Stressed & Distressed Property

We provide advice and act on behalf of clients, covering the following:

Acquisition of stressed or distressed properties, portfolios and businesses
Property portfolio cost reduction
Real estate strategy for insolvency practitioners, both pre and post insolvency
Disposal of freehold and leasehold assets
Negotiating lease assignments following sale or purchase of businesses.

PHD offers a unique blend of property expertise and understanding of the restructuring and insolvency processes.

We assist lenders seeking to enforce and borrowers seeking to refinance. We work with insolvency practitioners to maximise value from businesses and assets. We advise purchasers acquiring stressed or distressed businesses.

A selection of the cases we’ve worked on include:

The acquisitions of Cash Generator Ltd by Rcapital and Feather & Black by Hilding Anders
Cost reduction for Mixed Radio and Vikoma
Administrations of Countrywide Farmers PLC, Multiyork Furniture Ltd, Jones the Bootmaker Ltd, Warren Evans and Fresh to Stores Ltd.

We are ideally placed to advise clients on all sides of financially stressed or distressed situations, identifying and unlocking the inherent property opportunities and liabilities.

Rent management function for retail administrations

Following the administrations of both HMV and Patisserie Valerie, PHD were engaged by the Administrators (KPMG LLP) to provide a rent management function.

This process involves managing all rent payments made by the joint administrators, both during the ‘trading period’ and ‘licence to occupy’ following successful sales of businesses. We liaised with all landlords and their advisors to advise of the process and the implications for them, so they fully understood the constraints of an administration process. We ensured that rental invoices received were appropriately addressed and apportioned, reflecting the trading period and ‘licence’ agreement. We managed onward payments to landlords through our client account.

We also worked alongside the joint administrators to progress the assignment of leases to the purchasing entities, liaising with both parties’ legal representatives as appropriate.

We have previously undertaken this role on a number of other administrations (eg. Jones the Bootmaker, Saltrock Surfwear and Feather & Black. Our clients see this function as a very cost-effective way of delivering this service, ensuring that property matters are concluded as expediently as possible.

Property portfolio review and administration strategy

Countrywide Farmers Plc engaged PHD to undertake a full property portfolio review, assessing the value and development potential of their 23 freehold sites and considering the exit options from their 47 leasehold properties.

We submitted a full detailed report to the client within 3 weeks providing market values and options analysis for the freehold properties. Opportunities were identified to rebase rents across a large section of the leasehold portfolio.

12 months later, PHD were appointed by the Administrators of Countrywide Farmers Plc to oversee the delivery of a property strategy to maximise value from the property portfolio.

Management of property matters for Multiyork Furniture administration

Duff & Phelps LLP, as Administrators of Mutiyork Furniture Limited, appointed PHD to manage all property related matters across the administration.

PHD, along with a joint agent, undertook a short marketing exercise of the leasehold properties to seek premium offers to acquire the leases. In addition, we supported the administrators during their sale of business negotiations, providing the property level information required and advising on the structure of the Business Premises Licence within the Sale & Purchase Agreement.

PHD completed assignments over six leases for premium values totalling £340,000. In addition, PHD undertook a full audit of historic business rates securing refunds to the administrators totalling over £100,000.