Fairoaks - large part for sale.

[bern444]

This isn't originally my post, so apologies to fairflier, but it deserves more than being at the bottom of a Shoreham thread. Quoting -

It's the built up property side, the northern half of Fairoaks which is for sale (freehold) not the operational aerodrome (runway, taxiways etc.). Albemarle Fairoaks Ltd went into administration last February and now the administrators are disposing of all the built up side of the airport - the buildings plus adjacent pockets of land (40 acres in total), but all in the greenbelt, so there's not a lot you can do with it.

See www.joneslanglasalle.com/MediaResources/EU/Property/England/JLL_England_National_Investment_Fairoaks_Airport.p df (http://www.joneslanglasalle.com/MediaResources/EU/Property/England/JLL_England_National_Investment_Fairoaks_Airport.pdf)

The runway and adjacent grass areas around it are still owned by Fairoaks Airport Ltd (FAL) - whoever owns that - is that still part of the Longmint Group? But there's no airport infrastructure included in that land at all - just a strip of tarmac and grass.

The problem is that aside from the airport operator/owner (FAL) and Mann Aviation, nobody else has any security of tenure and could all be booted off in a blink of an eye for redevelopment or new deals at much higher rents.

It's a bit worrrying to say the least. What gaurantees are there that Fairoaks Airport Ltd will continue to operate their side as an aerodrome, licensed or otherwise? Without any property income (for FAL), there's not enough cash from landing fees etc. for that to remain a viable licensed strip and they've still got to pay the new buyer of the northern side an extortionate amount for a few operational buildings - at least until 2017, when the lease term expires. But I doubt they'll survive that long - the numbers just don't stack up.

Who's got the background on this? http://images.ibsrv.net/ibsrv/res/src:www.pprune.org/get/images/smilies/worry.gifIt would be useful to know, if anyone has the means, who ultimately owns Fairoaks Airport Ltd, as mentioned in the sale document and above.

B

[PilotPieces]

I think all of the offices on the control tower (western side) pay Fairoaks Airport Ltd rent. There must be at least 30 businesses renting buildings there.

I can't see Mann's being around much longer though.

[007helicopter]

I can't see Mann's being around much longer though

Can you say Why?

[LysanderV8]

It would appear that Fairoaks Airport Ltd is ultimately owned by an Albemarle company registered in Guernsey. I suspect this is the company which owns the property and takes rents.

There is also Fairoaks Airport (Operations) Ltd, which is owned by Forsters LLP, a large firm of lawyers in London. I suspect this company runs the runway and ATC.

Forsters LLP also appear to own Albemarle Shoreham Airport Ltd, which I believe runs the operational side of Shoreham, whereas Albemarle (Shoreham) Ltd, also owned by Forsters LLP appears to deal with the properties at Shoreham Airport.

I guess it is possible that Forsters may be nominees for others.

All information above available from Companies House

[ShyTorque]

I can't see Mann's being around much longer though.

As someone with an interest in that company, (for aircraft maintenance) please qualify that statement.

Are you saying we should begin to look elsewhere? :suspect:

[PilotPieces]

Pure speculation Mr 007helicopter :ok:

[bern444]

Thanks to you Lysander. I knew someone out there would have a subscription.

[Fright Level]

Is this perhaps the clean up after the Erinaceous fiasco (http://www.telegraph.co.uk/finance/newsbysector/supportservices/2788190/The-Erinaceous-fairytale-comes-to-unhappy-end.html) a couple of years ago?

[bern444]

Type "Albemarle Fairoaks" in to Google, and you eventually end up here - www.Albemarle-Syndicates.com (http://www.albemarle-syndicates.com/website/albemarlefairoaks.htm)

It seems to be a property investment syndicate system. Quote - "The investment strategy has been opportunity driven with the aim of optimising returns on capital over a period of up to five years."

I can't think that they'd get much return on capital unless they could build a housing estate. On green belt land with McLaren's as next door neighbours that would seems unlikely.

B

[Red Four]

According to CAA, Alan Mann Helicopters Limited Operating Licence suspended from 14 July.
http://www.caa.co.uk/docs/213/1961.pdf

[ppheli]

PilotPieces... Prior to Fairoaks being sold by Mr Mann and Mr Papadakis, all the tenants on the airfield (ie everything except the Alan Mann Group companies) were on very unusual leases. The "lease" was a "tenancy at will" which provided for either side to terminate the agreement on one day's notice. The presumption was that if AM wanted to sell, then he could give "vacant possession" immediately. On the other hand, it also led to some "moonlight flits" with some rented office keys being posted back through the airfield manager's letter box !! I do not know whether this situation changed after the airfield changed hands.

bern444 - that Albermarle Syndicates site is interesting. The principals there all have eganlawson.com email addresses and Egan Lawson was a company bought by Erinaceous Group but had a management buyout back out of the group shortly before it collapsed under £250 Million of debt (http://www.propertyweek.com/erinaceous-collapses-under-%C2%A3250m-debt/3111338.article)

[bern444]

It's all a bit sad really - the place is apparently owned by property people of various ilks, presumably in the hope of making a killing. If they just thought airfield instead of housing estate, they could probably turn it in to something quite profitable.....

The place is a short distance from junction 11 on the M25 and from Woking rail station.. It's right next door to McLaren's. There's lots of space for GA parking.

All in all, it's an ideal and comparitively low cost gateway to London. You can't land big bizjets there, but you can land a Pilatus PC 12 and similar size aircraft. Knock down all the ancient brick and cardboard buldings and build a low cost hotel, cafe and modern industrial units, and you could maybe make money. Hold on to the land in the hope of building a housing estate, and you have to give up and sell it.

B

[ilfly]

PilotPieces... Prior to Fairoaks being sold by Mr Mann and Mr Papadakis, all the tenants on the airfield (ie everything except the Alan Mann Group companies) were on very unusual leases. The "lease" was a "tenancy at will" which provided for either side to terminate the agreement on one day's notice. The presumption was that if AM wanted to sell, then he could give "vacant possession" immediately. On the other hand, it also led to some "moonlight flits" with some rented office keys being posted back through the airfield manager's letter box !! I do not know whether this situation changed after the airfield changed hands.

A delayed reply to this post but hey!!

The situation is still the same although it's not a days notice but one month or three months.

"Moonlight flits" will happen irrespective of the length of a lease. If someone can't pay they disappear and the unit will become available to someone who will pay. The flipside for a landlord is that if they have a long lease and someone goes they cannot re-let the property quickly, otherwise they are, by that action, accepting the termination of he leaving party and will not be able to pursue for the full terms of lease. Leashold law is quite a complicated area and I am no expert.

In the last few weeks it has been intimated that they are trying to get 5 year leases for new occupiers - On a full repairing and insuring basis.!!! Would you take a building of mixed construction, that contains asbestos in some areas, and take on that liability.

Once again money men trying to build value before a resale.

[chevvron]

Bern444: there are already small industrial units and when one is vacated, it's not empty for long.