Blades Court

Deodar Road
Putney

Acquired off market in JV with Henderson Global Investors, the campus provides an excellent opportunity for BHP to enhance returns through active management of the estate where market dynamics are very much in the Landlord’s favour. The imminent vacant possession of Unit 11 allows BHP refurbish the unit and create on site evidence for use as comparables during the forthcoming rent reviews on the estate in March and December 2016. In parallel, BHP will be submitting a planning application for 2 additional floors above those units fronting Wandsworth Park.

 

STRENGTHS

  • Excellent position in South West London
  • Market dynamics very much in the Landlord’s favour
  • Very low passing rents

OPPORTUNITIES

  • Opportunity to prove ERV through refurbishment of a unit immediately
  • To convert to residential if the PDR expiry window is extended to 2019
  • Opportunity to add to massing through additional floor on the units over-looking Wandsworth Park

WEAKNESSES

  • Low initial yield
  • Inability to refurbish more than one unit immediately
  • Without any massing additions, financial performance dependent on rent review settlements

Threats

  • PDR window closing and may result in lesser tenant demand
  • Planning risk in respect of proposed additional floors
  • Void & construction risk in respect of additional floors