Case Study - Commercial Agency - Residential
Ref: JH/08/7'07 Jean Howe – Partner Kirkby & Diamond
The client sought to procure the sale of a redundant vehicle repair workshop and site having already obtained planning consent for the construction of five dwellings. He sought to enter into a joint venture agreement to maximise the profit of the site.
Kirkby & Diamond were able to introduce the vendor to a prospective developer/ purchaser to facilitate an early agreement of terms.
As part of the complex negotiations early access to the site was given to minimise the vendor’s responsibility for void rates on the existing building and the purchasers were contracted by the vendor to demolish the buildings and dispose of the asbestos and contamination that existed on the site.
The knowledge of many developers who are operating within the market facilitated the negotiation of acceptable terms to both parties. Whilst the complicated legal issues were being dealt with by the lawyers, the close liaison between the two parties via Kirkby & Diamond enabled the vendor to reduce his financial outgoings on the site and enabled the purchaser to have control over demolition and decontamination of the site before expending the monies on completion of the purchase.
A successful sale of the site was agreed on the basis of a sale and future clawback provision on the total value of the dwellings to be sold from site in the future. Both the vendor/ client were provided with a substantial sale value at the date of completion and some additional future value once the development was completed without any of the risk.