JLL’s Asset Repositioning Team (ART) lead a cross-sector taskforce to provide innovative strategies unlocking alternative use values and enhancing liquidity. This can include change of use strategy, joint venture opportunities, diversification or replacement of income and ultimately improving a liquidity strategy.
The team have a strong track record, over the past 12 months, having driven liquidity for clients by clearly demonstrating their repositioning opportunity. We undertake detailed strategic reviews to ensure repositioning vision is both deliverable and profitable. We have acted on a variety of retail assets (including shopping centres, retail parks, supermarkets, leisure and high street blocks), secondary offices and car parks, and have had great success leading strategies with alternative use development solutions.
We integrate an unbiased, data & science led approach, utilising JLL’s breadth of cross sector data, visualized through our interactive mapping technology to provide an objective and impartial approach to any asset. This is then combined with our development and market expertise to get the best results for our clients.
Meet the team
Georgia Chamberlain
Senior Surveyor – Asset Repositioning
Since 2020, JLL’s Asset Repositioning Team have…
The 2021 JLL Investor Survey results confirmed…
60
%
of owners are re-evaluating their assets for the creation of longer, more stable income streams
51
%
of investors expect to utilise an asset repositioning strategy over the next 12 months
We work with market leading specialist teams from the JLL network
The Asset Repositioning Team acts as a project lead, streamlining advice across our wider advisory and agency teams to ensure all alternative use markets are tested and identified. These include:
Our track record
The following case studies detail a handful of project that the Asset Repositioning Team has been involved in.
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Centre Court, Wimbledon
Role: Development Advisory and Disposal
- A 4.4 acre freehold site with dual frontages on to The Broadway & Queens Road, Wimbledon
- Located immediately adjacent to Wimbledon station (National Rail, London Underground and Tram) which links to Central London in 20 minutes
- Allocated as a mixed-use development site within the proposed Future Wimbledon Supplementary Planning Document (SPD) due for recommendation in November 2020
- Opportunity to create a dynamic new destination in the heart of Wimbledon town centre, where people live, work and play
- Established development strategy, engaging a cross sector team, completing highest and best use analysis of alternative markets (residential for sale, BTR, senior living, office, hotel, alternative retail)
- Worked with architects and planners to deliver an indicative scheme comprising a mixed-use development proposal which complemented the strong demand for residential and office space, whilst recreating the retail landscape
- Devised a scheme focussed on placemaking through introduction of interactive public realm, F&B with terrace dining and a focus on fitness & leisure.
- Investment was sold by marketing it as a mixed-use development opportunity with an indicative scheme
Outcome:
- One of the strongest shopping centre sales in the past 12 months, transacting at £71,500,000 (reflecting 5.9% NIY and £16.25m per acre)
- A clear vacant possession strategy and development programme provided a deliverable vision to potential purchasers
- Detailed market assessment on each alternative use supported strong improvement to existing value through future development and helped underwrite bids.
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Nicholson Centre, Maidenhead
Role: Development Consultancy
-A failing shopping centre located in the heart of Maidenhead on a site extending to 4.5 acres
-Opportunity to deliver a mixed-use development scheme including residential, office, senior living accommodation and new retail provision
-JLL reviewed the residential, BTR, office and senior living local markets in order to determine the highest and best unit mix
-Advised the client and architect on optimal design to drive saleability and attract investors, finding ways to maximise efficiency
-Provided a residual value analysis on each use class
Outcome:
-Supported the client with market intelligence in order to test and determine optimal use mix
-Helped to shape their final scheme inclusive of office, residential, senior living and future thinking retail space, which has since been granted full planning consent
The proposed scheme provides an examplar case study of towncentre regeneration and received full planning consent in Feb 2021.
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St Albans Retail Park, Watford Junction
Role: Development Consultancy and Partnership Agent
-6 acre site located approximately 200m from Watford Junction Train Station
-A number of upcoming lease expiries coupled with the challenging retail market posed challenges to the vendor
-Focus of the fund was to maintain and grow the income stream, but they had no appetite to obtain planning and self deliver a redevelopment of the site
-JLL were engaged to find and structure a partnership arrangement in order to replace the retail income with Build to Rent accommodation
-Provided viability consultancy advice and then worked with the client on an indicative scheme to drive highest and best value and density from the site, undertaking development modelling
Outcome:
-Berkeley Homes selected as joint venture development partner to deliver a 1,100 unit scheme
-Planning was obtained and the scheme was delivered, including approximately 250 BTR units for HSCCP in return for £22m cost contribution
-This BTR element retained by HSBCP increased their existing £1.5m rent roll to £3m per annum.
-In addition, the asset value increased from circa £30m to circa £80m, in return for the £22m cost contribution
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Templars Shopping Park, Cowley, Oxford
Role: Development Consultancy and Disposal
-A supermarket anchored shopping centre, extending to 140,000 sq ft, on a site comprising approximately 8.9 acres, with a WAULT of 7.1 years
-ERV’s were falling in line with the challenged retail market
-JLL were the lead advisor to the Fund, advising on optimal site values for a range of uses to inform the fund’s exit strategy
– Advised the client and architect on optimal design to drive saleability, attract investors and maximise efficiency
-The architect proposal comprised 632 units/townhouses from 2 to 15 stories, plus an allocation of A1 to facilitate tenant relocations
-JLL Agency and Investment teams were engaged to lease and sell the asset
Outcome:
-Sold within the funds tight tax driven timetable, for £45,000,000 (reflecting 7.25% NIY and £5m per acre)
-Investment marketed for a 4-week period, receiving 7 offers
-Secured a cash investor, selling at the upper end of the fund’s pricing expectations
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Brent South Shopping Park
Role: Development Advisory and Disposal
-Freehold site extending to 7.4 acres, with an unexpired term of 4.0 years (no breaks)
-Located within the Brent South Masterplan regeneration area with mixed use development potential
-Engaged a cross sector team and completed highest and best use analysis of alternative markets to determine development strategy (residential for sale, BTR, coliving, office, hotel)
-Worked with architects and planners to advise on a mixed use scheme, focussing on quantum, scale and use mix to drive maximum value.
-Development was focussed on overall placemaking, utilising public realm and space to create active open areas
-Development modelling was completed in order to underwrite development value to reflect the strong improvement to existing value
-Investment was sold by marketing it as a mixed-use development opportunity with an indicative scheme, utilising JLL’s GIS mapping technology
Outcome :
-Sold for £55,000,000 (reflecting 6.25% NIY and £7.5m per acre)
-International sales campaign carried out and strong interest was achieved from institutions, international capital, PE and developer
-Created clear development strategy which was supported by complex masterplan outline consent
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Canada Water
Role: Strategic advisors for new mixed use location
-Situated in a central London location, benefitting from unrivalled transport links, with stations at Canada Water and Surrey Quays
-Site extends to 53 acres, providing a huge opportunity to create a major regeneration masterplan for London
-Appointed as strategic advisors providing a research and market led approach to consider the demand drivers for each use class
-Market research structured around a deep insight into the future demographics of the area based on who will live, work, study and play there
-Creation of specific market reports for each use class covering areas such as occupier demand, rents, yields, future supply, competitive position, target occupier profile, occupation trends and lease terms
-Detailed advice on phasing and associated development timescales
-Carried out a global benchmarking exercise against exemplar international developments to inform advice
Outcome:
-Created a clear development framework and implementation plan that could be used to bring forward the planning process for the site
-Informed the client’s masterplan for Canada Water which has now received planning consent
-JLL Agency teams since instructed to lease and sell the office, retail and residential accommodation
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Confidential
Role: Portfolio Optimisation & Alternative Use Advisory
-Instructed to help better understand the UK’s future resilient places landscape, in terms of current and future dynamics
-Utilised our Resilient Places tool to identify resilient locations based on macro indicators to identify alternative use opportunities
-Solution incorporated a top-down, macro review of the UK landscape, incorporating JLL technology, cross sector data, knowledge and insight
-Cross sector team engaged on key assets to review alternative use markets in micro locations to determine highest and best use
Outcome:
-Produced a holistic scorecard to identify resilient places
-Tool provided an unbiased and objective lens on their regional assets and investment opportunities, removing any emotions that may have been associated with a certain location
-It has subsequently become embedded into our client’s regional strategy
-JLL’s analysis combined with client asset level insight has identified regional assets that require priority focus and further viability due diligence
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Ilford Retail Park, Ilford
Role: Asset Disposal
-Supermarket and Health & Fitness occupiers, extending to 31,900 sq ft, situated on a 2.52 acre plot, with a WAULT of 5.5 years
-JLL acted as lead advisor to the fund on the asset, with input from architects, planning advisors, leasing agents and investment agents
-Financial modelling carried out to advise on value and set the funds exit strategy
-Project management, planning and viability advice was provided across the scheme, in addition to the coordination of the planning application
-Architect proposal outlined 503 new homes, with a density of 493 dwellings per ha; an opportunity for further density was therefore offered to the market
Outcome:
-Sold for £17,500,000, (reflecting £7.1m per acre)
-Investment marketed widely to residential and retail investors to broaden the market
-27 offers received during the 6-week marketing period and a cash investor was secured
Welcome to the first of a new series of market insights, each one focused on a different sector.
This piece looks at the Industrial & Logistics market and asks the question ‘What’s next’. The update explores different perspectives from internal and external experts who discuss the different issues and opportunities facing the I&L sector at the moment, including the impact of ESG, how demand is changing and where to find the next site.
Please click on the link below to read more.
JLL Partnerships
JLL has an extensive track record of successful, long term, strategic partnerships which have demonstrably added value. We have worked with the following key clients and have forced strong partnerships:
Sustainability
The UK has committed to become net zero carbon by 2050, and 80% of buildings that will be around in 2050 have already been built. Therefore millions of existing buildings need upgrading to become net zero carbon throughout their life cycle, presenting a real opportunity to put sustainability at the heart of asset repositioning strategies.
In order to future-proof assets, we must not only create longer, more stable income streams, but also protect and enhance asset value by ensuring sustainability is integrated into building design and delivery. This includes carbon reduction, climate change mitigation, social value and health and wellbeing.
JLL predicts that net zero carbon buildings in central London will drive an enhanced premium value for the next 5-10 years, re-enforcing that sustainability is fast becoming a ‘must have’ rather than a ‘nice to have’.