Case study: overcoming hurdles to purchase existing business premises to enable growth

Overview

STC Holdings Limited, a commercial vehicle maintenance provider in the North West, approached our commercial property team seeking assistance with acquiring the freehold title for their operational premises. This acquisition was a crucial step in their business growth strategy. Our commercial property team had to overcome a few obstacles to complete on the acquisition of two sites totalling over £3 million.

How we helped

Our client wanted to improve the premises of their Stockport Truck Centre based in Atherton and acquiring the freehold was a key part of their business plan.

However, it became apparent that there would be a few hurdles to overcome to get this completed.

Notably the seller did not own the freehold title to the whole site. Additionally, the seller’s interest was held under multiple titles; a number of which were leasehold titles containing onerous provisions restricting the prospective use of the site.

Our commercial property team conducted thorough investigations and worked closely with our client to negotiate with the freehold seller to acquire the freehold title and secure a discount against the purchase price to minimise the additional costs for acquiring the site.

Given the multiple titles and changes involved, the HM Land Registry application was complex. Our team meticulously handled the submission process to ensure accuracy and compliance.

There were also several further matters that we were able to identify and address early on. These were discussed with our client which enabled them to meet the lender’s requirements. This included issues with the existing occupational lease, a new lease was therefore put in place as part of the transaction.

The transaction faced delays outside of our client’s control. Throughout this process, we maintained communication with all parties involved, including the seller, lender, and freehold owner, to keep the transaction on track.

STC Holdings Limited successfully acquired the freehold title to their operational site. The burdensome covenants associated with the leasehold titles were extinguished, providing greater flexibility, and they have now been able to proceed with their business plans.

The total value of the transaction was £1,070,000.00, plus the freehold acquisition.

During the course of this transaction, STC Holdings Limited approached us for assistance in acquiring another site worth £2.4 million as part of their expansion plans. We successfully facilitated this acquisition within approximately 10 weeks. Initially funded with cash, we later assisted in refinancing the site with a new occupational lease further supporting our client’s operational needs.

Due to our commercial property team’s dedication to overcoming challenges, providing proactive solutions, and ultimately helping our clients achieve their business goals. STC Holdings Limited now stands with a solid foundation for growth and continued success in their operations.