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 were SLG Beauty who relocated from Leominster and elsewhere in Gloucester.

The site was on the market for £4 million.

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New lease of life for city 'eyesore

Work should be completed this month on one of Gloucester's biggest city centre office developments, replacing what was once a major eyesore. The former Courts furniture store in Bruton Way, Gloucester, which lay empty and deteriorating for several years, has been given a new lease of life. The building has been transformed into modern office accommodation and is now partially occupied by Gloucester City Homes, which has leased more than 10,000 sq ft of offices on the ground floor.

Work is progressing on the remaining 20,000 sq ft, with completion anticipated in January, to provide further offices to accommodate traditional lettings for small to large occupiers alongside a serviced office operation with a staffed reception.

Now renamed Railway House with the city station just a short distance away, the architects were Roberts Limbrick, who previously transformed the neighbouring Gloucester Carriage and Wagon Works building unveiled last year. It is now the prestige headquarters of Roberts Limbrick and has won praise for the company's joint managing directors Stephen Limbrick and Jeff Roberts.

Railway House was purchased in 2010 by private investment company Formal Investments Limited, based in Festival House, Cheltenham.

Clare Savage, of Formal Investments, commented: "We wanted to raise the game and bring a high standard of flexible, modern office accommodation to Gloucester city. Many occupiers want to stay in the city, but can't find the flexibility or standard they need and, despite the tough market, we are confident of our product."

Nick Bevan Consulting Limited are agents for Formal Investments Limited and Gloucester City Homes was represented by ASH and Co Chartered Surveyors, based in Gloucester.

10th January 2012