Residential Investment & Development Transactions in the Northern Regions 2020 - Allsop
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Residential Investment & Development Transactions in the Northern Regions 2020
Our
knowledge
is key
Over the last 12 months Allsop Investment
teams have completed transactions in
excess of £1.3Bn.
We have an enviable depth of knowledge
for both value add and income deals.
With Leeds and London offices this
brochure highlights Allsop’s key regional
transactions in 2020.
1
In 2020 the Residential Investment &
Contents Development teams have transacted
approximately £141 million over 37 disposals
1. Investment 4 and acquisitions in the Northern Regions.
2. Development 18
NORTH EAST
• Deals: 3
• Accumulated price in
region: £11,587,000
NORTH WEST
YORKSHIRE & HUMBER
• Deals: 6
• Deals: 20
• Accumulated price in
region: £30,160,000 • Accumulated price in
region: £66,397,350
MIDLANDS
• Deals: 7
INTER-REGIONAL • Accumulated price in
PORTFOLIOS region: £20,630,445
• Deals: 1
• Accumulated price in
region: £12,700,000
Market Overview - Investment
The beginning of 2020 was certainly one of positivity We have been able to run ‘socially-distanced’
for the northern residential investment market as viewings through the summer and into winter; with
a result of Brexit and the General Election, with a great deal of care and attention given to safety;
renewed confidence and optimism throughout however we have also had to market multiple
the market; most notably with the sale of ‘Project properties without viewings, due to them being
Ceasar’ a £12.7 million portfolio of 74 flats across 100% let, and even this hasn’t hindered our ability
Birmingham and Manchester. Beyond this however, to secure deals. For the majority of our properties
Covid-19 of course impacted the market; with mixed marketed this year, viewing in person or on-line, we
confidence levels from investors and vendors – have received multiple strong bids, thus confirming
however the vast majority of deals which were under the continued demand throughout the pandemic.
offer pre-lockdown went onto completion. Throughout the year, there has been a particularly
strong appetite for property up to the value of £5
We have not been sitting on our hands throughout million, and we continue to see pricing being key.
the pandemic. Residential investment remains a
sensible allocation of capital, particularly in the Looking forward, we expect to see a notable
north where greater returns can be found, typically increase in the number of foreign investors looking
between 6.25% – 9% GIY. Throughout the year we for opportunities nationwide; but still anticipate our
have transacted on a wide range of properties, with far reaching data base of contacts to encourage old
just a handful on the following pages, and we are and new buyers to come forward; we have a variety
We have not been sitting on our continuing to see high demand for a range of assets
with strong returns.
of new opportunities and potential instructions on
the horizon, however we are always looking for more
hands throughout the There’s been a lot of talk about students in the media
opportunities to meet increasing investor demand. Of
course, a third national lockdown does bring some
and the sector has faced its challenges; however, our
pandemic...
uncertainty, however we are far better prepared and
clients remain active as evidenced by the selection expect the residential investment sector, particularly
of deals shown below. On the whole, despite in the regions, to be as resilient as ever, encouraged
operational hurdles along the way, market sentiment by the roll out of the vaccine and confidence across
Residential
is good and investments have proven robust, the country returning.
particularly so in the HMO and boutique PBSA space
where we see strong appetite for opportunities.
Investment remains Contacts
a sensible allocation
of capital...
particularly in the north...
James Wilson Jack Robson Vicky Bingham Jordan Payler
Partner Associate Senior Surveyor Trainee Surveyor
T: +44 (0)113 236 6679 T: +44 (0)113 243 7952 T: +44 (0)113 236 6682 T: +44 (0)113 243 7957
M: +44 (0)7825 205489 M: +44 (0)7899 895262 M: +44 (0)7557 969622 M: +44 (0)7980 112731
E: james.wilson@allsop.co.uk E: jack.robson@allsop.co.uk E: vicky.bingham@allsop.co.uk E: jordan.payler@allsop.co.uk
5
Investment
Investment comprising 20 flats and
one house in residential area on the
Nottingham outskirts of the city centre.
Rent Reserved:
8-10 Third Avenue,
£110,280 per annum
NG7 6NQ
Gross Yield:
10.50%
Sold:
June 2020, achieved £1,050,445
Investment
Project CEASAR
Located across Birmingham
and Manchester
A Residential portfolio comprising 74
flats across four blocks.
ERV:
£702,540 per annum
Gross Yield:
5.53%
Sold:
March 2020, achieved £12,700,000
6 7
Investment
Unbroken freehold block comprising
20 self-contained flats, in popular
Sheffield residential area.
ERV:
8-46 (even) Sharrow View,
£156,000 per annum
S7 1ND
Gross Yield:
6.36%
Sold:
August 2020, achieved £2,454,350
Student
Newcastle upon Tyne
City View, Eskdale Terrace,
Jesmond, NE2 4DY
Recently refurbished, high quality,
freehold block comprising 123 bed
spaces in affluent student area.
ERV:
£725,704 per annum
Gross Yield:
9.23%
Sold:
February 2020, achieved £7,860,000
8 9
Student
Two neighbouring freehold student
blocks, comprising 114 bed spaces,
Preston neighbouring the university campus.
Rent Reserved:
Boatsmans Court and
£515,000 per annum
Bowran House, Marsh
Gross Yield:
Lane, PR1 8RQ
9.36%
Sold:
February 2020, achieved £5,500,000
Investment
Leeds
Green Hill House, Armley,
LS12 3PZ
Unbroken freehold investment
comprising 18 flats in period building
close to the city centre.
ERV:
£120,600 per annum
Gross Yield:
8.80%
Sold:
October 2020, achieved £1,370,000
10 11
Student
Freehold property recently refurbished
to a high standard throughout
Hull comprising 10 self-contained flats in
popular area of city.
24 & 26 Marlborough Rent Reserved:
Avenue, HU5 3JS £91,260 per annum
Gross Yield:
9.61%
Sold:
May 2020, achieved £950,000
Investment
The Wirral
Wimbrick Court, Moreton,
CH46 9SF
Freehold unbroken investment
comprising 11 flats and 9 houses.
ERV:
£124,356 per annum
Gross Yield:
9.39%
Sold:
November 2020, achieved £1,325,000
12 13
Investment
Very well located freehold unbroken
block comprising 26 self-contained
Sheffield flats.
ERV:
91-107 (odd) Gell Street,
£228,900 per annum
S3 7QT
Gross Yield:
7.63%
Sold:
November 2020, achieved £3,000,000
Student
York HMO Portfolio
Located in York
Fully let HMO portfolio comprising 41
bed spaces over 13 properties in the
city centre.
Rent Reserved:
£247,852 per annum
Gross Yield:
7.29% (on asking price)
Under Offer
14 15
Investment
Freehold former mill conversion
comprising 42 high-end flats, with 31
Halifax remaining unsold, with stunning views
over Pennines.
Oats Royd Mill, Luddenden, ERV:
HX2 6RL £205,430 per annum
Gross Yield:
7.34%
Sold:
December 2020, achieved £2,800,000
Investment
Goole
Burlington House & Lodge,
DN14 5BB
A unique investment comprising 22
flats, let in the most part to ‘over-55s’
and in part to a Housing Association.
Rent Reserved:
£155,083 per annum
Gross Yield:
9.40% (on asking price)
Under Offer
16 17Market Overview - Development
2020 has been a contrasting year for both the city A slowing of the build rates remains a concern for
centre apartment and the traditional residential house builders, which was certainly prevalent in
housing markets, in the main due to the global the middle part of 2020 and will have added to the
pandemic. We saw funding for city centre apartment pent up demand. House builders are hamstrung by
developments pulled back at the early stages and so a number of external factors beyond their control,
that particular area has generally been quiet, albeit which influence directly on the speed in which
those developers who do not require debt finance they can build houses. As a result of Brexit and
have continued to be active. As we start 2021, we the pandemic they have seen reduced workforces,
are now seeing that funding coming back alongside shortage and delays on building materials, and
interest levels returning for opportunities. Confidence working restrictions increased on sites to make them
is slowly coming back to the market with the feeling Covid-secure.
nationally that we are starting to get on top of the
pandemic and a gradual return to normality. Despite the above challenges, the high sales rates
appear to be giving house builders the confidence
The traditional residential housing market on the other to continue acquiring new sites as they continually
hand has stayed relatively resilient throughout the increase their sales outlets. Towards the end of 2020
whole of 2020, helped largely by purchasers wanting we have certainly seen their appetite increase further,
to take advantage of the Governments Stamp Duty in part due to a reduced number of development
holiday and the current Help to Buy scheme prior to opportunities in the market.
its closure in March. Our research, which is further
supported by information coming from national We expect Q1 of 2021 will follow a similar suit to
house builders, is showing new build housing sales that of 2020, but indications for Q2 and Q3 show a
potential for a large spike in new opportunities and
High sales rates appear to be are extremely strong and build programmes are
struggling to keep in line with demand. activity in the market.
giving house builders the
confidence to continue acquiring
new sites as they continually
increase their sales outlets... Contacts
We have certainly
seen appetite
increase in 2020 James Mohammed Brad Harris
Associate Senior Surveyor
T: +44 (0)113 243 7955 T: +44 (0)113 243 6684
M: +44 (0)7833 451943 M: +44 (0)7702 473168
E: james.mohammed@allsop.co.uk E: brad.harris@allsop.co.uk
19Development
Development opportunity with outline
planning permission.
Sheffield
Number of Units:
Oughtibridge Mill, S35 0DN 320
Size:
34.08 acres (13.79 hectares)
Sold:
January 2020, achieved £21,600,000
Development
Leeds
Land & Buildings at
Spencer House, Holywell
Lane, LS17 8EY
New build and conversion opportunity
in an affluent suburb of Leeds.
Number of Units:
9
Size:
1.80 acres (0.72 hectares)
Sold:
June 2020, achieved £1,453,000
20 21Development
Development opportunity with lapsed
planning permission, located to the
Church Fenton south of Tadcaster.
Number of Units:
Land at Busk Lane,
124
LS24 9SE
Size:
12.82 acres (5.18 hectares)
Sold
January 2021, achieved £4,985,000
Development
Leeds
Land off Flax Place,
Richmond Hill, LS9 8BP
Development opportunity in Leeds city
centre with detailed planning permission
for residential, a retail unit and health
care centre.
Number of Units:
300
Size:
1.32 acres (0.53 hectares)
Sold:
July 2020, achieved £4,300,000
22 23Development
Development opportunity with outline
planning permission.
Leeds
Number of Units:
Airedale Mills, Rodley, 69
LS13 1HP Size:
4.7 acres (1.9 hectares)
Under Offer
Development
Crewe
Webb House, Victoria
Avenue, CW2 7SQ
Development opportunity with full
planning permission for an Extra Care
community.
Number of Units:
54
Size:
4.4 acres (1.78 hectares)
Under Offer
24 25Development
Development opportunity with outline
planning permission.
Wrexham Number of Units:
Land off Llanghollen Road, 232
Acrefair, LL14 3HP Size:
17.71 acres (7.16 hectares)
Under Offer
Development
Whitby
Broomfields Farm,
Stainsacre Lane,
YO22 4NW
Development opportunity with outline
planning permission.
Number of Units:
290
Size:
31.87 acres (12.9 hectares)
Coming Soon
27 26Services
Asset Management
Auctions
Build to Rent
Business Rates
Development Agency & Advisory
Investment (Sales & Acquisition)
Lease Consultancy
Letting and Management
Office Leasing (Central London)
Receivership
Student Housing
Valuation
Contacts
Head office:
33 Wigmore Street, London W1U 1BZ
T: +44 (0)20 7437 6977
City office:
2 Copthall Avenue, London EC2R 7DA
T: +44 (0)20 7588 4433
Leeds office:
8th Floor, Platform, New Station Street,
Leeds LS1 4JB
T: +44 (0)113 236 6677
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