At Ray White Commercial (SC), we pride ourselves on our depth of expertise and the strategic acumen we offer. This case shows how we navigated an immensely challenging situation involving tenant insolvency, complex legal battles, and high-stakes negotiations.
We’re proud to share the story of how our Head of Asset Management, Scott Somerton, secured a remarkable victory for a landlord dealing with the collapse of a large hospitality group. The landlord of one restaurant, was faced with the prospect of an unsuitable operator being forced upon them amidst a web of complex insolvency laws, top-tier legal firms, and accounting firms.
The property in question is a high-quality restaurant located at the ground floor of a CBD office tower. When the hospitality group collapsed, the secured creditors, through their appointed receivers, took control of all the sites and intended to sell most of the leases to their preferred party. However, this party’s operations were wholly inconsistent with one landlord’s vision for their asset.
Scott was tasked with achieving a better outcome, despite the formidable pressure from the receivers, the secured creditor, and their top-tier legal advisors. Utilising his unique blend of experience, knowledge, and strategy, he formulated a plan to deliver a stronger tenant, a better lease, and a substantial settlement payment from the receiver and secured creditor.
In the face of countless complexities and challenges, Scott secured an astounding success for the landlord. The landlord wrestled a settlement payment of many hundreds of thousands of dollars from the receivers and secured creditors, a six figure sum in proceeds from a bank guarantee, and a new first-class operator on a lease providing significantly increased rent, security and term.
Three justices of the Full Federal Court, including the Chief Justice and a now High Court Judge, praised the exceptional package deal that Scott crafted. They commended his ability to negotiate a “good, if not very good, commercial bargain” while acting uncompromisingly in the landlord’s “interests, without sharp practice, honestly and openly”.
This case exemplifies the crucial importance of a proficient Asset Manager in the face of challenging situations. Every day, our team focuses on maximising the value of our client’s assets, navigating intricate scenarios, and delivering unrivalled outcomes for our clients.
We invite you to join our select group of highly valued clients. If you want to experience first-hand how we can elevate the management of your assets above others, please contact our Managing Director, Samuel Hadgelias, for a confidential discussion today.