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Case Study 2: Property - Making best use of property investment

In August 2001, Motion Media bought the freehold and moved into 40,000 square feet (gross) of office building. Within 6 months, the business required to reduce it's cost base. The building was costing over 600k pa to operate.

To reduce this cost, the following strategy was adopted: release the capital via a sale and leaseback, sub-let unused space and generate revenue from sub-tenants.

Over the following three years, this was achieved to the extent that a small profit was made on the purchase and refurbishment, and the running costs to SCOTTY (formerly Motion Media) were reduced to less than 200k pa for a much reduced space utilisation.

This was achieved by:

  • successful negotiation, under difficult circumstances, with the new freeholder
  • prudent use of specialist consultants
  • procurement of, and successful negotiation with, under-tenants 
  • provision of profitable enhanced services to tenants
  • strong cost-control of building services
  • outsourcing of building management function

Nick Sturge oversaw all aspects of this.

 

 

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Last modified: January 26, 2005