My initial involvement with both properties started from an advisory position. Subsequently, I acted to sell these unusual investment  properties. 

Sidcup – I acted on behalf of the client selling to Development Securities plc for £2.3M at a yield of 7.25% NIY. The 20 acre site is within the Green Belt and may have medium term development prospects. Many potential purchasers would not acquire the leasehold interest. However, Dev Secs cleverly consider it positive that the freehold owners are also the Local Planning Authority. 

Croydon – I gave initial advice to the owner of the business before acting jointly with Knight Frank. We secured the sale and leaseback at £2.2M at a yield of 7.52% NIY to Newcore Capital Management. 

Both sales were unusual alternative use investment opportunities. The  tenant had a relatively weak covenant but a sustainable business. Both buyers were attracted by the yield, index linked income and relatively low captial price per acre.

The properties also offered some development potential, being located adjacent to residential property but within the Green Belt and Metropolitan Open Space respectively.