Track record

Asset Management for an industrial estate, Hertfordshire

Institutional Client

Appointed as an external Asset Manager for a 150,000 sq ft industrial estate

Asset Management

Service

Industrial & Logistics

Industry

Adam De Acetis

Adam de Acetis

The project

The Fund acquired a 150,000 sq ft. industrial estate and appointed Rapleys as an external Asset Manager. The units ranged from 7,000 sq ft to 30,000 sq ft.

Rapleys’ role was to drive value and performance of the estate, along with delivering a number of corporate objectives for The Fund.

Our solution

  • The estate had poor identity and branding. Rapleys commissioned a design time to rebrand the scheme by creating a new logo, colour palette, branded tenant directories at each entrance, along with a 10 m wide x 1 m heigh panatrim sign fronting the main road
  • Rapleys led a project team to deliver a strategic full refurbishment of a vacant 7,000 sq ft unit, comprising a new roof, windows, improved layout, lighting and overall efficiency, increasing the EPC rating from F to B. The unit was let within 3 months of PC on a new 10 year lease, 3 months rent free at 12.5% above ERV. The letting was a key milestone, being the first significant open market recent deal, to cement and improve the rental tone
  • Rapleys aggressively pursued a surrender of a 10,000 sq ft unit (where the tenant had vacated and the lease had 1 year unexpired), led a similar strategic refurbishment programme increasing the EPC rating from D to B. Rapleys agreed heads of terms in advance of PC, completing a new 5 year lease immediately on PC, 3 month’s rent free, at a rent 17% above ERV and 50% above the former passing rent
  • 35% of the estate was let to two strong occupiers with leases due to expire within 2 -3 years. Rapleys successfully negotiated lease re-gears with both extending their term, immediately improving the headline rent and aligning it with current rental values – representing increases of circa. 50% and 37%
  • Subsequently, Rapleys strategically initiated a number of historic rent reviews and, using recently generated comparable evidence, negotiated increased rental income
  • Within two years of instruction, Rapleys:
    • Increased the total annual income from the estate by 30%
    • Increased the rental tone by 40%
    • De-risked key income streams
    • Created a strong brand with full occupancy
    • Supported The Fund in achieving their sustainability objectives.

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