Client: RREEF - Blythe House

This building was held on a lease by Laing O’Rourke plc until November 2010, but in order to assist with the building’s disposal and prevent any future voids, the landlord, RREEF, agreed to undertake a full refurbishment of the building with Laing O’Rourke continuing their liability.

Gerald Eve was instructed to advise on the level of refurbishment which would be required and then to market the premises as joint agents with Strutt and Parker. The building comprised a self-contained three storey office building of 28,505 sq ft and following the £1.6m refurbishment provided raised floors, suspended ceilings with recessed LG7 lighting, a new three pipe fan coil air conditioning system and 128 car parking spaces.

The refurbishment commenced in August 2008 and was completed by January 2009. Following a comprehensive and targeted marketing campaign we identified a potential requirement from a local housing association, Hightown Praetorian and Churches Housing Association, who was seeking to purchase the freehold of the premises.

With Laing O’Rourke having a lease liability we then had to agree a freehold price with Hightown which, including the surrender premium from Laing O’Rourke, would meet RREEF’s internal valuation of the property and obtain board approval.

In August 2009 the freehold sale was agreed at £5.3m (reflecting £187 per sq ft) within a year of starting the refurbishment, and met the requirements of RREEF and Laing O’Rourke.