A difficult agency case where the tenure being offered and the significant problems involved with the site meant that finding a tenant would be a problem.....
Stephens McBride were initially asked to advise on finding a tenant for this property in April 2009. The owners had operated a steel stock holding business from the site for a number of years. The building itself extended to circa 115,000 sq/ft (10,700 sq/m) on a site of about 5 acres. The site was in need of significant refurbishment and although very well situated with regard to transport links, primarily interest was from developers and the owners were adamant that the freehold was not for sale.
A number of potential tenants were found for the property but for various reasons the deals ultimately 'fell through'. Among the problems encountered was a survey that highlighting the significant presence of asbestos in the roof and general structure which was not unusual for a building of this age and size.
In late 2013 terms were agreed for a 10 year lease with a manufacturing/engineering company. Prior to the lease being completed and the tenant taking occupation a number of problems needed to be resolved including not only the issue of the asbestos but also the provision of a suitable electricity supply, repairs to the building, internal and external drainage and also selective controlled demolition at an estimated cost of £500,000.
Notwithstanding the problems encountered the deal was finally completed with the tenants undertaking significant improvments to the building and making it suitable for occupation, in exchange for a reduced rent for the first 5 years of the term. Ultimately, Stephens McBride were able to negotiate a deal that was satifactory to both parties.
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"The site was in need of significant refurbishment and although very well situated with regard to transport links, primarily interest was from developers and the owners were adamant that the freehold was not for sale."