A high street bank, recognising Eddisons’ longstanding expertise in business support and recovery situations, instructed us to undertake a significant development site disposal involving a substantial bank debt.
This 5.85 acre site on the outskirts of Leeds City Centre consisted of a 45,000 sq ft tenanted industrial building and cleared land containing 750 car parking spaces. There were a variety of complex issues attached to the site including enforcement notices served on the car park for which there was no planning consent and a lease on the whole property to a connected company who collected all of the income.
Eddisons ensured that the overriding lease was forfeited and employed a dedicated member of staff to manage the 750 car parking spaces in-house to reduce the bank’s costs and ensure control. Also obtaining temporary planning consent for car parking to protect significant income.
We agreed a lease renewal for the industrial tenant on favourable terms to permit development if required and obtained detailed planning consent for a mixed use scheme including residential, hotel and office. With consents in place and a long term tenant secured the site became a much more feasible and attractive proposition for Eddisons to market for sale.
Significantly increased the value of the building and achieved £6m from the sale of the property as a single lot (£4m higher than previous bank valuations). We were also able to secure in excess of £1.5m of income from the car park and industrial tenant which funded the planning process and meant no additional funds were required from the bank.
June 30th, 2020