Question 1 (1500 words approximately)
Due to the success of their internet-based retail business, your clients have outgrown their existing
4,000 sq m warehouse and distribution accommodation. They hold a 20-year lease from 29
September 2015 that is subject to five yearly upward only rent reviews and the rent review due on
29 September 2020 is yet to be agreed. The passing rent is considerably below market rental value.
The alienation provisions in the lease allow for an assignment or subletting of the whole property,
subject to landlord’s consent not to be unreasonably withheld. Any subletting must be at market rent.
They anticipate that they need double their existing space, a total of 8,000 sq m, which should be
enough capacity for the next five years.
They want to appoint you to dispose of their existing interest and acquire new premises.
Provide your client with advice, in the form of a short marketing report, to include, but not limited to:
• an exploration and critical evaluation of the various options open to them;
• a critical analysis of the issues to be considered before putting the property on the market;
• a recommendation on how to proceed.
Make any necessary assumptions to support your advice.
(40 marks)

Question 2 (1000 words approximately)
You have been appointed to dispose of a site, that was formerly used as a hospital. The site has
outline planning permission for residential redevelopment.
One of your long-established clients is very interested in purchasing the site. They have offered your
firm the instruction to sell the properties, once constructed, if they are successful in acquiring the
site.
Critically appraise the relevance and scope of the RICS global professional and ethical standards in
relation to this scenario.
(30 marks)

Question 3 (1000 words approximately)
Your client owns a shopping centre and, due to a combination of factors including the continued rise
of internet shopping, and the uncertainty surrounding Brexit, they now have a large number of empty
units.
Draft a letter to your client outlining the main types of letting incentive that they could offer to try to
tempt retailers into the centre. Your letter should also include a critical evaluation of the impact of
these incentives on the valuation of the centre.
(30 marks)

Property Transactions