59,000 sq.ft Office Building with Residential Units, London – Receivership
Moorfields were appointed as Receivers over a 59,000 sq.ft office building incorporating five residential units in London. The property carried bank debt of £40 million against an estimated value of £25 million.
The building was registered as a Higher Risk Building under the Building Safety Act 2022, requiring additional compliance and management oversight during the receivership process.
Objectives
- Stabilise the asset and ensure compliance with the Building Safety Act.
- Implement short-term asset management to maintain income and operational integrity.
- Explore redevelopment and repositioning opportunities to enhance value.
- Deliver a structured sales strategy to optimise lender recoveries.
Moorfields’ Actions
- Conducted an immediate operational review and safety compliance audit.
- Engaged specialist consultants to advise on Building Safety Act obligations and remediation requirements.
- Undertook short-term asset management, including tenant engagement and cost control.
- Reviewed redevelopment and planning potential to support the investment case for sale.
- Appointed experienced central London agents to market the asset to institutional and private investors.
Results
- Value preserved and enhanced through proactive management and risk mitigation.
- Redevelopment options identified, supporting improved sale interest.
- Successful disposal completed, providing the best achievable outcome for the secured lender.
- Full compliance maintained under the Building Safety Act 2022, ensuring regulatory assurance for the purchaser.
