Case Studies from Central and North London
Focus has historically been on mid-level, under-utilised, multi-unit assets, with strong potential for capital growth through refurbishment, development and/or re-positioning.
Bottom-up approach has offered the seed portfolio good opportunities for capital growth.
Holborn
Year of purchase: March 2010 | Cost of purchase & re-development: £4.4m
Year of disposal: March 2015 | Sale proceeds: £5.8m
Return on capital investment: 65.0%
Background: Property bought immediately after the 2008-2009 economic downturn. Following refurbishment, it was put back on the market once prices had recovered sufficiently, in 2015.
Turnpike Lane
Year of purchase: March 2013 | Cost of purchase & re-development: £1.1m
Year of disposal: March 2015 | Sale proceeds: £2.5m
Return on capital investment: 261.7%
Background: Property was bought from Haringey Council as an old care home. Study carried out to work out best use and planning permission obtained for re-positioning into residential flats by extending the property and converting it. The building was then broken up and sold on a unit by unit basis to investors and end users.