Bridge House & 30 Bridge Street

Leatherhead

Disposed of by a local vendor on a consensual basis with its senior lender, BHP acquired the asset off-market.

BHP exploited the lack of asset management undertaken by the vendor and prior to exchange of purchase contracts, already had a signed agreement with The Mountgrange Housing Association to re-gear their lease to a 10 year term. Within 4 months of acquisition, BHP had already sold this element of the property, 33 Bridge Street.

Shortly following the purchase, BHP commenced a refurbishment of the vacant accommodation and communal areas, whilst also addressing the poor external aesthetics. During the early part of the refurbishment, BHP agreed to let the remaining vacant accommodation on the 2F of 24 Bridge Street.

Planning was obtained for conversation of the upper parts of the retail to residential and upon receipt of planning, construction commenced with a successful sale of all units shortly after practical completion.

The residual retail unit was subsequently sold to an owner occupier

STRENGTHS

  • Very attractive pricing due to distressed sale
  • Partially income producing
  • Excellent car parking allocation
  • Town centre location

OPPORTUNITIES

  • Limited asset management undertaken by vendor
  • Potential to reposition the building through an internal & external refurbishment
  • Possibility of converting poorer office accommodation into apartments

WEAKNESSES

  • Building was in need of substantial upgrade
  • The more modern of the two buildings lacked appeal externally
  • Income was hindered by void costs

Threats

  • Void risk
  • Stepped floor plates
  • Planning risk on planning for apartments
  • Perceived as slightly secondary position
  • No passenger lift