£150m Brexit Special
Updated: Aug 18, 2022
LUDGROVE NEWSLETTER (March 2019)
"Smart investing doesn't consist of buying good assets but of buying assets well."
Howard Marks
Dear Clients & Friends
In this month's Newsletter we summarise our best bulk purchase, development and distressed opportunities in the Prime London and Home Counties property market. The opportunity set amounts to £152m of real estate and as outlined in our January and February newsletters, we believe now is an outstanding time for Prime London Buyers.
1. Bulk Purchase
Our current portfolio of Bulk Purchase opportunities has a capital value of approximately £78m and is showing a blended rental yield of c4.7%, representing a +42% yield premium to the average Prime Central London property (3.3% Yield). All the apartments are in a brand new or nearly new condition and are therefore likely to require limited capital expenditure over the next 5-10 years. The total discounts on offer amount to approximately £33m (a 29% discount):
2. Distressed Residential
Our distressed residential opportunities are currently located in Prime Outer London and represent outstanding value. They have a combined value of c£14m, representing a c46% discount to peak 2014 prices of c£26m. The properties are also showing a blended yield of 6.5%, an +86% yield premium to Prime Outer London (3.5% yield):
3. Development Opportunities:
On the Development side our portfolio has an estimated Gross Development Value (GDV) of £60m and is showing a gross profit of c£20m based on current comparable sales. All developments are showing an annualised Return on Capital comfortably in excess of 15%.
Development Opportunity No 151 c£13m profit (please contact Ludgrove)
If you have any questions regarding this newsletter or would like to find out more about how we can help you access the Prime Central London market, feel free to get in touch. As well as executing searches and acquisitions on behalf of Individuals, Ludgrove acts on behalf of large Investors, Family Offices and Institutions.
With every best wish.
Fraser Slater
Chief Executive
Ludgrove Property Ltd
Tel: +44 (0)207 889 2860
Email: info@ludgroveproperty.com
Please Note: This newsletter and all Ludgrove appraisals should only be used as a guide. All numbers are estimates and we advise Buyers to seek their own independent advice before committing to a purchase. For commercial reasons we have redacted sensitive information. Any images are of similar properties.
Biography: Fraser Slater is the CEO and Founder of Ludgrove Property. Prior to Ludgrove Fraser spent 20 years in The City. In the course of his career he was a Real Estate Analyst, the Fund Manager of a £6bn Equity portfolio for USS Ltd and the Founder and CEO of WDB Capital, a London based Fund Management business. In 2008 WDB Capital outperformed its peer group by +52% making Fraser's portfolio one of Europe's best performing Funds during the Financial Crisis. In the same year his Fund was nominated New Fund of the Year by EuroHedge. After leaving The City, Fraser developed property in Chelsea. He started Ludgrove with an ambition to be Prime London's leading Property Buying agency with an emphasis on original research and delivering a highly value-added service to clients.
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. The Ludgrove 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 and our publications has been obtained from sources which we believe to be reliable and accurate, but without further investigation this cannot be warranted.