THE ROYAL EXCHANGE, LONDON

Instruction Synopsis

Propitas were appointed by Resolution Property to provide Technical Due Diligence assistance in respect of the investment acquisition of this historic building.

The Royal Exchange is an iconic Grade 1 listed building in the City of London. The current building is the third incarnation and was designed by Sit William Tite, opening in 1844, providing circa 80,000 sq ft of net lettable retail and commercial office space arranged over basement and four upper floors.

Propitas instructions were tailored to suit the client’s requirements. As part of the process we undertook a full review of the Vendor’s technical reports, advising on the adequacy whilst highlighting any key issues and risks and the need for further investigations and information. We also carried out an overview of the lease documentation available to advise on liabilities and the relationship between the various leasehold interests.

HOW PROPITAS ADDED VALUE

We tailored our report and advice to take account of the client’s business plan and proposed hold period and turned the report around in under a week from inspection.

We provided initial feasibility advice on value add opportunities and potential asset management initiatives in the context of the inherent site restrictions.

Our review of the identified a potential shortfall between planned works and service charge / sinking fund contributions. This meant a consolidation exercise was required to ascertain the full extent of liabilities going forward in conjunction with the vendor extending the cover of the reliance letter.

Both were key in determining the viability of the acquisition, which enabled the client to make an informed decision about the level of risk and incorporate within their business plan for the asset.

KEY INFORMATION

• Inspection and technical due diligence for pre acquisition
• Circa 80,000 sq ft Grade 1 listed building
• Comprehensive technical review and advice on the key issues
• Our report assisted our client with the decision to purchase the property

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