DEBT, TAX & LEGAL STRUCTURES CASE STUDY

BRITONWOOD TRADING ESTATE

We purchased a property company with an industrial estate worth £9.1m and a site in December 2005. The vendor wanted to onward sell the site to himself. Separately, there was a European grant which had complicated repayment conditions which could have restricted the vendor’s ability to deal. We saw opportunity where most companies saw an obstacle.

We conducted corporate due diligence as well as property due diligence. We could see the benefit of a tax saving on reduced capital gains tax and stamp duty saving.

Our ability to understand the layers of legal stakeholders and their respective requirements was crucial to being able to consider this deal. As a result, and because of the tax benefits, we were able to substantially reduce the equity required and thereby accelerate the return on capital invested.