Case Studies
Rationalisation of a family’s property portfolio
Problem
A family office had a portfolio of properties in the Midlands that needed assessing. Once a plan had been devised and agreed, they then needed to appoint someone to execute the instructions
Solution
Cascabel carried out a formal appraisal of all the properties and catalogued them into those that were fit for the family offices’ purpose, those that were surplus to requirements, and those that could be in either category. We then adopted a brief business plan for each property. Once The Family Office had seen this plan, they immediately instructed Cascabel to execute it.
Results
In the first 12 months, we disposed of 30% of the portfolio and laid the foundations to progress the remainder. We prioritised each property, according to development potential, the time that would be taken to release the profit, and the probability of development. The project is still ongoing.
Business park income increases by 56%
Problem
A family office owned a 15-acre industrial business park in the Midlands. Although the smaller units were mainly occupied, there was a lack of long-term income and the anchor unit had been empty for some time.
Solution
Cascabel was asked to become involved. We stepped up agent activities and, within six months, a serious applicant had been found for the largest unit on the park. We managed all the negotiations and, procured the necessary professionals. We also put together a project plan to demolish the existing depot and, provide a new depot that met the prospective new tenant’s approval. The project is currently going through planning and the Tennant has signed an agreement for a lease for 20 years.
Results
The finished project represents an increase in income of 56% in the park’s total income for The Family Office.
Disposing of properties surplus to requirements
Problem
Severn Trent Water appointed Cascabel Developments to provide consultancy advice on disposing of its surplus assets. At the time, Severn Trent owned over 7,000 properties, in excess of £5bn. As a large number of properties had been inherited from local authorities under the Water Act 1989, no formal transfer was made under the Land Registry Rules and therefore both the extent and actual ownership were in question.
Solution
Cascabel created a strategy detailing how to dispose of the properties called, Project Trickle which is still being used today. We clearly outlined the process of taking a property from being declared operationally surplus, through the various internal and regulatory approvals, to the appointment of a sales agent. Initially, this applied to the disposal of over 300 commercial properties. We then also provided advice on how to dispose of development lots, farmland and residential homes.
Results
Project Trickle is still running some six years after introduction, which is the best outcome possible.
