Case Study

Question 1

Please can you explain the relationship between Mileway and XK Propco ?

Answer 1

• Blackstone owns Mileway and the entities
• Mileway are then instructed on an asset maagement basis to manage the entities
• Therefore an internal client

Question 2

Tell me about your portfolio

Question 3

What due dilligence checks did you undertake?

Answer 3

• Undertaking desktop survey - looking at location and surrounding area
• Reviewing EPC
• Tenancy schedule
• Estate plan and floor plan

Question 4

What was the EPC rating?

Answer 4

C67 - expiring June 2031

Question 5

What did the asbestos survey state?

Answer 5

Stated asbestos was present in some areas - namely the ground floor ceilings and warehouse roof but risk score was very low

Question 6

Talk me through your inspection

Answer 6

• Desk stop
• Drive by
• External
• Internal

Question 7

What void costs are incurred by a landlord?

Answer 7

• Loss of rent
• Maintenance, safety inspections such as gas or electrical, or pest control.
• Insurance costs, business rates and service charge.

Question 8

What period of time are vacant industrial properties exempt from business rates?

Answer 8

6 months

Question 9

What is the current poundage rate for business rates?

Answer 9

51.2 pence

Question 10

What is in included within the disclaimer in your brochure?

Answer 10

• States interested parties cannot rely on the accuracy of the description and should not take them as fact
• Parties should undertake their own enquiries to satisfy the accuracy
• States agents are liable relating to any negligence or loss that arises

Question 11

What were the conditions of the break option you agreed?

Answer 11

All standard conditions:
- All payments up to date
- Vacant possession
- All lease obligations adhered to

Question 12

What were the assumptions and disregards within the rent review you agreed?

Answer 12

All standard assumptions and disregards:
As:
- Available for immediate occupation
- Between a willing LL and T
- All lease obligations have been adhered to
- For the use stated in the lease
Ds:
- Tenant goodwill
- Goodwill on the property
- Documented tenant works