Dilapidation and Refurbishment works at Unit 8 Acre Road | Reading

Summary:

Kirkby Diamond Building Surveying department acted for M7 Real Estate to prepare and negotiate a dilapidation claim, while managing a comprehensive refurbishment and ESG/EPC upgrade, including the transition to electric heating, installation of EV chargers and solar panel integration.

What we did:

Kirkby Diamond was instructed by M7 Real Estate to provide advice in advance of a lease expiry event. As the lease end was approaching, we advised on the preparation of a Terminal Schedule of Dilapidations, as well as important dilapidation considerations. We also liaised with the client’s appointed agents, who had suggestions for letting the unit.

Mark Pepper, Head of Building Consultancy at Kirkby Diamond progressed the claim, leading discussions with the client, whilst asserting the principles of dilapidations on the tenant and their professional advisors.  It became integral that the unit should be refurbished and ready to put to market at the earliest opportunity.  Paul Hazell, Head of Special Projects at Kirkby Diamond, was instructed to prepare a specification of works and tender documents and to seek competitive contractor costs.

An extensive internal and external refurbishment took place, including:

• Replacement of the external cladding sheets to the entire building envelope.
• Replacement of the existing gas heating and hot water provision to a new electrical heating system and point of use water heaters.
• Installation of electric vehicle charging points and photovoltaic array to the roof
• Full installation of LED lighting to all areas.

Paul explained “Our client had a very clear ESG framework, and it was important to ensure the works encompassed this. Our site review and specification identified clear objectives to be monitored throughout, and our experience of similar projects meant that we met the ESG requirements and kept within the project budget.”

The client’s ESG policy and EPC objectives were displayed within the tender documentation and presented as separate line items to illustrate the meaningful investment works to the Board.

Paul and Mark understood the importance of transparency, and aligning the scope of refurbishment works to the dilapidations claim.  Mark commented “This project became an intricate piece of work.  Ensuring the dilapidation claim was supported by the works but also demonstrating transparency for upgrade works.  This process formed our advice to the Asset Manager to ensure they were always clear on the dilapidation claim and the contract costs. Running the processes side-by-side allowed us to protect the client from increasing costs due to inflationary economic pressures.”

The dilapidation claim was concluded after 10 months, and the project reached Practical Completion within the 16-week programme. Mark noted “Although the dilapidations process took time, it was the right approach to ensure the client achieved the end result”. Paul commented “This project demonstrates how important it is to align the client’s agenda. The dilapidation process and refurbishment work went hand-in-hand.  Our combined instruction allowed us to provide tailored and strategic advice, securing a successful dilapidation claim and presenting the property well to the industrial market in Reading”. 

Will Mitchell, Asset Manager at M7 Real Estate praised Kirkby Diamond’s work in preparing the asset for the market: “We are very pleased with both the dilapidations settlement and the refurbishment work completed by Mark, Paul and the team at Kirkby Diamond.  They made what could have been a complicated process streamlined and efficient, keeping us updated every step of the way.  We highly recommend their services and look forward to working with them again in the future.”