CHALLENGE

To value a single-let office investment for bank lending purposes. The office, which extends to 40,885 sq ft is let to Babcock Rail Ltd with a parent company guarantee, the lease having approximately 9.5 years unexpired.
 
There is fixed annual rental uplifts which ensured that valuing the investment was challenging, the passing rent above current market levels and rising.
 

STRATEGY

  • Inspection and measurement of the building
  • Analysis of lease and tenant’s covenant
  • Analysis of comparable rental and investment transactions
  • Provision of Market Rent and Market Valuations
  • Preparation of detailed valuation report 
      

SERVICES

  • Valuation and advisory services
  • Detailed inspection and measurement
  • Statutory guidance
  • Market analysis
  • Investment market advice
  • Valuation consultancy
  • Provision of insurance reinstatement assessment

 

RESULTS

Valued the property and reported to the bank our opinion of value. The property was subsequently acquired by the bank’s customer, a SPV controlled by Henley Property Investments, for £5,650,000. This represented an initial yield of 11.55% and equivalent yield of 10.88%.