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.
- 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.