Strategic RE Flashcards
RE-FIT PROGRAMME
What was the strategic aim for your client?
My clients strategic aim was to improve their customer experience in store and in turn, increase foot fall and sales within the stores
RE-FIT PROGRAMME
What is a LTA?
A licence to alter documents a tenants alterations that have been approved by the Landlord. The lease will describe when a licence to alter is required.
RE-FIT PROGRAMME
Why are LTAs used?
- A tenant would benefit from the use of a LTA as it will prevent the landlord from rentalising any improvements at the next rent review
- A LTA would also protect from any dilapidation claims at the end of the tenancy
RE-FIT PROGRAMME
Is it common practice to negotiate fees for a LTA?
It would be common practice for the tenant to cover the landlords fees in approving a license to alter but any additional fees would not be common practice
RE-FIT PROGRAMME
What would the LL need to consider when approving a LTA?
- Impact on building operations
- If it would negatively impact sustainability / EPC rating
- Equality act
- Is it in line with the lease
RE-FIT PROGRAMME
What were the re-fit works?
These were a light touch, involving repainting stores and replacing like-for-like units. There were no structural alterations
RE-FIT PROGRAMME
How did these works fit in with your clients objectives?
This helped to enhance the customer experience by having a modern decor and layout in stores
Maximised their tech offering in store
Enhances customer experience
RE-FIT PROGRAMME
Talk me through this example
In this example I acted as the project manager for my clients stores in the midlands. I was responsible for managing landlord consents, the solicitors and the contractors.
In order to manage the project, I created a tracker of each of the stores due for a re-fit and adopted a red amber green system to help make the tracker easy to understand. I tracked the status of each store to include when landlord contact was made, if a licence to alter was required or not, any queries raised by the landlord and if consent had been granted.
A green site was one where approval had been confirmed and the works can be booked in, orange is a site with on-going negotiations and red is a site blocked by a lease issue such as a renewal.
I discussed the status of each site with my client on a weekly basis and the tracker acted as the guide during these meetings. We discussed any sites that were priorities to ensure that I was aware of where the most focus should be placed.
My client used the tracker to book the programme of works and when discussing the project with their board.
RE-FIT PROGRAMME
What was your advice to the client?
I advised the client of the lease rights and if a licence to alter would be required for these works or not. Sites which did not require an LTA would save on costs
I advised the client on the status of each property and expected timescales for agreeing consents. I advised of any delays and any sites that were about to be agreed.
RE-FIT PROGRAMME
What were the financial implications?
The financial implications included a consent being delayed and falling out of the schedule booked with the contractors.
Agreeing LTA fee’s with the LL where they were not required
Stores loosing potential sales as refit works did not complete
CAPITAL DEPLOYMENT
What were your clients objectives?
My clients objectives were to be able to deliver on their company aim of being the leading shared management company for telecommunication sites.
The objectives of this project were to reduce their rental liabilities and have greater control over the estate through acquiring the freehold or long leasehold of key sites.
CAPITAL DEPLOYMENT
How did you go about achieving these objactives?
I went about achieving these objectives by undertaking an analysis of their portfolio and identifying the properties where the most value could be achieved. This would include sites that are mid-way through the lease agreement with high rents and restrictive lease covenants.
CAPITAL DEPLOYMENT
Talk me through this example
For the capital deployment project, my client was a shared management company for telecommunication sites. Their strategic objective for this project was to reduce their rental liabilities and have greater control over their portfolio. A key concern for my client was removing restrictive sharing rights.
I therefore conducted a review of their portfolio and identified sites that were mid-way through the term with a high rental liability and restrictive sharing rights.
CAPITAL DEPLOYMENT
Talk me through this example
For the capital deployment project, my client was a shared management company for telecommunication sites. Their strategic objective for this project was to reduce their rental liabilities and have greater control over their portfolio. A key concern for my client was removing restrictive sharing rights.
I therefore conducted a review of their portfolio and identified sites that were mid-way through the term with a high rental liability and restrictive sharing rights. I identified 100 key sites, completed full lease audits and completed a valuation using my clients valuation matrix.
I contacted the relevant landlords for the sites to gauge if they were interested in hearing about the offer and if they were I would put a figure to them.
I kept track of the sites by utilising my clients database. For each property, I displayed the lease audit, attached the lease and photographs of the sites. Each property was categorised by its current negotiation status.
I participated in weekly meetings to discuss the status of the negotiations and identify my clients key focuses/
The project resulted in my client acquiring a number of sites and in turn reducing their rental liabilities and removing restrictive sharing rights.
CAPITAL DEPLOYMENT
What factors made a property suitable for this project?
- High rent
- Restrictive covenants
- Mid-term lease
