Planning was granted in March 2013 for a part 6, part 8, part 12 storey building of 115,000 sq ft with 89 apartments and restaurant/retail space. The site sold in June 2014 to a south east house builder for £62.5m, an uplift of 525%. After crystallisation of profits the Fund’s investment shows an IRR of 27% and a multiple of 2.08x.
Just over a year on, we have completed a new letting to DHL for a 10—year term without break which will see the value of the property increase by over 40% following the completion of some improvement works to the building.
The value of the property has substantially increased and will show a IRR (total return) in the order of 17% per annum over the three year hold period to September 2015