KEY POINTS
- HIGH CASH FLOWING ASSET
- A-RATED EPC ACHIEVED, GREAT FOR LOW OPEX COSTS AND MAXIMUM PROFITS
- 3 minute walk to the train station (direct to waterloo in 50 mins)
- COMMERCIAL TO RESIDENTIAL CONVERSION STAMP DUTY SAVINGS
- 11 STUDIO FLATS WITH INDIVIDUAL KITCHENETTES AND EN-SUITE SHOWER ROOMS
- high professional tenant demand
- green technology – heat pump and solar panels installed
OVERVIEW
Two separate commercial properties were purchased in 2023. The first was an old private adult shop and the neighboring property was a Chinese takeaway. Seeing the huge potential due to their location equally positioned between the local town center and train station, plus being directly opposite a large local park, this site was perfectly positioned to become an 11-bedroom studio scheme.
We acquired, designed, and delivered both properties within 9 months and all rooms were let within 10 days from first marketed. These highly finished units are immaculately completed and have been designed with green technology in mind to lower ongoing operation expenses which makes this asset the most profitable asset in our current portfolio.
gross development value:
£1,353,000
purchase price:
£575,000
build costs:
£350,000
professional fees:
£40,000
total project cost:
£965,000
rent roll:
£127,800 PA
profit on gdv:
£388,000
project duration:
9 months
DEVELOPMENT
This development proved to be an excellent acquisition as it presented a unique advantage: there was no need for additional capital to construct a rear extension, which typically becomes necessary to accommodate six spacious bedrooms in such projects. Furthermore, the loft floor structure had already been completed, resulting in minimal structural expenses. Additionally, most of the internal works involved stripping back to the brick, but overall, they were reasonably straightforward.