PROBLEM
A client was in the process of buying a modern three-storey offce building. We assisted in the due diligence and conducted
a thorough audit of the building. Errors identified, included:
- Inattention to review dates resulting in lower rental collections
- Faults in electrical wiring of the air-conditioning system caused it to run 24 hours a day, 7 days a week.
- Failure to maintain groundwater pumps caused regular flooding of basement during storms.
- Fire equipment in the building had not been maintained for several years.
SOLUTION
We methodically rectified all problems and, after twelve months,
the gross income was increased by 15% while outgoing costs decreased
by 40%. Furthermore, two large tenants exercised their options.
”I purchased an offce building in South Brisbane… Nick Carter of Hillier Carter Properties
assisted in the due diligence investigations. He quickly pinpointed a number of operational
and administrative problems including; the air–conditioning running 24 hours a day, 7 days
a week and inattention to lease review dates, resulting in lower rental collections.
Over the next few years HCP diligently maximised income and minimised outgoings whilst
keeping the property at a high level of maintenance and presentation”.
ALISTAIR BAYLES
Director – Kleenbark Pty Ltd
Director – Kleenbark Pty Ltd