Whitedrake was instructed by this PLC to manage the forward sale and forward funding of the Hove development. Our client’s had already been to market with the scheme and could not agree acceptable terms with a purchaser. Hove was a complex transaction involving the sale of 154 apartments and commercial space. The project faced significant challenges, including uncooperative existing tenants with long leases, multiple stakeholders, and heightened fire safety concerns due to the wake of the Grenfell Tower tragedy. Over a two-year period, Whitedrake successfully navigated these challenges to close the transaction.
Stakeholder Coordination: Multiple parties were involved, including the Purchaser, landowners, planning officers, and existing tenants, all requiring careful negotiation and alignment.
Tenant Negotiations: Securing vacant possession was vital and complicated by existing tenants with long leases who were initially uncooperative.
Land Owner: Lost patience as the transaction was taking too long to close and had to be re-engaged.
Planning: Planning officers and committee members made the RMA very challenging. Regulatory, Safety and other Concerns: The project faced scrutiny due to fire safety concerns, especially given the Grenfell Tower backdrop. This required negotiation and approval by the Purchasers board.
Whitedrake short listed five prospective buyers and secured offers from three. We then led the complex negotiations, ensuring that all parties were aligned and our client’s objectives were met. We structured the transaction as a phased Land Sale and Build Agreement, enabling our Client to meet its financial targets while transferring risk to the Purchaser. Our team managed the intricacies of the tenant issues, ensuring that the Purchaser could benefit from rental income until vacant possession was secured.
The transaction was finally agreed and legally completed over 2 phases.
Phase I: Sale of Blocks A & B containing 77 apartments and associated commercial space.
Phase II: Sales of Blocks C & D: for the additional 77 apartments.
Whitedrake’s strategic management and negotiation were crucial in overcoming the complexities of the Hove transaction. The successful sale and forward funding of both phases, underpinned by robust legal agreements, added significant value for our Client and established a strong strategic partnership with Purchaser. Despite the challenges, the transaction was completed smoothly with very demanding parties, demonstrating our capability to deliver in the most complex and high-pressure situations.