- Yield: 7.2 %
- GDV: £49,000,000
- Prime city centre development potential
- 12 year lease in place with established architect firm paying £144,000 p/a.
- 250 units
The property is a 7,200 sqft commercial property with an established tenant in situ paying £144,000 p/a on a 12-year lease. The property further benefits from a ‘landlord only’ 6 month break clause.
Within 9 months we will submit a planning application to demolish the existing premises and develop a luxury residential apartment scheme/ apart hotel featuring a world-class design and dual permissions for c.250 residential apartments and serviced accommodation. Planning permission is anticipated to be granted within 3 months of submission. Investors will be given the option to exit upon ‘planning gain’.
Once planning permission has been granted the break clause in the lease will be enacted and the existing property will be demolished. Development of the site will then begin with the construction period being anticipated to be 24 - 30 months.
Current Valuation: £2,000,000.
Projected valuation with 'planning gain': £4,000,000
Projected net profit with 'planning gain' after planning costs: £1,650,000
Total project development costs (inclusive of land purchase): £35,815,000.
Gross Development Value (GDV): £49,000,000.
Net development profit after costs: c.£10,000,000 - £11,000,000
Selling office: Sourced Alderley Edge