INSIGHT: Rowham Set For Steely Future After Property Purchase
A Manchester-based steel supplier has secured its long-term future after purchasing a property at Trafford Park, thanks to the help of Pearson Solicitors.
Established in 1979, Rowham Steel Products Ltd supplies mild steel, galvanised steel and zinc-coated sheets directly to manufacturers, as well as decoiled, sheared and slit steel for a variety of uses such as office furniture and double-glazed windows.
Having grown to 18 staff in recent years, managing director, Trevor Mizon, was keen to purchase the company’s existing building from the current owners to ensure there is an effective contingency plan in place.
Trevor commented: “Lyons Road has been our home for 20 years and following the retirement of the previous owner-directors, we made a strategic decision to buy the building outright to secure the company’s long-term future.”
However, the purchase wasn’t without its problems, and Trevor was forced to call on the expertise of Oldham-based Pearson Solicitors to overcome the legal hurdles.
Trevor continued: “After initially applying for the land title, we discovered that our neighbours were still listed as the owners on part of the title, which initially prevented us from moving ahead with the deal.
“It was clear this wasn’t going to be a straightforward transaction so I got in touch with Pearson after being recommended by another firm.”
Karen Piontek, a commercial property associate at Pearson, was able to rectify the land title within a tight timeframe and also worked proactively to resolve legal issues following the voluntary liquidation of the owner’s Gibraltar-based holding company.
Karen explained: “With the sale of its remaining asset, we were advised that the owner decided to wind up the Gibraltar-based business. However, due to delays with the land title, the company risked being liquidated before the property purchase could be completed, which presented legal issues in relation to who had the capacity to dispose of the property.
“Trevor wasn’t aware of this and if it wasn’t for the due diligence we undertook during the process, the deal would have fallen through due to the owner not being in a position to dispose of the property.
“Having a thorough understanding of Trevor’s instructions, it was essential that the deal went through as quickly as possible, despite its challenges, to ensure that it was commercially viable and profitable.”
Despite the complex legal issues being out of Karen’s jurisdiction under English Law, she was able to resolve the matter and facilitate a purchase to the value of £400,000.
“Without Karen’s assistance, the purchase would probably have never taken place”, Trevor continued, “and her proactivity and attention to detail made a bumpy ride so much smoother.
Owning the building has also given Rowham Steel the opportunity to invest £50,000 in new LED lighting and solar panels, halving its electricity bill and reducing its carbon footprint.
Trevor added: “We are now in a privileged position of owning all our own machinery, vehicles and now the building, with no outstanding loans or debt other than the arranged mortgage.
“The building has become an asset on our balance sheet, which strengthens our financial position with the bank and suppliers, and we are currently looking for additional premises to buy should the right opportunity come along as we are continuing to experience year-on-year organic growth.”
Pearsons provides commercial property services for a number of the region’s biggest businesses, including Manchester Cabins, Hyde Industrial Holdings, Ainscough Strategic Land, Natures Nursery and Brantwood Design and Build.
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