SBM were tasked to assist with the disposal of a 1-acre freehold site in an industrial location in Chessington.
1. Our Client’s Property Scenario
Our US-based client owned a 1-acre freehold site, located in a well-established industrial location in Chessington, South West London. As the business no longer required the premises for operations, they were seeking a swift disposal to minimise ongoing costs, to tie in closely with the closure of the unit.
2. Challenges and Solutions
The property scenario brings four main challenges:
a. Swift exit
| Challenge | Solution |
|---|---|
| The Client required a swift exit, but not at the opportunity cost of a lower price. The exit needed to be timed to align with the end of their operations and the unit’s clearance. Also, a quick transaction was beneficial given the uncertain economic environment. | This has been managed by undertaking a thorough and detailed broker exercise, to identify the best broker to act on the sale and working closely with the client to manage expectations. Working together in a dynamic environment has allowed us to be reactive during the sale process, bringing forward the bidding timeline and quickly securing a favourable purchaser. |
| Although the property is well located, there are several physical challenges including an irregular site shape and a solid building structure, being ex Ministry of Defence. | By identifying and discussing these issues with the client early, and assessing the associated risks, we were able to incorporate them into our discussions on pricing expectations and market appetite. This proactive approach allowed us to address challenges with purchasers before they became blockers, rather than reacting after costs were incurred. We also assisted in obtaining an EPC certificate where one did not exist prior to our involvement. |
b. Achieving best price and transaction certainty
| Challenge | Solution |
|---|---|
| While there was evidence of transactions in the immediate area, some buildings on the same estate had failed to sell, showing that the market is very sensitive to incorrect pricing aspirations. | We undertook an extensive market research exercise, made contact with neighbours and nearby occupiers, and considered all angles for disposal, including creative solutions through planning. |
Through a thorough search and screening exercise of the local agents, SBM were confident that the appointed agent would lead to the best opportunity for the best price.
A targeted and controlled marketing campaign led to a “best bid” bidding war and a fantastic price secured for the client.
Thorough vetting of the offers delivered confidence to the client that the transaction could be delivered once an offer was accepted and set the way for a productive relationship during the sale with the buyer. We are also pleased that this transaction involved a local buyer, employing locally.
Amongst an uncertain economic backdrop, SBM’s close involvement ensured any issues that arose during the transaction were identified and resolved swiftly, keeping the sale on track.
c. Regular client contact
| Challenge | Solution |
|---|---|
| The client is based in the US, so had little exposure to the UK property market, and required expert advice in how to best place the asset to obtain the best price. | We maintained regular contact with the client throughout the process, collaborating closely to achieve the best outcome for all parties. |
d. Delivering on the instruction
| Challenge | Solution |
|---|---|
| The situation required assisting the client in preparing the property for sale, ensuring full contractual compliance, timely delivery, and safeguarding the asset until completion. | We maintained intensive engagement throughout the sales process, ensuring that other key stakeholders in the transaction were held accountable, while applying a reasoned and commercial approach to successfully complete the transaction. |
As with all transactions, issues may arise. SBM addressed every issue in a detailed and pragmatic way to ensure they were understood, communicated and resolved. Where the transaction included a foreign selling entity for example, the issue was identified and resolved to ensure the completion date was met.
Results
The intervention of SBM achieved three key outcomes:
- Preparation and protection of the asset: We assisted the client in ensuring the property was ready to sell, fully compliant with the contract, and delivered on schedule, while protecting the asset up to the point of sale.
- Efficient transaction: The sale was completed within two months of instructing solicitors, representing a remarkably quick transaction made possible through close collaboration between the buyer, the seller, SBM, and the solicitors. This ensured a timely exit that met operational needs and minimised the client’s cost exposure.
- Pricing achieved c. £300k above initial market evidence, through competitive marketing and strategic placement of the asset.
If you would like to learn how we can support your next property project, get in touch with our team.
