BYRON WORKS, 106-110 LOWER PARLIAMENT STREET, NOTTINGHAM, NG1 1EH

Investment News

FHP acting on behalf of Byron Works Limited, a subsidiary of Megaclose, are pleased to announce the completion of the sale of the above property.

The property originally comprised a purpose-built factory acquired by Megaclose a few years ago.  They subsequently obtained planning consent for conversion of the property into student accommodation for some 32 beds.

The property was let on a gross income for the year ending 2013 of circa £154,000 per annum rising in 2013/2014 to £160,256 per annum and thereafter to a higher figure of £190,560 per annum for the academic year commencing August 2014.

The purchase price agreed was £1,850,000.  The investment showed a gross yield of 9.70% for the academic year commencing September 2014.  Internally the purchase price represented a figure of approximately £60,000 per bed.

Noel Roper who acted on behalf of Megaclose throughout the negotiations comments:

“We were delighted to be able to achieve the completion of this satisfactory sale on behalf of Byron Works Limited at what we consider to be an extremely satisfactory price equating to nearly £60,000 per bed.  Megaclose had spent a considerable amount of time and money refurbishing this property to an excellent standard.  This was reflected by the fact that at the time of the initial lettings the property was let for the academic years 2012/2013 and 2013/2014 simultaneously.  Furthermore, the property has provided substantial growth with the income rising to a gross figure of circa £190,000 for the current academic year”.

The purchaser, who is an experienced student investor, was unrepresented.

END