Communication, expertise and diligence – The keys to successful large asset acquisitions

Market Financial Solutions (MFS) is one of the UK’s leading independent bridging finance providers. An investor approached them twice in 2021, seeking loans of towards the purchase of two Shopping Centres in England. MFS knew that they needed more information to be able to make an informed decision and turned to AWH, a trusted part of the MFS valuation panel, drawing upon our experience in commercial valuations.

CHALLENGES FACED

While the Shopping Centres in question are located in the centres of established towns, they were struggling with vacancy rates, large rent concessions, relative low turnover of lease renewals and Landlord’s shortfalls. With tight deadlines on the purchases, a vast array of areas to inspect and research, both projects had a number of unique challenges.

Among the usual investigations needed for valuations of this kind, it was discovered that one of the Shopping Centres had been built on a site which had previously housed a Petrol Station, giving rise to the concern of possible contamination issues.

SOLUTION

In consideration of these complexities, AWH assigned two senior employees with extensive knowledge in multi-let commercial buildings, rent reviews, lease renewals and agency to the task. Understanding the difference between lettings and lease renewals analysis is vitally important in cases such as this, in order to determine the net effective market rental values. Coupling the expertise of these two professionals enabled AWH to provide this understanding to MFS.

Utilising a two-pronged approach by combining the Valuation investment of Robert Hughes MRICS and the L&T experience of Stephen Anderson BSc (Hons) MRICS, allowed AWH to provide the meticulous attention to detail that valuations of this nature require, simultaneously ensuring that the tight timescales could be met without impacting on commitments to other clients.

Following thorough research, the AWH team was able to provide extensively documented commentaries, which allowed MFS to proceed in confidence, knowing that the risks had been accounted for.

Wayne Fitzpatrick, Senior Underwriter at MFS said:

The nature of the work and relationship with AWH is great. The ease of conversation and their communication in general makes them really stand out – they are always a phone call away, and prepared to move mountains.

 

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