OFF-MARKET SHOP LETTING NEGOTIATED FOR LANDLORD CLIENT
The retail sector has experienced a series of high-profile retailer failures over the past 4-5 years, resulting in thousands of shop properties throughout the UK becoming vacant and being returned to landlords. Where these occur, landlords affected often have a short period of time in which to evaluate their position and take steps to minimise their losses and restore income.
Tim Harries & Partners’ asset management experience coupled with their excellent contacts and reputation within the retail sector enables them to respond rapidly to assist landlords faced with failing tenants, advising them on the actions required to stabilise and protect their property assets, and to implement an effective plan to restore income and safeguard value.
A recent case demonstrated the effectiveness of this. Clients owned a retail warehouse let to furniture retailer Dreams plc who were placed into administration at the end of March 2013. Quick liaison with the administrators revealed that the property was unlikely to be included in a sale of the business, and immediate steps were taken to ensure full insurance cover was maintained and the property secured and well-presented. Using their established contacts, Tim Harries & Partners quickly identified three potential new retail tenants and conducted off-market negotiations which resulted a new letting to Homestyle Group t/a Bensons for Beds for an unbroken term of 10 years at a rent of £80,000 per annum, higher in fact than the previous rent being paid by Dreams. The ingoing tenant also invested significant capital in the property by way of a high-quality fit-out.