We recently provided a loan facility to assist with the purchase and subsequent development of a property in the centre of St Albans. The subject property was purchased for a consideration of £1,600,000 and comprised a mixed use building over 3 storeys.
The property had the benefit of planning consent to convert the upper floors from vacant office space into 5 x 2 bed flats. A build budget of £550,000 (including professional fees) was allocated for this purpose.
Ultimately, the five flats were sold off on long leases with the freehold being retained and the ground floor retail unit let to a high street bank on a 10 year lease, generating a rental income of £50,000pa. Our total loan facility of £1,380,000 represented 53% of the Gross Development Value of £2,615,000.