A MANAGEMENT CASE STUDY
41 Park street was acquired for £260,000 on behalf of a private client in 1996. The entire property was let to Manpower plc at a rental of £26,000 p.a. Over successive rent reviews DJ Foley negotiated increases in the rental level up to a final level of £50,000 p.a.
The Manpower lease expired in 2006 and a new short term lease was agreed. In 2009 Manpower decided to operate a break clause and gave notice to leave the property. A successful substantial dilapidations claim was made against Manpower plc.
Immediately on Manpower leaving the property works were undertaken to split the ground floor and basement from the three upper floors. Simultaneously we put a full development team together and made a planning application to convert the upper floors to six high quality flats. This development included the addition of an extra floor.
Very quickly we were able to re-let the ground floor shop to the Futon Co on a new 10 year lease at a rental of £46,000 p.a.
We successfully obtained planning consent for the upper parts residential conversion and building works commenced in January 2011. The conversion works were project managed by DJ Foley. The contract with a price of £460,000 was completed on budget and on time.
By March 2011 we had pre-let all six flats on 12 month assured shorthold tenancies commencing in July 2011.
This property is now fully let and income producing. The six flats provide what we believe to be some of the best student residential accommodation in Bristol and as such achieve excellent rental levels.
The entire property was independently valued in July 2011 at £1.8 million.