The Industrial Partnership

ClientsAXA

AsDA

Panasonic

next Plc

RReeF

Protego

Uss

Blackrock UK Property Fund

towngate plc

Archbold Property Management

KUC Properties

Wharfedale Finance

Forward investments

lasalle investment Management

VAlAD

Buccleuch

st James investments

Amerdale

Ogden Group

AiB

Opus land

Priority sites

Prudential (PRUPiM)

Helios

Alpha Media solutions

sladen estates

Palmer & Harvey

seW eurodrive

threadneedle Fund Management

t&C Bathrooms

Burberry

Polestar

Card Factory

tHe inDUstRiAl PARtneRsHiP

In conjunction with John Guggenheim, an experienced banking lawyer and former equity par tner at Walker Morris, we have launched The Industrial Par tnership, a division of Gent Visick. The Industrial Par tnership is a consultancy service with the sole focus of providing strategic and comprehensive solutions for distressed industrial proper ty assets.

Working in conjunction with lenders, landlords, administrators and occupiers in distressed positions we provide an all encompassing proper ty solution focusing on adding value through pro-active asset management. We aim to reduce the stigma associated with distressed asset sales and the related lost value or avoid sales altogether by providing innovative solutions to improve asset value, cash f low and proper ty management. Where the mandate requires conf identiality we can and do offer absolute discretion which our existing clients will always bear testament to.

Behind this par tnership is the award-winning industrial proper ty specialists, Gent Visick. The two-time Proper ty Awards winners have a proven track record in delivering proper ty solutions and have taken the natural next step into distressed industrial proper ty asset management. Gent Visick’s impressive client por tfolio is testament to their prowess as niche industrial agents.

• When industrial proper ty or land forms par t of your por tfolio.

• When you have under performing industrial assets.

• When banking covenants have been breached where industrial proper ty is involved.

• When industrial occupiers are struggling to meet their current lease obligations due to historic sale and leaseback deals.

• When there are occupational voids that aren’t being f illed.

• When development oppor tunities are deemed to have zero value due to current market circumstances.

• When management or maintenance issues are having a negative impact on value or the attractiveness of an asset.

• Have all potential asset enhancement oppor tunities been given full consideration? • Have all oppor tunities to fully maximise cash f low potential from a proper ty asset been considered?

• Has the balance between cash f low and f lexibility of lease terms been met to deliver the desired impact on either potential target markets or asset liquidity?

• Does the valuation ref lect full potential value?

WHen CAn iP HelP?

Key qUestiOns We ADDRess

‘We provide an all encompassing property solution focusing on adding value through pro-active asset management.’

OUR Key sellinG POintsPReVent sAle OF FUtURe UPsiDe At zeRO VAlUe

Future development value, asset enhancement angles, change of use options, lease restructuring and options to increase rental income can all be attributed zero value by investors in the current market due to the risk associated with uncrystallised oppor tunities.

The Industrial Par tnership can implement strategies to recoup value from these oppor tunities. This is carried out as par t of our advisory role in working towards the f inal target, which may or may not be an asset sale. We cut out the vulture buyers who will buy and f lip the asset for prof it after carrying out many of these same steps.

tAKe A FResH APPROACH

The Industrial Par tnership offers a fresh approach and will offer shor t, medium and long term solutions which may for example include forgoing value in return for cash f low. Active buyers are currently looking primarily at cash f low; speculators can attribute fair value to latent development potential which is underpinned by shor t term cash f low.

The Industrial Par tnership will not look for the obvious or shor test route to market, we will work towards your goal whilst ensuring all potential options are analysed and discussed.

sAle AnD leAseBACKs

This is an area which poses some of the most challenging questions but also offers considerable oppor tunities. Working for landlords, tenants or the lender we can offer solutions to both existing and pending problems. Sale and leasebacks were a device used by many to extract value from an over-heated proper ty market; the driver being the internal rate of return of the operating business exceeded that of holding a proper ty asset. The problem arose when the capital receipt was not reinvested in the business, leaving a potential ticking time bomb.

The Industrial Par tnership can offer a tailored solution to each individual circumstance. This usually includes lease restructuring to the benef it of the par ty for whom we are acting, be it the tenant, landlord or lender, or, buy back schemes and onward sales to mitigate potential future losses.

leAse RestRUCtURinG

This can be used in many imaginative ways, and not only to improve lease terms. Lease restructuring is one of the best tools available to both the proper ty owner and occupier to alleviate both current and future proper ty related problems. Lease restructuring should not only be viewed as a tool to release value but also as a tool to improve operational eff iciencies, assist in shor t and long term business viability and improve landlord tenant relationships. Standardisation of lease documentation can also increase future sale value through an impression of professionalism and a clean investment offering, reducing perceived risk to the investor.

Asset MAnAGeMent

The Industrial Par tnership’s role is to identify and bring forward a raft of improvements to the proper ty asset. These are likely to include physical services to the proper ty or estate, service charges, maintenance programmes, limiting letting voids, restructuring leases and other areas. This ‘cleaning up’ of the asset will have a positive impact on value due to the resulting diminished risk to any purchaser/investor.

The Industrial Par tnership, in conjunction with Gent Visick, are the North’s only specialists in the industrial proper ty market. This means that not only are we the market leaders in letting, selling and acquiring industrial proper ty but also that we understand the key drivers which affect both landlords, tenants and funders in this sector.

Working with a broad range of industrial proper ty investors and occupiers we know what they need from their proper ty and equally what oppor tunities and incentives can work for the benef it of landlord, tenant and funders. This allows us to analyse industrial proper ty related issues and provide clear, current and concise advice about what steps need to be taken in every circumstance to achieve the desired result.

If we do not deliver the agreed and measureable results we set out to achieve, we do not get paid.

sUMMARy

The Industrial Par tnership is solely focused on enhancing the value of proper ty assets and preventing discounted sales, ensuring that assets maximise their full potential. As industrial proper ty specialists, Gent Visick has an unparalleled track record in the disposal of industrial proper ty. Our client list bears testament to our success in this f ield.

We do not seek remuneration based upon a f ixed percentage of exit value but on a percentage of the increase in value derived through our involvement. We get paid on results, not turnover.

HOW is iP DiFFeRent?

‘If we do not deliver the agreed and measureable results we set out to achieve, we do not get paid.’

Gent VisiCK

• Industrial proper ty specialists with a por tfolio including distribution and manufacturing proper ty, multi-let industrial estates and industrial development sites as well as their derivatives - residential/off ice/retail development land. • Covering the whole of the UK for advisory services and focussing on the North for transactional purposes.

• Established dedicated team where the principals offer a combined experience of over 50 years working within the industrial proper ty market.

A BUsiness OF tWO siDes

Agency Services

• The North’s market leader in this sector. • A dedicated, pro-active client focused service.• Exposure to the market through a broad range of instructions.• Acting for a wide range of clients including institutional investment funds, banks, national proper ty companies, local proper ty investors and occupiers.

Gent Visick has consistently transacted more industrial proper ty than any other f irm in the nor th for the past four years. Gent Visick is well known to the general UK commercial proper ty market as leaders in our sector. Visit www.gentvisick.com for fur ther information.

Advisory Services

• Feasibility appraisal• Investment consultancy• Occupational advice• Development consultancy • Lease restructuring advice• Strategic advice

Taken together these form a complete package of proper ty services which can be tailored to provide solutions to all aspects of industrial proper ty related issues. Our low key approach ensures maximum impact for our clients and conf identiality for all involved.

BACKGROUnD

Key inDiViDUAls

Rupert Visick BSc MRICS

Ruper t has been involved in all aspects of industrial proper ty since star ting his career in the industrial agency team of WGS in 1987. He was approached by Jones Lang Wootton to set up and run the industrial agency team in their new Leeds off ice, becoming a national director in 1999, with National and European responsibility for industrial corporate occupiers.

He established a reputation as one of the region’s leading industrial proper ty exper ts, advising on many of the North’s largest schemes such as Wakef ield Europor t and brokering the largest deals in the region including IMI’s 1.2 m sq ft sale and leaseback in Leeds together with the purchases of DuPont’s 1 m sq ft facility in Doncaster and the 1.2 m sq ft Lingf ield Point in Darlington.

Ruper t left JLL in 2003 to set up Gent Visick. The f irm rapidly emerged as the leading industrial proper ty practice in the North, winning industrial agency team of the year for 2 of the past 3 years. Ruper t’s ability to identify the key issues involved in both corporate and institutional proper ty assets together with his extensive network of contacts have enabled Gent Visick to develop a proven track record of providing honest strategic advice and deliverable solutions.

tel: 0113 2003982 mob: 07793551635 email: ruper t.visick@theindustrialpar tnership.com

John Guggenheim LLB Hons

John qualif ied as a lawyer at Walker Morris in 1994, specialising in banking and insolvency law and became a par tner in 2000. John advised all the high street banks on acquisition f inance, restructuring and proper ty lending.

He was evaluated in all the major Legal Directories, including Legal 500, Legal Exper ts (listed for banking and insolvency) and Chambers, and noted as “a talented technical adviser, who adopts a calm and relaxed manner” with banks describing him as “one of our team – he por trays the image that many banks would like to have representing them.”

John left Walker Morris at the end of 2007 to pursue other business ventures including managing his own proper ty por tfolio of 140 residential and commercial proper ties in the nor th, built up over the last 18 years.

tel: 0113 2456000 mob: 07816933686 email: john.guggenheim@theindustrialpar tnership.com

Matthew Hopkins BA (Hons) PGDipSurv MRICS

Matthew has been working in the Yorkshire proper ty market since moving to Leeds in 2003. Having established himself in the agency market whilst working at Sanderson Weatherall, Leeds, Matthew joined the Gent Visick team in April 2006 and became a par tner in 2008. Matthew specialises in providing investment and development advice to a wide range of clients and is now combining these roles to provide a new asset management service.

Prior to his proper ty career Matthew completed a BA (Hons) in Accounting and Finance at The University of Manchester before under taking postgraduate studies at The University of Reading to follow a proper ty career. Matthew became a member of The Royal Institution of Chartered Surveyors in April 2006.

tel: 0113 2003985 mob: 07894918281 email: matthew.hopkins@theindustrialpar tnership.com

CAse stUDies>>

CAse stUDy

teCHniCAl/MARKet KnOWleDGe

BACKGROUnD

A product of the bull market where an endless growth in values, meant that almost every deal was prof itable thus securing the oppor tunity was key. This often led to poorly researched advice, often inaccurate and frequently misleading.

tHe PROPeRty

A 100,000 sq ft distribution warehouse with 22 metre eaves and a fully automated crane racked system, situated at a strategic distribution location within the M62 motorway corridor.

tHe PROBleM

The proper ty had been purchased following advice that the automated racking system held considerable value to the occupier market. The proper ty had remained vacant for 18 months without any interest, having been marketed at a premium rent to ref lect the mechanised system.

tHe MAnDAte

Gent Visick were invited to under take a review of the asset and the marketing of the proper ty, to identify the reasons for the lack of demand and to formulate and execute a robust disposal strategy.

ReseARCH leD APPROACH

Utilising our market knowledge, together with a specif ic occupier survey carried out on the 3rd Par ty Logistics sector, we advised that the automated racking

was ineffective and outdated and was actually hampering the eff icient use of the building.

tHe ADViCe

The automated pallet handling system required total removal to create clear space. Gent Visick procured a series of racking layouts to demonstrate the eff iciency of the new conf iguration. This had a major impact upon the existing valuation with the suggested asset ‘value’ becoming a cost

tHe OUtCOMe

Within eight weeks of the removal of the automated racking system a deal was completed for the disposal of the unit to a par ty who had previously dismissed the unit as being inappropriate.

tHe sUMMARy

Our detailed knowledge and understanding of industrial proper ty and occupier requirements, combined with our research, gave our client conf idence to make the necessary bold step in removing the racking. The advice was correct and proven by the almost immediate market reaction.

Client FeeBACK

Adam Winton, of Talisman Proper ties - “I didn’t like what I was being told, but it was backed up with reasoned research. They then went out and delivered precisely the solution they had suggested within the timescale they had indicated.”

Tyler Close, Normanton

BACKGROUnD

Gent Visick were introduced to an MBI par ty to validate the terms of a proposed leaseback where the proper ty formed a substantial consideration in the overall deal. Prior to our involvement the MBI team had accepted the terms of the proposed leaseback as being f ixed.

tHe PROPeRty

A substantial industrial complex comprising a series of manufacturing buildings of varying ages on an extensive site located in a West Yorkshire village. Aside from the existing occupier there is limited alternative demand in the event of vacation by the current occupier.

tHe OPPORtUnity

A valuation used by the vendor ascribed a high value to future redevelopment of the site for residential. There was little consideration given to how hard or how long it would take to achieve such a change of use.

tHe MAnDAte

Gent Visick was asked to repor t on any potential pitfalls relating to the proposed lease structure and to provide advice on any impacts of the valuation.

OPPORtUnity leD APPROACH

Using our experience we were able to renegotiate the lease to the benef it of the client introducing break options, reducing repairing liabilities and capping rental growth.

tHe OUtCOMe

We were able to negotiate extremely favourable lease terms for our client as the lease was seen as a secondary issue with the vendor focusing on the value of the redevelopment oppor tunity.

The signif icance of the break options was only evident to the vendor when the proper ty investment market deteriorated and residential land values plummeted. Our client is now in an extremely strong position to negotiate a buy back of the proper ty at a signif icant discount.

sUMMARy

The MBI team were able to f inance the acquisition of the operating business through committing to a leaseback. Flawed valuation methods led the vendor to an inf lated opinion of value. The full impact of the amendments to the leaseback have given rise to a signif icant strategic advantage.

Client FeeDBACK

We have subsequently been asked to advise on a number of acquisitions as par t of the expansion of the company in a market where others are failing due to signif icant occupational costs.

CAse stUDy

leAse RestRUCtURinG

Conf idential MBI

South Leeds Business Park

Asset MAnAGeMent

BACKGROUnDA signif icant breach of loan to value covenant. The bank’s customer had continued to push the perceived value of the estate through manipulating rents and lease terms in order to release equity to buy more development schemes. When the recession hit these schemes failed and the true value of the main asset was revealed.

tHe PROPeRtyAn ageing multi-let business park with a high percentage of voids poorly drafted leases and urgent works necessary to make the estate safe. The units were predominantly over rented to par ties connected to the bank’s customer with a number of the tenants operating in breach of rent and repairing covenants.

tHe PROBleM

The bank’s client personally managed the estate with the goal of maximising shor t term rental income and minimising expenditure.

tHe MAnDAteWe were appointed directly by the lender to provide proper ty related advice to minimise the bank’s downside at a future sale date. The lender wanted to maximise shor t term cash f low to cover interest payments whilst improving investment value in the medium term.

ADViCe leD APPROACHWe assessed the key issues and steps necessary to provide the optimum solution. For this project we had to minimise up front costs, with expenditure only approved

when securing new or increased income stream. We identif ied those works which were a necessity

for health and safety and took control of sourcing and overseeing these works, implementing those which would provide the best value for money as new tenants/rental streams were secured.

iMPleMentAtiOn OF ADViCe In addition to the letting of vacant space and considerable improvement works, we oversaw all aspects of required works to the estate including lease restructuring, tenant relations and instructing and monitoring contractors.

We were able to provide the administrator with the hands on day-to-day service required to turn this estate around.

tHe OUtCOMeWe were able to turnaround the estate and we now have a professionally run business park with a fully operational service charge and standardised leases and rent collection methods.

sUMMARyCombining asset management, agency know how and a common sense hands on approach we delivered a fully tailored solution to the problem.

Client FeeDBACKSteven Williams of Begbies Traynor - ‘Gent Visick consistently exceed expectations, providing honest and commercial advice which sets them apar t.’

CAse stUDy

CAse stUDy

Wheatley Hall, Doncaster

MARKet PRiCinG

BACKGROUnDA closed end fund seeking to sell an industrial investment prior to approaching fund maturity.

tHe PROPeRtyA 650,000 sq ft secondary warehouse on a site of 27 acres with serious environmental issues due to historic use.

The site offered long term development oppor tunities but shor t term prospects were diff icult due to secondary location and site values falling.

tHe PROBleMThe sale was entrusted to a company who based their valuation on generic comparables, failing to factor in the local market and the sites unique issues. The sale of the proper ty was unsuccessful and at the same time market conditions deteriorated which was compounded by the tenants lease forfeiture.

The proper ty was now valued at £2.5m, a 5-fold reduction on the original asking price. The fund required a quick sale in excess of £3m prior to the fund reaching maturity.

tHe MAnDAteGent Visick was tasked with adopting a new approach, accounting for current market conditions, to achieve a price greater than the bottom end market sentiment.

KnOWleDGe leD APPROACH

As the market for speculative investment was limited we had to offer the proper ty direct to known investors with the skills necessary to deal with this type of asset.

Our market knowledge allowed us to provide real

advice giving the interested par ties an insight into how the proper ty could be reworked to add value and future income stream.

tHe ADViCe

Gent Visick provided solutions to known problems such as the f lood plain and environmental issues. The wider market had become overrun with false rumour relating to the site, largely due to the previous prolonged marketing. Gent Visick uncovered the underlying value and attracted a strong level of interest.

tHe OUtCOMeGent Visick achieved a sale price in excess of the £3m level and within the timeframes set out by the client.

The fund was able to meet their overall targets and satisfy their investor’s requirements. The purchaser understood the true value of the underlying real estate having given due consideration to the over inf lated issues perceived by the general market.

sUMMARyThe fund had instructed an agency who didn’t comprehend the product and ultimately devalued the proper ty due to market perception.

Gent Visick were able to work through the issues and present a real and credible investment oppor tunity to a select number of par ties. Although we were able to achieve a successful result we are sure this could have been bettered had we been instructed at an earlier stage.

Client FeeDBACKThe client was delighted with the outcome and paid a substantially enhanced fee in ref lection of the value added by Gent Visick.

The Industrial Partnership 4 Park Cour t, Park Cross Street,

Leeds, LS1 2QHtel: 0113 245 6000fax: 0113 200 3980

www.theindustrialpartnership.com