London agent Anthony Green & Spencer has created a separate company, Strata Concepts, to launch the sale of individual portions of offices to private investors and owner-occupiers, write Andrew White and Robert Gibson.
Strata Concepts’ Robert Akkerman, who helped Australian developer Ashington Group to pioneer the idea in Sydney, said: “In two or three years, strata will be very common in the UK. It capitalises on current market conditions.
“There is a conservative English mentality which says people should buy a building, refurbish and then let it. We want people to consider buying a building, refurbish and then sell off floors.
“Our strategy will provide increased flexibility and profitability. It also provides more commercial product for the smaller investor.”
Strata Concepts will offer consultancy, management, sales and co-investment advice.
Initially, it has highlighted a first phase of 10 buildings ranging from £1m to £80m.
Reit Asset Management, Blackfriars, Frogmore, Manhattan Lofts and Minton Group have all expressed interest in adding buildings to the portfolio. Strata is concentrating on Midtown, the City, Euston, the area north of Oxford Street, Manchester, Birmingham and Brighton.
In January, Strata will market its first building, Compco’s New Derwent House, a 10,000 sq ft (930 sq m) office at 69-73 Theobald’s Road, WC1. This will be followed by Columbia Group’s 12,000 sq ft (1,100 sq m) Victoria Wharf at Palmers Road, E2.
Negotiations are in progress with potential funders Investec and Citibank. The banks would provide up to 85% of funding, with buyers providing the remaining equity.
The term “strata” is used to describe the subdivision of commercial buildings into individual lots, each commanding separate leases and/or freeholds.
The method of ownership known as strata title is much more common in Australia, Hong Kong and the US.
EGi News 16/12/02
