Tell me about ... Flashcards
(21 cards)
Tell me about restaurant market appraisal in Notting Hill Gate.
I was asked to procude a market report relating to the marketing and leasing of a restaurant unit in NHG.
Inspected property taking notes on condition, specification and location.
Commented on the London restaurant market - cost of living, increased fit out costs, Brexit making quality staff harder to find.
Checked planning to check planning use and licensing.
Compiled and analysed comparable evidence and advised my client on ERV.
Provided an idea of lease terms and target tenants.
10 year lease.
Break and RR after 5
Rent free 6 months
Rent £70,000 = c.£40psf
Tell me about involvement in restaurant letting Blackstock Road
I inspected and measured the property. Noted that kitchen equipment was to stay and fit out and condition was good.
Compiled comparable evidence schedule which was limited. So I rang agents to and checked internal requirement database to gauge demand and sentiment.
I advised that as the unit was in good conditon that minimal incentives should be required.
I advised that a rent of £50,000 was achievable = c.£25psf
10 Year Lease
Break and RR after 5 years.
Minimal incentives.
Tell me about the Coffee Operator Market Report
I was instructed by a national coffee operator to provide a market report for their unit in London Bridge (Stoney Street).
I provided an overview of the lease and a property description.
I then collected a range of comparable evidence and advised which comparable was most relevant.
I advised that the property was overrented, and with 13-years unexpired remaining that the disposal options were limited.
I checked the lease and assignment (with reverse) or subletting was permitted, and after considering their P&L account of the site that this was preferable and the performance was not sustainable.
Zone A was circa £140 and comps suggested £100 was more suitable.
Overrented by about £50,000.
Tell me about your involvement in the retail market appraisal in Greenwich.
I was instructed to provide a market appraisal on a unit in a mixed use scheme near to the 02.
After inspecting, I noted the area was very quiet, footfall was an issue, and the shape of the units were very irregular due to the zig zag architectural design.
I advised my client that I should target operators with a track record in similar schemes and that any deal could require heavy incentives.
I also highlighted alongside my comparable evidence that although the 02 was nearby, the retail comps would be irrelevant as the pitch was very different.
Tell me about your data management responsibilites for the airport valuation?
I was required to sign an NDA.
I saved the information in folders only I and the team involved could access it which were password protected and encrypted.
I processed the data legally, fairly and transparently.
I used the data for only as long as it was needed.
I verified the cost data was accurate by creating my own cost models using market knowledge.
I then inputted data into the valuation and after the data was no longer needed it I disposed of it.
How did you keep data management principles during the petrol station valuation?
I organised the data in a database.
I cross checked the accuracy against the companies P&L accounts which I downloaded off Companies house.
I analysed the data on Excel and inputted it into the valuation.
I analysed comparable evidence taken from an internal CBRE roadside database.
Tell me about the DCF you ran in the profits method valuation of a car park in Epping.
330 Spaces
Revenue of c.£1,000,000 Y1
Exit Yield - 10.25%
Discount Rate - 13.25%
Purchasers Costs - 6.28%
Market Value - £10.4m
Profits method relates to valuing the profit of the car park. We were provided with forecast of first 10 years of revenue and cost information.
I built a DCF. - Revenue - Costs
Summed the cash flows and applied an exit yield which I got from comparable evidence to equal an exit value.
I then applied a discount rate which equaled the NPV / Gross market value.
Purchasers costs were deducted to equal Net market value.
Tell me about inspection of PFS in Epping.
Property was in reasonable condition and was in a good location with limited competition nearby.
I walked perimeter and noted that there was a tired above ground fuel tank.
I advised the client that a phase 2 site investigation should be undertaken in order to confirm if there was any contamination present.
I also advised that the tank should be serviced to establish condition.
Tell me about the car showroom inspection in Stourbridge?
Location good but, quality and condition of showroom, workshop and first floor offices poor.
I noted that there was water damage in an MOT area that appeared to caused by a leak due to the building age. There was also condensation on the windows demonstating a lack of ventilation. I took photos and advised the client further investigations would be required.
I also noted that a mezzanine area in the workshop was cordoned off due to instability. Whilst the defect was being managed, I advised the client that a structural engineer should review the damage in order to establish cause and remediation issues.
Talk me through your measurement experience in Romford?
I was required to measure a car showroom in Romford for valuation purposes.
Before undertaking the measuring, I made sure my laser disto was calibrated correctly, that I had a set of plans to aid the process, and that I was wearing suitable PPE and had signed in with the reception/manager of the showroom.
After this I proceeded to measure the property on a GIA basis in line with the Code of Measuring Practice, 2015.
I measured from the internal perimeter walls of each section of the property and excluded areas such as fire escapes or covered walk ways.
I cross checked the measurements with the plans and noted a negligable difference.
Talk me through the measuring of a retail unit on Kensington Church Street.
I was required to measure a retail unit in Kensington as part of an agency instruction.
I measured using a calibrated laser measuring device on a NIA basis in line with the Code of Measuring Practice.
I measured from the internal perimeter facing walls and excluded the toilet and clearners cupboard.
I then zoned the property on a set of plans. Marking zones of 20ft from the notional shop front.
ITZA Measurement was 683 sq ft.
ITZA - £150
Talk me through your car showroom inspection in Croydon?
I was required to inspect a car showroom in Croydon for valuation purposes.
In line with Surveying Safetly, in carried out a risk assessment, ensured I was wearing correct PPE, informed my colleagues of my plans and signed in with reception.
Whilst on the viewing, I used a car showroom inspection proforma, and kept a look out for building defects and hazardous materials.
I also took note of the location, specification and construction of the property. I also measured the eaves height in the workshop. These were then included and factored into the valuation report.
Talk me through the retail unit inspection in Fenchurch Street?
I inspected a shell retail unit in Fenchurch Street as part of an agency instruction.
I took notes about the location - predominantly offices with retail - A1 food.
I took notes about the construction - part of large office building - steel portal frame, full height glazed elevations.
I took notes on the specification - shell condition, with services capped. Concrete floor. Mezzanine already constructed and I measured the head heights to be 4m and 4.5m respectively. Shop front already installed.
I took external and internal photos and scanned for building defects.
Talk me through the PFS inspection in Epping.
I inspected a PFS in Epping for valuation purposes.
I noted:
- Location - Good location on a quite busy A road close to a residential neighbourhood.
- Reasonable condition but average specification.
- Whilst inspected the exterior of the property, I discovered there was a above ground fuel tank which was in a tired condition. I did not note any signs of contamination or leaks, but I advised my client (a national bank) that they should undertake a phase 2 survey to ensure there was no contamination issues.
The phase 2 survey did not find any contamination issues, and I included the findings in the report.
However, I advised my client that the tanks should be fully serviced.
Tell me about your involvement in the PFS valuation in Lewes?
I was instructed to value the freehold interest of a PFS in Lewes for loan security purposes as the purchase was conditional on the loan.
Under supervision, inspected and measured the property (GIA). Measured land using digital mapping software.
Requested trading data from the operator and undertook a profits method of valuation in line with VPGA4.
After issuing a draft report to the client, I was made aware that there was a proposed change to the sale meaning an area with fuel tanks was to no longer be included.
With supervision, I advised my client not including this area within the demise would impact value significantly as a petrol station requires regular access to tanks for filling and maintenance.
After providing an annotated map which highlighted the area that must be included within the demise for the value not to be affect, it was agreed by the vendor and purchaser that the tanks would be included within the demise and as a result the value was not affected.
I amended the valuation report to reflect the new demise, advised the client that the property was suitable for loan security purposes and issued the final report to the client.
Talk to me about your car showroom valuation in Hendon
I was instructed to value the freehold interest of a car showroom in Hendon.
Confirmed I was competent and free from conflict, before proceeding with the instruction once signed ToE were returned.
Inspected and measured on a GIA basis.
Used comparable method to establish an ERV for the property.
Advised client that whilst there was a showroom opposite that had transacted in 2018, this was not comparable due to the time elapsed and the different building conditions.
I advised that a similar specification car showroom in Eltham (SE London) had transacted recently and was comparable.
After anaylsing I applied a rate of £17.50p to the subject property, before applying a capitalisation yield to the rent to equal the gross market value. Purchasers costs were then removed to equal the net market value.
Tell me about the leasing instruction in Hackney Wick?
I was instructed to market a 920 sq ft retail unit in Hackney Wick.
Residential area and my client’s objectives were to find a cool, artisan type brand.
Inspected and measured. Drafted marketing particulars.
Undertook a targeted marketing approach.
Received an offer from a quality nail bar.
£30,000 per annum (£32.60psf). 9 months rent free. 10 year lease.
Advised client to proceed and drafted heads of terms.
Tell me about your Middlesex Street letting?
Instructed by a private individual to dispose of a retail unit.
Undertook CoI checks, AML checks, and proceeded after signed ToE were returned.
Drafted market particulars and undertook a market appraisal - advising my client to quote £90,000 and that they could expect a 10 year lease and would need to give away 9 months RF minimum.
After a marketing period, I received an offer from an Indian streetfood brand. They did not need extraction which was a priority for my client (would be a nuissance to residences above and potentially impact investment value).
I negotiated a 9 month rent free period, 6 month rent deposit and for the lease to be contracted outside of the act.
I advised my client to proceed and I drafted HOTs.
Talk me through leasing instruction in Barbican.
£25,000 rent = £17.85 psf.
Instructed to lease a 1,400 sq ft unit which was part of a hotel in Barbican.
LL’s priority was to let the space to a quality operator, who would not cause smells and could provide a breakfast.
Undertook a targeted marketing campaign after drafting marketing particulars.
Received two offers - one from a national bakery operator, and another from an operator with two sites in East London.
I advised my client to proceed with the national bakery - better covenant, track record, could improve status of hotel.
I informed my client I had a duty to act with honest and integrity and informed the other party of our decision to proceed with another party.
Unfortunately, after drafting heads of terms, offer 1 pulled out, citing footfall concerns.
I advised my client that option 2 was still a good option and that they should proceed with this party.
After negotiating 6 months rent free and 6 months rental deposit, I advised my client to proceed with this party and drafted HOTs.
Talk me through the Shaftesbury Avenue Lease disposal
I was instructed by a national coffee operator to dispose of their leasehold interest on Shaftesbury Avenue.
Reviewed the lease and found there was 14 years remaining, and that the property was significantly overrented.
After checking alienation clause, I advised that assignment or sub let were best options as a surrender was highly unlikely given the unexpired term, tenant covenant strength and rental obligations.
After marketing the property, I received two offers.
Offer 1 - National sandwich operator who offered to sublet for £25,000 under passing and 6 months RF for fitting out.
Offer 2 - Coffee Chain who offered to assign the lease and to be paid a reverse premium of £50,000 to help with strip out and fit out costs.
Advised my client to proceed with offer 2, as subject to an AGA, this would free my client from liability and would allow them to make savings as the reverse premium would be cheaper than subleasing for £25,000 under passing.
Rent was £175,000
Sublet until RR = £100,000 shortfall and potentially more if RR uplifted rent.
Assignment = £50,000 up front but then free from rental obligations.
