With Central London rents moving forward and little vacancy, the opportunity was identified to purchase a substantial building in Hammersmith extending to 132,000q ft with extensive car parking and well located for public transport. The property was purchased in Joint Venture with bank debt.
The building suffered from having two modest entrances which needed to be reformed to give occupiers a prestigious entrance. The occupational leases also had short unexpired terms and there was the opportunity to extend and regear leases and also refurbish vacant space to let into a strong occupational market.
The completion of the new entrance greatly enhanced the appeal of the building. Negotiations were also successfully completed with Regus one of the main occupiers to extend their lease . The tenant of the east block vacated, giving the opportunity to undertake a complete refurbishment of that block. After extensive discussions with the JV partner and senior debt provider, Stockland injected the £4m necessary to carry out the refurbishment. During the refurbishment, following strong tenant interest, Harrods agreed terms to purchase the whole block on completion of the refurbishment for just under £40m.