Scotts Property LLP report the acquisition of industrial premises at c. 30% below the asking price. Matthew Tomlinson commented ‘The acquired units and the Park in which the units form part of had a number of years ago been identified as a redevelopment opportunity. We worked closely with an investor to formulate a higher value development strategy to unlock the Park's potential which will include the full refurbishment of 3 industrial units in addition to the construction of a further unit.' Location is key to the anticipated success of this scheme as the units acquired have excellent roadside frontage to Cleveland Street. Subject to price older stock can present the best development opportunities as the stock exists and can be less costly to refurbish as compared with a new development. Matthew Tomlinson commented ‘Building Regulations have become more onerous increasing build costs. This fact coupled with the lack of appetite by lenders to support new development has a had significant impact on the creation of new commercial space within the City. We are currently working with a handful of investors and developers who have the resources and skill base to navigate around such obstacles although it is not easy. The price reduction we secured for our client highlights the importance of obtaining sound professional advice from the outset.'
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