Tenure Restructuring and Disposals

Sheffield Factory
The building was on land held on a lease at a nominal rent fixed for the remaining 55 years of the term. The property was surplus to client's requirements.

The benefit of a nominal rent had a theoretical capital value but prospective purchasers' bankers would lend only against freeholds.

To sell the property at its potential value Pritchard helped his client secure the freehold at a multiplier of the rent which proved to be a fraction of the uplift in the property's increased in value following its conversion to freehold. His client; the property's purchaser, and the financial institution landlord each achieved their objectives. The client benefitted from a considerable gain over book value.

Victorian Barracks Disposal
The client's business had grown from a fledgling operation in the corner of a near derelict Victorian barracks estate. The main attraction to the property had been the exceptionally low rent. The business had grown into the remaining semi derelict space at apparently low cost over many years. However the client had unwittingly entered into repairing leases representing significant long term liabilities. The client had eventually taken up all available space on the estate and now needed modern facilities, not only to operate more efficiently but also to attract staff.

To acquire additional space without off loading the running costs of the barracks was not commercially viable. Pritchard saw the opportunity to secure planning consent for retail use on the barracks, facilitating introduction of a developer to the landlord who would benefit from considerable uplift in value of his property as a supermarket development site. The uplift in value exceeded the client's contingent repairing liability. Pritchard's client gained a triple edged advantage:

1) Release from a very large repairs liability;
2) In return for surrendering the lease, a share in value uplift (Reverse Premium).
3) Confidence to proceed with the development of a bespoke facility in a better location and a new building with lower maintenance costs.

Disposal of aged premises in Leeds and Glossop
The client had placed surplus space in the hands of a leading commercial estate agents. Marketing strategy and material were adequate. The agents reported on viewings and levels of interest in general but the agents were retained on many similar properties. The rents remained a drain on the client's cash flow.

Pritchard called on the C.E.Os of neighbouring companies which had viewed each of the properties. In both cases a conversation with the business proprietors crystallised the contenders' decisions with the result that lease assignments soon completed.