A freehold residential conversion that was previously B1 office use. The building was constructed in the early 1990s of steel frame with brick elevations beneath a pitched tiled roof, and is arranged in an “L” shaped configuration. The property provides accommodation for 21 flats and has a basement car park and an additional external deck level car park, both of which are accessed via Carey Road, providing a total of 25 car parking spaces.
Wokingham is an historic town located in Berkshire, close to Reading. The town has good road connections, being approximately 2 miles from junction 10 of the M4 motorway. There is a railway station with direct trains to London Waterloo. The property is on the eastern side of Finchampstead Road (A321) close to the junction with Carey Road. The town centre and railway stations are both within easy walking distance.
Planning permission was obtained in July 2014 for conversion to 21 residential flats, with car parking and amenity space. All 21 flats were reserved prior to December 2015 completion.
Structure
First Alliance Properties purchased the building in 2006. The acquisition was financed by The Royal Bank of Scotland (RBS) who provided senior and mezzanine debt. At the time of purchase the building was income producing, let on a long lease to a strong tenant. In 2013 the occupational lease expired leaving a void. In December 2013 First Alliance Properties acquired the RBS debt facilitating a debt for equity swap and corporate restructuring. Funding for the debt purchase was from PGIM in a whole loan format. In April 2014 Lloyds Bank provided senior debt and PGIM loan was partly repaid with the residue subordinated to a mezzanine loan. Shortly afterwards, planning was obtained for residential conversion. Lloyds Bank also provided a development loan to finance the conversion costs.
Asset Management/Value-Add
Various “tactical” works carried out following vacant possession. These enabled the residential potential of the building to be maximised under Permitted Development rights.
Obtained permitted development rights for conversion to residential.
Further permission obtained to allow changes to the elevations, increasing the value of the completed residential units.
Establishing and managing the professional team responsible for specifying and delivering the project.
Managing the sales process to ensure that all reserved or exchanged flats were sold prior to completion, and at figures substantially in excess of expectation.
