Case Study Flashcards
(41 cards)
Why was the Royal Buildings listed?
Statement of significance highlighted architectural, archaeological and historic interest.
Historic - development of Brookside
Archaeological - grand example of hotel
Why is the whole size of the floor 7,000 sq ft, but you only have 4,300 sq ft listed on your analysis?
The remainder was to be/become communal space - creation of additional WCs and potential split of open plan office
What size were the offices achieving £18 per sq ft? vs the ones achieving £25?
£25 = smaller offices (120 sq ft)
£18 = larger offices (400 sq ft)
What other air conditioning options did you consider?
VRV but this would not be accommodated due to unit needing to be on flat roof (would not take weight)
Also did not need to control temperature in different areas
Would you consider the refurbished scheme to be ‘Grade A’ space?
No, due to limited parking
They were not raised floors
Why did you get this far, knowing that the office market was slow?
Void costs from SC, client wanted to enhance rent roll and capital value and make better use of the space
If you advised on this again, how would your advice change?
With the move back to the office, office space may be more attractive now
Why did the agent suggest 6 monthly leases, outside the Act? and inclusive rents?
The offices were small, and could be attractive to individuals or start ups so inclusive rents = attractive as they would understand costs involved up front.
Outside the Act = more control for Landlord and protects investment value
How does the rental income translate to an additional £450k in capital value?
11% yield on net rental income
Deduction for purchasers costs at 6.8%
What was the comparable evidence for the rental side of things?
Lisbon House - pretty much exactly the same set up. No adjustments required.
St Georges Yard - adjustments as that was a better spec and better parking.
What are office yields like in Derby now?
Offices = 7.5% - 8%
Where is your provision for public liability and engineering insurance?
Included within Buildings Insurance policy and recharges
What are your comps for the addition to capital value?
Compared with sales on St James Street and Sadler Gate which were between 10% - 13%
How did you advise your client without undertaking a development appraisal?
I had a valuation undertaken in the buildings current condition (with 3rd floor as is) and the 3rd floor space was capitalised at £40 psf = £280k in value based on hope value
St James Street = £30 psf (worse location)
What tender process was utilised?
I wasn’t directly involved in the tender process but I am aware that it was a single stage selective process
How much did the total refurbishment cost?
Approx £800k
What impact did the listed status have on the refurbishment?
- Listed Building consent required
- Statement of significance
- Had to retain existing radiators, skirting boards
- Air conditioning wall mounted units rather than casettes
Why didn’t you consider an exemption from having an EPC?
I did consider this, but the planners had advised that the alterations would not materially alter the building in an unacceptable way and therefore, consent was granted for air con, secondary glazing
Did you just take the marketing agents word for it?
No, I did my own research on other properties I was familiar with and sought advice from a secondary agent to ensure the advice was accurate
Why was the selected contractor chosen? How did you ensure best value for money?
Well known to client, known to do work properly and in accordance with building control and regulations
Price comparison during tender stage but ultimately, client needed someone they could trust
What has happened to the property now?
Third floor refurb did not go ahead, property being sold off-market - £2.4m
What is the current rent roll for the property?
£225k - NIY of 9.42% but with 3rd floor capitalised at £40 psf
How is the property being sold?
Private treaty, off-market
What are the issues with selling off-market?
Not much market exposure
