SFP Property was appointed as Fixed Charge receiver over a mixed-use scrap yard, former public house site and industrial units in Norfolk. The lender had a large sum of money secured against the property and received various conflicting advice in relation to the value of the property, contamination and occupational issues.
Upon appointment, SFP Property liaised with the tenants on-site and arranged for rent payment and regularisation of occupational agreement to allow for redevelopment. SFP Property also arranged for concise evaluation advice and an environmental report to be undertaken in respect of the contamination issues and then prepared a strategy for realisation of the assets as a whole.
SFP Property was then able to conclude a sale of the property after receiving interest from 10 prospective purchasers, which indemnified the lender in respect of any contamination, achieved a realisation in excess of valuation and also created the potential of an upside, in respect of an overage agreement made between the receiver and the purchaser in the event that planning permission for residential development was obtained within a certain timeframe.