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Case Study

Project Gold - Value Recovery

Project GoldChallenge
  • Appointed by administrators Baker Tilly to provide strategic advice on a portfolio of 48 properties in 15 business park locations throughout England and Scotland
  • 20 vacant properties, rental expectations set above market expectations, NOI projected negative within three months and tenant convenants poor with 65% sub £1 million net worth
  • To provide an overview of the holding structure and analyse the liquidity of the real estate interests
  • To devise a stability and risk mitigation strategy should the Fund Manager be removed
 
Solutions
  • We were appointed strategic advisor and retained third party property managers 
  • Interviewed and selected a diverse range of leasing agents on incentive arrangements
  • Marketing critique undertaken on all properties
  • Direct control of cash flow assumed with expenditure reduced through a critical review
  • Interviewed all tenants in the portfolio to assess risk and opportunity
  • Prepared individual asset management plans identifying risk and added value, including cashflow and option analysis on hold/sell scenarios
Results
  • Immediate stabilisation of the portfolio
  • Reduced void from 45% to 15% within six months
  • Re-geared numerous leases improving WAULT from 3.7 years to 5.7 years
  • Secured an 8% improvement in NOI
  • Reduced arrears to zero with 100% of rents collected
  • Instigated a controlled exit strategy with realisation above impairment within 8 months

Contact Nigel Golder

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