Prime London Residential Development Fund acquires fifth asset
The property is located on the Old Brompton Road in South Kensington and has been acquired for a price in excess of GBP25m.
The site is currently a mixed-use 1930s building with offices on the upper floors and a Ferrari car showroom on the ground and lower ground floor. The intention is to enhance the existing planning permission and provide a gross internal area of c.35,000 sq ft, of which c.25,000 sq ft will be high quality residential accommodation, subject to the necessary consents.
The fund has partnered with Tenhurst, an experienced Prime Central London residential developer, for the redevelopment of the site.
Brian D’Arcy Clark, head of residential acquisitions, said:
“We are delighted to be able to add this redevelopment project to our portfolio and furthermore to have Tenhurst as our development partners once again. The approved plans for the redevelopment are exciting – being a podium rebuild, something which is rare in London. There is the potential to create lateral flats of over 5,000 sq ft each, and 10,000sq ft of commercial space whilst retaining the existing showroom floors.”
Patrick Carr, fund director, said:
“The fund has now invested 75 per cent of its equity, providing investors with diversification across a number of developments and developers and with a gross development value of some GBP250m. We expect the first units for sale to come to the market in mid-2015.”
The fund is a sterling-denominated closed-ended English Limited Partnership with a Jersey feeder. It has a term of four years with the option to extend by a further two years, and is able to use gearing where appropriate.