Unlocking Value on Norwood Road

We were appointed by a family office to asset manage a mixed-use property in Tulse Hill, London. Through the execution of a tailored asset management strategy, we transformed the underperforming commercial element into a secure, high-yielding investment. By letting the reconfigured property to Tesco and Screwfix on index-linked leases, we delivered a 335% increase in rental income and a multi-million-pound uplift in capital value.

At handover, there was a tenant occupying the full commercial space, paying approximately 25% of what we considered to be the market rent. We negotiated with the tenant an early surrender of their lease, which then enabled us to enhance the income and tenant profile.

After securing a change of use, we let part of the commercial space to Tesco in an off-market transaction, leveraging our historic relationship from previous transactions. We then comprehensively marketed the vacant part, securing offers from a number of high-profile tenants. We completed a lease with Screwfix, retaining the land to the rear of the property for future development, achieving an overall rent increase of approximately 335%.

Splitting the property and letting to two strong blue chip covenant tenants, with indexed-linked leases in place and a significant increase in passing rent, resulted in a multi-million-pound increase in capital value for our client.