real estate all your real estate needs, under one roof
Did you know? • With around 100 specialists Howard Kennedy’s real estate team is one of the largest and most experienced in the UK. • Transactions involving income-producing real estate totalled approximately £500bn globally in 2014, up 9% from 2013 . 1
• The view of UK economic growth in 2015/16 is optimistic with forecasted total returns to property investment of around 13% in 2015 . 2
As the UK’s property market continues to gather momentum, our capable, experienced and responsive team of real estate experts is here to help you every step of the way.
Data sources 1 PwC / Real Capital Analytics (RCA): Emerging Trends in Real Estate®: The global outlook for 2015 2 CBRE, UK Property Market Outlook 2015
“It’s not just about legal knowledge. They also want us to know about the fundamentals of their business. What’s driving their growth? Who’s snapping at their heels? What’s over the horizon? It’s a 360-degree view – and we do our best to provide it.” Julian Hindmarsh, Partner: Joint Head of Real Estate
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Making the right decisions in a fast moving market Whether you are fighting to keep your competitive edge in a fast-moving retail environment, creating new spaces to live and work, or searching for the latest in high-end residential luxury, making rational and timely decisions about property will be a major part of your everyday activities. Getting those decisions right will result in greater market share, increased profitability or a better quality of life. It’s not always easy. Property markets move fast. Deals are complex. Significant investment may be required. Having a trusted advisor who knows the UK property sector will help. At Howard Kennedy, we have one of the largest and most experienced real estate teams in the country – a hundredstrong team that combines in-depth legal expertise with wide knowledge of the markets in which our clients work.
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We cover all stages of the real estate life cycle, from planning and acquisition through construction and handover, to sales and potential disputes. Whatever your issue, we can help. Big doesn’t have to mean impersonal. We’re known for being one of the most approachable firms in the industry. Our partners will be closely involved in managing your work and backed by a wider team of associates and legal specialists to ensure value. The result is clear and commercially focused advice to enable you to make the most of the opportunities offered by the UK’s dynamic property market.
Our service Our expertise is wide ranging, which means we can advise on any commercial or residential real estate issues, including planning, construction, tax, finance, investment, portfolio management, plot sales, litigation and transactional. Our client base is diverse too: FTSE 100 companies, high-street retail chains, investors, property entrepreneurs, individual property buyers, restaurant and leisure entities – anyone who is involved in buying or selling real estate.
Many of our clients are household names – organisations such as Berkeley Group, Carluccio’s, Cartier, Galliard Homes, KFC, Mothercare, Pizza Hut and Sunglass Hut. Some of these relationships go back decades and some are just beginning. Large or small, whether you came to us 25 years ago or yesterday, one principle guides all of our client relationships: our commitment to delivering a responsive, cost effective and commercially focused service.
“ They’ve got good resource, they’re responsive and they can flex up and down to our requirement.” Chambers UK 2015
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Our teams: Real Estate Development, Construction and Planning This team provides commercial advice on all aspects of development schemes, ranging from acquisition and site assembly, through to joint venture structuring, construction, all with tax support. Specialist planning experts work with developers to ensure successful applications, to handle appeals and to advise on planning conditions and statutory agreements. Our construction team manages a diverse portfolio of construction matters – including contentious and non-contentious advice for developers, funders, contractors and investors – all of which are aimed at getting your real estate projects delivered on time, to budget and specification. Work examples: • Advising a subsidiary of a UK PLC on the development of the world’s biggest cable making facility, involving significant land regeneration and new infrastructure • Advising a major UK developer on construction matters for several multi-million pound mixed-use schemes across London • Providing an Asian backed developer with advice on all construction aspects of highend residential developments in central London • Advising a Dutch contractor on the design and construction of a new data centre for a leading IT company in the Midlands
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• Supporting several banking institutions on the construction aspects of the numerous development projects they are financing • Advising a variety of clients, ranging from contractors, sub-contractors and owners of historic buildings, in various disputes concerning their construction projects • Supporting planning aspects of the Development Management Agreement for the purchase of a West End development in central London • Advising a developer on a planning application for a theatre and 66-bedroom boutique hotel in central London. We also drafted and settled the S.106 planning obligation with the council • Advising a major restaurant on planning aspects of their lease of the atrium floors of a signature tower building in London Bridge, for use as two high-end restaurants.
Transaction Finance Our Transaction Finance Group constitutes the firm’s core real estate finance, banking and asset finance resources, advising lenders and borrowers on secured and unsecured lending and finance propositions. Adopting a multi-disciplinary approach, our banking and real estate lawyers work in close collaboration with our construction, planning, tax and corporate teams as necessary. The Group represents a broad range of funders including institutional lenders, major banks and building societies, private banks, short term and bridging lenders, development funders, funds and private lenders. Transaction Finance also advises borrowers, including major commercial landowners, developers, substantial property funds and businesses in relation to both secured and unsecured general commercial borrowings and real estate transactions often with a complex financial element including advising on forward funding and forward sales
• Acting on a £24.2m loan to a group of property investment companies owning a mix of commercial and residential properties • Acting on a £20m facility to a group of overseas companies owning serviced apartments • Acting for an institutional lender for a loan facility of £35m secured against several works of art being acquired by an art dealership • Acting for an institutional lender in a facility of £24m refinancing a chain of boutique hotel businesses in London • Acting for a developer on the development of a new rail manufacturing facility for in the North East of England at a value of £82m.
Loan facilities and other transactions on which the Group advises its diverse client base vary from the relatively small (some less than £100,000) to £100m plus. Work examples: • Acting on a syndicated loan facility of around £70m to a group of overseas companies owning a portfolio of residential apartments • Acting on a £20m facility to a group of companies owning a portfolio of residential and commercial properties
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Real Estate Investment This team has a wealth of experience in dealing with acquisitions and disposals of all types of commercial investment property such as industrial estates, office buildings, shopping centres and residential investment property, either as single lots or as part of a portfolio transaction. We can also help with all aspects of ‘day to day’ property management matters including the preparation, negotiation and completion of agreements for lease, leases, surrenders and re-grants and lease renewals as well as all related management licences and associated documentation. Work includes: • Advising on a series of acquisitions, financing and disposals of high street retail properties for an aggregate consideration of circa £25m
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• Advising on the refinancing of a portfolio of industrial properties with a loan of circa £20m • Advising on the acquisition of a residential property for refurbishment and re-sale for consideration of circa £25m • Advising on commercial lettings of multi let office premises for aggregate annual rents of circa £2.5m.
Residential Development and Plot Sales This team has expertise across planning, construction and funding for residential developments. We can meet all the challenges of the development process, from CML Forms to the Consumer Code for House Builders, to affordable housing obligations to finance. Work includes: • Advising a major developer in their joint venture in granting a long lease to the English National Ballet and the English National Ballet School, and providing it with a new home at London City Island • Working with one of the UK’s largest housing developers in the launch of their mixed-use waterside development in London’s E14
• Acting for a joint venture on the plot sales for part of a significant development in Shoreditch. As well as attending overseas launches in Hong Kong and Singapore, we compiled the title bundle, drafted the contract and lease and advised on how to structure the contract to deal with some planning issues • Supporting clients in the sale of their developments in central London.
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Residential Property We advise high net-worth individuals on buying and selling their residential property assets, which are usually in the luxury, high-end market within prime locations in London. We also advise clients on strategic land sales and developing sites for residential and mixed-use development. Work includes: • Advising on an exclusive development in Belgravia with a developed value of over £80m • Working with a private client on planning and environmental issues on the acquisition of a £3.5m site in Aylesford, Kent for mixed-use development with long-term residence consent
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• Advising on the property portfolio purchase of seven flats and a commercial premises in central London with bank funding of £3.8m • The sale of a flat in central London for a signature building for £2.2m.
Retail and Leisure We work closely with entrepreneurs, start-up businesses, established international retail and leisure chains including restaurants, gyms, casinos, and hotels, advising them on leases, purchases, sales and management. The team provides a multidisciplinary service that fits the many different needs that our clients have – so, in addition to real estate services, we can advise on financing, employment, corporate tax branding and regulatory matters. Work includes: • Acting for a celebrity chef on the acquisition of new premises in Clerkenwell, London
• Advising a premium French fashion brand on their presence in the UK retail market, with outlets throughout the country
• Advising an international retail chain on its first national store in the Kings Road
• Advising a luxury lingerie retailer on the acquisition of its stores in central London
• Acting for a Thai restaurant chain on the acquisition of sites at the West End, central London and Bicester Outlet Retail Village
• Advising global premium jewellery brands on acquisitions in Bond Street, London
• Acting for a German restaurant chain on the acquisition of an 11,000 square foot site for their second and third UK restaurants
• Advising a South African value fashion brand on the acquisition of 50 stores in the UK.
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Complementary services The breadth and depth of our expertise means that we’re able to call on a range of specialist teams across the firm to provide a full range of legal services. Corporate Real Estate Our team can help you and your partners set up joint ventures, provide due diligence on acquisitions and investments, advise on corporate structuring for fund structures and support high-end residential property transactions through corporate vehicles. The team acts for a wide range of clients, from individual entrepreneurs to corporates, developers, investors, joint ventures, intermediaries and funders, including private equity, venture capital and debt providers. Work includes: • Advising Asian ultra-high net worth investors on the acquisition of the corporate vehicle owning a Knightsbridge restaurant • Acting for a family consortium on the sale of its multi-million pound property portfolio at the Earls Court development site • Supporting the corporate sale of a landmark commercial building in the west end of London to a Danish purchaser for more than £100m • Working for an international leisure group on its US$100m transatlantic joint venture with an international hotel and resort chain.
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Real Estate Dispute Resolution Our team is one of the largest of its kind in London. It advises funders, landlords, tenants, developers, investors, high net worth individuals, hoteliers and retailers on a wide range of commercial and residential disputes. We have particular expertise in commercial developments, offices and the retail and leisure sectors, advising on litigation risks early in transactions with a view to avoiding litigation. The team specialises in finding non-litigious ways of resolving potentially litigious issues. Work includes: • Acting for a subsidiary of an international hotel chain, successfully defending an action that their contracts were not valid • Advising a national property developer on a number of issues on their development, in particular a secured loan • Working with a multi-national company to defend an indemnity claim for obligations under a lease with 40 years to run • Acting for a national retailer on the reconstruction and reconfiguration of its leasehold properties.
Market insight Working closely with such a diverse mix of clients, we make it our business to keep abreast of the changing market conditions and trends affecting real estate.
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Key clients Real estate development, construction and planning • Ardmore • Clivedale • Eastlight Limited • Frogmore • Kitewood • Melrose Industries plc Real Estate finance • Dragonfly • Handelsbanken • Metro Bank • Santander Bank • Secure Trust • Merchant Developments • Wellesley Finance Real estate investment • Britecroft Limited • Ellerman Investments • London & Argyll Limited • Mawpart Developments • Prime London Ventures Limited • Residential Land Limited • Tannen Group Residential development and plot sales • Ballymore Properties Limited • Battersea Power Station • Berkeley Group • City & Docklands Property Investments Limited • First Base • Galliard
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Residential property • Heronslea Limited • Private clients Retail and leisure • Antler • Aromatherapy Associates • Bare Minerals • Busaba Eathai • Calzedonia • Carluccio’s • Cartier • KFC • La Perla • Mont Blanc • Mothercare • Pandora • Patty & Bun • Pep & Co • Pizza Hut • Rigby and Peller • Sunglass Hut • The Club Company • The Kooples • Vapiano
Key contacts
Julian Hindmarsh Partner: Joint Head of Real Estate T: +44 (0)20 3755 5507 E: julian.hindmarsh@howardkennedy.com
Paul Springall Partner: Joint Head of Real Estate T: +44 (0)20 3755 5720 E: paul.springall@howardkennedy.com
“ We aim for long term team relationships with our clients. This enables us to deliver better, more focused advice.� Paul Springall, Partner: Joint Head of Real Estate
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No.1 London Bridge London SE1 9BG DX 144370 Southwark 4 Tel: +44 (0)20 3755 6000 Fax: +44 (0)20 3650 7000 www.howardkennedy.com