Housing association Family Mosaic has bought an industrial building in Deptford, south-east London, for a housing project.
It is has bought the 48,378 sq ft warehouse, which sits on 1.7 acres at Sun Wharf, SE8, from Milton Group. The firm paid £15.2m – a 2.5% net initial yield – for the building, which generates a rental income of £400,000 pa and is let until 2022.
Family Mosaic is expected to work up plans for as many as 200 homes on the site.
Simon Higgins, partner in Levy Real Estate’s industrial team, which advised Milton Group, said: “This is an excellent example of how London property owners can extract the future residential value of a landholding even where there remains a considerable unexpired lease term.”
Six sites in the immediate vicinity of Sun Wharf have sold in the past year for residential use.
DTZ also advised the vendor; the buyer was unrepresented.
