What were the releveant covenants for You Valuation of a budget hotel in Fort-Dunlop
- 25 yr term with 15 years unexpired
- Rack Rented (£250k)
- 5 yearly rent review (Cap and Collar 2-4%)
- Next review in Dec 2025
- 100 rooms
- Cap rate of 6.75% going to 8%
What was the ADR of the Aparthotel in Knightsbridge
What is the The RICS Code for Leasing Business Premises (1st edition, February 2020
It is an RICS professional statement that sets out mandatory requirements and best practice for letting commercial space.
It covers
- Mandatory requirements such as acting in line with the Rules of Conduct
- Best practice advise on rent review clauses, service charge
- Templates for a HOTs
What is the the RICS UK Commercial Estate Agency Professional Statement (1st Edition, 2016)
Sets out mandatory requirements and best practice guidance for RICS members undertaking commercial real estate agency work in the UK.
Ensures transparency, fairness, and professionalism in the way agents act for clients and interact with third parties.
Applies to all agency instructions: sales, lettings, and acquisitions.
What ar ethe key points of the RICS UK Commercial estate agency professional standard
Act honestly, fairly, and transparently in all dealings (aligned with RICS Rules of Conduct).
Carry out conflict of interest checks and manage conflicts properly.
Comply with Anti-Money Laundering (AML) regulations and carry out client due diligence.
Provide clear Terms of Engagement before commencing work (scope, fees, basis of instruction).
Give accurate, not misleading, marketing information.
Maintain proper records of offers, bids, and negotiations.
Account for client money properly (in line with RICS client money rules).
Ensure all staff are competent and adequately supervised.
Have appropriate Professional Indemnity Insurance (PII) in place.
what is the Misrep Act 1967
it governs misleading statements made during negotiations of a contract and protects parties who suffer loss as a result of relying on inaccurate information.
Fraudulent Misrepresentation
Negligent Misrepresentation
Innocent Misrepresentation
What is the Digital Markets, Competitions and Consumers Act 2024
This Act contains provisions to protect consumers from unfair trading in false advertising, marketing material, pricing, fake reviews and incentivised reviews.
Ethics Level (3) Confidentiality during a disposal
- Agents would call between first and second round bids to ask about the highest bid
- Did not disclose any information ensuring integrity
- Reported to my boss
Ethics Level (3) Opinion Challenged
- Hotel Val
- MV challenged, specifically the cap rate used
- Client wanted sharper figure for higher MV
- Remained firm, presenting evidence and liasiing with manager
- Competence, responsibility (to wider industry) to not fuck up comparables
Communication and negotiation Level 2 (Office disposal)
- Maintained interest schedule
- Weekly meetings
Communication and negotiation Level 2 (Industrial Photography for brochure)
- Sourced and negotiated quotes for drone photography for a idsposal
- By coordinating marketing of two properties nearby, able to negotiate reduced free
- Aligned with client objectives to minimise costs without quality loss
Health and Safety (Popcorn Factory)
- Before inspecting an industrial unit used for food processing, called the site manager to confirm PPE
- ## Remove jewlery, hair net, shoe covers, high vis,
Health and Safety (Solo Inspection)
- Charge phone
- Make people aware
- Put in calenders
- Informed them of time of meeting and when it should end
- Inormed them of who would be there and their contact info in case I was not reachable
- Informed colleagues afer was done
Hotel Inspection (Level 2)
KIRSTY APARTHOTEL IN EAST
- For valuation purposes
- Used Fastfield to record info
- Asked for managers consent to take photos
- Interior, exterior and locational inspection
- Looked at variety of rooms, plant room, staff facilies,
- Analysed local demand drivers
Due dilligence
- EPC B
- 2020 build
- No asbestos present
- Minimal flood risk
- No TPO
- No signs of radon
Inspection Internal:
- 125 rooms
- 5 floors
- Lift
- Complied with lease provisions
External
- Solid brick construction
- Flat roof
- Stone dressing
Office Inspection Level 2
THE LANTERN
- Instructed to dispose of space
- Inspected, looking at demand drivers, amenity, condition and offering and accessibiloty
- Helped us with the marketing of the sapce to occupiers
-
- 3,500 sqft floor plates Cat A spec
- Standard build
- Instituional specification
Office Inspection (Level 3)
ABBEY GARDENS
- Inspected and observed it was in poor condition and appeared dated
- Space previously on market with little interest
- Advised either lower rent or refurbish and increase demand in rent
Due Dilligence
- Location
- Amenities
- Key demand drivers
- Flood risk (very low)
- Contamination
- Asbestos (yes)
- EPC (C)
BUILDING:
- 4 floors
- Concrete Frame
- Old design
- Dated
INTERIOR
- 3,600 sqft unit
- Fitted (old)
- M&E fine but tired (heating, lifts, drainage)
- Air Conditioning
ADVICE
- Reduce rent to £25psf to enter a lower end of the market and have more potential occupiers
- Refurbish (£30psf) and then price it at £30 psf (based on comps)
CLIENT:
- Reduced the rent as they did not want to spend money and joined lower tier of market
Inspection Industrial Level 3
Unti 6 Tonbridge technically
- Inspected unit for disposal
- Reviewed lease, site plan, images and location prior
- Inspected (noticed that client images provided were not up to date as it had recieved an exterior refurbishment)
- Suggested new photograph in order to capture the improvement
DUE DILLIGENCE
- Lease
- Site Plan
- Location
- Flood risk (minimal)
- Enviromental condition
- 1980’s build so likely presence of asbestos (checked on register)
Inspection External:
- Steel portal frame
- Asbestos
- Brick walls with profiled steel roof
Internal:
- 6m eaves
- 2 electric doors
- 20,000 sqft
Internal Valuation in Leeds (Level 2)
- Internal valuation
- Desktop valuation (included in TOE)
- Completed COI
- Confirmed client objectives to find Market Value
- Valued in line with Red Book (VPGA 4)
- Used investment method, prepped FMT to support (this is to ensure we value the property and not the tenant)
- Used comps to find cap rate (6.5%)
- Send to supervisor for approval
DUE DILLIGENCE:
- Stat enquiries
- Minimal Flood Risk
- Good location (10 mins from station)
- Assessed room type
- Lease (10yr term, 5 yrly reviews, 7 years unexpired, (0&4%)
Property:
- 120 rooms
- Refurbished in 2018
- 5 floors
- Steel frame
- Concrete floor
- Follow FRAEW AND EWS1
Internal Valuation in Central London (Level 2)
PIMLICO WITH JAMES
- Internal Valuation (for client use with no 3rd party reliance)
- USED DCF METHOD - as provided with trading data, 5 years worth
- Standard inspection
- 50 rooms, ranging from 1-4 beds
Building
- Mid terrace Victorian period building
- Solid masonry construction
- Brick walls
- Slate roof
Defects
- No issues
COMPS
- Hyde Boutique, 40 rooms, £320k per key
- Limegrove Hotel 10 rooms, £295k per room
- Considered tenure, age, condition, size
DCF Discount Rate Chosen was 6.5%
-Internal Valuation of Budget Hotel in Fort Dunlop (level 3)
UGLY TRAVELODGE IN THE BIRMINGHAM
- Internal Valuation in order to determine MV.
- Produced standard TOE
- Used Hotstats and COSTAR
- FMT produced
- Reviewed lease, passing rent, term, covenants
- Property rack rented
- Used INVESTMENT METHOD and COMPARABLE METHOD
EXTERNAL INSPICETION
- 5 Floors
- 100 bedroom
- Steel Frame
- Brick Infill
- EPC B
- 2024 Refurbishment
Internal Inspection
- Standard
- Follow lease covenants and provisions
Lease
- 25yr term
- From 2015
- £260k a year
- 5 yearly reviews
COMPS
- Between 6.5 - 6.5% as better locations
MV
- £3.6m at 6.75%
Valuation of Apart Hotel in Central London, Knightsbridge (Level 3)
- Red Book valuation in Knightsbridge
- For MV for acquisition (Still Red Book)
- Determine appropriate pricing with no special assumptions
- Inspected
- Recorded condition or rooms and communal areas
- Rooms were dated compared to other assets in the area
- Reviewed P&L accounts
- Benchmarked against key metrics such as ADR from comparable data
- ADR of hotel was lower due to dated rooms
SWOT ANALYSIS
- Strenghts : Freehold, Location, Returning Customer Base
- Weaknesses: Dated, Seasonal Trend
- Opportunities: Refurbish
- Threats: Headwinds, NI, lots of competition
Disposal in Oxford (Level 2)
- Advised on multi let estate near Oxford
- Client wanted to minimse marketing costs, was not rushed, remain dsicrete and achieve strong pricing
- Produced a brochure in house as a result
- Used 3rd party phtographers
- Ensured accuracy (MISREP)
- Marketed as value add due to refurb to be done and the fact that the WAULT was around a year remaining
- Also said it was well connected
- Did not include tenants in scheulde to remain discrete
SITE
- 5 buildings
- 50,000 sqft
- Brick infill walls, steel frame and roof
- Some units dated and old so refurb would lift rent
Salient details
Southeast Acquisition (Level 2)
Southeast Acquisition
- In Bognor Regis
- Client had requirement for reversionary multi-let property in the South East
- Wanted income growth
- Sent a disposal that aligned with instruction
- Requested data room to analyse brochure, tenancy schedule and key documentation (building surveys, EPC Reports, Lease, Titel Plan, Site Plan, FRAEW and ESW1’s is applicable)
- Consulted with local agents to gauge rents, void and rent free (£11 psf, 3 months rent free, 5 yr term, 9 month void).
- Upcoming rent review could set headline for future events
- Presented info to client and inspected
- Took measurements (using disto) and looked around estate
- Spoke to firms building surveying team to understand refurbishment cost. (£30psf)
- Client deemed to expensive and did not want to proceed.
INSPECTION
- 1980’s build
- 10 units
- 20,000 sqft in total
- Concrete floor
- Brich and profile clad wall
- Steel frame with pitched roof
- Asbestos present
- Minimum flood risk, Contamination
- Defects such as wear and tear and cracks
Disposal in Kent (Level 3)
- Assisted with disposal
- Ran TOE and CDD
- Marketed as value add due to reversion to capture based on recent lettings and lease events within the estate.
- Managed interest schedules, data room access, logged feedback (in line with GDPR and Data Protection)
- Presented list of bids and suggested that due to strong level we should go to informal tender and call for second round
- Advised on offer from most deliverable party instead of highest
- Drafted TOB and asked sols to remove parties d.room
