Glastonbury

The property comprised a 27,000 sq ft retail warehouse let to B&Q with a pending lease expiry. We adopted a strategy to underpinned value irrespective of whether B&Q renewed the lease. Key to the strategy was securing planning for a sub-division of the existing unit, construction of an additional 9,522 sq ft retail unit on the garden centre and construction of a 2,130 sq ft drive-thru coffee pod. Planning permission was granted and the opportunity was marketed to occupiers enabling a financial comparison between undertaking the development and renewing the B&Q lease. Ultimately, B&Q significantly improved their renewal terms and a new lease was concluded generating a £1.2m uplift in capital value. In addition, the demise and rights granted were varied to enable the drive-thru coffee pod to be developed and following marketing, rental offers of £65,000 pax had been received which would generate a further development profit of circa £300,000.