Egan Property Asset Management Ltd

Our core services are commercial property investment, asset management and property management for 30 corporate / private clients together with 20 private equity investment syndicates comprising 175 individual investors. We provide a full professional service and constantly seek opportunities to maximise rental and capital values / minimise costs through:- - Acquiring commercial property both on and off market - Raising private equity for development funding or pure investment syndicates - Sydnicate structuring & debt finance - Arranging beneficial finance and interest rate hedging for private clients - Taking advantage of tax breaks such as capital allowances and industrial building allowances - Negotiating lease surrenders / extending lease terms - Securing removal of tenant breaks - Arranging refurbishments and relettings - Arranging extensions and redevelopment - Securing changes of use - Negotiating rent reviews / lease renewals - Arranging on and off market disposals to maximise sales proceeds Scrolling over the images on the right will highlight some of our recent sucess stories.

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Case Studies

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Medical Centre Rent Reviews We purchased a medical centre in Archway North London on behalf of private clients. The purchase price was based on the passing rent of £42,000 pa which was subject to 3 yearly rent reviews. At the time of purchase there was an outstanding review dating back over 2 years which we settled at £75,000 pa. We subsequently negotiated the following review at £90,500 per annum. As the lease still has 15 years unexpired and the tenant is of very good covenant, the increased income has led to a significant boost in capital value.

Fulham Road We manage a parade of 11 retail units in Fulham Road for private clients. Apart from Pizza Express the tenants are local businesses and the investment yield has reflected the perceived insecurity of this income particularly over the last 2 years. We have however negotiated lease surrenders to provide vacant possession of 4 adjoining units and exchanged contracts with Sainsbury’s to combine the units into a new convenience store. The yield on the Sainsbury’s income is well under 6 % which is a considerable improvement on the original 8% - 9% for the local tenants.

Albemarle Retail Merger We have set up and manage a number of investment syndicates which purely own retail properties. Each acquisition has been ‘deal driven’ with some syndicates owning a single property and others large number of properties in locations throughout the UK. We are in the process of merging five of the retail syndicates to create a single entity with a value in the region of £91,300,000. We are taking advantage of current low interest rates to refinance all the separate loans in a new £75,000,000 facility with RBS. The very positive cash flow together with expected increases in rental income will be used to amortise the loan over the next 3 years. We anticipate a possible premium value when the portfolio is sold because of the size and spread of the properties and this together with improving investment yields and a large reduction in the outstanding loan will lead to enhanced returns on equity.

Croydon Two office buildings were acquired for an Albemarle Investment Syndicate with a view to future development into an office tower. One building was let to HSBC and the other to a tenant who went into administration. The rental income was significantly reduced from £883,338 to £360,000 pa. However in a difficult market the entire vacant building was re-let at £503,000 pa and the HSBC rent was increased at review to £407,500 pa taking the combined income to £910,500 pa

St David’s House, Cardiff St Davids House was purchased in November 2008 by an Albemarle Investment Syndicate with the intention to redevelop in 2012 when the majority of leases expire. The property lies between the Millennium Stadium and Cardiff Central train station and currently comprises 90,000 sq ft of office and retail space let to 25 tenants. There is a considerable opportunity to enlarge the footprint of the building and to add additional floors, or a comprehensive redevelopment to capitalise on the buildings prime central location. Our objective has been to maximise and maintain the income, negotiate landlord breaks where required and reduce the running costs. Over the last 2 years we have negotiated 30 separate transactions with tenants and we are on target to reduce the service charge costs by 40%.

Albemarle Stafford We have raised equity and bank finance to fund a number of large development schemes. In this case our development partner was Liberty Mercian Limited and the scheme was financed by Royal Bank of Scotland. The property is a new retail park built in two phases in Lichfield Road Stafford comprising 110,000 sq ft of retail warehousing and restaurant space together with a 61 bedroom hotel. Tenants include B & Q, Argos, Comet, Travelodge, Pizza Hut and KFC. The scheme is fully let with a current rental income of £1,875,000 pa

Albemarle Egham We purchased a mixed parade of thirty commercial units with a large car park to the rear in High Street Egham. We have successfully obtained planning permission for the redevelopment of the rear car park into a 32,000 sq ft supermarket with a 180 space underground car park and a 80 bedroom hotel above. We have secured pre-lets with Waitrose for the supermarket and Travelodge for the hotel and detailed specifications are now being drawn up for the build contract by our development partner Liberty Properties. We will be creating a new entrance from the high street to the development and once Waitrose are trading we expect a significant increase in zone A rents for the high street units and interest from better quality tenants.

NCH House, Wolverhampton One of the Albemarle Investment syndicates purchased a new purpose built HQ building for Dolphin Bathrooms. At the time Dolphin Bathrooms were a solid covenant but following the bank crisis some two years later they went into administration. Due to the location of the property the re-letting prospects were not good and the fallback position was serviced offices. However working with local agents we have re-let the entire property to the subsidiary of a major US company for 10 years at a rent of £213,000 pa. with a capital contribution toward new air conditioning which will boost future rental levels.

Spencer House, Southampton This office property was let to blue chip tenants but at the time of purchase for private clients none of the tenants were in occupation and all leases expired simultaneously. The client was faced with long voids and substantial refurbishment costs. We did however negotiate lease surrenders at substantial premiums and in a difficult market and relet the entire building direct to local accountants HJS which enabled the subsequent sale of the property.

15-17 Victoria Grove, South Kensington The property comprises a terrace of 3 shops with residential maisonettes above. Each unit was let on individual leases including the residential upper parts with full security of tenure protection at a combined income of £100,000 pa. We have successfully negotiated lease surrenders in order to release the capital value of the upper parts whilst maintaining the income from the retail units. Two of the maisonettes were sold for a total of £1,300,000 and having obtained possession of the final unit, we sold the freehold in May 2010 for £2,500,000 resulting in gross capital receipts to the client of £3,800,000. The initial purchase price was £1,100,000.

Stafford Street, Hanley One of the Albemarle Investment Syndicates holds a mixed portfolio of properties in central Hanley. Following the administration of Walmsley Furnishings large retail premises on Stafford Street were vacant for some time. However using a substantial grant we obtained from European development funds, improvements were undertaken and the property attracted interest from the local Primary Care Trust. We negotiated a surrender of the lease with Yorkshire Bank and re-let both properties to Stoke-on- Trent Primary Care Trust for a 10 year term at £112,000 pa. We subsequently negotiated the removal of the 5 year tenant break.

The Islington Portfolio We purchased a mixed portfolio of properties on behalf of private clients from the London Borough of Islington. Over the initial 12 months of ownership through intensive management in a difficult market we have increased the income by 52% to £562,000 pa and collected £120,000 of back rent following settlement of outstanding reviews. All vacant units have been re-let and we are currently working on a number of active management/development situations which will further boost income and capital values.