AL’s tailored service means we help investors make purchase decisions to maximise their future returns. Given our client’s budget, they were able to acquire a mixed-use building or block of six or more units, taking advantage of a non-residential rate of stamp duty. This is capped at 5% representing a significant front-end saving. Acquiring multiple units also diversifies their investment with a good spread of tenants.
- Search area:
Prime Central Africa
- Specific preferences:
Mixed-use building with 6 or more residential units.
- Purchase price budget:
The final selection
A six-storey mixed-use building in Paddington, with a commercial unit on the lower ground and ground floors. Its upper floors pre-refurbishment consisted of 4, two bedroom units over four floors.
The property needed complete refurbishment and extensive structural works, during which our projects team were able to reconfigure the building's layout by adding two additional flats and re-designing the residential units with a much more sensible, open plan layout with stylish interiors and furnishings. The common areas were also upgraded as first impressions really do count.
The commercial area has been completely opened up with ceiling heights raised to create an open, inviting and well-designed space on both floors, attractive to the retail sector which typifies the area.
- Agreed purchase price:
The end result
The flats proved very popular with the rental market and AL were able to select blue-chip professionals as the occupants. In each case, the tenancy commenced swiftly after coming to market and delivered a gross return averaging 3.6%.
The commercial unit, in the final stages of its renovation, is attracting attention from high-end bridal boutiques to top hairdressers, all within its A1 Class Use. It is expected to let quickly due to its good-sized shop front and prime location.
- Gross rental yield:
- Valuation post-refurbishment: