Our services are regularly recommended to the owners of properties with development potential by various local solicitors, surveyors, wealth managers and other professional colleagues.
Clearly a property can only be sold once, and whilst any developer will tell you their offer is the best you're likely to get, there have always been
many more buyers than opportunities! With that in mind, it's vital that anyone selling a property with apparent development potential takes some expert advice.
In this particular instance we were kindly recommended to the sellers by TG Baynes Solicitors. The client was a second generation family investment company, and the asset was, well, a mixed-bag! Covering a quarter acre plot with dual road frontage, the property comprised elements of residential, retail, office, storage & workshop space. During more than 50 years ownership the condition of the properties had deteriorated considerably, and several parts of
the site were bordering on being uninhabitable.
With the ongoing maintenance becoming more time-consuming and costly, the family had decided to sell. Interest had been forthcoming from developers and investors, but with a distinct lack of lease agreements to document the various occupancies, nobody was willing to take the property on warts-and-all. Whilst time wasn't necessarily of the essence, our concerns about a sale centred on our clients' ultimate ability to provide vacant possession. The property undoubtedly offers potential for redevelopment, but having completed a detailed appraisal, we concluded that with some refurbishment and active management, the rental income could be driven to a level that would enable the investment value to rival, if not exceed the residual land value for development.
We were instructed to market the property, and set about generating interest from investors as well as developers. Several offers were received, and as we suspected, a sale was agreed to buyers who intend to improve rather than redevelop the existing buildings. The property was sold subject to the existing occupancies - saving our clients the cost and worry of trying to procure vacant possession. Given that the sale was unconditional, there was no delay in waiting for a planning application either.
We're always willing to appraise an under-performing or surplus asset, with or without development. If you or a client would like the benefit of our free advice, please don't hesitate to get in touch.
PROJECT ADDRESS: 314-316 Broadway & 1a-2a Pickford Road, Bexleyheath, Kent DA6 8AA
CLIENT: Maison Maurice Group
SITE VALUE: £1,200,000
DATE: January 2020
SELLERS SOLICITOR: TG Baynes