South Lake Safari Zoo

CHALLENGE

Savills was instructed jointly by the Administrators of South Lakes Safari Zoo Limited (SLSZL) and a private client to advise on disposal of the freehold interest in South Lakes Safari Zoo. The Administrators were appointed over the land owned by SLSZL but not over the land owned by the private client.

In February 2018, two concurrent leases were granted by SLSZL and the private client to Cumbria Zoo Company Limited, generating an income of £500,000 per annum. SLSZL and the private client thereafter ceased to have any involvement in operation of the zoo business.

SLSZL had substantial debts and despite rental income due under the lease agreement, it was unable to meet its liabilities and this resulted in the appointment of Administrators over the company in October 2018. The Administrators and the private client agreed to sell their combined freehold interest in the property, and they jointly instructed Savills to act on their behalf in the sale.

The events leading up the sale were complicated, and Savills initial review of the information identified matters which required clarification before the property could be successfully marketed.

SOLUTION

Savills approach was to identify issues which could either affect price or deliverability of a successful sale. These issues were then addressed as fully as possible prior to placing the property on the market. They included:-

• Identifying discrepancies in the registered title and arranging for an application to rectify defects being submitted to Land Registry.
• Resolving an outstanding dispute over routing of a public footpath through part of the site.
• Agreeing terms for retention of adjoining land to be retained by the private client, enabling it to be sold without adverse effects on the zoo property.
• Clarification of the extent of trading inventory included in the lease and that in control of the Administrators.

These and other relevant questions were clearly presented in sale particulars and a detailed data room available to purchasers on a secure website. The property was offered for sale in September 2020 and the open marketing campaign led to interest being generated from a range of investors. This resulted in several offers being received on a closing date in mid-November, with the sale being concluded at the end of January 2021.

During the period between heads of terms being agreed and completion of the sale Savills was involved in detailed negotiations between the parties to ensure that the sellers’ interests were fully protected and disclosure of all relevant information was made to the purchaser.

RESULTS

A competitive bid from a consortium of private investors with leisure industry experience, The Zoo Investment Company, was accepted and the sale completed in January 2021.