Case Study Flashcards
What is the precise location of the property?
Edison Road, Elms Farm Industrial Estate
What year was the industrial warehouse built?
1970
What notable features does the property have?
a. Low site cover
b. PV array
c. 3 roller shutter doors
What is the total size of the property in square feet and square meters?
a. 24,462 sqft
b. 2,273 sq m
What is the eaves height of the property?
5.4m
What type of tenure does the property hold?
Freehold
Who is currently leasing the property?
UK Power Network Operations Ltd
What is the lese term of the property?
a. 10 year term inside the Act.
b. Rent review on 5th anniversary – RPI linked 2-4%.
c. £9.00 per sqft.
d. 9 months RF.
What is the annual passing rent of the property?
£220,158 per annum
What was the property value as of 30th September 2023?
£3,760,000
What made Fuse 2 and 3 comparable to The Property?
Similar location and specification
What made Fuse 2 a weaker comparable to The Property?
Smaller size, better condition, and shorter term.
What impact did the high-quality specifications of Fuse 2 and 3 have on The Property’s expected rent?
Would expect a discounted rent to be achieved.
What factors made Unit 1120 Silverstone Park a good comparable despite being a more historic letting?
Few transaction, so little evidence to show rents had moved on.
Similar size, specification, similar term
Why did you anticipate The Property to achieve a discounted rent compared to Unit 1120 Silverstone Park?
New build with superior condition.
Can you describe in what ways the condition and site configuration of Prima Foam House differed from The Property?
Prima Foam House had constricted access and high site cover. The property is has not had a refurbishment – 1980s build.
How did the Hierarchy of Evidence factor into your analysis of Prima Foam House as a comparable property?
As Prima Foam House’s deal was a lease renewal, I therefore applied less weight compared to the open market lettings as negotiations between existing LL and Ts can often be softer than for an open market letting.
Why was Unit 1130 Silverstone Park considered the most comparable transaction to The Property?
Similar size, same term and incentive provided.
In what ways did you adjust the valuation of The Property based on the comparability to Unit 1130 Silverstone Park, a new build property?
Applied a discount.
What reasons led you to conclude that The Property was broadly rack rented at £9.00 per sq.ft.?
Taking a holistic approach, looking at the comparables, I believed the property sat between Unit 1130 and Prima Foam House. Considering there had been few transactions in the area, I was also confidents rents had not moved on too much since the lease was agreed in July 2022.
What are some of the factors you took into consideration when deciding on the appropriate method of sale?
Timescales
Control of negotiation
Maximising sale price
Why was private treaty chosen as the preferred method of sale?
The client had the opportunity to negotiate freely in a confidential setting.
What factors made Bid 2 the most attractive offer compared to the others?
Timelines, less stringent approvals and highest bid.
What obstacles or delays did you face during this process and how were they addressed?
There were delays in the legals due to searches taking some time to come back. I ensured I remained in communication with the solicitors and client to manage expectations.
Lack of comparable evidence due to slow market. However, with the evidence sourced, I was able to provide competent advice.
Could you provide details about the inspection and measurement process?
a. I firstly checked I was competent and then arranged with the tenant and confirmed PPE requirements.
b. Considered my personal safety and ensured my team knew my whereabouts.
c. Desktop investigation
d. Local area inspection
e. External inspection
f. Internal inspection – taking photos and notes.
g. Measured warehouse and ancillary offices on a GIA basis.
h. Measured yard depth.
i. Summarised findings and measurement and put into a report for the client.
How did you analyse the market and investment comparables to advise The Client?
HofE
Considered factors such as location, spec, condition, term or tenure and compared against the property.
How did you maintain professionalism and adhere to the RICS Rules of Conduct during this transaction?
a. I ensured the process remained confidential – showing integrity.
b. I delivered competent and professional advice – seeking assistance where needed.
c. I was respectful to all parties.
Can you expand on your efforts in ensuring client care?
a. Ensured I understood the client’s objectives.
b. Maintained open and honest communication.
c. Kept detailed records of communication and advice.
d. Delivered competent and professional advice – seeking assistance where needed.
e. Managed expectations.
How would you improve upon your actions or process in future transactions, based on this experience?
Undertake comparable evidence prior to inspection so I could have inspected comps externally whilst in the area.
Although remained in regular comms with client, perhaps including weekly catch up calls to discuss progress and any queries.
