At the end of the summer a management client of Drake Howard Property lost a tenant to business failure. The challenge to follow in these circumstances is to quickly and diligently assess whether the business has assets on which the client can seek recompense for loss and determine whether to take formal possession of the property if the assets are insufficient to cover the ongoing liabilities under the lease.

The decision in favour of possession was taken as the market for industrial units had seen a sea change in rental levels in two years since the previous letting. Once the premises had been cleared and minor repairs completed, the shock of losing a tenant and hit on the income stream had turned to opportunity.

The Agent offered the property back to the market, 20 percent above the rental rate achieved in September 2019, to take advantage of demand outstripping supply. Competitive bidding followed a stream of viewings for the 8,240 sq. ft., 6.80 m eaves, late 1970’s, warehouse, off Torrington Avenue.

Culminating in grant of a new 10 years lease at a rent 34 percent above the rent paid by the failed business.

Lovell Partnerships Limited has acquired the warehouse and office premises in a contract led deal which will see the business fitting kitchens in homes in the ownership of Citizen Housing Group.

The Landlord has achieved capital growth from a combination of improved Tenant covenant status and increased rental value. Not the worst result, from turnaround of loss of an occupier, to Drake Howard Property management diligence and marketing gain.