Alchemi Group is capitalising on the surging Victoria market by hoisting a for sale sign over a £400m luxury residential development opportunity.
Boutique housebuilder Alchemi has appointed Levy Real Estate to seek offers over £150m – a 4% yield – for the government-let Great Minster North office building on Horseferry Road, SW1.
In a sign of strong demand for redevelopment stock in the area and rising values, the price is more than 50% above the £97.5m Alchemi paid for the building in autumn 2013.
Planning consent is now in place to convert the 1990s block into a 300,000 sq ft Stiff & Trevillion-designed 160-home scheme called City and Liberty.
Based on IPD figures of £2,000 per sq ft for residential values in Victoria, coupled with the car park and retail space, the scheme could have a GDV of almost £400m.
The 180,000 sq ft block is let to the Department for Transport until December 2018 at a rent of £6.2m pa. Buyers could also look at undertaking an office revamp.
Alchemi managing director Charlie Baxter said: “From the moment we first saw this building, we recognised its wonderful potential to create a cutting-edge mixed-use development. With a tenant in situ we had the opportunity to explore increasing the values in rents and also as a potential office development as well as a residential development.”
Investment in Victoria almost doubled from £800m in 2013 to £1.5bn last year, according to local agent Tuckerman.
