A prominent family office, with a diverse portfolio of investments, sought our expertise in optimising the value of their commercial property located in Beckton, East London. The property, purchased for £2.5 million some 5 years earlier, consisted of a declining block of restaurants within an 11-acre cinema-led leisure scheme strategically positioned at the junction of the A13 and A406 North Circular Road.

The Challenge

The owners of the main site, expressed their intention to close down. A developer agreed to purchase the main site and approached the family office with an initial offer that closely mirrored the original purchase price. We were asked to review the offer and formulate a strategic approach.

Identification of Strategic Opportunities:

Following our examination of the property’s title, we established the restaurant investment held extensive rights over 925 car spaces (5 acres), providing the family office with a unique bargaining position. This created a ‘ransom’ over the redevelopment.

Strategic Decision-Making:

The original developer failed to recognise the full value. We introduced Valor Real Estate Partners who agreed to purchase both elements, leading to a realisation of £21 million for the family office. This represented almost tenfold increase from the original offer.

Conclusion

In leveraging our expertise, the family office not only safeguarded their investment but also realised substantial returns on a property that, on the surface, appeared to be a modest commercial investment. This case study exemplifies the impact of strategic decision-making and the ability to identify and exploit hidden value drivers, ultimately leading to a highly successful outcome for our client.