MARCOL London property sales of £250million
2 May 2017
MARCOL’s CGIS Group has concluded the sale of circa. £250m of its Central London portfolio. This was a deliberate initiative on MARCOL’s part to capitalise on a strong market pre- BREXIT. With the proceeds, MARCOL are actively seeking opportunities in all sectors.
Below are details of a few of the property sales and the active asset management used to bring the properties to their best prices:
65 Clerkenwell Rd, EC1R 5BL
A timely purchase of a classic Victorian warehouse just as the Clerkenwell market was starting to take off, with the close proximity of the Farringdon Crossrail transport infrastructure development being a further catalyst to rental and capital growth. The building was comprehensively refurbished to exploit fully the burgeoning occupational market and re-let to A list tenants such as Herzog & de Meuren (architects on the Tate Modern conversion of Bankside Power Station and the Beijing “Birds Nest” Olympic stadium) and Apple Inc. The building was subsequently sold to crystallise a profit margin in excess of 100% in a little under 3 years.
104-110 Goswell road, EC1V 7DH
77 Bastwick Street, EC1V 3TX &
Gee Street: 15-27 Gee Street & 66-74 Bastwick Street, EC1V 3TX
These three adjoining, converted industrial and warehouse buildings were acquired off-market for £23.25m through one of the company’s vitally important network of specialist investment agents. The buildings offered many asset management opportunities such as reconfiguration of the space to create additional lettable area, lease re-gearing, refurbishment and re-letting, rent reviews and break-up of the estate through separate sales of the individual buildings.
The refurbishment programme was extremely comprehensive in order to maximise the appeal to the Clerkenwell letting market, including extensive sandblasting of concrete and steel structures and exposure of M&E services to restore the original, industrial aesthetic. This was combined with full provision of up to the minute facilities such as comfort cooling, full access raised floors, upgraded power, contemporary reception areas and washrooms, new showers on all floors where possible and, for the Bastwick St building, the creation of new cycle parking and a new roof terrace amenity.
All of these initiatives enabled the company to achieve an £8.5m gross profit over only 2.5 yrs.
West Point, Old Trafford, 501 Chester Road, Manchester M16 9HU
Located close to Manchester United’s Old Trafford stadium, this 100,000 sq ft office tower was originally acquired as a high yielding refurbishment opportunity, generating a 10% return for the company. It was sold in order to take full advantage of the explosion in demand in Manchester for PRS conversion opportunities which enabled the company to achieve a price two and a quarter times the current book value.