Many were surprised when Grosvenor Estates, the property company owned by the Duke of Westminster, placed two prestigious Belgravia/Mayfair properties up for sale back in 2015. The rent alone on these prime central London properties was £3.2 million per annum – suggesting sale proceeds in the tens of millions of pounds. This is a company which leads the UK property market with a track record of being proactive rather than reactive. So, where are these proceeds destined for?
Grosvenor Estates is currently in the process of exploring a range of regeneration opportunities with Bermondsey high on the list. Using the site of the old Bermondsey biscuit factory there is a development in the pipeline which will create:-
• 1,350 new homes
• Range of commercial properties
The proposal is currently being considered by the Mayor of London and would be the next stage in the redevelopment of Bermondsey which began back in 2005. The area is in close proximity to the City of London offering a range of riverside warehouse style apartments. The Bermondsey region was also named the best place to live in London in a Sunday Times survey in 2018 and featured highly in the 2019 survey.
Many believe it is only a matter of time before the application by Grosvenor Estates is waved through and this will fire the starting pistol on another growth phase for Bermondsey. Interestingly, as the majority of buildings overlooking the river have already been redeveloped, factories and warehouse style buildings are now much sought-after. The ability to retain the history and character of Bermondsey while redeveloping old factories and disused commercial premises into luxury properties has been well received by investors.
This ongoing expansion of Bermondsey will see the introduction of a new hotel, cinema and Sainsbury’s to the area. As the local business sector continues to grow this will attract more people, more demand for property and an appetite for even further property developments.
Redeveloping King’s Cross/Caledonian Road
The King’s Cross we see before us today will astound many people who still associate the area with the old rundown King’s Cross of the 1980s. There has been huge regeneration of the area, with the introduction of an award-winning new retail development in the shape of Coals Drops Yard. As this regeneration continues there is also increasing interest in property in nearby areas such as Caledonian Road which is currently undergoing a major redevelopment.
The Plimsoll Building King’s Cross overlooks Regent’s Canal and Gasholder Park. The Plimsoll development was built when the regeneration of King’s X was underway, and investors can use the increased attractiveness of the area to their advantage.
The ground and first floors are dedicated to its two schools, so there is a strong sense of community and longer-term tenants with families living in the immediate area.
Property investment company One Touch Property have on offer a 10th floor apartment which boasts spectacular views, two double bedrooms, two modern bathrooms, open plan living area, fully fitted kitchen and balcony. Available furnished, the apartment is 69 square metres, including the balcony. Residents will benefit from the use of a 24-hour concierge, residents’ lounge, rooftop conservatory, courtyard garden and fitness suite. The apartment’s layout is ideal if it were to be let as a rental property. It boasts two bedrooms and two bathrooms, allowing each occupant maximum privacy and independence.
The asking price for the apartment is £1,275,000, which we believe is reasonable. Properties within the building were sold for a similar asking price in 2018 and the area is only becoming more and more sought after. Investors do not have to worry about immediately finding a tenant as the property is already occupied and the tenant intends to stay. Find out more about this property investment in King’s Cross today.
There is already an array of mixed-use developments underway on Caledonian Road with more in the pipeline. New homes, commercial premises and luxury flats including a 24-hour concierge and on-site gym are attracting significant interest. These ongoing developments are well supported by the local infrastructure with the London Underground and King’s Cross station both in walking distance – connecting people to London and further afield. As property investors look for long-term capital appreciation and attractive rental yields, Caledonian Road certainly ticks all of these boxes.
Strong appetite for regeneration
Those who live in London will be well aware of the ongoing regeneration of many areas of the city. Back in the 1980s iconic locations such as King’s Cross station were in a terrible state after years of underinvestment. Once the property boom of the 90s began this kickstarted regeneration of King’s Cross which is benefiting surrounding areas such as Caledonian Road. Investors today are being more selective with regards to their investments, looking for long-term capital appreciation with the support of a healthy rental yield.
The likes of Bermondsey are building on the ongoing property development boom with prominent figures such as Grosvenor Estates committing huge investment funds. The Mayor of London is expected to approve some very exciting proposals from Grosvenor Estates which will make a massive difference to the area. We also have the ongoing investment in regenerating King’s Cross with surrounding areas such as Caledonian Road benefiting from interest in new property developments. It seems that the mix of potential for long-term capital growth and attractive rental yields is creating something of a stir amongst investors.
Contact One Touch Property to learn more about the Plimsoll Building and other London property investment opportunities.