Asset Management

Rent Review at multi storey car park serving shopping centre in Leicester city centre.

Client

ING Real Estate

Property Description

A 475-space multi-storey car park, forming part of the Haymarket Shopping Centre.

Project Summary

  • City-centre, secondary shopping centre car park
  • Tenant’s failure to comply with repairing obligations, with car park’s poor condition effecting trade
  • Competition from the new, Shire’s Shopping Centre car park
  • Lessee reluctance to negotiate or provide vehicle number, revenue and cost data

TownCentreParking’s Role

In conducting the rent review, Town Centre Parking fulfilled the following role:

  • Assess car park’s performance – vehicle numbers, dwell times, tariff, revenue and costs
  • Full appraisal of lease and partys’ obligations
  • Appraise lessee’s operating practices
  • Detailed profits-based valuation to determine ERV
  • Serve rent review notice
  • Undertake negotiations with lessee
  • Application for appointment of arbitrator
  • Issue Calderbank
  • Prepare and submit statement of agreed facts
  • Prepare and submit initial, Expert’s report
  • Assess lessee’s submission
  • Prepare and submit counter report

Conclusion

Tenants frequently choose to go to third party in the knowledge that comparable evidence is scarce and often unreliable and that many arbitrators have limited knowledge of car parks. However, despite this tactic, owing to our ability to effectively determine rental value, using a profits-approach, we were able to achieve a significant uplift, in excess of 75%.


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