Taking over a property under receivership, and managing it to a profitable sale, takes experience, attention and smarts…
In addition to our full asset management service, Koopmans receives instructions to act as Interim Asset Managers by Law of Property Act Receivers where owners have defaulted against their loan covenants.
Interim management instructions require a slightly different approach to management as the Receiver is looking to maximise the income and value whilst preparing an asset for sale, but having a very tight control on expenditure. Generally these instructions are over the shorter term compared to some asset management instructions where we have acted for over 20 years.
Having been instructed by the Receivers at BNP Paribas Real Estate from the very first inspection it was clear that the building had not been maintained and there was clear breaches of health & safety and fire regulations. Koopmans immediately sanctioned numerous assessments which led to the requirement of urgent remedial works so that the tenants could work in a safe environment.
The majority of the property was let to a single tenant who in turn had sub-let various parts of the building to numerous occupiers. It was clear to see that the property had significant potential asset management opportunities compounded by the fact it was located in an up and coming area of London.
Once a number of occupational points were regularised and the building brought back into a safe condition, the property was sold to investors.
Shortly after sale of the property we met with the new owners and with our existing knowledge of the property, offered our advice to further increase value and manage the property. Having considered the various options Koopmans were instructed to fully asset manage the building and implement the agreed strategy.
It was clear to see that the head-lessee was taking a significant profit rent and it was agreed that notice should be served bringing their tenancy to an end. Further, after consideration of the sub-leases it was established that these were not robust enough and with market rents and demand increasing, the decision was made to take back the majority of the building in order to refurbish, re-market at current market levels and start afresh with formal rights, regulations and service charge provisions.
As part of our service Koopmans offered advice on the refurbishment, improvements, change of use as well as worked with agents and solicitors in preparing a suitable draft lease.
Suffice to say that the property has been a success, is fully let and now forms a creative hub in the heart of Dalston with a growing waiting list. With our advice and continuing asset management the client is achieving a double digit yield and looking for their next opportunity.