1-5 King Street, Reading
This 15,000 sq ft city centre listed office building let to Barclays at £191,500 was acquired for £2.525m in November 2014, yielding 7.16%. Barclays were not in occupation and a release premium of £1.44m was negotiated, equivalent to their unexpired lease rent liability.
Planning consent was secured to convert ground and basement into 2 restaurants and these were let to Honest Burger and New World Trading Company at a total rent of £235,000 per annum. Construction works costing £500,000 were undertaken to create a shell and the property was sold to the adjacent freeholder late 2017 for £3.9m, realising circa £1.8m profit.
The Lanchesters, 162-166 Fulham Palace Road, London W6
This office investment comprising 12,600 sq ft opposite Charing Cross Hospital was bought from receivers at auction for £3.15m in 2011. Planning consent was secured to convert the building into 15 two bedroom flats and various leases restructured to ensure vacant possession. Around £3.25m was spent converting the buildings in two phases and all 14 flats were individually sold for circa £10m between 2014 -2017.
The residual holding comprises a self contained 1,050 sq ft ground floor office unit. This will probably be sold once let, as will the freehold and ground rents.
253-257 Bristol Road, Ashville industrial Estate, Gloucester
This unoccupied 71,000 sq ft warehouse let to Alldays on a 58 year lease was bought in June 2011 for £3.5m, yielding 6%.
The lease was subsequently restructured to secure the benefit of Co-op’s parent covenant and the investment later sold to the tenant in late 2015 for £4.5m.
D2, Tamian Way, Hounslow Middlesex
This dated warehouse comprising 13,350 sq ft in an established industrial area adjoining Heathrow airport and let to Boker Aeroclean Ltd at £102,000 pa, was acquired at auction for £1.17m in April 2015.
A modest increase was secured at rent review and the property was sold early 2018 for £1.8m.