Cluttons has purchased a block of 3 retail units with a first floor gym totalling 19,648 sq ft with residential conversion potential on the upper floors on Kensington High Street.
The freehold interest was purchased for a private client for £12.8 million, reflecting a net yield of 5.5%.
How we helped
Having identified the opportunity, we guided the client through the entire investment purchase process.
We inspected the building on numerous occasions, measured it and undertook the full due diligence required.
We provided in-depth analysis on the maximum pricing for the asset.
We advised on its potential to enhance value through rent reviews and lease re-gears and development potential.
We secured the building for the client against Central London’s strong competition.
We successfully completed the transaction.
The outcome
An initial expected potential income gain of £90k per annum and a capital value gain of £1.5m for the client.
Longer term, a potential development value gain of £14m through pursuing the opportunity of creating additional floor space on the upper parts and a change of use to high value residential, subject to the necessary required consents.
The investor is now benefiting from greater exposure to Central London property.
The investor was very pleased with the investment expertise Cluttons demonstrated and is keen to acquire further holdings.
