Case Study: Strategic Asset Management
Following the systematic refurbishment of all floors at this high quality office in Richmond-upon-Thames, the building has been fully re-let at top rents for the town.
The property is centrally located within walking distance of all amenities and the train station, and overlooking the River Thames. Works to the first and second floors completed in December 2018 after the previous tenant vacated at lease expiry in September. These included the removal of all partitioning to open up the floors, new carpeting and a full redecoration throughout. Improved LED lighting was installed to brighten the space and increase the energy efficiency.
Following two lettings on the second floor at rents equating to £49 per sq ft (1,887 sq ft) and £50 per sq ft (1,387 sq ft), we have relocated the ground floor tenant to the first floor (3,289 sq ft) on a new 10 year lease term (5th year break) at an enhanced rent equating to £50 per sq ft. On the ground floor, a local firm of architects has signed up to a 10 year lease term (5th year break) at a rent equating to £48 per sq ft.
This asset management initiative has grown rents from £37 per sq ft on average when the building was acquired in 2016, to £50 per sq ft following the recent round of lettings. As a result, it has had a positive impact on our client’s rental cashflow from this property increasing annual income by 36% since purchase.
In addition, the building’s green credentials have been enhanced with bike racks, storage lockers and a shower added.