Case Study

When a transaction involves a freeholder, long leaseholder and a sale-and-leaseback arrangement all within a single transaction structure, experienced advice is essential to successfully navigate the complexities involved. GJS Dillon coordinated all aspects of the deal to deliver an exceptional outcome for both vendor and purchaser at one of Droitwich Spa’s established industrial locations.

About the property

7 Wassage Way in Droitwich Spa comprises a pair of semi-detached warehouse units, presented and occupied as a single, cohesive premises within the well-established Hampton Lovett Industrial Estate (total floor area 11,764 sq ft, including warehouse/office and mezzanine area). It also provides 12 car parking spaces to the front of the building providing ample provision for staff and visitors, a genuine premium on estates of this type.

A transaction that required real expertise

This was not a straightforward open-market disposal. Our client, the vendor, held a long leasehold interest in the property and we were faced with strong demand from purchasers looking to acquire the freehold concurrently. Owing to our experience of complex transactions and extensive local network, what followed was a process of careful negotiation that resulted in an owner occupier purchasing both the long leasehold and freehold interests simultaneously, a single, clean transaction that resolved a complex dual-ownership structure in one step.

The vendor, a well-established occupier within the building, required continued short-term occupation of the premises whilst transitioning their operations to alternative accommodation. GJS Dillon assisted in structuring the transaction to accommodate this requirement through a short-term leaseback arrangement, enabling business continuity following completion of the sale.

Jorge Bray, Senior Surveyor at GJS Dillon, commented:

“Our client achieved a strong sale price whilst maintaining uninterrupted occupation of the property during their relocation. Structuring the transaction to enable the purchaser to acquire both the freehold and long leasehold interests created a highly attractive proposition and demonstrates the importance of detailed market knowledge and transactional expertise.”

The transaction incorporated a sale-and-leaseback structure, enabling the vendor to release capital value from the property whilst continuing to trade from the premises without disruption. This approach unlocked capital previously tied up within the asset, whilst retaining full operational use of the building during the transition period.

Under the leaseback arrangement, Supreme Converting and Packaging Ltd will remain in occupation on a short-term basis, providing the business with operational flexibility whilst completing its relocation plans.

Why this sale matters for the market

Transactions involving long leasehold interests, simultaneous freehold acquisitions and sale-and-leaseback arrangements are relatively uncommon and often require careful structuring to align the objectives of all parties involved. Successfully delivering these transactions depends on a detailed understanding of occupational requirements, tenure structures and the wider commercial considerations underpinning the deal.

This transaction demonstrates the value of specialist commercial property expertise in navigating complex ownership structures and delivering practical solutions for both vendor and purchaser. The vendor secured an excellent sale outcome whilst retaining short-term occupational flexibility during their relocation, with The Corzak Group Ltd acquiring control of both the freehold and long leasehold interests for owner-occupation.

Local Worcestershire knowledge backed by commercial expertise

If you are considering the sale of a commercial property with a complex ownership or occupational structure or you are an occupier exploring the acquisition of your business premises, the GJS Dillon team would be pleased to discuss how we can assist.

Please contact the team on 01905 676169 or visit https://www.gjsdillon.co.uk/sales-lettings-acquisitions

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