CHALLENGE

  • Advice BDO LLP on the best course of action in terms of disposing of a single let hotel investment on one of Nottingham’s largest business parks. Whilst the asset is of excellent quality and offered a long lease, the property was over-rented and the Tenant and Guarantor of limited covenant strength.

RESULT

  • All three teams worked very closely to advise whether a restructuring of the existing debt could be achievable with the borrower and likely exit values were to be with an asset with limited covenant strength.
  • A full glossy marketing brochure was prepared and after an extensive marketing period we successfully disposed of the property to BP Pension fund for £14.0m representing an initial yield of 9.5%.