PORTFOLIO BUILDING SERVICE | Commercial to Residential Development Combined with our Let it & Forget Service

Client Challenge:

During the 2019 Covid-19 pandemic, investors faced unprecedented uncertainty and market volatility. Our client sought secure, high-yield investment opportunities with minimal risk and multiple exit strategies.

Opportunity Identification:

We identified a commercial property occupied by a blue-chip tenant, Coral, who were paying a double-digit high yield.   This acquisition provided the client with immediate, stable rental income during uncertain times.

Investment Acquisition:

The commercial property was secured with Coral as the tenant, ensuring a robust initial return on investment due to the tenant's high creditworthiness and the attractive yield.

Tenant Vacancy Management:

When Coral vacated the property a few years later, we managed the move-out process and negotiated a dilapidation package on behalf of the client, ensuring the property was left in optimal condition for redevelopment.

Strategic Planning and Development:

We applied for and successfully obtained planning permission to convert the property from:

• From:  A commercial retail shop

• To:   A commercial unit plus 2x one-bedroom apartments

This strategic change required no external alterations, keeping fit-out costs low and maximising the client's return on investment.

Value Enhancement:

The grant of planning permission significantly increased the property's value, nearly doubling it. This transformation was achieved with minimal construction costs, highlighting our expertise in cost-effective property enhancement.

Post-Development Strategy:

Upon completion of the internal redevelopment, we implemented our "Let it & Forget it" guaranteed rent service, offering the client:

- Hands-free property management

- High-yield returns through a diversified rental income stream

- Low-risk investment by minimising vacancy periods and tenant-related issues

Outcome:

- Increased Property Value
The strategic planning permission and redevelopment nearly doubled the building's market value.

- Diversified Income:
The addition of residential units provided multiple income streams, reducing dependency on a single commercial tenant.

- Enhanced ROI:
The client benefited from higher returns through increased property value and consistent rental income.

• Risk Mitigation:
  Our "Let it & Forget it" service ensured a hassle-free investment experience, minimising tenant-related risks and securing steady income.

This case study demonstrates our ability to identify high-potential investments, enhance property value through strategic redevelopment, and offer comprehensive management services. 

By creating multiple exit strategies and diversifying tenancy risk, we delivered a secure, high-yield investment tailored to the client's needs.