Napier & Blakeley Articles and News » Transaction & Asset Advisory

Napier & Blakeley welcomes back Nicolas Mules

Napier & Blakeley — Mon, 07 Mar 2022 05:50:45 +0000

We take great pleasure in announcing that Nicolas Mules has returned to Napier & Blakeley to re-join our Transaction & Asset Advisory team in Sydney.

Nicolas was originally with N&B from 2017 to 2019 and brings a wealth of experience in all aspects of building consultancy and transaction advisory services. He has further developed his technical due diligence expertise by managing some of the largest instructions throughout Europe.

As a highly regarded Chartered Building Surveyor with over 14 years of experience, Nicolas has a deep understanding of property. He is client focused and prides himself on aligning advice with the intentions for the property and reporting on the commercial imperatives that matter.

This appointment further strengthens the capability and expertise of our national team and our ability to serve clients with property matters in NSW.

Nicolas’s contact details are provided below and please contact Nicolas or Stephen Cooke for any assistance.

MELBOURNE
Rob Howells, Managing Director | 0437 649 082 | rhowells@napierblakeley.com
Peter Frith, Director | 0437 649 082 | pfrith@napierblakeley.com
Craig Smith, Director | 0407 371 664 | csmith@napierblakeley.com
Ian Gardner, Associate Director | 0488 225 569 | igardner@napierblakeley.com

SYDNEY
Alastair Walker, Director | 0419 503 289 | awalker@napierblakeley.com
Peter Hammond, Director | 0419 980 901 | phammond@napierblakeley.com
Peter Osborn, Director | 0439 765 571 | posborn@napierblakeley.com
Michael Ross, National Head of Tax | 0403 841 175 | mross@napierblakeley.com
Stephen Cooke, Associate Director | 0409 228 552 | scooke@napierblakeley.com

BRISBANE
Paul Cosker, Director | 0434 400 107 | pcosker @napierblakeley.com
Adam Greene, Associate Director | 0409 724 395 | agreene@napierblakeley.com
Gavin Peach, Associate Director | 0412 225 781 | gpeach@napierblakeley.com
KY Pih, Associate | 0408 933 660 | kpih@napierblakeley.com

PERTH
Graham Rigby, Associate Director | 0419 847 998 | grigby@napierblakeley.com
Jorden Morris, Quantity Surveyor | 0457 001 545 | jmorris@napierblakeley.com

ADELAIDE
Sam Grindley, Associate | 0460 032 142 | sgrindley@napierblakeley.com

Lease Make Good – Pre Nup

Napier & Blakeley — Wed, 11 Jun 2014 00:06:31 +0000

Headaches and protracted negotiations at lease expiry could be avoided by well drafted Make Good clauses and thought out strategies prior to lease commencement.

Building owners and tenants can be poles apart in their understanding and interpretation of repair, maintenance and other make good related clauses. This in turn can lead to significant unforeseen costs, disputes and delayed income.

Attention to the lease definitions and obligations together with some good asset management strategies can help to avoid such situations.

Your lease and make good check list in this regard could include some thought around the following:

Premises

What are the physical elements and spaces under the obligation of each party?

Commencement Date

Does the obligation for repair, maintenance and make good extend to any previous terms of occupation perhaps under an earlier lease or option?

Condition as at Commencement

If the tenant is expected to return the property back to a condition ‘as at commencement’ – can anyone recall what this looked and felt like?
Is it well defined and recorded in a schedule of condition with plans and photographs?

Base Building

Which building elements, fabric, finishes and building services comprise of the base building and in what condition and configuration?

Above the Ceiling Line

Who is responsible for fit out services ducts and fixings, cables and cable trays etc and the reinstatement of any relocated base building plant?
What about services that pass through the ceiling line, such as sprinklers and sprinkler heads?

Services Risers

Who is responsible for cables and services within the risers and back to source?

Tenant Alterations

Who did what work and when?
The lease will typically have provisions for alterations but should the design, specification, methodology, timing and approval process be defined?
Should this include the make good works of such at expiry?
Should the option for contracting out of make good be considered for significant building improvements?
Are any incentives or fit out contributions understood?
Does the building owner own any of the fit out?
Were the tenant alterations undertaken under a previous lease for the same tenant – who has the responsibility to make good at the end of the new term?

Express Covenant

If an owner has certain expectations then they should be clearly stated. For example, if an owner expects that carpets are to be replaced prior to lease expiry then such a provision should not be muddied with ‘fair wear and tear’ clauses or other limitations.

Building Restrictions

Should reference be made to ‘building rules’ or ‘tenancy guidelines’ which may include certain restrictions on hours of work, use of the goods lift or loading dock?

In collaboration with our client’s lawyers we have developed a number of strategies to protect Landlords and Tenants against the risks of the Make Good cycle. We also have extensive cost data relating to Make Good projects and settlements which can provide a quick benchmark comparison, so contact us now.

Contacts

Transaction & Asset Advisory
Rob Howells – 03 9915 6300 – rhowells@napierblakeley.com
Alastair Walker – 02 9299 1899 – awalker@napierblakeley.com
Gavin Peach - 02 9299 1899 – gpeach@napierblakeley.com
Paul Mazoletti – 07 3221 8255 – pmazoletti@napierblakeley.com

Development Advisory & Quantity Surveying
Craig Smith – 03 9915 6300 – csmith@napierblakeley.com
Peter Hammond – 02 9299 1899 – phammond@napierblakeley.com
Paul Cosker – 07 3221 8255 – pcosker@napierblakeley.com
Adam Greene – 07 3221 8255 – agreene@napierblakeley.com

Property Depreciation & Insurance
John Mathew – 03 9915 6300 – jmathew@napierblakeley.com
Peter Guerra – 02 9299 1899 – pguerra@napierblakeley.com
Peter Osborn – 02 9299 1899 – psoborn@napierblakeley.com

Sustainable Property Solutions
Peter Frith – 03 9915 6300 – pfrith@napierblakeley.com
Craig Ryan – 03 9915 6300 – cryan@napierblakeley.com
Stuart Winton – 03 9915 6300 – swinton@napierblakeley.com

Technical Due Diligence

Napier & Blakeley — Thu, 13 Mar 2014 00:12:37 +0000

Our Transaction & Asset Advisory professionals cover the core disciplines involved in the physical analysis of cost, risk and return of property acquisition, ownership and disposal.

We align our clients’ thoughts with our own and provide user friendly, accurate, meaningful and timely advice that is oriented to the commercial imperatives that actually matter.

Features and Benefits of Technical Due Diligence

Purchasers

Identification of condition/compliance risks and opportunities
Identification of immediate needs from deferred maintenance
Identification of deal breakers and a tool for negotiations
Responsible Entity compliance
Independent third party endorsement

Financiers

Identification of capital expenditure that may require financing
Identification of risks of rental abatement and associated rectification expenditure

Vendors

Identification of deficiencies, which may be rectified as part of preparation for sale
Report prepared by an independent party can be assigned to a purchaser
Reduces the due diligence period and negotiation on price
Increases transparency

For further information, please contact:

Rob Howells
p 03 9915 6300
e rhowells@napierblakeley.com

Gavin Peach
p 02 9299 1899
e gpeach@napierblakeley.com

Napier & Blakeley Construction Datacards

Napier & Blakeley — Thu, 26 Sep 2013 03:09:57 +0000

Napier & Blakeley have provided cost advice to all sectors of the construction industry for 28 years and are pleased to provide our updated Construction Costs Datacards:

Sydney Construction Cost Datacard July 2013

Melbourne Construction Cost Datacard July 2013

South East Queensland Construction Cost Datacard July 2013

Adelaide Construction Cost Datacard July 2013

Please contact us for a hard copy or for any other Napier & Blakeley service at any of our offices below:

Contacts

Taking the ‘Sting out of the Tail’ at Lease Expiry

Napier & Blakeley — Wed, 17 Apr 2013 00:52:39 +0000

Disruption, potential unplanned costs and conflict at the end of a lease due to make good obligations can sour what has been a solid commercial relationship between landlord and tenant. This can complicate the tenant’s move or the re-letting of the premises. The pressures of a poorly set up lease in terms of documentation, understanding of the consequences of the relevant clauses from a technical perspective and agreement as to the condition at occupation, or of future alterations, are self evident for both parties.

Properly qualified building consultants should be actively utilised in such processes due to their knowledge and understanding of leasing and legal aspects combined with their expertise in building conditioning and rectification. The proactive stance is to bring all parties together prior to the signing of the lease to agree not only the terms of occupation, lease and physical condition but also to the process at lease expiry.

If this process has not been followed, the building consultant plays a key role in interpreting the relevant lease clauses and evaluating the property’s condition so to effectively define the make good obligations, the cost and the best method of rectification.

Proactive Tenancy Management

Good management, both at lease commencement and during the tenancy, will help significantly in dealing with make good issues at the end of the lease. When the condition of the property at the commencement of the lease is identified, a schedule of condition (both photographic and descriptive) should be undertaken and specifically attached to the lease in agreement with both parties.

Almost all leases provide a mechanism for the landlord to control alterations to the premises by requiring the landlord to approve alterations before they are carried out and requiring reinstatement at the end of the term. The agreement process, whether by letter or by licence, should be fully recorded. This enables accurate determination of who did what and when and again simplifies the unpicking process at lease expiry. The key to resolving make good issues is to begin the process early. The landlord should provide a summary of their understanding of the make good requirements contained in the lease one year to six months prior to the expiry of the term depending upon the length of the lease and the size of the property.

Conflict Resolution

When both parties cannot agree to the extent of the repairs and make good, what is the process to reach settlement?

Generally, this is initiated by the landlord, although tenants may take separate initial advice when making long-term strategic decisions in large occupancies. The landlord should appoint a consultant to prepare a schedule of dilapidations and wants of repair setting out:

a. Which covenant of the lease has been breached for each item of disrepair of make good
b. Location and description for each breach, eg. damaged walls
c. The remedy or repair required
d. The costs and quantity

The schedule should also include a separate summary of financial claim, which may include fees and loss of rent and property charges borne by the landlord for the make good program. This is traditionally forwarded to the landlord’s solicitor for checking and serving to the tenant. The tenant responds either directly or through a consultant and negotiation proceeds to either settlement or to two financial positions. A settlement is reached on, or shortly after, the joint inspection 95% of the time. If the parties cannot agree, they may decide to proceed further through mediation and, if necessary, the courts.

Key issues to be considered by the landlord:

• Schedule the condition of the property on commencement
• Track and approve tenant works and retain details
• Review lease covenants and obtain advice as necessary
• Identify make good issue early (6-12 months prior to lease expiry)
• Gauge the tenant response and undertake a schedule of dilapidations

Key issues to be considered by the tenant:

• Schedule the condition of the property on commencement
• Retain details of alterations
• Respond to landlord advice
• Retain a consultant to review the landlords claims

Napier & Blakeley’s national team of Chartered Building Surveyors, Building Consultants, Services Engineers and Cost Planners prepare cost effective, defensible reports to quantify the risks of ‘make good’ to maximise return on investment.

For further information and a copy of our Make Good Cycle data card, please contact any of the Transaction & Asset Advisory Consultants below.

If you would like information on any of our other Napier & Blakeley services please contact us at any of our offices.

Contacts

Sustainable Property Solutions
Peter Frith – 03 9915 6300 – pfrith@napierblakeley.com

Property Reinstatement Cost Assessments – Are your property assets correctly insured ?

Napier & Blakeley — Wed, 21 Nov 2012 23:31:19 +0000

Construction costs are subject to constant change, so if you are insured are you confident that you are not either under or over insured in a changing cost market?

Quantity Surveyors are the only construction cost trained professionals that can make sure your assets have the appropriate insurance replacement cost cover.

A Quantity Surveyors purpose is to predict and manage construction costs. They are specifically trained to do so and they don’t value, they don’t build, they don’t design, they don’t buy and sell property. They are independent and professional consultants.

So here’s a quick list of Property Reinstatement Cost Assessments do’s and don’ts :

Do’s:

Make sure you’re not under or over insured
Include all relevant costs in your insurance
Estimate costs based on current market rates
Escalate costs going forward appropriately
Consider the time involved to demolish, re-plan and re-build
Include costs for professional fees for re-design
Consider cost not ‘value’
Assume nothing, as risk is risk, and risk management is good
Be nice to your family and friends when they ‘offer you construction advice’

Don’ts:

Don’t forget to contact us to assist you

Napier & Blakeley’s Quantity Surveyors prepare reinstatement cost assessments for billions of dollars worth of properties every year, including many of the largest property portfolios and our knowledge and experience in this area is second to none.

So call us today to make sure your property insurance needs are covered.

Contacts

Development Advisory & Quantity Surveying
Peter Hammond – 02 9299 1899 – phammond@napierblakeley.com
Craig Smith – 03 9915 6300 – csmith@napierblakeley.com
Paul Cosker – 07 3221 8255 – pcosker@napierblakeley.com

Property Depreciation
John Mathew – 03 9915 6300 – jmathew@napierblakeley.com
Peter Guerra – 02 9299 1899 – pguerra@napierblakeley.com
Peter Osborn – 02 9299 1899 – psoborn@napierblakeley.com

Sustainable Property Solutions
Peter Frith – 03 9915 6300 – pfrith@napierblakeley.com

Benchmark Data to ‘Make good’ Informed Decisions

Napier & Blakeley — Tue, 13 Nov 2012 05:15:30 +0000

Are you a corporate occupier or property portfolio owner faced with budgeting ‘make good’ costs and financial reporting compliance?

Napier & Blakeley have assessed, negotiated and managed ‘make good’ costs for many years, including benchmark data to help inform future strategy.

To manage large portfolios, property and lease profiles are reviewed and sampled to quickly determine ‘make good’ obligations and the cost for returning the property to the required condition.

Costs and square metre rates from the sample are risk adjusted against Napier & Blakeley’s independent bench mark data and applied to the leased portfolio.

Features and benefits :

Quick and cost effective assessment
Detailed samples to test assumptions
Independent benchmark data from hundreds of actual ‘make good’ scenarios
Confidence in forecasting budgets for physical works or negotiated cash settlements
Meets accounting needs and compliance with financial reporting standards
Costs can be provided at a tenancy, property, regional and portfolio level

See the pie charts for a breakdown of ‘make good’ costs across the sectors.

For further information and a copy of our Make Good Cycle data card, please contact any of the Transaction & Asset Advisory Consultants below.

If you would like information on any of our other Napier & Blakeley services please contact us at any of our offices.

Contacts

Transaction & Asset Advisory
Rob Howells – 03 9915 6300 – rhowells@napierblakeley.com
Alastair Walker – 02 9299 1899 - awalker@napierblakeley.com
Gavin Peach - 02 9299 1899 – gpeach@napierblakeley.com

Property Depreciation & Insurance
John Mathew – 03 9915 6300 – jmathew@napierblakeley.com
Peter Guerra – 02 9299 1899 – pguerra@napierblakeley.com
Peter Osborn – 02 9299 1899 – psoborn@napierblakeley.com
Paul Mazoletti – 07 3221 8255 – pmazoletti@napierblakeley.com

Sustainable Property Solutions
Peter Frith – 03 9915 6300 – pfrith@napierblakeley.com

Development Advisory & Quantity Surveying
Craig Smith – 03 9915 6300 – csmith@napierblakeley.com
Peter Hammond – 02 9299 1899 – phammond@napierblakeley.com
Paul Cosker – 07 3221 8255 – pcosker@napierblakeley.com

ITS LODGEMENT DAY !

Napier & Blakeley — Thu, 18 Oct 2012 22:30:29 +0000

The End of Financial Year has come and gone and the 31st October is lodgement day. So there is less than 2 weeks to get your Depreciation Schedules in place.

We can assist you, guarantee you get maximum deductions and also be fully compliant with the A.T.O. as we are Registered Tax Practitioners.

Napier & Blakeley, the first Property Depreciation Company and still the best – just ask your Accountant.

Contacts

Call Napier & Blakeley today for assistance with your Tax Depreciation Schedule or any other Napier & Blakeley services at any of our offices below:

Property Depreciation & Insurance
John Mathew – 03 9915 6300 – jmathew@napierblakeley.com
Peter Guerra – 02 9299 1899 – pguerra@napierblakeley.com
Raymond Yen – 02 9299 1899 – ryen@napierblakeley.com
Paul Mazoletti – 07 3221 8255 – pmazoletti@napierblakeley.com

Transaction & Asset Advisory
Rob Howells – 03 9915 6300 – rhowells@napierblakeley.com
Alastair Walker – 02 9299 1899 – awalker@napierblakeley.com
Peter Osborn – 02 9299 1899 – posborn@napierblakeley.com

Sustainable Property Solutions
Peter Frith – 03 9915 6300 – pfrith@napierblakeley.com

Development Advisory & Quantity Surveying
Craig Smith – 03 9915 6300 – csmith@napierblakeley.com
Peter Hammond – 02 9299 1899 – phammond@napierblakeley.com
Paul Cosker – 07 3221 8255 – pcosker@napierblakeley.com