Fenn Wright

fennwright.co.ukfennwright.co.uk

WHERSTEADPARKHigh Quality Office to Let

Fenn Wright recently acted for the East ofEngland Co-operative Society in relation tothe Freehold acquisition of Wherstead Park tothe south of Ipswich town centre. The propertywas formally occupied by E.On and comprisesa total of about 88,000 sq.ft. of high qualityoffices and ancillary accommodation, withinattractive landscaped grounds extendingto 17.5 acres. The main building totalsapproximately 68,000 sq.ft. and is arrangedover three floors, around an impressive fullheight central atrium. The guide price forthe freehold interest was £7,000,000.

The East of England Co-operative Societywill operate Wherstead Park as a prestigiousregional business park. Wherstead Park willalso provide a new headquarters for theSociety and the total workforce on the siteis expected to be between 400 and 500.

The property also includes an impressivefully refurbished Grade I Listed Georgian

Manor House which will be used as atraining and conference centre.

There will be some 33,000 sq.ft. of modernoffice space available to let to otherbusinesses. Fenn Wright have been instructedto let this accommodation and already haveinterest from a number of companies, witha 10,000 sq.ft. suite already under offer.

Alistair Mitchell comments “the property isin an excellent strategic location adjacent tothe A14/A137 intersection and within easyreach of both Ipswich and Manningtreerailway stations. There are extensive on sitefacilities and the property offers some ofthe best quality accommodation in the area.”

For further information:

Please contact either Alistair Mitchell or

Mark Sargeantson at the Ipswich office.

E: [email protected]


Fenn Wright acting on behalf of FaberMaunsell have acquired 6,000 sq.ft. of thirdfloor offices at Saxon House, Chelmsford on anew 10 year lease. Fenn Wright were retainedto identify high quality accommodation inChelmsford with easy access to the railnetwork and it quickly became apparent thatSaxon House with fit their requirementswell. On behalf of Faber Maunsell, FennWright were able to secure a refurbishmentof the accommodation, a generous rent freeperiod and competitive rental terms.

CHELMSFORD – ACQUIREDFOR FABER MAUNSELL

Contents PageEmpty Property Rates 2Investment & Tax Planning & Approaches 3Corporate Recovery 3Market Place - Sold & Let 3Energy Performance Certificates 4Faber Maunsell Expand into Chelmsford 4

NOTCUTTSEXPANDNORTHWARDSNotcutts has recently completed the

purchase of a further 6 established Garden

Centres in the Midlands and North West

England to compliment the 13 Notcutts

Garden Centres that are owned and operated

by this successful 111 year old Woodbridge

based business. It is now the third largest

chain of Garden Centres in the country. Fenn

Wright were delighted to receive instructions

to value 7 of the freehold Garden Centres

already owned by Notcutts as part of the

corporate funding arrangements.

Deputy Chairman William Notcuttcommented “we would not have been ableto achieve this deal on time and on pricewithout the full support of Fenn Wright.These sites will compliment the Notcuttsbrand as each has an excellent team of staffwho achieve high standards of customerservice and plantsmanship.”

Commercial, Residential, Rural and more...

Winter 2009

DILAPIDATIONBRIEFING

As you are no doubtaware a landlord canenforce the repairingclauses of a leasethrough a Scheduleof Dilapidations. Thisdocument identifiesitems of disrepairwhere a tenant hasfailed to comply withthe repairing covenantswhich then Schedulesthe works required toleave the demise in

repair. This can be done by way of variousoptions, a Notice of Repair, an InterimSchedule or finally a Terminal Schedule.

A Terminal Schedule of Dilapidation canbe served in the last three years of theterm, or up to six years afterwards. If theSchedule is drawn up before the end of thelease, there is a greater chance that repairswill be undertaken by the tenant and thatthe property will be left in adequatecondition for re-letting. If the tenant takesno action then their only option is to makea damages payment based on an agreedclaim amount.

However, a claim against the tenant may belimited by statute and case law, which coulddrastically reduce a claim and is not alwaysbased on the cost of repair.

We recently succeeded in settling aTerminal Dilapidations Claim to cover thecost of a complete external redecorationand repair of premises in Ipswich. This alsoincluded the landlords professional feeswithin the claim. One of the reasons thatthis claim was successful was that thelandlord proved their loss by undertakingthe works. An example of where a claim canbe limited is where a rent free period isprovided to a new tenant to mitigate thecost of the disrepair if no works have beenundertaken. In this respect we were alsorecently succeeded in agreeing adilapidation claim against an outgoingtenant where the incoming tenants rent freeperiod was 4 months to cover the cost ofthe disrepair to the premises, whichresulted in our client receiving a damagespayment to compensate their financial loss.

Should you have any queries in respect

of property matters with regard to

dilapidations either as a landlord or tenant

please do not hesitate to contact:

Nigel Berry BSc MRICS - Building Surveyor

T: 01206 216563 • E: [email protected]

ENERGY PERFORMANCE CERTIFICATESFOR COMMERCIAL PROPERTY- A BENEFIT OR BURDEN?From 1st October it became a legal requirementfor vendor’s and landlord’s to obtain an EnergyPerformance Certificate (EPC) for the vastmajority of commercial properties offered on themarket for sale or to let.

EPCs have been introduced as part of the UKimplementation of the EU Energy Performance ofBuildings Directive. The phased introduction ofthe new regulations started in April and therequirements for EPCs now relate to nearly allcommercial properties which come onto themarket. There are a few exceptions where anEPC is not required although these are verylimited. Trading Standards Officers are responsiblefor the enforcement of these regulations andpenalties for non compliance are based upon12.5% of the Rateable Value, subject to aminimum of £500 and a maximum of £5,000.

The Certificates which rate building energyperformance on a scale of A to G, are valid for aperiod of 10 years and are intended to give anestimate of the energy usage and CO2 emissionsof a building.

EPCs have to be produced by suitably qualifiedenergy assessors and the Certificate must beavailable at the point the property goes onto themarket. After 4 January 2009, an EPC must beavailable when marketing commences.

These new Certificates will not in themselveshave any impact upon actually reducing carbonemissions as this is dependent

upon how the future occupier uses the premises,rather, they provide an indication of the energyefficiency of the building fabric and the heating,ventilation, cooling and lighting systems within it.

A high proportion of our clients have receiveddetails of these new obligations with frustration;EPCs can be expensive, the cost of provision formost medium sized commercial properties willbe £500— £1,500, and routinely potential tenantsand occupiers fail to ask to see an EPC andwhere produced are ambivalent about its content.

With due deference to the increasinglyimportant ‘green’ agenda, it is not difficult toadvance a strong argument that EPCs offer poorvalue for money and contribute little to the processof selling and acquiring commercial property.

Fenn Wright are able to recommend a local, fullyaccredited Consultant to undertake EPCs.


Please contact either

L C Chambers


or

A G Mitchell


Market Place

7,149 sq.ft. LET - MeltonFenn Wright in Ipswich let this modern warehouseat Melton to Seers Medical Ltd at a rent close to thequoting rent of £27,000 pa.

The property comprises a modern warehousebuilding of steel portal frame construction andarranged upon two floors, together with a largesurfaced forecourt. The property has twin rollershutter doors, a gas fired heating system and aircondition to the first floor office accommodation.A large external forecourt provides parking.

7,093 sq.ft. SOLD - IpswichFenn Wright have recently sold premises in FoundationStreet, Ipswich with a total floor area of 7,093 sq.ft.Acting on behalf of Corsegreat Developments, theproperty was sold to a local charity and is to beoccupied by The Iceni Project.

The property is arranged upon three floors, togetherwith basement storage accommodation and offers acombination of cellular and open plan accommodation.

Car parking is provided to the rear of the propertyfor approximately eight vehicles accessed off LowerBrook Street.

16,250 sq.ft. LET - ColchesterActing on behalf of Fame Commercials andColchester Tractors Ltd, this 16,250 sq.ft. industrialpremises has been let to Goldstar Fabrications on anew 10 year lease at a rent close to the askingfigure of £5 per sq.ft.

35,000 sq.ft. LET - ColchesterActing on behalf of the East of England Co-operativeSociety, this purpose built 35,000 sq.ft. warehousehas been let to Air Business Ltd, for a five year periodreflecting an overall rent in excess of £4.25 per sq.ft.

POST CREDIT CRUNCH - INVESTMENTAND TAX PLANNING OPPORTUNITIESThe decline in capital values in the commercial property investment sector over the last 18months combined with the recent sharp reduction in Bank of England ‘base rate’, with theprospect of more to come, is producing some attractive investment opportunities.

The latest data from the IPD Commercial Property Database indicates capital values for the 12months to the end of October 2008 across all commercial property reduced by just over 20%.The industrial sector is down by 17.8% with the worst performing retail sector down by 22.7%.

Historically, falling interest rates have been positive for commercial property. We anticipate thecurrent economic cycle will not prove to be any different, even in the face of a recession in 2009.

fennwright.co.uk

EMPTY PROPERTY RATES ‘BRINGDOWN’ LARGE EMPLOYMENT SITECase HistoryIn 2007 we were approached by LSH, adivision of Lupus Capital who are aninternational company specialising in themanufacture of materials for theconstruction industry. They had recentlyacquired the major part of Laird Groupincluding a number of manufacturingoperations across the UK. LSH asked RogerHayward a Commercial Partner in ourChelmsford office to assist them inproviding advice on the marketing anddisposal of the premises and how tominimise their outgoings.

Following an internal review of the newbusiness and consultation with theworkforce, LSH decided to rationalise theirmanufacturing operations leaving themwith the problem of disposing of some200,000 sq.ft. of vacant buildings at SilverEnd nr Braintree on an 8 acre site. LSHwere the Tenants of the property, and thelease had some 8 years unexpired. Thebuildings ranged in size from 600 to 70,000sq.ft. but most were attached or abuttedother buildings and offered restrictedaccess and eaves height.

We identified three areas of concern: theLease terms, the age and layout of thebuildings and the potential liability forempty property rates if the buildings couldnot be re-let within six months. The annual

rates liability exceeded £240,000 pa.

A previous occupier of part of thepremises had been put into receivershipand these buildings had been left in a poorcondition. We knew that the cost of puttingthe buildings into a lettable condition wassignificant and the chances of letting thebuildings in sensible lot sizes were small.The only way to effect a justifiablemarketing campaign was to subdividethe buildings, but this would have costmore money and the payback period forsuch a scheme based on current marketvalues was longer than the term remainingon the lease!

In principle, the only way forward was to‘sit out’ the economic downturn in the hopethat we would find one or more largeroccupiers for parts and in due coursesubdivide/sublet smaller areas of the siteas demand materialised.

At least that would have been a workablesolution in the absence of the impendingempty rates liability. When we factored inthe potential cost of future repairs and ratesoutgoings we concluded that the onlyviable solution was to demolish all thebuildings and to get the site removed fromthe rating list until we identified analternative beneficial use.

Circular 10/95 excludes from the definitionof ‘development’ the demolition of mostindustrial buildings. However, the centre ofSilver End is designated as a ConservationArea and S.74 of the Planning (ListedBuildings and Conservation Areas) Act 1990requires Conservation Area Consent andthe grant of a planning permission by thelocal authority, Braintree District Council.

Fenn Wright co-ordinated a team meetingearly in January 2008, after which it wasagreed to prepare an Historic BuildingRecord and Report, an Employment LandOverview and Viability Appraisal of theproperty and undertake consultations withthe Landlord. Fortunately, the lease madeprovision for the Tenant to be able todemolish the buildings subject to meetingcertain conditions.

After discussion with Braintree DistrictCouncil, agreement was reached to retain, forthe timebeing, the original factory buildingsconstructed in 1920-1926. A planningapplication was submitted in April 2008. Inthe interim, contractors were appointed tocommence the removal of plant andmachinery, asbestos and other contaminatedmaterials from the factory, a process whichrequired removal of certain parts of thebuilding. A rating appeal was submitted

and approved, agreeing that those areaswere incapable of beneficial occupation.

Planning permission for demolition of thebuildings was granted on the 2nd July 2008.Demolition works commenced as soon asthe principle planning conditions had beensatisfied. Shortly thereafter we submitted afurther rating appeal requesting deletion ofthe whole property from the rating list andthis was agreed with the District Valuersoffice in September 2008. Over the term ofthe Lease, demolition of the buildings willsave our clients a total of over £2m.

If 100% empty rates relief had been availablefor a meaningful period of say 24 months,greater efforts would have been made tofind an alternative occupier. Such buildings,if retained offer good low cost storage andlight industrial business opportunities.

The stock of industrial buildings is a preciousresource and although in this instance thebuildings were not well located, the potentialloss of similar employment opportunitiesdoes raise concerns over the impact of thislegislation, particularly for better locatedbut older properties which are cheaper tooccupy than their modern equivalent.

All markets need time to adjust to fiscalchanges. Many business leases are enteredinto for terms of 10-15 years. The imposition ofan additional tax burden at short notice on lowmargin business’ who are directly responsiblefor significant UK job creation is neithersensible nor politic, particularly at a timewhen the economy is heading for recession!

STOP PRESSAlistair Darling in his Pre-Budget

report (24.11.08) offered some relief

to owners of non-domestic properties

with Rateable Values below £15,000,

by extending the empty rates relief

from 3 months to 12 months.

BEFORE

CORPORATERECOVERY &INSOLVENCYFenn Wright act for a wide range of accountants& insolvency practitioners and offer a professional,adaptable, efficient service.

We have a proven record of providing banks anddebt recovery specialists with discrete pragmaticadvice in order to assist with making an informeddecision as to whether to support a businessthrough difficult times or whether all parties’ bestfinancial interests are served by proceeding toAdministration or Receivership. We are alsoexperienced as LPA Receivers.

Where necessary we provide a full managementservice offering effective rent collection, servicecharge administration and compliance with statutoryregulations. We have established contacts with afull range of reputable contractors and are able toassist with legal compliance and insurancerequirements. This includes repairs, maintenance,procuring gas safety certificates, arrangingclearance of premises etc and undertakingregular inspection of vacant accommodation.

We appreciate that clients in the corporaterecovery and insolvency sector are frequentlyworking to a restricted timeframe for the disposalof property assets, whilst having to ensure thatlenders security reaches its maximum potential.Our team are familiar with such circumstancesand are able to react quickly, ensuring thatinstructions are acted upon immediately and anappropriate timely disposal strategy isimplemented to meet our client’s objectives.

For further information, please contact:

Alistair Mitchell at the Ipswich office:


Lewis Chambers at the Colchester office:


Roger Hayward at the Chelmsford office:


On a selective basis, we believe the marketnow offers good value with the base rate atits lowest level since 1955 and LIBOR spreadsstarting to ease. For purchasers able to raisefinance, using cash from low yielding bankdeposits or investing via SIPP or SSAPSPension vehicles, initial yields are appealingwith the added attraction of medium termcapital growth prospects.

An increasing number of our clients are

considering the tax planning opportunities

arising from softening capital values.

These include:-

£ Inheritance Tax (IHT) planning. In some

instances lower asset values allow the

transfer of commercial and residential

investments to the ‘next generation’

free of Capital Gain Tax liability.

££ Reorganisation of personally owned

assets used for business purposes by a

“connected party” business can now be

effected in a more tax efficient manner.

£££ The establishment of new SIPP and

SSAPS Pension Schemes to provide a

saving in Income Tax and free up capital.

££££ Some individuals with well funded

pension vehicles are looking to transfer

assets out of their Pension Scheme.

We work closely with our clients’ usualSolicitors, Accountants and PensionAdvisors in providing both current andretrospective valuations to carefully assessthe tax implications of a particular scenario.

In the longer term the Government is goingto have to substantially raise tax revenuesto fund the rocketing budget deficit. For highnet worth individuals this is an opportunetime to conduct a review of their holdingsand make appropriate changes.

If any of the opportunities outlined above

are of interest to you please contact:-

Hayman Wheaton at the Colchester office


Market Place

7,149 sq.ft. LET - MeltonFenn Wright in Ipswich let this modern warehouseat Melton to Seers Medical Ltd at a rent close to thequoting rent of £27,000 pa.

The property comprises a modern warehousebuilding of steel portal frame construction andarranged upon two floors, together with a largesurfaced forecourt. The property has twin rollershutter doors, a gas fired heating system and aircondition to the first floor office accommodation.A large external forecourt provides parking.

7,093 sq.ft. SOLD - IpswichFenn Wright have recently sold premises in FoundationStreet, Ipswich with a total floor area of 7,093 sq.ft.Acting on behalf of Corsegreat Developments, theproperty was sold to a local charity and is to beoccupied by The Iceni Project.

The property is arranged upon three floors, togetherwith basement storage accommodation and offers acombination of cellular and open plan accommodation.

Car parking is provided to the rear of the propertyfor approximately eight vehicles accessed off LowerBrook Street.

16,250 sq.ft. LET - ColchesterActing on behalf of Fame Commercials andColchester Tractors Ltd, this 16,250 sq.ft. industrialpremises has been let to Goldstar Fabrications on anew 10 year lease at a rent close to the askingfigure of £5 per sq.ft.

35,000 sq.ft. LET - ColchesterActing on behalf of the East of England Co-operativeSociety, this purpose built 35,000 sq.ft. warehousehas been let to Air Business Ltd, for a five year periodreflecting an overall rent in excess of £4.25 per sq.ft.

POST CREDIT CRUNCH - INVESTMENTAND TAX PLANNING OPPORTUNITIESThe decline in capital values in the commercial property investment sector over the last 18months combined with the recent sharp reduction in Bank of England ‘base rate’, with theprospect of more to come, is producing some attractive investment opportunities.

The latest data from the IPD Commercial Property Database indicates capital values for the 12months to the end of October 2008 across all commercial property reduced by just over 20%.The industrial sector is down by 17.8% with the worst performing retail sector down by 22.7%.

Historically, falling interest rates have been positive for commercial property. We anticipate thecurrent economic cycle will not prove to be any different, even in the face of a recession in 2009.

fennwright.co.uk

EMPTY PROPERTY RATES ‘BRINGDOWN’ LARGE EMPLOYMENT SITECase HistoryIn 2007 we were approached by LSH, adivision of Lupus Capital who are aninternational company specialising in themanufacture of materials for theconstruction industry. They had recentlyacquired the major part of Laird Groupincluding a number of manufacturingoperations across the UK. LSH asked RogerHayward a Commercial Partner in ourChelmsford office to assist them inproviding advice on the marketing anddisposal of the premises and how tominimise their outgoings.

Following an internal review of the newbusiness and consultation with theworkforce, LSH decided to rationalise theirmanufacturing operations leaving themwith the problem of disposing of some200,000 sq.ft. of vacant buildings at SilverEnd nr Braintree on an 8 acre site. LSHwere the Tenants of the property, and thelease had some 8 years unexpired. Thebuildings ranged in size from 600 to 70,000sq.ft. but most were attached or abuttedother buildings and offered restrictedaccess and eaves height.

We identified three areas of concern: theLease terms, the age and layout of thebuildings and the potential liability forempty property rates if the buildings couldnot be re-let within six months. The annual

rates liability exceeded £240,000 pa.

A previous occupier of part of thepremises had been put into receivershipand these buildings had been left in a poorcondition. We knew that the cost of puttingthe buildings into a lettable condition wassignificant and the chances of letting thebuildings in sensible lot sizes were small.The only way to effect a justifiablemarketing campaign was to subdividethe buildings, but this would have costmore money and the payback period forsuch a scheme based on current marketvalues was longer than the term remainingon the lease!

In principle, the only way forward was to‘sit out’ the economic downturn in the hopethat we would find one or more largeroccupiers for parts and in due coursesubdivide/sublet smaller areas of the siteas demand materialised.

At least that would have been a workablesolution in the absence of the impendingempty rates liability. When we factored inthe potential cost of future repairs and ratesoutgoings we concluded that the onlyviable solution was to demolish all thebuildings and to get the site removed fromthe rating list until we identified analternative beneficial use.

Circular 10/95 excludes from the definitionof ‘development’ the demolition of mostindustrial buildings. However, the centre ofSilver End is designated as a ConservationArea and S.74 of the Planning (ListedBuildings and Conservation Areas) Act 1990requires Conservation Area Consent andthe grant of a planning permission by thelocal authority, Braintree District Council.

Fenn Wright co-ordinated a team meetingearly in January 2008, after which it wasagreed to prepare an Historic BuildingRecord and Report, an Employment LandOverview and Viability Appraisal of theproperty and undertake consultations withthe Landlord. Fortunately, the lease madeprovision for the Tenant to be able todemolish the buildings subject to meetingcertain conditions.

After discussion with Braintree DistrictCouncil, agreement was reached to retain, forthe timebeing, the original factory buildingsconstructed in 1920-1926. A planningapplication was submitted in April 2008. Inthe interim, contractors were appointed tocommence the removal of plant andmachinery, asbestos and other contaminatedmaterials from the factory, a process whichrequired removal of certain parts of thebuilding. A rating appeal was submitted

and approved, agreeing that those areaswere incapable of beneficial occupation.

Planning permission for demolition of thebuildings was granted on the 2nd July 2008.Demolition works commenced as soon asthe principle planning conditions had beensatisfied. Shortly thereafter we submitted afurther rating appeal requesting deletion ofthe whole property from the rating list andthis was agreed with the District Valuersoffice in September 2008. Over the term ofthe Lease, demolition of the buildings willsave our clients a total of over £2m.

If 100% empty rates relief had been availablefor a meaningful period of say 24 months,greater efforts would have been made tofind an alternative occupier. Such buildings,if retained offer good low cost storage andlight industrial business opportunities.

The stock of industrial buildings is a preciousresource and although in this instance thebuildings were not well located, the potentialloss of similar employment opportunitiesdoes raise concerns over the impact of thislegislation, particularly for better locatedbut older properties which are cheaper tooccupy than their modern equivalent.

All markets need time to adjust to fiscalchanges. Many business leases are enteredinto for terms of 10-15 years. The imposition ofan additional tax burden at short notice on lowmargin business’ who are directly responsiblefor significant UK job creation is neithersensible nor politic, particularly at a timewhen the economy is heading for recession!

STOP PRESSAlistair Darling in his Pre-Budget

report (24.11.08) offered some relief

to owners of non-domestic properties

with Rateable Values below £15,000,

by extending the empty rates relief

from 3 months to 12 months.

BEFORE

CORPORATERECOVERY &INSOLVENCYFenn Wright act for a wide range of accountants& insolvency practitioners and offer a professional,adaptable, efficient service.

We have a proven record of providing banks anddebt recovery specialists with discrete pragmaticadvice in order to assist with making an informeddecision as to whether to support a businessthrough difficult times or whether all parties’ bestfinancial interests are served by proceeding toAdministration or Receivership. We are alsoexperienced as LPA Receivers.

Where necessary we provide a full managementservice offering effective rent collection, servicecharge administration and compliance with statutoryregulations. We have established contacts with afull range of reputable contractors and are able toassist with legal compliance and insurancerequirements. This includes repairs, maintenance,procuring gas safety certificates, arrangingclearance of premises etc and undertakingregular inspection of vacant accommodation.

We appreciate that clients in the corporaterecovery and insolvency sector are frequentlyworking to a restricted timeframe for the disposalof property assets, whilst having to ensure thatlenders security reaches its maximum potential.Our team are familiar with such circumstancesand are able to react quickly, ensuring thatinstructions are acted upon immediately and anappropriate timely disposal strategy isimplemented to meet our client’s objectives.

For further information, please contact:

Alistair Mitchell at the Ipswich office:


Lewis Chambers at the Colchester office:


Roger Hayward at the Chelmsford office:


On a selective basis, we believe the marketnow offers good value with the base rate atits lowest level since 1955 and LIBOR spreadsstarting to ease. For purchasers able to raisefinance, using cash from low yielding bankdeposits or investing via SIPP or SSAPSPension vehicles, initial yields are appealingwith the added attraction of medium termcapital growth prospects.

An increasing number of our clients are

considering the tax planning opportunities

arising from softening capital values.

These include:-

£ Inheritance Tax (IHT) planning. In some

instances lower asset values allow the

transfer of commercial and residential

investments to the ‘next generation’

free of Capital Gain Tax liability.

££ Reorganisation of personally owned

assets used for business purposes by a

“connected party” business can now be

effected in a more tax efficient manner.

£££ The establishment of new SIPP and

SSAPS Pension Schemes to provide a

saving in Income Tax and free up capital.

££££ Some individuals with well funded

pension vehicles are looking to transfer

assets out of their Pension Scheme.

We work closely with our clients’ usualSolicitors, Accountants and PensionAdvisors in providing both current andretrospective valuations to carefully assessthe tax implications of a particular scenario.

In the longer term the Government is goingto have to substantially raise tax revenuesto fund the rocketing budget deficit. For highnet worth individuals this is an opportunetime to conduct a review of their holdingsand make appropriate changes.

If any of the opportunities outlined above

are of interest to you please contact:-

Hayman Wheaton at the Colchester office


fennwright.co.ukfennwright.co.uk

WHERSTEADPARKHigh Quality Office to Let

Fenn Wright recently acted for the East ofEngland Co-operative Society in relation tothe Freehold acquisition of Wherstead Park tothe south of Ipswich town centre. The propertywas formally occupied by E.On and comprisesa total of about 88,000 sq.ft. of high qualityoffices and ancillary accommodation, withinattractive landscaped grounds extendingto 17.5 acres. The main building totalsapproximately 68,000 sq.ft. and is arrangedover three floors, around an impressive fullheight central atrium. The guide price forthe freehold interest was £7,000,000.

The East of England Co-operative Societywill operate Wherstead Park as a prestigiousregional business park. Wherstead Park willalso provide a new headquarters for theSociety and the total workforce on the siteis expected to be between 400 and 500.

The property also includes an impressivefully refurbished Grade I Listed Georgian

Manor House which will be used as atraining and conference centre.

There will be some 33,000 sq.ft. of modernoffice space available to let to otherbusinesses. Fenn Wright have been instructedto let this accommodation and already haveinterest from a number of companies, witha 10,000 sq.ft. suite already under offer.

Alistair Mitchell comments “the property isin an excellent strategic location adjacent tothe A14/A137 intersection and within easyreach of both Ipswich and Manningtreerailway stations. There are extensive on sitefacilities and the property offers some ofthe best quality accommodation in the area.”


Please contact either Alistair Mitchell or

Mark Sargeantson at the Ipswich office.



Fenn Wright acting on behalf of FaberMaunsell have acquired 6,000 sq.ft. of thirdfloor offices at Saxon House, Chelmsford on anew 10 year lease. Fenn Wright were retainedto identify high quality accommodation inChelmsford with easy access to the railnetwork and it quickly became apparent thatSaxon House with fit their requirementswell. On behalf of Faber Maunsell, FennWright were able to secure a refurbishmentof the accommodation, a generous rent freeperiod and competitive rental terms.

CHELMSFORD – ACQUIREDFOR FABER MAUNSELL

Contents PageEmpty Property Rates 2Investment & Tax Planning & Approaches 3Corporate Recovery 3Market Place - Sold & Let 3Energy Performance Certificates 4Faber Maunsell Expand into Chelmsford 4

NOTCUTTSEXPANDNORTHWARDSNotcutts has recently completed the

purchase of a further 6 established Garden

Centres in the Midlands and North West

England to compliment the 13 Notcutts

Garden Centres that are owned and operated

by this successful 111 year old Woodbridge

based business. It is now the third largest

chain of Garden Centres in the country. Fenn

Wright were delighted to receive instructions

to value 7 of the freehold Garden Centres

already owned by Notcutts as part of the

corporate funding arrangements.

Deputy Chairman William Notcuttcommented “we would not have been ableto achieve this deal on time and on pricewithout the full support of Fenn Wright.These sites will compliment the Notcuttsbrand as each has an excellent team of staffwho achieve high standards of customerservice and plantsmanship.”

Commercial, Residential, Rural and more...

Winter 2009

DILAPIDATIONBRIEFING

As you are no doubtaware a landlord canenforce the repairingclauses of a leasethrough a Scheduleof Dilapidations. Thisdocument identifiesitems of disrepairwhere a tenant hasfailed to comply withthe repairing covenantswhich then Schedulesthe works required toleave the demise in

repair. This can be done by way of variousoptions, a Notice of Repair, an InterimSchedule or finally a Terminal Schedule.

A Terminal Schedule of Dilapidation canbe served in the last three years of theterm, or up to six years afterwards. If theSchedule is drawn up before the end of thelease, there is a greater chance that repairswill be undertaken by the tenant and thatthe property will be left in adequatecondition for re-letting. If the tenant takesno action then their only option is to makea damages payment based on an agreedclaim amount.

However, a claim against the tenant may belimited by statute and case law, which coulddrastically reduce a claim and is not alwaysbased on the cost of repair.

We recently succeeded in settling aTerminal Dilapidations Claim to cover thecost of a complete external redecorationand repair of premises in Ipswich. This alsoincluded the landlords professional feeswithin the claim. One of the reasons thatthis claim was successful was that thelandlord proved their loss by undertakingthe works. An example of where a claim canbe limited is where a rent free period isprovided to a new tenant to mitigate thecost of the disrepair if no works have beenundertaken. In this respect we were alsorecently succeeded in agreeing adilapidation claim against an outgoingtenant where the incoming tenants rent freeperiod was 4 months to cover the cost ofthe disrepair to the premises, whichresulted in our client receiving a damagespayment to compensate their financial loss.

Should you have any queries in respect

of property matters with regard to

dilapidations either as a landlord or tenant

please do not hesitate to contact:

Nigel Berry BSc MRICS - Building Surveyor


ENERGY PERFORMANCE CERTIFICATESFOR COMMERCIAL PROPERTY- A BENEFIT OR BURDEN?From 1st October it became a legal requirementfor vendor’s and landlord’s to obtain an EnergyPerformance Certificate (EPC) for the vastmajority of commercial properties offered on themarket for sale or to let.

EPCs have been introduced as part of the UKimplementation of the EU Energy Performance ofBuildings Directive. The phased introduction ofthe new regulations started in April and therequirements for EPCs now relate to nearly allcommercial properties which come onto themarket. There are a few exceptions where anEPC is not required although these are verylimited. Trading Standards Officers are responsiblefor the enforcement of these regulations andpenalties for non compliance are based upon12.5% of the Rateable Value, subject to aminimum of £500 and a maximum of £5,000.

The Certificates which rate building energyperformance on a scale of A to G, are valid for aperiod of 10 years and are intended to give anestimate of the energy usage and CO2 emissionsof a building.

EPCs have to be produced by suitably qualifiedenergy assessors and the Certificate must beavailable at the point the property goes onto themarket. After 4 January 2009, an EPC must beavailable when marketing commences.

These new Certificates will not in themselveshave any impact upon actually reducing carbonemissions as this is dependent

upon how the future occupier uses the premises,rather, they provide an indication of the energyefficiency of the building fabric and the heating,ventilation, cooling and lighting systems within it.

A high proportion of our clients have receiveddetails of these new obligations with frustration;EPCs can be expensive, the cost of provision formost medium sized commercial properties willbe £500— £1,500, and routinely potential tenantsand occupiers fail to ask to see an EPC andwhere produced are ambivalent about its content.

With due deference to the increasinglyimportant ‘green’ agenda, it is not difficult toadvance a strong argument that EPCs offer poorvalue for money and contribute little to the processof selling and acquiring commercial property.

Fenn Wright are able to recommend a local, fullyaccredited Consultant to undertake EPCs.


Please contact either

L C Chambers


or

A G Mitchell


Documents

Fenn Wright