First Property Group has bought vacant offices in Berkshire and Surrey to convert into homes in its first development play since 2003.
First Property has bought a vacant office in Bracknell and six largely vacant buildings in Old Woking totalling 55,000 sq ft of net usable space, which it now intends to convert into housing.
The properties were bought for a total of £3.4m and will represent a return to UK development activities for the group for the first time since 2003.
First Property said: “There is currently a significant oversupply of offices in regional locations in the UK but a relatively buoyant residential market.
“The company therefore believes that a good opportunity exists to acquire redundant office blocks with a view to converting these to residential use.
“The company hopes to acquire a number of such office blocks if they can be acquired on the right terms. Additional purchases are likely to be made in joint venture with third party investors via a fund structure.”
Following these purchases the group will have £10.8m in cash on its balance sheet, of which £8.5m is held by Fprop Opportunities.
nick.whitten@estatesgazette.com
