Property in Profile 2011 Edition 52 issue 7
Transcription
Property in Profile 2011 Edition 52 issue 7
2011 - Edition 52; Issue 7 �������� �� ������� 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: ������������� 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] �������������������������������������������������������������������������������������������������� ���������������������������� ��������������������������������������������������������������������������������������������� �������������������������������������������������������������������������������������������������� ���������������������������������������������������������������������������������������������� ��������������������� ��������������� ������������� ����������������� �������������� �������������� �������� ������ ����������� ��������� ���������� �������� ������� �������� ������� ��������������� ����������������������� ����������������������� ����������������������� ������������������������ ����������������������� ����������������������� ����������������������� ����������������������� ������������������������ ����������������������� ������������������������� ����������������������� ���������������������������� �������������������������� ������������������������ ��������������� ������������������ ���������������� ������������������� ������������� ������� �������� ��������� ���������� ��������� ������ ������� ������� ������� ������� ������������������������ ����������������������� ����������������������� ����������������������� ����������������������� ������������������������ ����������������������� ����������������������� ����������������������� ����������������������� ������������������������ ������������������������� �������������������������� ��������������������������� �������������������������� ��������������� ������������������ ������������� ������������������ ������� ����� �������� ���������������� ������� ������� ������� ������������������ ������������������������ ����������������������� ����������������������� ����������������������� ������������������������ ����������������������� ����������������������� ������������������������ ������������������������ ���������������������� ������������������������� ���������������������������