A private landowner in Northallerton who was receiving a modest, short term rental income from a couple of occupied properties at the end of their economic life appointed us to secure longer term income from the site. Due to the raising of tax liability we were unable to dispose of the site and the client did not have sufficient capital to refurbish or redevelop.
We first advised on the legal position with respect of the sitting tenants and then our agency teams were able to offer guidance on a number of retail requirements that the town had.
By drawing upon our in house team of architects we were then able to draw up plans for a new 8,200 sq ft retail scheme. Our agency team marketed this to national retailers and were able to secure pre lets with two retailers, Majestic Wine Warehouse and Pets at Home. The 15 year leases produced a total rent of £123,000 per annum and were negotiated as full repairing and insuring (FRI) leases which relieved the landlord of all cost for insurance and repairs during tenancy.
Subsequently our planning team were able to secure full planning permission and negotiate a substantial reduction in the developer’s contribution to s106 obligations. Caddick Developments were brought in to oversee the build and as we were able to pre sell the investment they did so with low risk.
Through the combination of our services we were able to guarantee the private client had a secure long term income with no tax liability and the developers had a de risked development with a strong profit margin.