Investment News

Acting on behalf of Nottingham Community Housing Association, FHP are pleased to announce the completion of the sale of Rowlinson Court, Heathly Park Drive, Groby, Leicester.

This was a former hospital constructed over 100 years ago and subsequently acquired by the vendors approximately 15 years ago. The Housing Association then entered into a scheme of reconstruction to provide 12 flats, together with a local office for their operations in Leicester.

The sale came about as a result of the property being surplus to their requirements and a change of direction by NCHA.

At the time of the sale, the property produced an income of £73,620 per annum and a projected gross income of £86,820 per annum. The property was sold subject to the existing occupational leases and with vacant possession of the office element, which was capable of being converted into two, 2 bedroom flats.

After an extensive marketing period a sale price of £1,100,000 was agreed, which equates to approximately £130 per ft² and a yield of 6.32%.

Based upon the increased income and without allowance for further expenditure, the gross yield will be 6.69%.

Noel Roper of FHP Property Consultants commented:-

“We were delighted to be instructed by Nottingham Community Housing Association to sell this excellent residential investment. The conversion works were carried out 15 years ago and as a general comment some of the flats were larger than the average size and therefore from the purchaser’s point of view there was considerable scope for enhancement of the building in terms of refurbishment and upgrading and therefore in the long term increasing the rents.”

The purchaser, Kentford Developments, are based in Bury St Edmunds and acquired this property for a long term development. In due course it is intended to upgrade and refurbish the property. They were represented in their negotiations by Ed Bidwell.

For more information please contact Noel Roper at FHP Property Consultants on 0115 950 7577.

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