Client: Private Property Company
The opportunity arose for our client to buy a standalone retail warehouse in the Midlands, which was only months away from becoming vacant. We reviewed options that would enhance value–with and without planning permission–should the purchase succeed.
Our role was to increase the property’s value while ensuring that the vendor felt they were getting full value from the sale.
We secured a new tenant who confidentially agreed to take the property on a new lease. Solicitors were instructed, and a lease agreement was drawn up on the basis that if all conditions were met, the tenant would enter into a 15-year commitment. As part of the deal, the tenant would pay a capital sum to cover all repair and refurbishments, absolving our client of responsibility. Meanwhile, we agreed a purchase price with the vendor, subject to planning for a change of use, which the tenant undertook.
By pre-agreeing the sale of the property with a purchaser needing long-term rental income, we added significant value and identified an exit for our client. Planning consent was secured, the tenant took possession, and the property was sold on a sub-sale to the new owner, thereby saving on stamp duty.
After an investment of £1.5m on behalf of our client, the asset value was enhanced by nearly £1m, providing a significant profit from the capital outlay.
From sourcing a new tenant to the onward sale, we controlled every stage of the process to ensure this profitable outcome.
Find out how to maximise the value of your property assets! Contact the Credo Asset Management team today.