Current Property Issues Autumn 2024

KEY SUBJECTS

• CASE LAW UPDATE
• PROPERTY VALUATION: THE PRACTICAL IMPACT OF ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) ON THE VALUATION OF COMMERCIAL PROPERTIES IN THE UK
• CURRENT KEY ISSUES IN COMMERCIAL PROPERTY
• MEES – WHAT YOU NEED TO KNOW NOW
• PROTECTING AND ENHANCING COMMERCIAL PROPERTY VALUE: TOPICAL ISSUES
• WILL UK MONETARY POLICY ‘TRUMP’ POLITICAL UNCERTAINTY?

SPEAKERS

Sarah Thompson-Copsey, Non-Practising Solicitor, Legal Lecturer and Trainer

Nick French, Real Estate Valuation Theurgy, Property Education

Suzanne Gill, Partner, Wedlake Bell LLP

Ben Strange, Director, Mobius Building Consultancy

Walter Boettcher, Head of Research & Economics, Colliers

CONFERENCE PROGRAMME

09.30am CHAIRMAN’S INTRODUCTION

CASE LAW UPDATE

A practical review of recent commercial property and landlord and tenant cases, which will include:

• 1954 Act
  • Occupation and ground (g): The Royal Borough of Kensington & Chelsea v Mellcraft Ltd
  • Redevelopment, holding and ground (f): Sainsbury’s Supermarkets Ltd v Medley Assets Ltd
  • Misrepresentation and ground (g): McDonalds v Shiroyama Shokusan
• Landlord’s consent: Jacobs v Chalcot Crescent (Management Company) Limited ); Valbonne Estates Ltd v United Homes Ltd 
• Dilapidations and expert evidence: Peachside Limited v Lee and Keung 
• Exercising options – getting it right: IAA Vehicle Services Ltd v HBC Ltd 
• Misrepresentation – the importance of the sale documentation: Co Mayo Estates Limited v Hidden Gem Limited 
• Japanese knotweed: what damages? Davies v Bridgend County Borough Council 

Sarah Thompson-Copsey, Non-Practising Solicitor, Legal Lecturer and Trainer

PROPERTY VALUATION: THE PRACTICAL IMPACT OF ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) ON THE VALUATION OF COMMERCIAL PROPERTIES IN THE UK

There has been much talk about the impact of Environmental, Social, and Governance (ESG) initiatives on the value of commercial property. Some of this is being driven by corporate demand seeking out properties that meet their own ESG requirements and in some cities this has led to a significant differential in rental and capital values between the best and the poorest buildings.

However, in some secondary and tertiary markets which are rental sensitive the government has recognised that the “stick” approach is required to eliminate or limit the use of energy inefficient buildings. The Minimum Energy Efficiency Standards (MEES) were introduced to achieve this aim by using the measure of Energy Performance Certificates (EPCs) as the metrics for restricting the legal use of poor performance buildings. In this regard the UK government has confirmed that the future trajectory of MEES for commercial property (in England and Wales) will mean a minimum EPC rating of C by 2027 and B by 2030.

That means that many secondary and tertiary buildings will be unlettable without the necessary retrofitting to meet the C or B requirement. This talk will look at:

• The impact on Market Value TODAY of the proposed MEES legislation
• The need for diligence in undertaking valuations so not to stray into the areas of professional expertise outside that of the valuer (e.g. retrofit cost estimations)
• The need to ensure due diligence when relying upon EPCs that may no longer correctly reflect the efficiency rating of the subject property
• The impact on property yields due to legislative uncertainty

 Nick French, Real Estate Valuation Theurgy, Property Education

CURRENT KEY ISSUES IN COMMERCIAL PROPERTY

• Show me the money – source of wealth, source of funds and counter-party due diligence
• Powering up – EV charging and solar panels in new and existing leases
• Heads of terms bloopers – how one line in the term sheet might add time and delay to your deal
• Flexible footprints – break clauses and rights of first refusal to allow occupiers to grow and shrink in the same building
• Promotion Agreements – are they right for you?

Suzanne Gill, Partner, Wedlake Bell LLP

PROTECTING AND ENHANCING COMMERCIAL PROPERTY VALUE: TOPICAL ISSUES

This session will look at the impact of topical issues and legal and practice changes affecting commercial property interests, their impact on property values and how best to utilise them to protect your clients’ interests.

• Rights of Light: protocol, practice and changes – how to use them to maximise property values
• Heads of Terms: how they can save the deal
• Without prejudice, litigation privilege, disclosure and reports: what you need to know to protect your client’s property interests
• Lease user clauses: how to use them to make more of the asset

Sarah Thompson-Copsey, Non-Practising Solicitor, Legal Lecturer and Trainer

MEES – WHAT YOU NEED TO KNOW NOW

• The impending 2027 and 2030 dates and the scale of the MEES problem for commercial leasehold properties
• MEES Mythbusting – continued confusion causing catastrophic disasters
• EPC Improvements – worked examples and new technologies
• Professional Liability on EPC/MEES advice – issues and mitigation
• The impossible task of dealing with MEES in a lease
• Rent Reviews and MEES – key tools for each side

Ben Strange, Director, Mobius Building Consultancy

WILL UK MONETARY POLICY ‘TRUMP’ POLITICAL UNCERTAINTY?

Dr Walter Boettcher, Head of Research & Economics will offer remarks about UK economics, politics, and their impact on UK commercial property.

• Outlook on inflation, interest rates and debt, economic performance, and their collective impact on transactional activity and performance. Colliers is forecasting a double-digit property return (10.1%) for 2024. Will it be achieved?
• Latest cross sector metrics for UK commercial occupier and investment markets, including the latest manifestations of ESG and ongoing structural change
• Evaluation of the first 100 days of UK post-election politics and impacts on regional property development and ‘levelling up’
• Evaluation of international systemic risks arising from the US election and related foreign policy shifts

Walter Boettcher, Head of Research & Economics, Colliers

5.00pm CLOSE OF PROCEEDINGS