Having identified a lack of supply in specific sectors of an improving local market, the development team secured vacant possession of this building. They initially created a single, ground floor retail unit, pre-let to luxury bathroom store, C P Hart.
The upper two floors were speculatively subdivided into 8 office suites of between 90 sq m and 180 sq m and marketed on both leasehold and freehold terms. Within 8 months of the launch, 6 of the 8 office units have been successfully disposed of and we are in negotiation with a tenant for 1 of the remaining suites. The total project cost was £730,000 with an end value of £2,350,000.
A joint venture purchase of the freehold interest in 48 Albemarle Street, London W1S 4DH, for £7.6m, which has reflected an initial yield of 3.44%.
The building was comprised of 2,891 sq ft NIA of retail on ground and basement let to Rymans and four upper floors of office totalling 4,247 sq ft NIA let to three tenants.
Vacant possession was negotiated with the tenants of the upper office floors and the JV applied for a change of use to residential on the upper floors together with an extension of to the rear and additional mezzanine space at first floor level. Planning consent was granted on November 12th 2012.
While it was the intention to build out, an offer for £9.830M was accepted on October 12th 2012. The contract has exchanged and is due for completion on April 7th 2013.