Blades Court

Putney

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Summary

Acquired and asset managed as an office investment to improve the underlying asset valuation, during which time a planning application was made to convert the whole block from office to residential using Permitted Development Rights.

A further PDR application was made to allow flexibility when converting the different wings of the existing building.

A planning permission was also achieved to add a further storey consisting of two penthouse flats on the Deodar Road elevation after prolonged consultation with local neighbours.

Business Case

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

Location

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