Development Management

Abstract works  closely with property investors and corporate end users to provide a range of property solutions.

Abstract has worked with a number of investors who own or wish to acquire property where there is either a need or potential for redevelopment to generate and increase revenue and enhance value.

An example of project development management is the 100 Middlesex Street project undertaken with GE Real Estate.  This building had been owned by GE for a number of years and the current tenancies were coming to an end.  The building was obsolete and in reality had little existing use value.  GE did not wish to undertake the long-term redevelopment of the site, but wished to achieve at least its book value for the building and hoped to see a significant enhancement through the activities undertaken by Abstract.  Abstract was able, through proactive planning and marketing work, to more than double the value of the building.

On the occupier side, Abstract recognises that in a climate where bank finance is difficult to achieve, the corporate end user can often be the equity in a project.  Abstract works with a number of major end users to ensure that they achieve the maximum value from a transaction through the use of their occupational commitment at the outset of the project.

For example Abstract teamed up with Xchanging plc who wished to acquire a central London HQ facility and consolidate three offices into one using some of the profit generated to provide cover for the disposal of the old offices.  Abstract was able to acquire a 50,000 sq ft at 34 Leadenhall Street and simultaneously lease it to Xchanging plc.  Xchanging benefitted from the majority of the value generated from the lease with the resultant investment subsequently being sold to Delancey plc. Abstract managed the disposal of the existing lease liabilities.

A third area of project development management which Abstract has undertaken is working with an investor who is looking for a development manager who will undertake all aspects of site acquisition, planning and construction and deliver the finished product for the investor.  Abstract has worked and continues to work with the Assura Group PLC for the delivery of primary care facilities.  One key feature of Abstract’s development management role is that if it is allowed to procure in accordance with its standard design and build process, it will underwrite the full cost of delivery guaranteeing a fixed price and a definitive timescale for any building.

Within its project development management role, Abstract is also able to manage the legal and financial side of any transaction.