Eddisons Residential

A solution-orientated approach to residential property assets in a challenging climate

The Resi Team

Graham Bates – Director of Residential Strategy

Helen Peace – Managing Director

Sarah Smith – Head of Property Services

Anthony Spencer– Director / LPA Receiver

Richard Roe - Director / LPA Receiver Mark Downham - Director/LPA Receiver

A unique team with broad insight and experience

Current Projects• Liverpool• Sunderland• Manchester• Elland• Burton on Trent• Sutton Coldfield• Huddersfield• Hull• Poulton-le-Fylde• Cardiff• Leeds• Bradford• Ashton-under-Lyne• Loughborough

Challenging Situations

• Unsold units – developer may lack sales and marketing ability

• Customer has unrealistic expectations of value• Interest Payments not being met• Mounting costs• Need to generate rental income• Already rented – Voids / Arrears / Poor quality tenants• Poor locations / Poor quality stock

We are experienced in managing and turning around difficult situations

Key Issues

• Existing customer strategy failing

• Rent roll not coming to Bank?

• Accuracy of information provided?

• Unrealistic pricing /timescales

• Wrong agents acting for customer

• Bank and customer objectives not aligned

• Getting the Bank in control

Incomplete developments

Advice on the viability of completing sites still under construction including project management from Eddisons Building Surveying Team

Our Scope

In-house team advise on and manage all property and tenant types:

• Apartments• Housing• Retirement• Student• Low grade• Executive housing• City and suburban

Initial Appraisal

• Immediate ‘High level’ view • Appraise property – location, works

required, quality of units, suitability for rental, etc

• Prepare financial projections• Evaluate upside potential• Target market – sales and rentals• What is not working?• Key recommendations

Core Services

• Oversight Management role

• Lettings and Property Management

• Rent Collection and Financial Reporting

• Residential Block Management

• Sales and Marketing Strategy for Exit

Case Study – Box Tree • Administrator appointed• Significant shortfall in realisable value over debt• Incomplete development of 26 units in Ashton-under-Lyne

Our role

• Advice on configuration and final specification• Project management of works to completion• Financial projections to support retention strategy• Furnishing 26 units for rental market• Letting and Property management

Current position

• 100% let• £152,000 pa gross income flow to offset holding costs• Significant increase in capital value £1m +• Possible sale to institutional investor• Appeal to owner occupier and individual investor market

Case Study – Baltic Square• Eddisons appointed LPA Receiver• 15 vacant units in secondary location, Liverpool city centre• No management of services – building deteriorating with health and safety issues• 2 units incomplete including Penthouse

Our role

• Implement building management services and conduct health and safety check• Prepare units for rental – furnished and unfurnished• Lettings and property management• Project manage completion of incomplete units• Advise on management company issues and liaise with other leaseholders for

service charge contribution

Current position

• Available units 100% let• £101,000pa gross income flow to offset holding costs• Quality of building vastly improved • Project managing completion of Penthouse

Case Study – 26 Pall Mall• Incomplete development• 126 units in Liverpool City Centre• Contracted sales largely fallen away with little new sales demand• Difficult customer with unrealistic expectations

Our role

• Project manage build out• Financial projections to support retention strategy and workout over 4 years• Establish new management company• Implement building management services• Develop marketing strategy for sales and rentals• Project manage furnishing• Lettings and property management on 40 units initially• Ensure bank is in control in advance of possible appointment

26 Pall MallWhere we are now?

• In control of all building services including security, health and safety

• 21 units sold• 40 available furnished units 100% let producing £276k pa gross income• 65 units remaining

• Bank set to appoint Eddisons as LPA Receiver

• Marketing strategy in place

• Sales expected to remain slow - workout strategy over 3-4 years

• Strong demand for further letting – potential to create £655k pa gross income

In control of all aspects of development – seamless transition on appointment

Insolvency Appointments

Pre-Appointment –

We can help put you in control

LPA Appointment –

We have the ability to manage and control all aspects

in-house from appointment through exit