Radius Industrial Case Studies


UNIT 4 EDISON PLACE, DUNDEE


  • Section 18 for Tenant
  • Landlord’s Claim - £63,788.90
  • Section 18 valuation - £10,000
  • Settlement - £32,000
  • Prudential Assurance - v - James Grant - found that it is not necessary for the Landlord to provide DV to substantiate their claim in Scotland
  • However, Court may be persuaded by a Tenant’s DV that the Landlord’s loss can be ‘capped’ at a lower level than the ‘costs of works’
  • Older industrial unit with limited marketability - therefore dealing with certain works (including ‘dirty’ rooflights, ‘soiled’ cladding) will have no positive impact on value
  • Landlord accepted Diminution argument in agreeing a lower settlement than their Claim

MAX PARK, CORBY


  • Section 18 for Tenant
  • Landlord’s Claim £1 Million
  • Section 18 £160,000
  • Former Distribution Centre totalling 500,000 sq ft
  • Various Reinstatement works would not be ‘value affective’ including removal of office partitions, high spec racking system and tenant installed toilet block
  • Local industrial market illustrated this
  • Section 18 assisted in settlement of £400,000

UNIT 10 HARTLEBURY INDUSTRIAL ESTATE 


  • Section 18 for Tenant
  • Landlord’s Claim c£75,000.
  • Tenant’s S.18 - £nil
  • Tenant spent c£120,000 at lease expiry on various items of disrepair
  • Landlord’s Claim referred to internal decorations to warehouse (repainting floor and steelwork), external decorations and full replacement of cracked (although accepted as still being wind and watertight) Georgian glazing
  • Considering the size, use and market, none of these items were likely to have a positive impact upon value
  • Settlement - £15,000

HARROWBROOK INDUSTRIAL ESTATE, HINCKLEY


  • Section 18 for Tenant
  • Landlord’s Claim - £161,000 plus costs
  • Tenant’s B.S Response - £46,000 plus costs
  • Section 18 valuation - £30,000 (plus contractually obligated costs)
  • Result - £35,000 (inclusive of costs)
  • Principal factors advanced for Tenant:
    • Corrugated asbestos roof - Property therefore at or about the end of its useful economic life in any event
    • Several voids on the Estate - supply exceeding demand
  • Tenant advised on Valuation by Radius Consulting

BROADGATE, OLDHAM


  • Section 18 for Tenant
  • Landlord’s Claim £427,000 plus costs and loss of rent
  • Claim of £427,000 agreed by Tenant’s Building Surveyor
  • Landlord’s Section 18 - £620,000.
  • Tenant’s S.18 £300,000
  • Settlement at Mediation - £385,000 inclusive of costs
  • Landlord spent £427,000 on putting the property back into ‘repair’
  • However, Section 18 advice provided evidence to justify limited industrial demand for unit of this size in this location
  • As a result not all of the works would be required in order to re-let
  • S.18 advice helped to remove non value affective works and loss of rent from the Claim



Paul J Raeburn BSc (Hons) MRICS DipArb FCIArb 
RICS Accredited Mediator
 
Neil Burridge BSc (Hons) MRICS ACIArb
RICS Registered Valuer

RICS Registered Valuer
Regulated by RICS
Chartered Institute of Arbitrators