Over 50% off - apartments

What a difference 5 years make.  You thought that house prices have been fairly stable in the UK since the crash in 2008.  Not if you were one of those unfortunate buy-to-let investors who were suckered into buying an over inflated apartment in a jazzy named development on the edge of a city centre.  Take for instance the Picture Works in Nottingham.  Back in 2008 two bed apartments were being advertised at £175,000 and spacious 1 bed for £135,000.

Most of them are now on the market with Allsop but you can now buy them with a group discount of over 50%.  The asking price for the block of largely unsold block of 114 apartments is offers over £7 million, less than half of the around £20 million the developer Lace Market Properties was hoping to make from selling them individually at the peak of the boom.

Bargain - real value?

A bargain?  With a Gross Investment Yield of almost 13% even with the considerable management costs at this price it looks good value.  It's a sign of the time that now it's not about value but about those that can raise the cash and obtain the loans to secure the value.  Details are as follows:


A Freehold residential investment opportunity comprising 128 apartments and 2 commercial units.
Investment Considerations
    •    114 unsold apartments (46 x 1 Bed, 63 x 2 Bed and 5 x 3 Beds)  subject to 106 AST’s and 8 Vacant
    •    14 apartments sold off on long leases producing a ground rent income of £3,500 pa.
    •    Total current rent reserved - £888,720 – GIY 12.7%
    •    A total of 3,057 sq.ft of ground floor commercial space
    •    87 remaining car parking spaces
    •    Estimated Rental Value  - £946,320 – GIY 13.5%

Price:  Offers in excess of £7,000,000

Sales details:

Michael Gorman
+44 (0)113 236 6683
michael.gorman@allsop.co.uk

William Shoebotham
+44 (0)207 344 2659
william.shoebotham@allsop.co.uk

Buy-to-let finance - access the market