The tenant company had gone into liquidation and the borrower was no longer servicing the debt.
We provided local occupational, investment and auction advice as well as LPA receivership services to successfully deliver an exit of the individual properties for a total price of £3.5m, which exceeded the client’s expectations of value.
Taking control of the assets to protect the Bank’s interest
It was important to take control of the assets and to stabilise the position. Immediately we took possession of the properties and undertook all the necessary administrative duties in order to protect the Bank’s interest.
We then carried out a strategic review, identifying the most appropriate exit strategies for each property. This involved collaboration between our occupational agency teams, our property managers and our capital markets and auction teams.
Identifying disposal strategies for maximum capital receipts
We explored multiple exit routes and determined the best disposal strategy which maximised the capital receipt for the Bank within the required timescale. One of the properties required repair and improvement to prepare it for letting or sale, which involved our building consultancy team advising on appropriate areas of capital expenditure and to oversee the works.
Exceeding value expectations on successful exits
All three assets have been sold. Two industrial units were sold to owner occupiers and a retail unit was let to a local trader and then sold by our online auction team, at all times maximising the sale proceeds whilst providing certainty on the timing of the exit.
The exit strategy was implemented as planned and yielded the maximum capital receipt within the agreed timeframe.