Structuring Risk and Reward in Operational Real Estate | Jeff O’Boyle
Capital Routes: The Jersey Series, a Brave Ideas collaboration with PCD Group
In Episode 4 I sat down at the L’Horizon Beach Hotel & Spa in Jersey with Jeff O’Boyle, Partner in the Property team at Appleby, to explore how legal agreements can define risk, reward and responsibility as offices become more operational.
Drawing on his experience in retail and hospitality, Jeff discusses what office investors can learn from turnover rents, management agreements and profit-sharing arrangements.
The conversation examines how those structures can support collaboration between landlords and operators, and what investors need to consider when income depends on the performance of the business within a building.
Topics Discussed
What retail and hospitality can teach office investors about structuring base rent and variable income.
How profits from amenities could offset service charges or fund building improvements.
Why clear definitions of turnover and profit are central to the agreement.
How to define successful performance through KPIs that can be monitored and audited.
The role of step-in rights, termination provisions and control over operating assets if an operator fails.
Jeff also explains why the choice of operator and the mix of occupiers remain fundamental commercial considerations. They discuss the challenge of recognising non-contracted income in valuations, and the importance of robust documentation that investors and lenders can rely on.
About Appleby
Appleby’s Property team advises on commercial and residential property transactions, including acquisitions and disposals, leasing, development and property finance.
Learn more about Appleby’s Property team
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