TRACK RECORD

DATE ACQUIRED: JUNE 2013
ACQUISITION PRICE: £6.38M

SYNOPSIS

Package of four period buildings in Newcastle city centre.

SUMMARY BUSINESS PLAN

To dispose of Cathedral Buildings and 17-21 Dean Street, relocate occupying commercial tenant from first floor of St Nicholas Chambers to vacant ground floor space to facilitate conversion of upper floors to residential, complete sales of residential apartments and then dispose of remaining ground floor commercial thereby focussing on Milburn House as a longer term hold and invest in the common areas/upgrading and repair of building to grow rental income.

ACTION TO DATE

Milburn House - 106,900 sq. ft. net lettable office/leisure
Gross income on acquisition - £665,350 Net income on acquisition - £496,405
Current Gross income - £707,000 Current Net income - £536,500
Business lounge hub area created in low value space to encourage lettings - £100k. Further sum of £50k to be invested in upgrading main entrance corridors.

Cathedral Buildings - 24,454 sq. ft. net lettable office/leisure/retail Sold - £1.47M January 2014

17 - 21 Dean Street - 5,658 sq. ft. residential/retail Series of sales ending December 2014 - combined value - £947,450

St Nicholas Chambers - 15,377 sq. ft. office/retail/leisure Gross income on acquisition - £144,887 Net income on acquisition - £77,315 Current Gross income - £138,000 Current Net income - £121,200

Sole occupying tenant on first floor relocated to vacant ground floor suite on new lease leaving all upper floors clear for residential conversion. Planning permission secured for 16 residential apartments. Construction commenced April and scheduled for completion [ ]. 12 apartments currently reserved off plan at combined sales value of £1,235,050. Estimated total sales value £1,741,950.

DATE ACQUIRED: DECEMBER 2013
ACQUISITION PRICE: £3.705M

SYNOPSIS

Ground and six upper floor modern offices behind listed retained stone façade extending to 54,941 sq. ft. acquired from receivership. Building entirely vacant due to structural issue with main core staircase necessitating complete replacement of staircase together with other principally M & E issues as a result of shortcomings by developer on refurbishment scheme.

SUMMARY BUSINESS PLAN

Undertake required works package and market space aggressively in terms of competitive rental structure due to low capital value entry price.

ACTION TO DATE

Works package of £1.061M completed October 2014.

6th floor (4,377 sq. ft.) let to SF Recruitment Limited @ £13.50 for 5 years subject to tenant break at Yr. 3 wef November 2014. Ground, 1st & part 2nd, 3rd and part 4th floor in legal hands @ £13.50 per sq ft. Fifth floor in legals at £15 per sq. ft. Current income £744,584 per annum on assumption lettings in hand complete. Balance of 8,112 sq. ft. therefore remains available for let @ £15/sq. ft. Fully occupied income will be £866,264 per annum.