Example #3

Introduction:

Plato Estates Limited was approached by representatives who had secured the franchise for a specific area for a major European motorcycle manufacturer. The problem was that whilst the client had the franchise and appropriate funding for the business operation, they had not been able to identify premises suitable for the franchise and did not feel they had sufficient working capital to fund the freehold acquisition.

The problem was made more difficult by the fact that the franchise had very specific requirements in terms of the premises which would not be satisfied by normal high street retail locations and involved a low site coverage to provide sufficient external display and customer parking as well as delivery facilities by HGV.

The solution by Plato Estates Limited:

Plato Estates agreed to undertake a site searching exercise within a pre agreed geographical areas focused around specific towns and on the demographic information relating to that appropriate franchise.

Over a period of seven months Plato Estates conducted a site search thoroughly visiting all the potential areas and identifying properties that might be suitable.

Plato Estates reported periodically and regularly reviewed those sites being identified with the client.

Plato Estates then investigated the ownership of those properties and conducted negotiations either with the owners or their agents together with making enquiries with local estates agents and chartered surveyors for other property that might be suitable for development or conversion.

This exercise revealed a number of potential sites for conversion and development. Some of these were too big for the client but Plato Estates was able to promote these as viable opportunities as it was possible to let only the area required by the client and to develop any surplus areas for alternative complementary property investments that would not compete with the principle client.

Plato Estates presented a report to the motorcycle dealer from which a shortlist was established including:

  • a disused petrol station,
  • a former factory/industrial unit near the front of an industrial estate and
  • a new built industrial unit.

 

Although all of these opportunities were seriously considered, the client was fortuitously able to take advantage of the fact that a competitive motor cycle operator had gone into administration and the client was therefore able to take over the premises at that location.