Where to Invest and What To Buy, Autumn ’16

The below interview with Director, Vishal Patel was published in the Autumn '16 Edition of The Estates Gazette’s Property Auction Buyers’ Guide and is about what and where one should invest in at varying budgets. He runs through a number of deals done in 2016. To view the original article, click here. 

You have a lump sum to invest in the property sector, but where to start? Vishal Patel, director, investments and agency at Prideview Group, shares his top picks with Charlotte Santry.

£250,000

I would look for lock-up shops let to independent tenants in good, well occupied retail pitches within the M25. We purchased a photographic shop in Ruislip Manor, Hillingdon, for £250,000 in the July Allsop auction. I would also consider small shops with flats above, outside London. We did well to buy a small shop and flat in Streatham, SW16, for just £220,000 in a recent Savills residential auction – a steal at that price.

photoshop-ruislip

Photoshop, Ruislip Manor, Greater London

£500,000

Lock-up investments in affluent areas, or let to blue-chip tenants, would be a good purchase. We bought a hair salon in Gerrards Cross, Buckinghamshire – a very expensive part of the world – at Allsop for £395,000, and a hair salon in Putney, SW15, for £450,000 at a recent Acuitus auction. They are both in very good trading locations. We also bought a new-build One Stop in Southampton for £477,000 with a new 10-year lease in place – a nice, small, blue-chip investment.I would also look at shops with flats inside the M25. We have struggled to buy quality shops with flats in London in this price bracket, following the recent tax changes to residential property, having been outbid on several occasions. One example was Allsop’s first lot post-Brexit – a shop and flat in Neasden, NW10, that sold for £362,500 – a sub-5% yield!

Gerrards Cross 1

Hair Salon, Gerrards Cross, Greater London

1m

Whole buildings or lock-up shops let to blue-chip tenants with leases above 10 years nationwide would be a good bet. At Allsop’s July auction we acquired a Co-op Food in Wimbledon, SW19, with a 10-year lease for a client who was looking for a solid London investment. We are extremely active in this space and have acquired more than 90 bluechip convenience-store investments for
private investors recently. A shop with flats above within the M25, where the residential element drives a good proportion of the value, and the commercial tenant is typically an independent one,
would be interesting. We purchased two shops and four one-bedroom flats in Cheshunt, Hertfordshire, for £851,000 at Acuitus in early 2016, and have since sold off the flats – and are in negotiation to sell the shops back to the tenants.

co-op-food-wimbledon

Co-op Food, Wimbledon

£2m

I would consider commercial investments with good development/value-add potential in the short to medium term. We purchased a large Co-op Food in Wellington, Somerset, in the June Allsop auction for £1.35m on a 15-year lease (no breaks) at a low passing rent with three vacant maisonettes above. The uppers could be converted into six flats and there is also potential for some additional residential on the flat roof at the rear. We also acquired an independent restaurant with four flats in Battersea, SW11, for £1.82m this year, which trades very well and has scope for adding an extra flat on top.

Co-op Wellington 2

Co-op Food & 3 Flats, Wellington

£4m

For this amount, you can buy unbroken, mixed-use parades with asset-management potential. We purchased a large parade comprising six shops, seven flats and six garages in Rustington, West Sussex, at Allsop’s May auction for more than £3m. The parade had several blue-chip occupiers, including Cancer Research, Corals and Tesco Express, and it also had the benefit of 5,000 sq ft of
vacant space on the first floor, with a further 4,000 sq ft of flat roof above. Plans are being drawn up for a residential scheme on this element of the parade.

Overhead Picture - Rustington

Mixed Parade, 6 shops (Tesco Express, Coral, Cancer Research, Restaurant, Newsagent & Retail Unit), 7 flats, 6 garages & Vodafone Roof Aerial, Rustington, West Sussex

EG Auction Guide - What Would I Buy - VSP

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on pinterest
Share on email

CONTACT US

LATEST DEALS

Don’t miss out on our opportunities

Advanced Search

Try Selecting Multiple Options to search

Recent Articles:

22 Lockdown Deals Done as opportunistic enquiries surge

In the 3 months since the nationwide lockdown commenced in late March, the Prideview team has dealt with an unexpected …

Read More

Covid-19 debate: Buy now or wait til September?

For anyone looking for investment opportunities, this is the key question of the moment. Listen to these highlights of a …

Read More

Infographic: Pro Tips for Landlords Facing Coronavirus

If you found this useful, check out our full analysis of these issues in our Complete Guide for Landlords Facing …

Read More

Current Opportunities

In Auction
£ 2,350,000

Development Site with Planning, Leicester

510 Melton Road, Leicester, Leicestershire, LE4 7SP
Current Opportunity
Call for price

McColl’s & Well Pharmacy, Manchester

183/185 Victoria Avenue, Higher Blackley, Lancashire, M9 0RB
In Auction
£ 375,000

Vacant Shop & Flat, Feltham, Greater London

98 Harlington Road West, Feltham, Middlesex, TW14 0JJ
Call for price

Gym & Cafe, Liverpool

Lower Ground Floor, Silkhouse Court, 7 – 17 Tithebarn Street, Liverpoool, L2 2DP
Call for price

Heron Foods, Crewe

Heron Foods, site of former Merlin PH, Bradfield Road, Leighton Crewe CW1 3RH
Call for price

Co-op Food, Loughborough

Co-Op KnightThorpe Road, Loughborough, Leicestershire, LE11 4JX
Current Opportunity
£ 1,000,000

Vacant Restaurant & 3 Flats with Development Potential, Newington

53-57 High Street, Newington, Kent, ME9 7JJ

Vacant Former Post Office, Pinner, Greater London

Ground Floor Unit, 67 Bridge Street, Pinner, HA5 3JB
£ 50,000

Vacant (To Let) Retail Unit, Doncaster

Formerly The Factory Shop, Scrooby Road, Harworth, Doncaster, Nottinghamshire, DN11 8JW
Call for price

Sainsbury’s, Pharmacy & Restaurant, Wootton

Berryfields Local Centre, Fields Road, Wootton, Bedfordshire, MK43 9FZ

The Home of the Blue-Chip Investor

Click the logos below to see relevant investment properties