The property is situated in Soho, one of the principal commercial sub-markets within London’s West End. The area has seen a considerable transformation over the last decade with a more corporate occupier base being attracted by the vibrant social scene and competitive rents which is matched by a higher demand for high-end residential units in the same area. It has also been developing as an attractive location for foreign investors buying apartments for a London “pied-a-terre”.
The property currently comprises a mixed use office, retail and restaurant building totalling 3,091 sq m (33,271 sq ft) arranged over lower ground, ground and seven upper floors.
The proposal is to convert self-contained offices arranged over the first to seventh floors with a total net internal area of 2,433 sq m (26189 sq ft) to 22 luxury apartments with high quality specifications.
Planning consent to convert the offices to 22 residential apartments is in place (subject to detailed architectural drawings).
Investment RationaleVery rare opportunity of planning permission /consent to rearrange of use part of ground and seven upper flows to convert from office use to 22 luxury self-contained residential flats in central part of London.
Partner/DeveloperThis project has been initiated and would be managed and marketed by a very reputable and experienced development company, bringing over 30 years of track record in the construction and development industry. Their specific focus has been on constructing and managing luxury residential properties in London and its most luxurious suburbs. Very rare highly rewarding investment opportunity for short term equity of 16.5 mln GBP for 24-30 months, with expected IRR 20% + final number to be finalised based on precise exit sales figures) excluding cost of financing and fees (TBC)
There is a plan to keep ground floor retail space 7,082 sq ft (657.93 sq.m) to attract stable cash flow and increase potential yield for the property.
Brief financial indications
- 22 luxury residential apartments (26,189sq ft – 2,433 sq.m) plus ground rents
- Ground floor retail income
- £85 mln Gross Development Value (at c.£2,500/ft)
- £63 mln Gross Development Costs excluding finance costs
- £22 mln gross profit before finance and distribution
- £16.5m equity required for 24-30 months
- 75% LTV debt financing is arranged on very favourable conditions