Challenge

Complex portfolio comprising mix of offices and high street banking branches

No exclusive tenant, some buildings fully let, others part-vacant or with third party tenants

Very complex lending arrangement owing to residual management liability for both parties

Required delicate negotiation with the principle occupier

How we helped

• Over six years, we deployed a strategy to manage the portfolio and exploit active management potential across numerous properties, before selling assets in regional lots
• Drew upon expertise from across Vail Williams as well as expert consultants nationwide to deliver best-in-class advice
• Renegotiated the break pool agreement across the portfolio on all leases to RBS / NatWest
• Renegotiated the separation works agreement with RBS / Nat West to ensure the buildings were fully self-contained
• Undertook rent reviews across the portfolio
• Explored value add opportunities, including obtaining planning consent for residential conversion of upper parts of various buildings
• Separated out, supervised the construction of and sold subsequent flats, selling over 24 in London alone at aggregate values in excess of original appraisals
• Explored reletting of vacant space for commercial and other uses, increasing the rent roll by £2m pa
• Disposed of various properties to special purchasers at premium prices

Results

Delivered a best-in-class strategic solution for the client

Realised twice what was offered for the portfolio at the outset, over the course of the Receivership

Navigated the complexities of the project, drawing on skills and services / consultants to maximise the value of the assets

Achieved gross sale receipts across the portfolio close to the original loan, with most valuable single asset on Kensington High Street London selling for £19m at a 25% premium to valuation.