ABSTRACT WORKS CLOSELY WITH OCCUPIERS, OWNERS AND FINANCIERS TO PROVIDE A RANGE OF PROPERTY SOLUTIONS BESPOKE TO THEIR SPECIFIC REQUIREMENTS.
Abstract has worked with a number of occupiers looking to benefit from a bespoke solution to their business needs rather than simply leasing space in the market. Abstract will work with an occupier incorporating any or all of our development skills from site selection, planning and design, procurement, fit-out and financing of a project. This approach offers individual occupiers enormous opportunities to benefit from the value created by their own commitment and to achieve a much better overall financial solution on a project. In this context Abstract will work on a full open book basis and will ensure an alignment of interests so that an end user can see it is maximising the potential from a given project as shown in the case studies below:
CASE STUDY ONE : Aberdeen International Business Park
The first phase of this project comprising a bespoke 335,000 sq ft new building complex for occupier, Aker Solutions ASA, was initiated by Abstract on behalf of the related Norwegian investment company Aker ASA. Aker was keen that the Group should benefit from the size and value created by this project rather than going into the market to lease a building from another developer. The result of this approach is a complex of 3 buildings which have been leased by Aker Solutions ASA on terms which are more competitive than any other new build in the Aberdeen market as well as providing accommodation and facilities better than any other facilities offered in the market. In addition to the financial benefit to Aker, this also enhanced the tenant’s ability to recruit and retain high quality employees.
CASE STUDY TWO : Xchanging plc
Abstract worked with Xchanging plc who wished to acquire a central London HQ facility and consolidate three offices into one using some of the value generated to provide cover for the disposal of the old offices. Abstract was able to acquire the 50,000 sq ft building, 34 Leadenhall Street, and simultaneously lease it to Xchanging plc. Xchanging benefited from the value generated from the lease with the resultant investment subsequently being sold to Delancey plc. Abstract then managed the disposal of Xchanging’s other existing lease liabilities.
CASE STUDY THREE : Assura Group Plc
Abstract works with Assura Group Plc, a primary healthcare investor, in a development management capacity, undertaking all aspects of site acquisition, planning and construction delivering the finished product for the investor to then hold in its portfolio.
CASE STUDY FOUR : 100 Middlesex Street, London, E1
A different approach to development solutions is that Abstract will work with an investor or financier to maximise the value of an individual property. An example of this was the project at 100 Middlesex Street undertaken with GE Real Estate. This building had been owned by GE for a number of years and the current tenancies were coming to an end, the building was obsolete and in reality had little existing use value. GE did not wish to undertake the long term redevelopment for the site, but wished to achieve at least its book value for the building and hoped to see a significant enhancement through the activities undertaken by Abstract. Abstract was able, through proactive planning and marketing work, to more than double the value of the site and achieve a sale of the site to Blackstone acting with Generation Estates for high quality student accommodation. The building is now the tallest student housing development in Europe.
CASE STUDY FIVE : Queen Victoria Street, London, EC4
A hybrid example of Abstract’s activities is the development at Queen Victoria Street which Abstract undertook with Hines UK. Abstract was appointed by the International Division of the Salvation Army to develop a new International Headquarters on a site owned by the Salvation Army and to also develop a speculative office building on the balance of the site such that the speculative building would finance the development of the new International Headquarters for the Salvation Army. As a result, the Salvation Army now has an award winning Headquarters building as well as receiving a ground rent from the adjoining 90,000 sq ft office development.
Key additional features of the Abstract role :
- Abstract will underwrite the full construction costs of the project guaranteeing a fixed price and definitive timescale for delivery of any building, using our robust form of design and build documentation.
- Within its development solutions role, Abstract is also able to manage the legal and financial side of any transaction.