NG’s reputation as turnaround specialists is neatly illustrated on the Eldon Road Trading Estate and Business Park.
In May 2015 ownership of the 1970’s built Trading Estate and the 2006 built Business Park changed to Logicor, the European property arm of the American Blackstone Group LLP, having previously been held by Tiger Developments. The former owners had been heavily constrained in terms of financial investment in the scheme due to falling under the auspices of NAMA and the estate had begun to suffer with units starting to look tired and so the void rate had increased.
On the Business Park, there were three units vacant offices, each of c.2,000 sq.ft at the point of the sale. Logicor were planning to invest back into the scheme by comprehensively refurbishing the units on a speculative basis. This was a potentially expensive strategy unless long term tenants could be quickly found for the newly refurbished units.
With knowledge of the local market, NG advised Logicor that costly refurbishments weren’t necessarily required as they had been finding tenants for the units on a pre-let basis prior to any works having taken place. This advice helped to massively reduce the risk of the venture for their client.
The first of these deals was the letting of a 26,500 sq.ft unit which has recently been taken by fireplace manufacturing company, Chesneys Limited on a 10 year lease at a strong rental. Other lettings are in solicitor’s hands on a similar basis and are due to be completed shortly.
This leaves a single unit of 31,000 sq.ft remaining and NG are confident of announcing a deal on this shortly, with talks already underway with potential occupiers.
The client took on board the recommendations provided by NG regarding the presentation of the premises and without having expended any significant capital, they have now secured lettings on two of units to strong covenants. These have been at a level of rental that will allow NG’s Professional Department to seek increases on the lease renewals and rent reviews elsewhere on the scheme, massively improving the capital value of their client’s scheme.
- On the Business Park, there were three units vacant offices, each of c.2,000 sq.ft at the point of the sale
- NG’s local knowledge helped Logicor improve the presentation of the available units without needing to complete more costly refurbishments
- Two out of the 3 available units are now occupied by new tenants on good long term lease arrangements
- NG is confident in announcing a deal on the remaining unit shortly
- Lease renewals and rent reviews built into the contracts offering the opportunity to improve the schemes capital value