Office-to-resi conversions pick up for Picton and CLS
Picton and CLS have both successfully managed to move forward with plans to convert underperforming office premises into residential.
Picton said it had secured planning permission to create six flats in vacant office space at its property at Charlotte Terrace, W14, and had submitted plans to convert a “substantially void” office building at Longcross in Cardiff into a 706-bed student scheme.
The conversion of the Cardiff office block is expected to add a 20% premium to its March 2024 valuation, said Picton.
Picton and CLS have both successfully managed to move forward with plans to convert underperforming office premises into residential.
Picton said it had secured planning permission to create six flats in vacant office space at its property at Charlotte Terrace, W14, and had submitted plans to convert a “substantially void” office building at Longcross in Cardiff into a 706-bed student scheme.
The conversion of the Cardiff office block is expected to add a 20% premium to its March 2024 valuation, said Picton.
CLS has signed an agreement to convert an office property in Paris into serviced apartments.
The investor has teamed up with Edgar Suites and Nexity to turn Debussy on Boulevard de la Republique, La Garenne-Colombes into 57 serviced apartments.
CLS will invest in the region of €12m (£10m) over a two-year period to convert the existing 45,187 sq ft office building. The apartments will be operated by Edgar Suites on a 12-year lease with a base rent and a turnover element.
French developer Nexity has been appointed under a fixed-price contract for the construction works, which will commence in early 2025 with completion expected at the end of 2026.
The conversion and contract commencement are subject to statutory permissions and discussions with the City are well progressed.
CLS said it was converting the office as part of its long-term sustainability strategy. The property had been identified as a building with limited office life, requiring significant investment to meet modern standards, said CLS, and with increased demand for housing in major cities, the conversion facilitates the ability to recycle the structure and reduce the impact of embodied carbon while delivering substantial benefits for the local area.
Chief executive Fredrik Widlund said: “We always look to optimise the use and value of our properties and the conversion to serviced apartments offers an opportunity to generate attractive returns by converting an older office building in a growing and dynamic part of Paris.
“We believe there will be further opportunities such as this where we can create value through innovative development and reuse, maximising the efficiency of our portfolio for the years ahead.”
