Case Study: Multi Million Pound Property Development Sales
Two long standing Administrations, with Mike Kienlen acting as Administrator, and involving the same Bank as secured lender, has resulted in multi million pound commercial and residential property sales. The appointments were made in 2009 at the time of the financial and property crisis within the construction sector. Both sales have been achieved following lengthy marketing campaigns during 2016 and subsequent protracted contract negotiations.
The business and assets of a property development Company based in Meltham, West Yorkshire have been sold as a going concern for a sum substantially in excess of seven figures. At the time of appointment the housing development was only partially complete but, in conjunction with the Bank and key professionals, we have overseen the build out and subsequent tenancy of 41 residential properties. After a strategy of ‘hold and let’ since completion of the development in 2011, we finally agreed a sale of all the properties and associated rental streams. This deal was more complex due to the number of parties involved in the deal completion, consisting of two main Purchasers, a Housing Association, a Management Company, the Council, and a Company responsible for the amenity areas, together with agents and solicitors acting for each party.
The business and assets of a property development LLP based in Failsworth, Manchester, consisting of 40 commercial rental units, has been sold as a going concern for in excess of seven figures. Again, working closely with the Bank and key professionals, in this instance, we were able to submit applications for planning consent to obtain outline planning permission for the development of 89 residential properties. Despite initial planning refusals and revised successful planning submissions, we were ultimately able to make the business a more attractive and valuable development proposition. We have had to deal with significant site and tenant problems throughout the period of control, and overcoming asbestos, fire risk assessments and other health and safety concerns.
The RRI team worked long and hard to bring about both business sales. Including rental incomes, this will result in substantial distributions to the Bank.
