Finding and Purchasing Commercial Properties for Investors

As well as finding tenants for our landlords and investors, we also help identify commercial property for them to purchase to add to existing portfolios.

The key to the success of this service is our understanding of our clients. We take the time to understand their objectives, timescales, budget, risk profile, preferences regarding type of property, and other factors before using our established industry networks to search the market for suitable investment opportunities.

We were recently asked by an investor we have previously worked with to find a commercial property with tenants in place to provide residual income for the short to middle term and redevelopment opportunities in the long term.

Their criteria were as follows:-

• Industrial or retail warehousing assets to be consider
• Lot size of £500,000 – £750,000
• Minimum return of 7% over the short to medium term
• Willing to take a fair element of risk if property offered if property provides opportunity to add value / redevelop in the medium to long term
• Particular interest in properties within Wales

Searching the Regional Commercial Property Market

Once we had this brief we were able to search the market for potential opportunities and keep an ongoing brief running for the identification of such opportunities. In a tight market, we managed to identify a few opportunities utilising or industry contacts with one particular property standing out. This was a retail warehouse in Llandrindod Wells let to a national tenant for a further seven years.

With the client expressing a clear interest in the property we undertook the following process:-

• We undertook an inspection of the property to assess it’s condition and potential
• We spoke in detail with the manager of the occupier to understand their trading performance.
• Further investigation into the tenant and the circumstances of a recent CVA were researched and considered
• We also undertook an analysis of the town and researched the supply and demand of competing property in the area.
• The property has longer term potential for repurposing / or redevelopment for options for this were considered also.
• The legal pack was reviewed and specifics of rent review and schedule of condition were noted, specific areas of interest were referred to the client’s solicitor for further consideration

Negotiating the Purchase and Completing the Deal

With the client happy with the risk /reward that the property was presenting we were asked to negotiate for the purchase of the property. Unfortunately, there was significant interest in the property and the seller decided to go for best bids. We therefore advised and agreed a bid with client, stressing the level of due diligence we had carried out, our ability to perform quickly without the need for financing / valuation and with an appointed legal team who could complete the purchase efficiently and swiftly.

Initially, the seller went with an alternative purchaser who had offered more money. However, they quickly came back to us when this purchaser was able to proceed as they had promised. With the ability to perform quickly clearly essential to the seller, we renegotiated terms quickly, assured them that we would be in a position to move forward at speed and instructed solicitor accordingly, agreeing to purchase the property within 4 weeks.

With the deal now complete, the client has instructed us to look for more suitable opportunities to grow their portfolio. We also built a good relationship with the agent that represented the seller and they are now sending us early introductions on other investment opportunities for us to put to our clients. A number of other investors have also recognised the work we have been doing and have approached us to work with them to identify potential opportunities matching their requirements also.

As a result of the above we are now busy working with clients searching for commercial property investment opportunities. We are also looking to work with investors who have commercial property investments to sell as we have a bank of potential purchasers both retained and unretained looking to expand their commercial property portfolios.

To arrange a meeting with Dan Smith to discuss your specific requirements, please email [email protected] | 01633 740740