The Bulk-Purchase Opportunity
Updated: Aug 18, 2022
Following 4 years of double-digit price declines, negative market sentiment regarding Brexit, an over-supply of what we call “Peripheral Non-Prime” apartments as well as Sterling depreciation, Ludgrove has seen a significant number of enquiries from large investors looking to bulk-purchase new build apartments.
Indeed a recent analysis by Molior London and The Financial Times supports this trend showing that in Q2 2018, some 39% of London new-build property sales were made to bulk-buyers. Discounts of “10 to 15 per cent are becoming quite normal, while those between 20 and 30 per cent are rare but possible on selected schemes” according to Molior.
It should be noted these 10-15% bulk-discounts are on top of a c20% historic price cut. For overseas buyers the opportunity is even greater. Dollar denominated buyers for example can benefit from a 25% depreciation of Sterling since 2014.
Our enquiries have come from:
· Foreign based corporates, family offices and HNW investors looking to take advantage of what one described as “golden conditions … distressed Developers, depressed Sterling, depressed Prices and depressed Sentiment”
· UK based Fund Management Companies who are looking to expand their “Build to Rent” portfolios.
If you are interested in bulk-purchase investment, feel free to get in touch with Ludgrove. We have access to a number of excellent investment opportunities. Opportunities we feel are unlikely to be on offer this time next year.
Fraser Slater
Ludgrove Property
43 Berkeley Square
Mayfair
London W1J 5AP
Tel: 0207 889 2860
Email:info@ludgroveproperty.com
Twitter: @LudgroveP
Disclaimer: Ludgrove Property Limited is not authorised or regulated by the Financial Conduct Authority (FCA) and we do not provide any financial or investment advice. We recommend that any property investor seeks appropriate professional advice before entering into any contract, and we would also advise that the value of any investment can go down as well as up and that you might not get back what you put in. You may have difficulty selling a property investment at a reasonable price and in some circumstances it might be difficult to sell at any price. We would urge you not to invest unless you have carefully thought about whether you can afford it and whether it is right for you, and if necessary to consult with a professional advisor in accordance with the Financial Services and Markets Act 2000. All information is provided strictly as a guide only, is subject to change without prior notice and does not constitute an offer of investment. This website should not be regarded as an offer or solicitation to conduct investment business, as defined by the Financial Services and Markets Act 2000. Investors who are resident in or citizens of countries other than the United Kingdom may be subject to local restrictions. In particular, no offer or invitation is made to any US persons (being residents of the United States of America or partnerships or corporations organised under the laws of the United States of America or any state, territory or possession thereof), who are excluded from the services offered in this site. The information on this website has been obtained from sources which we believe to be reliable and accurate, but without further investigation this cannot be warranted.