Summary Specific Flashcards
Inspection Level 2 - Stafford for valuation purposes
Reflected inspection in my diary – Informed colleagues upon entry and exit. I did not inspect alone, with a colleague.
Inspected the surrounding area - Close proximity to the train station, vibrant shopping destination in the area.
Made notes on vacancy - Low rate on vacancy, however, one of the tenants were in administration
Footfall - Huge amount of footfall in the area, taking away from the high street
Condition of the property - noted that property was in good condition as it was newly refurbished 3 years prior
Specification of the property - 230,000 sq ft shopping mall with leisure operator. Multi -storey car park with 1025 car parking spaces. Property has a 6 screen ODEON LUXE CINEMA. Partially open.
Inspection Level 2 - Dartford for valuation purposes
Reflected inspection in my diary – Informed colleagues upon entry and exit. I did not inspect alone, with a colleague.
Condition of the property - Good condition, no indication of contamination.
Specification of the property - 160,000 sq ft retail park with 13 units and 400 car parking spaces.
Surrounding area - A lot of footfall in the retail park as it is the main shopping destination in the area with leisure elements. Close proximity to the train station,
Found that one of the units was vacant - on the tenancy schedule it was occupied.
Notified client and reflected this in the valuation
Inspection Level 3 - 30GS for agency purposes
Reflected inspection in my diary – Informed colleagues upon entry and exit. I did not inspect alone, with a colleague.
Upon instruction, ToE signed for disposal of the property, I inspected the property to look for anything that would affect marketability and presentation of the accommodation. Looked at the floor and the common areas and facilities
Marketing purposes - accurate photographs and description, made sure the floor plan was correct.
Advice - prospective leasing strategy - 2nd hand tenant space so could not achieve market rent of a Grade A office. Advised on marketing part of the floor (in accordance to their current lease). Advised on agency launch to get agents looking at the property.
Description - 30 Gresham street is a striking landmark City building totalling
c400,000 sq,ft, completed by Land Securities in 2003. It is the global
HQ of Investec and the UK HQ of Commerzbank.
Spec: Fully fitted suite
2.7 metre typical finished floor to ceiling heights
Four pipe fan coil air conditioning
Fully accessible raised floors (150mm void)
Metal tiled suspended ceilings
Occupancy level of 1 person/10m2
Impressive double height and dual access reception area
Eight 26-person passenger lifts
Two 2,500kg goods lifts
Two vehicle lifts providing access to the basement levels
Bicycle storage with shower and changing facilities
‘Very Good’ BREEAM rating
Back up power generator
Inspection Level 3 - Industrial Estate in Kent for prop man purposes
Reflected inspection in my diary – Informed colleagues upon entry and exit. I did not inspect alone, with a colleague.
Purpose - access overall condition, presentation and to see if tenants were obligating with their leases.
Condition and presentation - condition of the units were good. Presentation - landscaping was poor. Took photographs and communicated with the company.
Tenant obligations - one tenant not complying. Advised the tenant of their obligations.
Followed up with all tenants to confirm that the parking issue had been resolved and that the landscaping contractor was fulfilling their duties and if there were any issues, they should not hesitate to contact me.
Measurement Level 2 - Southwark Office
Measured on NIA basis - this was confirmed on the HoT of the letting. Joint measurement with tenant representative.
Measured in RICS Code of Measuring Practice, 2018
Used distometer
Excluded any columns and common parts
Split floor plate - it was a U space so measured the rectangle and the two other rectangles.
Measurement Level 2 - Central London Office
Measured on NIA basis
Excluded columns and common parts
Checked for accuracy of valuation by crosschecking with the previous measurement that was on an NIA basis.
Collated my measurements in Excel.
Data Man Level 2 - Valuation information
Collated all data for a valuation instruction from the borrower - tenancy schedules, service charge budgets, any details of capex, building survey reports etc.
Stored all of the data used in relevant files for the valuation
Obtained comparable evidence from Co-star and an internal database - checked for accuracy by calling agents to verify information.
Responsible for putting this information into a presentable table in the valuation report.
Data Man Level 2 - Database of all available property in the City Market
Responsible for compiling and updating database of all available properties in City.
Called agents to verify rents and confirm rents. Called agents to see what accommodation was let/vacant.
Updated developments pipeline - contacted agents for updates on when properties would be available. Ensured this info was accurate as they were being to clients for potential pre-lettings.
Security of data - password protected.
Data Man Level 3 - Reinstatement obligations
Responsible for compiling reinstatement obligations for occupier - make them aware of estimated reinstatement figure and obligation when determining strategy.
Extracted lease info into spreadsheet.
Accuracy of data - updated spreadsheet if site had been added or disposed of.
Data Man Level 3 - R4C mailing list
Responsible for R4C Mailing list
Sent newsletters/events/comms to mailing list.
GDPR - made sure members could opt-out of communications immediately.
Mailing list - password protected and updated regularly.
All member email addresses were in BCC and could not be identified.
Valuation Level 2 - Derby for loan security
Inspected – assessed all aspects which could impact value & checked all tenants were in situ – produced report highlighting a SWOT, comparables and valuation.
Spec: 1.3 million sq ft with shops, restaurants and leisure operators. 7 level multi-storey car park
Inspection basis: Internal basis
Approach - traditional direct capitalisation
Method - capitalisation of current income and forecast income at appropriate cap rate to arrive an appropriate yield with reference to investment transactions within the market.
MV: £203,500,000
MR: £23,000,000 per annum
IY: 8.75%
RY: 10.01%
EY - 9.34%
S: No competition, dominant shopping centre in the destination
W: Retail rents were being rebased due to COVID
O: Primark taking larger unit, re-develop to resi scheme
T: Retail market suffering - insolvencies
Valuation Level 2 - Essex monthly valuation
No reinspection - VPS 2 - stated in valuation report,
Asked asset manager questions following previous valuation on vacant unit.
No new lettings at the property
There was a new letting and two sales transactions in the area.
I reduced the Zone A rent from £180 psf to £160 psf to reflect weakening market sentiment.
FV: £1.23m (reduced 10%)
Cap rate: 8%
EY: 7.75%
Assumptions: 6 month void and 12 month rent free
Valuation Level 3 - Oxford quarterly valuation
Inspected the property. Condition - good condition. Low footfall in the area. 5 retail units.
Weakening market sentiment in the area.
Verified comps with local agents and checked with internal team.
Cap Yield - Ranged from 4.97% to 7%. Wasabi has a turnover lease so applied cap rate to base rent and turnover rent.
FV: £800,000
MR: £95,800
EY: 8.5%
Capex - £150,000, no operating costs
Assumptions: 9 month void and 12 month rent free
Valuation Level 3 - Putney quarterly valuation
Inspected the property - recently refurbished supermarket. Local area was vibrant shopping area, train station in close proximity.
Description of the property: 5 shops on a high street. The property is situated at the northern end of Putney High Street, close to the Exchange Shopping Centre, which is anchored by Waitrose and benefits from 250 dedicated car parking spaces. Traditional shop frontage and concrete frame.
Market sentiment was strengthening.
Verified comps with local agents and checked with internal team.
Rental comps: Recent letting at £41 psf (higher market rent - passing at property was approx £20 psf) , Investment comp: Sold for £794,000 - both resi and comm - 6.3% NIY - Comm uni let on FRI lease but tenant is in administration.
Cap Yields: 4% on supermarket (strong covenant strength), 8% on void units, in between for other tenants
FV: £19,120,000
MR: £1,116,000
EY: 5.19%
Assumptions: 9 month void and 12 month rent free
Capex - Leasing fees of 15%, operating costs - business rates, insurance and service charge of void units.
Stablising in current market - retail in greater London was rising, with higher rents being achieved and a low supply of high street retain properties. Demand from supermarkets such as Lidl and Aldi.
Leasing and Letting Level 2 - 10,000 sq ft req in West End
10,000 sq ft requirement in West End for approx 200 employees
Arranged initial call with the client to understand their requirements - timing, budget, what they wanted (Cat A/Cat B). locations.
Issued ToE - signed then started work.
Went to market - used AS to collate options.
Presented options to client, to which we had a call to discuss the options and they shortlisted options to view.
Instructed us to issue RFP - negotiated HoTs
Cental London: Prime rents: £140 psf - 24 months rent free over a 10 year term, supply decreased
City: Prime rents are at £110 psf, average is £75 psf with a 10% vacancy rate
West End: Prime rents are at £160 psf, average is £89 psf with a 7% vacancy rate
Leasing and Letting Level 2 - 6,000 sq ft req. in City Core
6,000 sq ft requirement in City Core - Tower space
Arranged initial call with the client to understand their requirements - timing, budget, what they wanted (Cat A/Cat B). locations. Needed to be in occupation ASAP - building London team.
Issued ToE - signed then started work.
Went to market - used AS to collate options.
Presented options to client, to which we had a call to discuss the options and they shortlisted options to view.
Instructed us to issue RFP on two options - negotiated HoTs
Option fell through due to a larger occupier taking multiple floors.
Leasing and Letting Level 3 - 5,000 sq ft - Energy Saving
5,000 sq ft requirement in King’s Cross for a charity.
Arranged initial call with the client to understand their requirements - timing, budget, what they wanted (Cat A/Cat B). locations. EPC needed to be a B. Budget was £290,000 per annum.
Issued ToE - signed then started work.
Went to market - used AS to collate options.
Presented options to client, to which we had a call to discuss the options and they shortlisted options to view.
Arranged initial call with the client to understand their requirements - timing, budget, what they wanted (Cat A/Cat B). locations. Needed to be in occupation ASAP - building London team.
Instructed us to issue RFP on two options - negotiated HoTs
Advice - Did cash flow analysis of both options - helped determine which option they should pick with their budget constraints and one of the options wasn’t fully fitted out.
Negotiated - Rent at £65 psf, 5 year term certain with a 9 month rent free. Fully fitted with LL works to fit in bicycle spaces.
Leasing and Letting Level 3 - Disposal of 55KWS
Disposal for a tenant who had been acquired, so moved into parent company’s office.
5,000 sq ft - tenant fit out, £55 psf, 6 years left on lease - available for sublease or assignment.
Responsible in responding to appropriate requirements in the market, conducting the viewings at the property and provided the client with the interest schedule bi-weekly. Also held an agents launch along with the landlord’s floor.
After a few viewings,
Property Man Level 2 - Monthly reporting to clients
Monthly reports to highlight key client and property management objectives.
Examples: As much rent as possible due to industrial portfolio being put on the market. Also, liaising with tenants for service charge provision on site.
Service charge v expenditure
Ongoing tenant or landlord works
Arrear statistics
Property Man - Draft service charge budget
Drafted a service charge budget for an industrial property in West Byfleet.
1) Spoke to FM to understand the common parts at the property and what needed to be done. There were pot holes in the service road and there needed to be an increase in the frequency of visits for the landscaping.
2) Arranged a site inspection to see the works and see common parts.
3) Analysed leases to see if there were any service charge caps
4) Apportioned by floor area and sent it to the client for approval. Minimal uplift in the budget.
SREC Level 2 - Office relocation in Lagos
Office relocation in Lagos - occupier planned to exercise break option in Sept 2022. The office was too large and in poor condition. Generator hardly worked - in a hot country, workforce were not happy.
Chose to exit at expiry in 2023 - enough time to look at all the available options in the market.
I appointed a 3rd party broker, CBRE, to represent the occupier during the acquisition process.
Local team shortlisted options and conducted viewing tour, with test fits provided.
Lagos market - a lot of new stock coming onto the market that was in better condition than the subject property.
3rd party agreement - outlined the project objectives, deliverables, project team and fee basis between my firm and the 3rd party broker.
SREC Level 2 - Istanbul exit
Original strategy - renew the lease in Istanbul. I put together the market comparables by speaking to a broker who operates in the Istanbul market from my firm, who sent me comparables and market information. The market rent was LIRA, the economy was weak at the time, supply was high and demand was low.
Engaged with solicitor to ensure to prepare the renewal notice to the landlord
Financial analysis - showed that the financial liability that the occupier would have if they had the lease for an additional 5 years - there was a 15% uplift in rent and operating costs.
Strategy - Consolidate the offices in Turkey, so employees could work out of the other offices.
Engaged with solicitors to serve notice to exit the office at expiry. Prepared reinstatement obligations and liaised with the client’s Project team to action and arrange reinstatement.
SREC Level 3 - Mod’in - serviced office renewal
Occupier had a service office for 13 people - option to renew was coming so consulted with the client as to whether they would like to renew or exit as needed to serve 3 months notice. Their lease had an automatic renewal option.
I completed an MOV - document that detailed the market conditions, comparable evidence and the current property rent and other outgoings.
Confirmed strategy - renew the lease and add car parking spaces as there was extra head count in the office.
What I did - liaised with the serviced office provider for renewal rates. Did the financial analysis - showed that the renewal rate was slightly more expensive, along with the car parking spaces. The rates were competitive in comparison to other serviced office providers.
Market - due to rising demand of tech companies in Tel Aviv, demand was starting to move to Mod’in so market rents were growing.
Market rent - $12,000 per month
Current rent - $11,216 per month
SREC Level 3 - Portfolio optimisation
Portfolio optimisation - identify where cost savings could be achieved in their portfolio.
Liaised with the TMs to identify large sites that had lease events coming up and collated lease data.
Liaised with the occupier’s workplace team to collect each site’s utilisation data for utilisation figures.
Liaised with local agents to understand market conditions and market rents.
Example - Site in Rome. Utilisation was less than 40% - could downsize. Asking rent at the property was higher than passing rent, so opportunity to re-gear lease and secure a longer lease term. Current rent was $239 sq/m and market rent was $370 sq/m. Rental growth was accelrating
