Summary
A former NatWest premises, the property was acquired in the open market.
Through its retail agency contacts, BHP was aware of a number of betting shop requirements for Downham.
Coral already had a betting shop in the town and were very aggressive in securing the premises with a specific objective of preventing competition.
A lease was agreed subject to planning for an amended shop front and, following receipt of consent, a lease was completed.
The planning consent included a conversion of the upper parts to residential which was duly undertaken.
The retail was sold at auction and the apartments by private treaty.
Business Case
STRENGTHS
- Existing A2 use
- Known A2 betting shop occupier requirements
- Upper parts suitable for conversion to apartments
OPPORTUNITIES
- To secure a very advantageous rental from Coral due to their business strategy of preventing competitor access to Downham
- To refurbish the upper parts for residential
WEAKNESSES
- Apartments of limited value
- Whilst strong A2 demand was evident, it was subject to planning for altered shop fronts
- The property was within a conservation area
THREATS
- Downham residential values had limited scope for improvement
- The quality of buyer was likely to lead to significant false starts in residential sales
- Planning risk due to inclusion within the conservation area