Soho, London Value-Add Investment

2014 - 2017 Central London Site Repositioning Opportunity

In September 2014, Quadrum purchased this mixed-use office and retail property in Soho, Central London, from British Land with the intention of redeveloping the site into a residential scheme. Due to its prime location but unmodernised condition, the site presented as an opportunity with significant value-add potential. Soho is a highly sought-after and vibrant area, well known for its theatres, restaurants, bars and cafes, and excellent transport links. Due to the building’s location, the optionality existed for several uses including residential, hotel and offices.

  • The retail space on the ground and lower ground floors was sold off simultaneous with acquisition, extracting value early and focusing redevelopment of the upper floors.
  • Planning permission for change of use from office to residential on the upper floors was obtained, which increased the massing and allowed for the development of 19 apartments.
  • The additional massing consisted of an additional floor and the cantilever of the building outwards, creating an increase of 3,484 square feet equating to a 25% increase which significantly adding value.
  • Considering all exit options, Quadrum entered negotiations with a hotel operator to purchase the building subject to the planning consent for hotel use. The offer for the site represented one of the highest prices achieved on a per square foot basis on a like-for-like building in the local Soho area.
  • Quadrum exchanged contracts in April 2016 to sell the building subject to hotel use being granted. The sale was completed February 2017 as soon as planning was achieved.

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