This document provides information about Savills' recoveries and receivership services. It discusses planning for properties in receivership, including maintaining commercial use or pursuing redevelopment. Savills offers joined-up property management, asset management, and development management services to maximize returns. They can help with issues around the property sale process such as refinancing or portfolio sales. Preparation and proper due diligence are important to realize the best value from distressed properties.

1. SAVILLS RECOVERIES & RECEIVERSHIP
Welcome to
Savills
33 Margaret Street
New UK and Global HQ

2. Solutions for Property in Receivership
1. Plan ahead
2. Understand and address the issues
3. There are 2 generic options for the property

Stay in commercial use - Part 1

Change of use / redevelopment – Part 2
4. Realising value means anticipating the market
5. Make the product fit the demand
6. Sell in the right way at the right time
2

3. Joined up services – The Receivers will pull this together
Management
roles
Understand the dynamics
Maximise the returns through a focus
Property / Asset /
Development
on getting the process right
3Ms
3

4. Issues around the sale process
Exit routes may include:
 Refinancing
 Loan sale
 Special Purchasers – granular (whole properties or part)
 Portfolio
 Individual market sales
Can you spend more time to add value in the interim?
Can you present your buyers with a moving target?
Preparation and timing is important to make the most of what you have
Some of the principles are common to all options
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5. Recoveries and Receivership
Point of sale
Scoping the strategy...
Resolved all the issues
Take the low hanging fruit
Scope obvious issues
But
With an idea – “of interest to ....../
Suitable for .........?”
don’t push too far and risk failure
As is – let the purchaser decide
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6. The ideal – a professional orchestrated sale?
1. Property Management has created
proper records
Surveys
2. Asset Management or Development
Management has explored or explained
the options
 Building Survey
3. Vendor DD depends on the exit route but
must be addressed and assignable:-
 Measured Survey (Plowman Craven?)
 M&E
 Cladding
 Environmental
 EPC
Legal
 Title
Procurement of DD
 Charges / appointments
 Quotes – Same experts?
 Local Searches
 Capacity and timescales
 Tenancy schedule
 Recognised brand + no questions asked
 Web-site / data room
 PI and accepted warranties
 Assignments – 1, 2, 3 ?
 Town Planning appraisal
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7. SPF Insurance Services
Insurance for Receivers / Vacant
Property
Richard Lowe
Director
July 2013

8. LPA Receivers – Property Insurance
• Property Owners Insurance
• „All Risks‟ or Restricted Perils
• Timeframes

9. Keys Areas for LPA Insurance
• Flexibility – immediate cover up to generous limit
• Open Cover or Pre-Appointment Insurances?
• Trade off between Premium, Cover & Insurer requirements

10. Common Issues for LPA Receivers
• General lack of information at appointment
• Occupation of Premises
• Construction of Premises
• Insurance Values of Premises
• Cost comparison of new cover to Pre-Appointment Insurance

11. Recoveries and Receivership
Workshop Wrap-Up
How can we help you?
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12. Savills (UK) Ltd.
 UK‟s Largest property consultancy business for over 10 years
 Globally 500 offices and associates – 22,000 staff
 UK coverage - 3,200 employees in 81 offices, with 4 in Scotland / 3 in Ireland
 Residential and Commercial Sectors
 Occupational, Investment & Development Skills
 Qualified Receivers located throughout UK / Ireland
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13. Recoveries and Receivership capability
Market sectors
Services and Skills
1.
Offices
A.
Recovery / strategy review
2.
Industrial / warehousing
B.
Red Book Valuation for lenders
3.
Leisure / Hotels
C.
Property management
4.
Specialist buildings
D.
Property asset Management
5.
Retail / Shopping Centres
E.
Occupational / Leasing
6.
Residential / New Homes
F.
Dilaps / PM / vendor surveys
7.
Portfolios
G.
Investment advice and sales
8.
Development opportunities
H.
Development /Town Planning
I.
Financial services / advisory
9.
Long term strategic Land
J.
Enforcement services
K.
Fixed Charge Receivership
- Experienced, bespoke teams, utilising local knowledge
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14. Options for Control / Appointment
Savills
Service line
LPA or Fixed Charge
Receivership
Rent collection and
Control of the Property
Joined approach to
Asset Management
Joined approach
to Sale
Full Reporting
Responsibility for
Empty rates and other
creditors
Transaction
Management
Borrower / IP appoints
Savills with Proforma
letter
Legal control with IP or
Borrower
YES (by agreement)
YES (by agreement)
Savills and others
IP or Borrower
Shadow Monitoring
Role
Proforma letter - Prior to
LPA appointment if
necessary
Borrower
In discussion with the
Borrower
In discussion with the
Borrower
Parallel Reporting with
recommendations
Borrower
Lite touch
Receivership
YES - legal appointment
BUT day to day control
by appointor
May be Tendered
May be Tendered
May be Tendered
Pass through
Legal Minimum
IP or Borrower
Consenual
Receivership
YES - legal appointment
Options to retain the
borrower - subject to
alignment otherwise
below.
Options to retain the
borrower - subject to
alignment otherwise
below.
YES (by agreement)
YES
YES
Adversarial / Full
Receivership
YES - legal appointment
YES
YES
YES
YES (by agreement with YES (by agreement with
appointor)
appointor)
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15. Savills UK Team
Julian Clarke
BSc FRICS FNARA RPR
Director
+44 (0) 20 7409 8743
+44 (0) 7870 555 705
jclarke@savills.com
Julian has held
approximately 200
appointments as an LPA
Receiver since 1991. His
background is in running
Development projects
and the coordination of
project teams: this
approach has extended
naturally into the FCR
role for larger or more
complex property
problems and portfolios.
Kevin Mersh
BSc FRICS FNARA RPR
Director
Matthew Nagle
MRICS FNARA RPR
Associate Director
Stuart Jones
MRICS FNARA
Director
+44 (0) 20 7409 8184
+44 (0) 7870 999 683
kmersh@savills.com
+44 (0) 20 7409 8898
+44 (0) 07870 555 956
mnagle@savills.com
+44 (0) 2380 713969
+44 (0) 7812 965 421
sjones@savills.com
Kevin has held over 120
appointments as an LPA
Receiver in addition to
being a well known agent
buying, selling and
leasing commercial and
residential
accommodation
throughout the country.
Matthew is a Fellow of
NARA and has held a
number of appointments
as an LPA Receiver over
a variety of asset classes
including shopping
centres, office, residential
and mixed use portfolios.
Stuart is a member of
the RICS, and has
been a
specialist in property
recovery and
receivership
for 15 years. In 2008,
Stuart was invited to
join the Board of
NARA, the
professional
association of Law of
Property Act
Receivers.
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Annabel Sutherland
MA (Hons) RIBA MRICS
Director
+44 (0)20 7409 9981
+44 (0) 7870 999 604
asutherland@savills.com
Annabel has over 10
years experience
advising occupiers and
landlords in the City of
London . Annabel joined
the Recoveries and
Receivership team in
2011.