Case Studies

ARJO, Agency Disposal - Gloucester

ASH & Co's involvement with ARJO MED AB Ltd goes back some 20 years and at regular intervals we have been asked to carry out accounting valuations as well as negotiate rating assessments.

In 2006 ARJO decided to scale back their operations from their site in Gloucester and appointed ASH & Co to consider the best method of disposal. 

A feasiblity study was carried out in consultation with Planning Consultants and it was decided that the best course of action was the sale of the site, subject to the existing use.  ARJO also wanted us to consider the effect on value should they remain in occupation of part.  This involved both rental advice and advice to the likely lettability of the vacant accommodation from an investors viewpoint.

With a clear strategy in place we went to the market in February 2006.  We received over 100 expressions of interest and and then with a short list of parties we invited them to submit final bids.  The successful party was Mount City Investments Ltd  and contracts were exchanged in November 2006 at a price higher than originally expected.  ARJO subsequently remain in occupation of approximately 50%.

Upon completion of the sale the site was renamed Spire Business Centre and ASH & Co were instructed to manage the buildings which includes the collection and reconciliation of service charge accounts.

In addition ASH & Co were instructed to market the vacant accommodation which extends to approximately 60,000 sq ft of offices and factory.  During the sale process the Agency Department had been tracking several large enquiries. Post completion of the purchase discussions were opened and after some lengthy negotiations lease agreements were signed.  The property was refurbished ready for the new tenants who took occupation in January 2008.  The new tenants will be SLG Beauty who relocate from Leominster and elsewhere in Gloucester.

The site was on the market for £4 million.

Pollyanne Schreuder advised ARJO on the sale transcation and Robert Smith negotiated the letting to SLG Beauty.

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