Summary
Acquired unconditionally with vacant possession, BHP secured the necessary planning consents to split the ground floor from the upper parts and convert the same to residential apartments.
Following an initial marketing campaign, an independent clothing retailer was secured for the ground floor. The upper parts were refurbished and once let, along with the shop, they were held for a period. Upon the retailer demonstrating robust trading figures the entire property was sold at auction.
Business Case
STRENGTHS
- Established retail pitch in the town
- Upper parts already in residential use
OPPORTUNITIES
- To rapidly re-present the apartment to the market
- To secure a established niche retailer
WEAKNESSES
- Pitch unlikely to attract multiple retailers
- Relatively small lot size
- Small floor space likely to be of attraction to independents
THREATS
- Retail pitch appealed to independent retailers so covenant strength of occupiers was always likely to be poor
- Planning risk
- Relatively small lot size could result in profits not being commensurate with the ultimate profits