Sulivan, London SW6:
This property was purchased in September 2005 for £3.5m, which reflected £166 per sq ft. The building comprised 21,000 sq ft of showrooms and offices, plus car parking to the rear.
The majority of the ground floor was let to Bathstore.com, whilst the upper floors were let to a variety of tenants, with an element of vacant accommodation. All of the leases of the upper floors expired within eighteen months of completion of the purchase.
The purchase price reflected a low capital value on a per sq ft basis for both the area and the location, especially as this was a relatively new building.
The building offered a strong asset management opportunity, which we seek.
Some of the vacant offices were let to new occupiers, and upon the sale of the property limited rent guarantees were given on the remainder of the vacant space.
The building was sold in May 2006 for £4.925m.