Summary
Acquired in conjunction with a long term trading partner, The Mc Gahan Litchfield Partnership, the brace of Victorian properties were leased to the NSPCC & a firm of accountants.
The Local Planning Authority was keen to promote new office development in the town and as a result was very proactive in supporting the application.
BHP, upon receipt of planning, has progressed the detailed design of the development to RIBA ‘Stage D’ thus enabling swift development once an occupier is secured.
Whilst the NSPCC have relocated, their accommodation has been re-let and thus the property remains fully leased.
Stiles Harold Williams and Savills are undertaking a letting campaign for the re-development.
Business Case
STRENGTHS
- Income producing
- The site was under developed allowing for massing improvements
- Within 100 m of East Croydon Train Station
OPPORTUNITIES
- To increase value through securing a planning consent for development
- To provide new office space in a town with little or no competing stock
- Ability to re-gear leases to allow annual breaks to facilitate development
WEAKNESSES
- Occupational tenants had 3 years until expiry
- Croydon office market dominated by secondary stock at low rents
- Plot size determined that floor plates would be smaller than desired for new build
THREATS
- Planning risk
- Adjacent site was occupied by a church
- Existing rents were depressed in Croydon with little new build office stock having been constructed for 10 years