Case Study: Strategic Asset Management
Following the refurbishment of two floors at this high quality office building in Richmond-upon-Thames, we have secured new lettings 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 had 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.
Part of the second floor (1,887 sq ft) had been sub-let on a term expiring in September 2018 and at a rent equating to £37 per sq ft. Negotiations to retain this tenant concluded with an unbroken 5 year lease term at a rent equating to £49 per sq ft, an increase of 32% on the previous level. The other half of the second floor, extending to 1,387 sq ft, has been re-let to a new tenant on a 10 year lease term with a break option in the fifth year at a rent equating to just under £50 per sq ft.
Negotiations are well advanced with an occupier for the remaining first floor as we continue to grow and improve the quality of the income from this asset, enhancing value and boosting investment returns.