Professional Services
The Bannon Professional Services Team encapsulate years of experience in valuing a wide range of property assets, primarily of a commercial nature. Asset types include retail units, shopping centres, retail parks; office blocks; business parks; industrial units; going concerns and development land.
We undertake the valuations of assets primarily for the purpose of:
- Secured Lending
- Restructuring
- Internal company assessments
- Transactions
- Disputes
- Financial Reporting
The integrated team structure fostered within Bannon provides our Valuers with an in-depth insight into and knowledge of the various sectors of the commercial property market, making them best placed to provide Valuation services to our clients.
Bannon operates on a culture of cross-departmental co-operation. As such our valuers work closely with the agency and investment teams to get their valuable inputs, as required.
Our valuation instructions have included some of the largest commercial assets in the country. Our clients are wide-ranging and include:
- Main domestic financial institutions
- Alternative lenders
- Pension funds
- Private owners / investors
- Occupiers and Owner-occupiers
- State agencies
- Developers
- Retailers
- Investors
- Institutions
At the core of Bannon’s approach to Valuation is a commitment to providing a comprehensive assessment of an asset’s value based on market knowledge, accurate information, extensive due diligence and research and attention to detail. This approach ensures that the Valuers have a true in-depth understanding of the asset being valued that enables Bannon to provide high-quality advisory services to our clients.
All our valuations are signed by two Valuers, at least one of whom will always be a Registered Valuer.
We have three Registered Valuers in Bannon; Paul Doyle, Niall Brereton and Ben Semple.
Rent Reviews are one of the key commercial events within commercial leases.
The Rent Review process is highly detailed with the wording of the Rent Review Clause setting the parameters and assumptions that are to be adopted for assessing the level of rent applicable at the Review Date.
In addition to understanding and correctly interpreting the Rent Review Clause, experienced practitioners also need to be able to competently and accurately assess the subject asset against comparable evidence available. They must factor in variables such as; economic climate at the date of review; the contrasting quality of the properties (specification); and quantum and tenant incentives.
Increasingly the ESG / Green credentials of a property are becoming more relevant in making comparison assessments as the focus on sustainability within both owner and occupier operations comes to the fore.
In undertaking Rent Review instructions on behalf of our clients, Bannon provides unrivalled technical skills and expertise utilising an in-depth insight into and knowledge of the commercial property market.
While Bannon endeavours to reach negotiated settlements in each instance that they are engaged, this does not always prove possible. The Rent Review Clause provides a mechanism of Third-Party adjudication should there be a failure to reach a negotiated settlement.
This can take the form of Arbitration or Independent Expert. Bannon has extensive experience in representing both owners and occupiers in these proceedings whether they take the form of written submissions and counter submissions or requiring attendance at an oral hearing.
Our Director Des Byrne is one of the most experienced Arbitrators, as well as Arbitration participants (as an advocate and expert) in the country.
When an occupational lease agreement comes to expiry, a negotiation period ensues where the occupier wishes to remain in occupation under a new agreement, assuming they are entitled to remain so. This process is governed by various Landlord & Tenant Acts within which certain protocols and timeframes are set out. Bannon has extensive experience in negotiating and dealing with commercial leases and are well placed to provide the requisite assessment and advice to clients in circumstances where their lease is approaching expiry.
The first consideration in this instance is what statutory rights the occupier enjoys in relation to Landlord & Tenant legislation. The status can include:
- Established business equity having been in continuous occupation for a period of at least 5 years which confers a right to a new lease.
- No statutory right to renew as the period of occupation has been less than the required period of at least 5 years.
- No right to renew as the occupier has signed a Deed of Renunciation waiving their statutory right to a new lease.
In the first instance, save for certain circumstances, the owner is obliged to enter into negotiations to discuss the terms of the new lease. However, should it prove impossible to agree to new terms, the occupier has the right to apply to the District Court which will set the terms of the new lease based upon Precis of Evidence put forward by both sides.
Whilst every endeavour is made to come to a negotiated agreement for the terms of the new lease, this does not always prove possible. Bannon is experienced in the preparation of Precis of Evidence and appearing before the Court when required.
Commercial property rates are payable on every commercial property within the state.
The level of rates applicable to each property is calculated by multiplying the rateable valuation of the property (RV) by the annual rate of valuation (ARV) to arrive at the annual rateable liability for the property. The ARV is assessed on an annual basis by each Administrative Council based upon the County budgetary requirements for that year.
The RV for the property is established by the process of Commercial Rates Valuation that is carried out on a periodic basis (typically every seven years, although often longer) that is carried out by the Valuation Office of Ireland.
Once the RV is set for a property, it cannot be challenged until the next Revaluation or in circumstances where it has materially changed from the property that was initially valued.
Historically Revaluations were more relevant to occupiers as they are generally responsible for the payment of commercial rates while owners traditionally were able to avail of Rates relief in instances where the property was vacant. In the current economic climate where local authorities are under financial pressure, Vacancy Rates Reliefs are being phased out and therefore it is becoming an equally important consideration for owners.
Bannon has a wealth of experience in dealing with all aspects of Rating matters and our services include:
- Liaising with the Valuation Office on behalf of our clients
- Assessing the Rateable Value applied to a property to advise as to its fairness
- Making representations (if necessary) to the Valuation Office
- Making appeals to the Valuation Tribunal (if required).
