Priyen Patel, director of The Prideview Group’s management arm, Pride Management, walks through an example of a property in Leicester town centre let to a struggling Blue-Chip tenant. This short piece was published in the latest edition of the Property Auction Buyers’ Guide, published by the Estates Gazette in June 2018. You can see the article as published here alongside another piece about what and where we have advised our clients to invest in at varying budgets.
The owner acquired it in auction independently and came to us for help when the tenant spoke up. Despite their national coverage, some of their high-street units are losing money due to high rents and strong competition.
- To assist their cashflow we offered monthly rather than quarterly rental payment
- With that not working we suggested they could sub-let the unit
- However they wanted to surrender their lease which has 8 years unexpired for a premium
- We accepted on the condition that they pay full rent for 6 months while the unit is marketed To Let – this minimises any rental voids and saves our client vacant business rates
- The proceeds of the surrender premium then allow us to let the property at a lower rent in order to attract a suitable tenant
Priyen’s advice is that it is better to work with tenants rather than risk becoming embroiled in a costly administration or CVA, as the priority should always be achieving a long-term income stream rather than chasing yield.
If you have any questions on how we can assist you in managing your property please contact Priyen for further information. You can read Estates Gazette Property Auction Buyers’ Guide online now by registering on their website here.