2024 - We purchased a vacant takeaway off market for a total price of £45,000. After minor refurbishment and acquiring necessary safety certificates, the entire property was rented on an FRI lease for 7 years for an annual rent of £9,000. The property was then sold on private treaty for a net sales price of £80,000.
~£31,000 net profit on £49,000 invested in 9 months
Although we primarily work with commercial properties, occasionally a residential investment opportunity will present itself. In 2024 we acquired a derelict flat in Prime Central London in need of major refurbishment. With the necessary planning and redevelopment, the flat was completely transformed to a high end finish and subsequently let out to young professionals. After a revalue and refinance 9 months later, a majority of the initial investment was recuperated. Total investment into the property ~£505,000 with a revaluation 9 months later at £600,000 marked a ~£95k net increase in value in 9 months, while retaining the investment income.
2022 - A vacant 3 storey building purchased in the North of England for net price of £90,000. Further costs of £30,000 were invested to divided the uppers into 2 flats with the ground floor being refurbished as a lockup retail shop. Once rented out, the flats produce income of £14,000pa and the shop £8,400 bringing total income of £22,400pa with a revaluation of £210,000.
Total increase of net asset value of ~£90k while producing rental income of £22,400pa on initial investment of £120,000 (18.6% yield)
Over the last ~7 years, we have purchased 60+ large freehold pubs across the UK for our clients, and have successfully rented each property (FRI long leases) for an average of 11%+ annual yield on gross purchase price. Many of our tenants invest in their businesses and subsequently the properties creating major uplifts for our clients. With an average LTV of 60-65% our clients are seeing circa 20% cash on cash returns before even considering the capital appreciation these large freehold properties are bringing. Estimated capital appreciation of circa 20% in ~3 years due to asset management and other improvements.
2022 - We purchased a vacant 2 storey commercial property in a town centre in the North Eastern part of England. Purchased at auction for £68,000. A major defect/issue was identified and remedied, and circa £6,000 of improvement works carried out.
Tenant found and agreed a 10 year FRI lease at £10,000pa. Tenant carried out massive fit-out to the property at their expense.
Property sold 5 months after purchase for £110,000 to a cash buyer.
~£36,000 profit on £74,000 invested in 5 months
2021 - Ground Floor leasehold commercial unit purchased at auction for total of £135,000. The properties were then rented as 3 separate units on IR leases for 5+ years, which tenants fit out as salon, cafe, and retail unit. Total rent of £22,880pa.
2 years later, 2 units are sold off for total sold price of £200,000, giving our client a profit of £65,000 plus a retained leasehold unit paying £7,200pa