Strategic review of a complex mixed-use asset, identifying disposal options and supporting informed portfolio decision-making.
Client profile
A large housing provider commissioned FFT to review the future of a mixed-use property within its portfolio. The asset had become increasingly disconnected from the organisation’s long-term investment and asset management objectives, prompting a strategic review of the options available.
Services provided
Property overview
The property comprised a substantial freehold mixed-use development in East London, combining commercial accommodation with live/work units. The building contained a significant proportion of vacant accommodation and was subject to a range of planning, legal and operational considerations associated with its historic planning consent and occupancy arrangements.
The client required independent advice to understand the opportunities and constraints associated with the asset and determine the most appropriate strategy for future ownership, management or disposal.
Our role
FFT was appointed to undertake a comprehensive options appraisal and provide strategic agency and valuation advice.
Our team carried out a detailed review of the property, coordinated planning and legal due diligence, commissioned valuation advice and undertook confidential market testing with developers, investors and agents. We assessed a range of retention and disposal scenarios, considering planning, legal, operational and market factors alongside the client’s wider objectives.
Key considerations
A historic live/work designation created uncertainty around future use, planning compliance and long-term value. The presence of vacant accommodation, varying tenancy arrangements and potential planning and landlord and tenant issues added further complexity to the decision-making process.
Rather than focusing solely on current value, the review needed to consider how different strategies could affect future risk, investment requirements, programme implications and the asset’s development potential.
Strategic Advice
FFT provided an integrated assessment of the available options, combining agency, valuation, planning and commercial considerations into a single decision-making framework.
As part of the commission, we carried out a confidential soft marketing exercise to test investor and developer appetite. This provided valuable market intelligence and ensured recommendations were informed by real demand rather than assumptions.
The client was therefore able to understand not only the potential value of the asset, but also the practical implications, opportunities and risks associated with each option.
The outcome
FFT delivered a detailed options appraisal setting out the advantages, risks and value implications of retention, reconfiguration and disposal strategies.
Our recommendations provided a clear basis for decision-making and informed a preferred disposal strategy designed to reduce ongoing risk exposure while maximising market opportunity. The commission demonstrated FFT’s ability to advise on complex, underperforming and non-core property assets where planning, legal and commercial factors all influence future value and strategy.
We then delivered the property sale in accordance with our recommended marketing strategy through extensive marketing, with a successful disposal optimising sale proceeds of £6.5m + for the client to reinvest in its core business.