Property in Profile 2011 Edition 52 issue 7

Transcription

Property in Profile 2011 Edition 52 issue 7
2011 - Edition 52; Issue 7
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Corporate
recovery
GRAHAM + SIBBALD’S
“CORPORATE RECOVERY
& RESTRUCTURING TEAM
looks set for a busy 2011”
predicts Les McAndrew,
head of the team, based
in Edinburgh.
“We are facing a climate where
there are tougher regulations,
coupled with the prevailing very
tight lending market which is
unlikely to release the purse strings
until such time as the sovereign
debt crisis in Europe rescues itself
and the Banks get to grips with the
wave of debt refinancing required.
On this basis I can only predict
that 2011 will continue to be a
challenging year for a number of
businesses.
We are more likely to see pressure
being applied to trading businesses
on their cash flows. Income
producing property based assets,
which up until now have generally
been ticking over in the world of
artificially low interest rates, are
also likely to attract the attention of
the banks.
- beat the clock
However, it is not all bad news.
“Quality” assets, correctly priced,
are capable of being sold and
closing dates are no longer a distant
memory. Secondary property
assets, however, remain very much
in the doldrums and considerable
imagination is required on the work
out of these assets to create some
decent value in a recovery situation.
With our in-house experts on
planning, cost consultancy, licensed
trade etc, we feel we are as well
placed as anybody to deliver the
required imaginative solutions.
So for Graham + Sibbald’s
Corporate Recovery & Restructuring
Team, it looks like 2011 is another
year of rolling up the sleeves and
some old fashioned hard work to
deliver positive outcomes.”
Examples:
1
BBC HQ, Glasgow
Marketed & sold on
behalf of BDO
2
www.g-s.co.uk
Edinburgh University
Settlement
Marketed & sold on
behalf of PWC
3
4
1
2
3
Strathclyde
Timber Systems
Currently on the
market on behalf
of Ernst & Young
Drumoig Golf Centre,
St Andrews
Marketed on behalf
of Ernst & Young.
4
Overview of the
Forecourt Property Sector
One of the key factors within the forecourt property
sector in the past year has been the continued lack of
available Bank funding. This overall squeeze on the
availability of funding has limited the pool of potential
purchasers in the market with many purchasers’
expansion aspirations being suppressed by their
Bank’s lending criteria.
The industry has traditionally been very capital intensive with
operators not only having to fund the site purchase itself,
but the working capital tied up in both wet and dry stock.
In addition, operators need to fund the security required for
their fuel, thus, with the high levels of capital required, any
increase in the cost of finance inevitably has an adverse
impact upon an operator’s returns and in turn their ability to
commit to further acquisitions.
On the positive side, site values within the forecourt property
sector have faired far better than site
values in other property sectors where
dramatic falls in value have been
witnessed. Both purchasers and
their lenders recognise that
service stations still benefit
from a cash flow which
enables them to service
debt. Vendors should
also take heart from the
fact that there are still a
number of well funded
purchasers who are
QUINTILES OFFICE/
LAB WAREHOUSE
FACILITY FOR SALE
SCHEME II REVAMP
The RICS have revamped
the Homebuyer Survey &
Valuation (HSV) and have
replaced it with the RICS
Homebuyer Report (HBR).
The service is shortly to be
implemented in Scotland.
This is an additional service
and provides part of the
comprehensive portfolio of
property related services offered
by Graham + Sibbald to their
clients.
The Home Buyer Report (as
distinct from the Home Report)
is produced by an RICS qualified
surveyor and is designed to
assist the purchaser in making
a reasoned and informed
judgement on whether or not
to go ahead with buying the
property and to advise on a
reasonable price to pay for
Calum Campbell,
Partner
During 2010, we have also
Petroleum &
witnessed more activity in the
leasehold market with many
Roadside Services
site owners happy to retain
their forecourt asset and
accept a rental income stream rather than a one-off capital
receipt.
From a vendor’s perspective, it is essential that they select
a selling agent that is able to tap into these well funded
purchasers with the ability to conclude, rather than being
attracted merely by the highest valuation which will not be
achieved on the market.
Looking forward, we anticipate that there will be some
dramatic changes within the market over the next 12
months. The recent announcements by Total and Murco will
undoubtedly open up opportunities for new entrants to the
UK market, and it will be fascinating to see who appears on
the horizon.
Keith Watters comments: “This exclusive building
has a very high quality finish throughout, with
excellent car parking facilities. It also provides
a well spaced gym. It has a prestigious location
in Livingston near the M8 motorway, with close
links to both Glasgow and Edinburgh.
Graham + Sibbald are currently marketing
this unique property investment. This
property comprises a high specification
office, laboratory and warehouse facility
constructed by TKC Alba LLP and is let in
its entirety to Quintiles Ltd.
This building with its stunning modern
architecture extends to a net internal area of
10,654 sq m (114,680 sq ft).
active in the market. It
is clear that a number of
these purchasers believe
that values have now
returned from the peaks
of 2007 and 2008 to
more sustainable levels,
and with the heat being
removed from the market
they are able to acquire
quality assets.
Offers are invited in excess of £20,675,000.
Rent is £1,536,713 per annum.
Viewing is strictly by appointment only and can
be arranged through the sole selling agents.
For further information contact:
Les McAndrew ([email protected]) or
Keith Watters ([email protected]) on
Tel: 0131 240 5311.
the property, taking into account the
condition and repairs required.
Whilst to a large extent in Scotland
the introduction by statute of the
Home Report has replaced the need
for a detailed survey commissioned
on behalf of the purchaser to be
carried out there are a number of
circumstances where this might be
desirable. Firstly there are a number
of properties which are exempt from
the Home Report legislation and
secondly there may be instances where
a particular purchaser requires
more detailed advice tailored
to his specific needs
and requirements in
purchasing a property.
Many of the key features
introduced in the Home
Report have been
adopted within the new
HBR. The idea of repair
categorisation has been
replicated and indeed numbers 1, 2
and 3 are colour coded green, amber
and red for ease of identification. It
should, however be noted the specific
definitions of each category differ from
the Home Report.
The other main difference from the
former product is Section J Risks.
This section summarises defects and
issues that present a risk to the building
or grounds or safety risk to people
occupying the property. This section
provides for comment on areas of the
property which have been reported on
and condition rated and draws together
different parts of the property,
eg. roof repairs causing damp
penetration. It also deals with
risks which may not reasonably
be changed by the property
owner, such as radon gas or known
underground mining problems.
Peter McEachran,
Partner, Paisley Office.
Renewable Energy
Centre, Aberdeen
Aberdeen’s Renewable Energy Centre,
Minto Commercial Park, Altens,
Aberdeen has been leased to Brinker
Technology for 10 years at a rental of
£150,000pa.
This class-leading office and workshop
building with an EPC rating of A and a
BREEAM Rating of A, was let by Graham
+ Sibbald. The property was only on
the market for two months before going
under offer and achieved
excellent terms. The
building has under
floor heating
in the
Air
Conditioning
Inspections
Scottish
Hotels Lead
the Way
With the deadline for the
inspection of air conditioning
systems with a capacity over
250kw being 4th January
2011, many property owners
will be breaking the law from
January should they not have
their systems assessed.
Graham +Sibbald with their
partnering organisation,
PT, can undertake the air
conditioning compliance
inspections.
Hotels in Glasgow and
Edinburgh are currently
out-performing those in
Amsterdam, Barcelona, Rome
and Vienna! Occupancy rates
are showing strong year on
year rises, also faring much
better than the sector in
England and Wales.
We have CIBSE trained and
accredited staff who can carry out
all these mandatory inspections
throughout the UK, providing
the necessary documentation to
ensure their compliance with the
Legislation.
The inspection reviews the
condition and suitability of not
just the equipment selected but
reviews the current maintenance
and compliance with related
legislation such as the F Gas
Regulations.
For air conditioning systems
between 12kw and 250kw, the
deadline for the inspection of
these systems is 4th January
2013.
Should you wish to discuss air
conditioning inspection reports
with us please contact:Alastair Welch,
Associate Building Surveying,
[email protected]
Scottish hotels, for example,
enjoyed an overall occupancy
rate of 82.5% in September, up
from 78.7% in the same month
last year. The occupancy rate
in September for England was
77.6% and in Wales 77.5%, and
78.2% in the UK as a whole.
Room yields, the room occupancy
multiplied by the average room
rate achieved, stood at £64.21 in
Scotland in September, up 5.2%
on the same month last year. In
England the room yield rate was
£49.48 and in Wales £49.11, and
£51.23 in the UK as a whole.
Both Glasgow and Edinburgh are
achieving room occupancy rates
of over 80% in many months, with
hotels in Aberdeen now pushing
beyond 75% on average.
There is no doubt that 2010 has
been a challenging year but, as
these positive figures show for the
hotel industry in Scotland, there
are opportunities to be seized and
business to the won.
Gary Louttit, Head of Licensed
Trade & Leisure Department
Winner Graham +
Sibbald Competition
Congratulations to Susan Gillon
who won the Graham + Sibbald
competition giving the right answer:
Graham + Sibbald was founded in
1959. The prize was a magnum bottle
of champagne. Susan is an Associate
at Maclay Murray & Spens LLP.
workshop; wall heating/cooling in the
office areas; ground and air source heat
pumps; thermal and photo-voltaic panels
on the roof; rainwater harvesters; and an
intelligent automated ventilation system to
make maximum use of natural air cooling
and solar gain opportunities. It was
estimated that annual energy savings over
a conventional building would be £3/sqft
equivalent at today’s prices.
Simpson Buglass, Partner at the Aberdeen
Office said: “I consider that this building
achieved a rental of 10% above normal
market levels due primarily to the
building’s energy saving credentials
and super-low future running costs. If
the property industry needs evidence
of how commercial occupiers view
energy efficient buildings, then this
surely must be a very positive
example”.
EPC
EPC’s were
introduced to
the property
market in Scotland
two years ago.
Graham + Sibbald
have been at the
forefront of this new
Legislation having
created a specialist
division of Chartered Surveyors who
have qualified as Energy Assessors
to provide a service to both the
Commercial and the Domestic
property markets.
Since the introduction of EPC’s
Graham + Sibbald have quickly
captured a share of the market and
have become recognised professional
EPC advisors. In the first two years we
have rapidly developed a large base
of clients and have a solid and sound
understanding of client’s EPC needs.
We have a vast number of extremely
experienced Energy Assessors, having
assessed numerous portfolios which
compliment the substantial number of
individual instructions, we deal with
on a one off basis.
The Commercial EPC Department
have been extremely successful and
have won many competitive tenders
to undertake EPC’s for a large number
of high profile clients which vary
from private companies, Government
Departments, Local Government and
quasi Government Bodies such as:•
•
•
•
•
•
•
•
BP
North Ayrshire Council
Argyll and Bute Council
South Lanarkshire Council
Co-Operative Group Ltd
Cal-Mac Ferries Limited
Prestwick Airport
Scottish Children’s Reporter
Administration
EPC’s are required at the point of sale
of the property or at the start of a
new lease. Either the property owner
or the landlord is responsible for
obtaining the EPC.
Should you wish to discuss EPC’s with
us, please contact your Local G+S
Office.
From left:
Gary Louttit, GS, Partner,
Carol McKinlay Fundraiser
at Action for Children,
Patries MacIntyre, GS, Head
of Marketing.
Building Surveying
Graham + Sibbald - Action for Children
Graham + Sibbald are pleased to have made
a donation to the children’s charity, ‘Action for
Children’, that reflects the anticipated printing and
posting costs of our seasonal greetings.
For more information, Action for Children visit their
site: www.actionforchildren.org.uk
Lothian Buses Driving Forward
The Graham + Sibbald Planning team has secured a major
milestone for Lothian Buses by securing a minded to
approve decision, from the City of Edinburgh Council, for a
major upgrade of the Longstone Bus Garage in south-west
Edinburgh. Once a legal agreement has been signed the
project will move to the implementation stage, resulting in
a £8m investment.
Ian Kelly, Head of Planning at Graham + Sibbald, commented
that the project was a challenging one, in the early days of the
new Planning system in Scotland, where the focus is now on front
loading – setting out your case fully at the earliest possible stage.
Ian Craig, Managing Director of Lothian Buses, said: “This project
is vital in terms of our investment plans for our garages and
staff facilities. Therefore, it was excellent to have the
technical knowledge and the support of Ian and
Claire at Graham + Sibbald. I now look forward
to the implementation of the project with
continuing support from Graham and
Sibbald.”
For further planning advice, contact:
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Ian Kelly, HoD Planning:
[email protected]
Claire Peters, Principal Planner:
[email protected]
Paul Docherty, Partner, has
moved from our Glasgow
office to our Edinburgh office
to head up the Building
Consultancy specialism there.
James Burnes has been reappointed as Senior Surveyor
in the office in Inverness.
G+S Hat Trick - Surveyors Pass Apc
Graham + Sibbald have
achieved a full-house hat
trick with all three G+S
candidates passing their
Assessment of Professional
Competence to become
Professional Members of
the Royal Institution of
Chartered Surveyors.
We are very proud to announce
that Alan Campbell and Richard
Meiklejohn from the Dundee
office and Alasdair Cameron
of the Kilmarnock office have
become Chartered Surveyors.
Peter McEachran, Partner at
Graham + Sibbald, said: “This
is excellent news that Alan,
Richard and Alasdair have
passed their assessments and
in no small way thanks to the
training and support that has
been put in place by our inhouse team. Graham + Sibbald
is a firm with one of the largest
number of assessors within one
company.”
Ian Gillies, Senior Partner,
said: ”Graham + Sibbald is an
employer committed to training
staff at all stages in their
careers. We see training as an
essential component in attaining
and maintaining high standards
of excellence in the delivery of
service to our clients.”
For any further information
please contact:
Peter McEachran
[email protected]
Simpson Buglass
[email protected]
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