An Insight Into Chicago BCO 2015 Sometimes you have to take one for the team and attend conferences to further your professional expertise, network and general understanding of ones chosen profession. I was that soldier and on 20th May, headed across the pond to Chicago to attend the BCO (British Council for Offices) Conference. A strange venue you may think, for a conference based around the guidelines to which all new-build offices in the UK should adhere to. However, it is important to embrace differing cultures and architectural heritage when considering the built environment, in order to be able to offer something different to the local development offering. Not that I think a number of 102 storey office towers is what is necessarily required for Aberdeen; you could almost fit all of Aberdeen’s central office stock into one of these glass behemoths, but there is no doubt lessons can be learned. The Conference provided excellent plenary sessions with economists, politicians et al, delivering the State of the Nation. More interesting to the Aberdeen Surveyor however, were the tours, which involved a walking tour of Chicago’s office buildings. Buildings with colourful names such as the Monadnock, The Rookery, Burnham and Atwood’s Reliance Building, and the not so sexily named Chicago Board of Trade, provided useful insight into the progression from Art Deco to post
modernist architecture and design. No trip to Chicago would be complete without of course seeing the Willis Tower (previously Sears Tower), a design by Skidmore Owings and Merrill architects. Completed in 1973, it was the tallest building in the world, a status it retained for 25 years. At 108 floors it still holds the record for the building with the most number of floors in North America. At the 103rd floor there is a sky deck with a glass ledge where 1.2 million visitors a year walk out and look at the street below. For someone like me who gets the yips at the top of Union Plaza, I did not add to that number! The other interesting fact about the Willis Tower is that Willis was granted naming rights by taking a lease over only three floors in the building, testament to the fact that the office market in Chicago in 2009, was a little stale. United Airlines, which occupy 20 floors in the building, have reason to be a little miffed I suspect. A city of contrast – Marsichal College – esque architecture, being dwarfed by the glazed Trump Tower characterises a particularly attractive city, enhanced by being on the shores of lake Michigan. In the words of Arnie – I will be back! Jonathan Nesbitt E: firstname.lastname@example.org
Message from our MD... As a result in the shift in oil price, and hyperbole in relation to the potential demise of the city of Aberdeen reaching fever pitch, I feel it only right to provide my take on what is really happening in the Granite City.
property scene, and construction is continuing apace. In this constantly evolving world, businesses require to be adaptable, which in turn leads to changing demands for accommodation.
confidence that historically a fall in oil price has little or no effect on prices or rents within the city, albeit I acknowledge that take-up rates slow down when there is such an occurrence.
As a consequence of a high level of activity over the past few years in the energy sector, the property market has experienced sustained high-level activity, which favoured developers with occupiers having limited negotiating strength. With the adjustment in the oil price, an element of balance has now manifested itself so now is the time for businesses to take the opportunity to review their space requirements.
Experienced operators, developers and investors are continuing to commit to the city. In the city centre, projects such as the Capitol and The Silver Fin Building are now under construction. These developments will have a hugely positive impact on the west end of Union Street and its environs, both from an atheistic perspective and the economic benefits from a substantial increase in footfall. In addition there is a lot of activity on the periphery of the city, be it Bridge of Don, Dyce, Kingswells, Portlethen and Westhill.
It is important that FG Burnett understands the dynamics, which influence the property market, be it oil price, bank lending policies and not forgetting the UK and International political events. Engaging with all aspects of the business communities is part of our daily schedule.
The fact that there has been an adjustment in the oil price should not be regarded as a surprise. After all we have been here several times before. I can recall sub $10 oil in 1986 but we all weathered the storm. As a business we continue to see the commitment to the commercial
Experience tells us when the purse strings are tightened it drives innovative times - it is the catalyst for collaboration and sharing. Again with the benefit of our experience, we can state with
Deals continue to be made with much still in the pipeline. There is definitely no â€˜big black cloudâ€™ hanging over the granite streets.â€œ Angus MacCuish E: email@example.com
Contract for Construction Process Awarded on Exciting Aberdeen Office Development Construction of Union Street’s high profile Silver Fin Building will commence imminently with news that the construction contract has now been awarded to the building and engineering company, Sir Robert McAlpine (SRM). The £65 million 132,000 sq.ft Grade A office developments, will feature a new Scottish granite façade onto Union Street together with a glass and granite tower element featuring views across the city. The ‘Silver Fin’ branding relates to vertical aluminium fins, which will clad all elevations of the tower element, and will catch the light to offer a unique visual feature that will be seen from across the city. The Silver Fin Building is set to raise the bar in terms of the office offering in the city and will deliver a specification and quality consistent with the leading office developments in the other major regional office markets of the UK. Demolition of the site began in late 2014, with the project and the
building due for completion in March 2017. The building will be thirteen storeys high, with four car parking floors and nine occupied floors. The building will sit alongside the new Capitol office development and will provide tenants with spectacular views across the city. At ground floor level the Silver Fin Building will offer a unique business lounge – ideal for informal meeting facilities for occupiers and guests - and a striking four-storey atrium within the building’s reception area. The development will offer 140 secure underground car parking spaces, 19 motorcycle spaces and 56 cycle spaces. FG Burnett and CBRE, who act on behalf of the developer Titan Investors – one of the UK’s most active regional developers of commercial office space – believe this Grade A office space will provide the exemplar office space in the city. Jonathan Nesbitt, Director at FG Burnett Aberdeen, says, “This is a hugely exciting development for the city and is testament to the inherent strength of the Aberdeen market
that such a level of institutional investment has been committed. We are delighted that building work is about to begin on site and that, so far, each planned phase of the project has been on track. The Silver Fin Building is set to re-invigorate the city’s West End and is the most high profile commercial development in Aberdeen. Derren McRae, Managing Director of CBRE Aberdeen, added, “Not only will The Silver Fin Building change the face of the West End of Union Street and is set to be the city’s finest office building, but it is also expected to stimulate increased investment in the retail, restaurant and hospitality sectors in the vicinity of the development. The unique business lounge at ground floor reception is sure to be a hit with tenants looking for that little bit of additional amenity to offer their staff and clients. “ For further information as to how your requirement can be accommodated in the Silver Fin Building please contact Jonathan Nesbitt on 01224 597531 or Derren McRae on 01224 219000 from our Joint Agents CBRE.
Some new (and old) faces at FG Burnett
Strengthening our Aberdeen Team... Bryan Robson appointed as Property Manager
Former Employee David Henderson Returns to our Appointed To Retail Agency Team Agency Team
FG Burnett, the Scottish commercial property consultancy, today announces the appointment of Property Manager, Bryan Robson, to its Aberdeen office.
A change is as good as a rest. That is certainly true for FG Burnett’s David Henderson, who we are pleased to welcome to the Aberdeen office’s retail agency team. Formerly a Property Manager with the company, David may have only physically moved a few feet in the office, but the difference in roles is streets apart! He will now work closely with Richard Noble, Director in charge of Agency and Head of Retail. David comments, “I am delighted to join the retail agency team, working closely with clients, marketing, sales and letting for retail property. I have gained considerable experience across many sectors previously, so this will stand me in good stead as I take on my new challenge.”
Bryan is well placed to join the property management team, bringing an extensive knowledge of the construction and building maintenance sector to the company. Having initially begun his career as a time-served joiner, Bryan has since held key positions in the property management sector. These include Clerk of Works for Police Scotland, which saw him look after a wide variety of operational property, and Property Manager at VSA Scotland, where he closely managed staff and budgets. Bryan says, “I am delighted to be joining FG Burnett’s Aberdeen office. Not only am I looking forward to dealing with a wide and diverse array of assets, but I am also keen to align myself with one of the most established and highly experienced commercial property teams in the country. I look forward to contributing to the company’s continued success and the other opportunities that may present themselves along the way.”
Welcome Back David McCurdy FG Burnett is pleased to welcome back Senior Building Surveyor, David McCurdy to the Aberdeen office’s building consultancy team. Having left the consultancy in December 2013, David re-joins FG Burnett and will now work closely with Jim Johnstone, Director of Building Consultancy. Jim comments, “We are delighted to welcome back David to the team. David’s background within building control gives him an excellent understanding of building regulations in practise and means he is well placed to advise clients on the compliance of their proposals.”
FG Burnett is delighted to welcome back Senior Surveyor, Moira Gordon, to its Aberdeen office after two years, as part of the Agency team. Formerly employed as part of the valuations team, Moira returns to the Scottish Commercial Property Consultancy in this new role, having missed the busy, varied work that comes with agency life. Moira is now settling back into the team and looking forward to getting involved in some exciting projects. Moira says, “I am so pleased to be able to come back to FG Burnett and I am looking forward to getting stuck in to some of the interesting projects we’re currently working on. There’s always a wide variety of work on offer here, and coupled with the daily interaction with clients and colleagues – old and new – I am really enjoying settling back in.”
Recognising Future Talent - Further Support of the WIP Awards Sees Finalist Student Selected As Work Placement... FG Burnett is proud to have become the on-going main sponsor of the annual Association of Women in Property National Student Awards for the Northern Scotland Branch. The competition recognises the full range of talent available to the property industry and broadens the opportunities open to students as they progress through their university careers. FG Burnett Director, Richard Noble, says, “FG Burnett has always been committed to identifying and nurturing talent within the property industry through a strong graduate and mentoring programme, which has seen a number of talented women
join and progress within the company. The decision to support the northern Scotland branch of Women in Property as the main sponsor for the 2014/2015 Student Awards was a natural one.” Richard was also part of the evaluation and interview panel to select a winner of the Northern Scotland Branch in March 2015. Richard continues, “I had the pleasure of being part of the evaluation process for the Northern Branch and sat on the interview panel - and the standard of entries this year was particularly high. It was during this time that the work of Kirsty Gordon caught my eye. Following further discussions,
Team Spotlight Name: Iona Foubister Age: 23 From: Keithhall, Inverurie Job Title: Graduate Building Surveyor Qualifications: BSc (Hons) Building Surveying What does your job involve? My job varies significantly from day to day and project to project. I recently completed a refurbishment of an office on Union Street for our client’s new premises. This involved fully specifying the refurbishment works, instructing the contractor and monitoring the works on site while dealing with the final account. Some of the other work I am involved in is Schedules of Condition, Building Surveys, Dilapidations, Planning and Building Warrant applications and Project Monitoring new builds. Your job’s biggest challenge? The biggest challenge is prioritising. I can have a large number of jobs
FG Burnett offered Kirsty a work placement. She joined us in May and will be with us until September, assisting the agency department and gaining valuable hands-on work experience within the industry.”
Kirsty Gordon (pictured third from right) with her follow awards finalists.
This month we focus the spotlight on Graduate Building Surveyor Iona Foubister and chat to her about her role at FG Burnett Aberdeen:
running at one time so I need to ensure I prioritise whilst also not forgetting about the smaller ongoing jobs which are just as important. Best thing about your role? Getting out and about and inspecting the vast range of different buildings that Aberdeen and further afield have to offer. I have always had an interest in historic buildings so being able to inspect these along with all other types of commercial buildings and seeing how they are developing for the future is very satisfying. Best career advice? Don’t be afraid to say no if it is not what you want to do. Many people think it is about getting their foot in the door and onto the career ladder as quickly as possible but declining the first graduate job I was offered was the best decision I made. What’s your dream? My dream at the moment is to continue working towards becoming a Chartered Surveyor with the RICS and then see where that takes me on the career ladder.
Scottish Landlords Prepare For Changing Face of Dilapidations Within Commercial Property Sector...
For many years the presumption has been that lease agreements for commercial property give Scottish landlords the right to demand the cost of repairs from departing tenants. This can seem unfair to some, especially when a percentage of landlords do not actually follow through on their word and make the repairs. During an economic downturn when tenants are harder to find, landlords often turn to dilapidations as a quick, additional revenue stream, focusing on repairs in soon to be empty properties. In some cases money recovered from tenants is put towards improvements, however, the additional cash can also be saved by the landlord who may then market the premises on similar terms. Interestingly, times are changing in the commercial property market after Scotland’s highest appeal court, the Court of Sessions, ruled that tenants should only be obliged to pay for dilapidations if the landlord proves they will carry out repairs. According to one of Scotland’s leading property consultants, the recent court cases heard in Edinburgh could potentially limit landlords’ attempts to recover large amounts of money for the cost of repairing damage to their buildings.
“Landlords usually give full responsibility for repairs of a property during the life of the lease to the tenant, and this can be a huge obligation for them as leases often outrun the life of building elements” “Landlords and tenants have been in disagreement over dilapidations for years,” Jim Johnstone, director and head of building consultancy
at FG Burnett in Aberdeen explains. “Landlords usually give full responsibility for repairs of a property during the life of the lease to the tenant, and this can be a huge obligation for them as leases often outrun the life of building elements, once beyond repair items such as roofs, windows, boilers or lifts can be extremely costly to replace. “Landlords usually have the right to ask for necessary repairs to be done at any time, assuming the tenant has not complied with their lease obligations, but often wait until the end of the lease for fear of perhaps upsetting a tenant. If at this stage negotiations between the parties breaks down then the landlord usually raises an action based on breach of contract, calculating its loss on the estimated cost of repairs it considers are required. “What is new within the industry however, is this string of recent cases affirming the principle that dilapidation claims are being treated as damages claims that must be proved. It’s no longer enough for landlords to rely on a schedule of dilapidations and demand payment. In all but the very clearest cases landlords will be required to carry out the works – or prove that they intend to – before they are entitled to recover costs from the tenant.” In one of the recent court cases landlord Grove Investments, was seeking £10m in dilapidation costs from the tenant, Cape Building Products, at the end of a 25 year lease of an industrial unit. Jim continues, “In the past it has been typical that the party claiming the damages needs to have incurred the loss but in this particular case the landlord believed its lease agreement had a provision allowing it to recover “the total value of the schedule of dilapidations”, whether or not the work was done. “At the appeal before the Inner House, a bench of three judges disagreed, saying that the tenant was obliged to pay only the landlord’s actual loss. It seems they were keen to avoid the landlord receiving a windfall payment for works which were not in fact to be done.”
In a second case between @Sipp and Insight Travel Services the appeal court was asked to consider if the payment obligation written within the landlord’s lease entitled it to the exact cost of repairing premises, regardless of whether it intended to carry out the work to the property.
“It’s no longer enough for landlords to rely on a schedule of dilapidations and demand payment. In all but the very clearest cases landlords will require to carry out the works – or prove that they intend to – before they are entitled to recover costs from the tenant.” Jim says, “Again with this case, the court agreed with the tenant and ruled the landlord was entitled only to recover a loss, highlighting that a property owners intentions are related to the amount it can claim. Especially in cases where the ultimate intention is to demolish the property, the owner would have no loss to recover from the tenants. “For the moment it seems that landlords who try to impose an obligation within a lease agreement, which states that the tenant will be liable for the repairing costs irrespective of their intentions are likely to face an uphill battle. We expect to see more tenants resisting dilapidation claims and insisting on proof that the work has been completed or is about to be done. This could certainly make life a little challenging for landlords as time progresses”. Jim Johnstone E: firstname.lastname@example.org
The Bicentenary of The Battle of Waterloo and this Nation of Shopkeepers... 18/21st June 2015 ‘celebrates’ the Bicentenary of one of Europe’s most important battles but how does that relate to the retail property market I hear you ask. Ok, it’s a very loose connection but it was Napoleon that is said to have quipped that we were “a nation of shopkeepers”. If he did ever say that the intention was not to offend, inferring that we were a nation of cowards, but rather that we were a nation of merchants, and that all our great riches and grand resources arose from commerce, which is true. Indeed despite our lower population, the greater tax base of the UK enabled us to conduct a prolonged war of attrition. For sure, the phrase first appeared in Adam Smith’s 1776 Wealth of Nations. For shopkeepers or merchants read ‘Entrepreneur’ and one of our best-
known, Theo Paphitis, was in Aberdeen on Thursday 11th June to open his 26th Boux Avenue store. This illustrates the continued demand from multiple retailers for representation in Aberdeen. Many more multiples continue to try and satisfy requirements either in our covered malls or high street pitches. There continues to be a healthy level of activity in the local market with FGB having secured tenants for another two units in Aberdeen City Centre at 193 George Street and 59 Schoolhill. In George Street The Running Shop has taken space and Grub has taken up residence on Schoolhill to satisfy evergrowing grab and go food demand. It is fair to say that well presented units in good locations continue to let readily. Richard Noble E: Richard.email@example.com
Aberdeen Investment Market The story in 2015 has been quite different to the record level of activity in 2014, however there is still encouraging levels of activity and good demand. By its very nature, a record year must be put into perspective. There is no doubt that buyers spent early 2015 watching and waiting, rather than doing deals and that was no surprise. Many buyers spend the first quarter on business plans and asset allocations and others were waiting for clarity and stability in the energy sector, following the rapid oil price fall in late 2014. Clearly, there is a significant drive for efficiency in the energy sector however in late 2014, commentators were questioning where the floor was for the oil price - $20, $30, $40 were all forecast and most investors would
observe, rather than buy in those circumstances.
accept the reality and bring them back to the market ?
Nobody is under any illusions regarding the challenges in the energy sector but the history of oil and gas should remind us that this is a remarkable industry – they will adapt and they will go forward for decades to come in the North Sea.
Activity in 2015 has seen global investors such as WP Carey and Henderson buying industrial investments in Bridge of Don and at Aberdeen Gateway – one short term and high yield ; one long term and low yield. There have been major off-market office deals done where buyers prefer to remain anonymous. Some of the UK funds are looking for opportunities and high net worth investors and family trusts are appraising various deals. It is good to see deals being done and also very encouraging that yields are holding up well – yes, there is some upward movement but it is not significant.
The recovery in the UK economy means that regional investment is back in vogue – Aberdeen benefitted from 2010 to 2014 by being the shining light outside London and many new investors were attracted to the city. It is important that they understand the cyclical nature of the oil and gas industry, if they are confident in their asset selection. However, there will be investors who have bought the wrong asset at the wrong time – do they hold or do they
David MacLeod E: firstname.lastname@example.org
FG Burnett in the Community
Gleniffer Thistle Scores Sponsorship From FG Burnett FG Burnett, the Scottish commercial property consultancy, today announces its official sponsorship of Gleniffer Thistle 2009 boys. The football team, which comprises of 28 boys and is coached by a team of seven volunteers, meets twice a week at the Abbotsinch playing fields. The funds provided by FG Burnett are vital to the team, assisting in the purchase of much needed training equipment and clothing, including full winter training gear which will allow the boys to train consistently throughout the colder months. Gleniffer Thistle’s 2009 Head Coach, Mark McCall, said: “Fundraising is essential for the success of any kid’s football club. We need to undertake a number of fundraising events to ensure that our boys have the necessary training equipment such as balls, practice goals, training ladders and cones. We also require sufficient funds to secure practice and tournament venues and additional money is required through the winter where the boys
need suitable training clothing such as hats, training strips and waterproof clothing.
them every chance for progression, they require additional funding from businesses such as FG Burnett.
“The money we raise has to go a long way so FG Burnett’s gesture was very gratefully received as it has allowed us to kit the entire squad out with fantastic new strips in Gleniffer Thistle’s traditional tangerine and black with FG Burnett’s logo on the front as a thank you for their donation.”
“We are delighted to be a part of this and we think the boys look absolutely terrific in their new strips. We would like to take this opportunity to wish them all the very best as they hone their skills over the season.”
Ross Sinclair, director at FG Burnett in Glasgow, comments: “Gleniffer Thistle has a rich history, having been founded originally back in 1972 with just one age group. Since then the team has significantly expanded to include 15 age groups ranging from boys under 5s, all the way up to under 19s. There is also a recently formed girls section which now has under 9s, 11s, 13s and 15s.
Gleniffer Thistle 2009 boys play each Sunday morning at the Johnstone Sports Hub on Beith Road. For further information on Gleniffer Thistle visit www.glenifferthistle.co.uk
“It is fantastic to see youngsters learn new skills, keep fit and enjoy themselves thanks to the dedication of its coaching team – who regularly give up their evenings and weekends to teach the boys. In order to give
What Exactly Is Value and How Do We Use Valuations for Accounting Purposes? When it comes to value, it can often tend to mean different things to different people. From an expensive watch or a vintage car, to a remote country property, value can mean something entirely different depending on the person. Similarly, the definition of value and basis of valuation in property terms can differ. This depends on the purpose of the valuation and use of the property. For the majority of individuals, market value is the most commonly used basis and internationally recognised definition of property value and is defined as: “the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller. This would occur in an ‘arm’s length transaction’ – (where parties in the transaction are independent and on an equal footing) - after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.” Market Value is widely used for residential and commercial properties that transact on the current open market. However, on 1st January
2015, the RICS Valuations Standards were updated to reflect UK Generally Accepted Accounting Practice (UK GAAP) and International Financial Reporting Standards (IFRS). This now means that ‘Fair Value’ has become the new default basis of valuation for property included in financial statements under this reporting entity. So what does ‘Fair Value’ mean? Well, just to make it a little more complicated, there are two current and recognised definitions of this. These are: “The price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date.” and “The estimated price for the transfer of an asset or liability between identified knowledgeable and willing parties, that reflects the respective interests of those parties.” Now that you have the facts, it just comes to applying Fair Value appropriately when it comes to accounting purposes. As a guide, we generally advise that a firm first
confirms the object you intend to have valued with your accountants first before going ahead and instructing a valuation. If you are in any case unsure of what the process, or of certain facets of the process we are always here to help. When it comes to applying valuation for inclusion in financial statements, the team at FG Burnett holds a ‘wealth’ of experience. Typically providing advice for local and national businesses and public sector bodies, the team has valued assets in excess of £100million in the last 12 months alone – and that’s only in the North East of Scotland! For more information about Fair Value or to discuss application for accounting purposes, contact Derek Richardson on 01224 572 661. Derek Richardson E: email@example.com
Former Depot Revamped As Part of £1m Renovation The former depot of a collapsed courier firm is to be part of a £1million overhaul thanks to FG Burnett. The old City Link depot in Altens, Aberdeen, is set to be redeveloped as well as several other units, including the city’s former Tyco base at Ocean Trade Centre. The site is expected to hold a national industrial firm. Works including the recladding of the building to make it more efficient will take place as part of the proposals. FG Burnett director,
Graeme Watt, comments: “The City Link news fell upon us and as a result of further investment, Standard Life Investments took the decision to refurbish the units within the park. “A building contract and a potential client has been agreed. Units 1416 – a 14,000 sq. ft. space - which was the former Tyco site, forms part of the refurbishment. This investment shows the market hasn’t died off in Aberdeen, and the refurbishment shows that Standard Life Investments is committed
to bringing businesses to the Altens area.” Ward councillor, Neil Cooney, added: “Despite the collapse in oil prices, this proves the market is still buoyant in Aberdeen. It was a blow to the system when City Link went bust and jobs were lost, but this can only be positive for the area.” Graeme Watt E: Graeme.firstname.lastname@example.org
FG Burnett Completes One of Scotland’s Largest Industrial Property Acquisitions of 2015 FG Burnett, the Scottish commercial property consultancy, today announces the completion of a £1.65 million acquisition on behalf of independent trade drinks merchant, Inverarity Morton. Having outgrown its current 30,000 sq ft premises on Glasgow’s Shawbridge Street, the drinks distributor is set to relocate to the newly acquired 93,672 sq ft industrial property on Evanton Drive, Thornliebank – six miles west of Glasgow City Centre.
Ross Sinclair, Director at FG Burnett Glasgow, says: “We are delighted to confirm the completion of what is one of the largest industrial property acquisitions in Scotland this year. There is a continued demand for industrial premises of this size in Glasgow, however this is confronted with a significantly smaller supply of suitable property. This is particularly evident, considering Inverarity Morton has been on the lookout since 2011.
Property Consultancy, FG Burnett secured and completed this acquisition from Nilsine Property Ltd to present Inverarity Morton with an exceptional facility. The property is particularly fit-for-purpose, providing the drinks merchant with refurbished offices, dock and ground level loading and a substantial secure yard area.”
“However, having worked closely with the Vendor’s agent Neil Cockburn
Ross Sinclair E: email@example.com
Complying With The Conditions As Property Managers, when we are instructed to provide the management of common services for a Development with multiple owners, our first point of reference is the Deed of Conditions. The Deed of Conditions is a legal document which sets out the rights, duties, and obligations of all Proprietors and is registered with the Title Deeds for each individual ownership that comprises part of the Development. This ensures that each and every Proprietor in the Development is in the same legal position with regards to these rights and obligations over any common areas. Examples of such properties where you would expect to find a Deed of Conditions includes any circumstance where there are parts of the property that are common to more than one owner. This could be a residential flatted development, or houses with access to common grounds; an office block that has different owners on different floors; a building that contains a mix of both residential and commercial units; business parks; a business campus; or office-pavilion style facilities.
At the implementation of a management regime for a Development such as these, as Property Manager we refer to the Deed of Conditions for such items as apportionment of costs which then have to be applied to the collection of the service charges. In addition there may be obligations as to insurance with all Proprietors being covered by a block policy in which case we can assist with referring this requirement to an insurance broker to arrange cover. A Deed may also have a requirement for planned maintenance such as redecoration of any common areas under a specified cycle of however many years. It is also important to remember that the Deed of Conditions not only deals with the management of common areas but is can also place an obligation on Proprietors in a development to meet specific maintenance obligations for their own property. This would apply to their own plot such as ensuring their building and grounds are properly cared for and maintained, or do not cause nuisance or annoyance to other Proprietors within the Development. Finally a Deed of Condition deals with how Proprietors can oversee
the Property Manager appointed to arrange the common services. A Deed will give guidance on how Proprietors can select and appoint a Managing Agent to act on their behalf, how they must present their accounts, the process for arranging meetings and report to them and also gives the Proprietors power to remove them from the instruction. As well as the day-to-day application of the Deeds we have worked with clients to give them valuable advice at an early stage during the construction of a Development whilst the Deed of Conditions is being drafted to ensure that they are practical, workable and try to address all foreseeable circumstances. As well as being an intrinsic part of the legal framework for a multi-occupied property the Deed of Condition is vital for the effective management of the common obligations If you would like to discuss the application of a management regime to a development or a property that is in multiple ownership then please contact either Christopher Yannaghas on 01224 597510, Simon Smith on 01224 597508, or Bryan Robson on 01224 597513.
Acquisitions, Sales & Lettings and a whole lot more...
You may think you know FG Burnett, but there’s so much more to us than you’d expect. FG Burnett is a Scottish Commercial Property Consultancy, with offices in Aberdeen and Glasgow, providing a nationwide reach. Our multidisciplinary practice provides a comprehensive range of property services across the office, industrial, retail, leisure, licensed and public sectors. There’s so much more we could tell you, but there’s not enough space here to fit it all in. So call us today to find out more from one of our property experts.
Aberdeen: 01224 572661 Glasgow: 0141 285 7980
www.fgburnett.co.uk We hope you enjoyed the latest edition of Property Matters and we would love to hear your thoughts of suggestions for future articles. At FG Burnett we are passionate about sharing our knowledge and are always keen to learn more so if you would be interested in joining our business to business knowledge sharing CPD programme then please get in touch. Contact: Jacqueline Speirs, Marketing Manager E: Jacqueline.firstname.lastname@example.org
Issue 3 of our Property Matters Newsletter.