance and secured new lettings, significantly increasing the investment value.

Outcome

Eddisons’ effective management and lettings of the site improved value from £700,000 to achieve a sale of £1.215 million. In addition to this, we secured further income through rents and the insurance claim which together represented a 100% uplift on the initial EOS. Eddisons’ insurance team dealt also dealt with a fire damage issue and secured full value insurance repayments for damaged parts (£200,000).