Luxury Office Conversions In Birmingham

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This building which consists of 75 offices and 5 warehouse units is based in Birmingham. We have not included outside pictures of building as it is an of the market deal and would not want to disclose the deal.

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Rental return after repair £280,000 to £300,000 Yearly

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we are basing this rental income on our project 1 based in castle donington derby that has been completed and all offices are rented out . Castle donington is not in the middle of Derby rather it is on the outskirts of derby, but we have still managed to achieve a yearly rental income of £13.5 per square foot

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so even if we set the yearly per square foot at £12  and total size of 3 floors is 30,000 square foot, minus stairs and corridors will be left with about 25,000 square foot.

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So 25,000 X 12 = £300,000 gross rental income

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This figure of £12 per square foot yearly is not a guessed figure but a figure which we are currently achieving in our derby offices 

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This is a basic structure for investors.

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Investment type 1

 

Property cost is            £  600,000

Repair cost approx.     £  600,000

 

So total of investment 1.2 million

 

3 floors to building 

 

After purchasing property Ground floor will be renovated first and rented out, rental income of that floor yearly is approx £80,000

 

So that will go back to investor 75 % and 25% to developer

 

 

Second year 1st floor will be done bringing in another £100,000 now Total rental income 2nd year 180,000 75% will go to investor 25 % to developer

 

 

Third year 2nd floor renovated and rented out bring in another £100,000 so total rental income now 280,000 now from here investor will get 50% and developer will get 50%

 

On sale of the property 1.2 million (initial investment) goes back to investor 

 

Anything above that is split between Investor and developer.

 

 

Investment type 2 

 

Property cost is. £ 600,000

Repair cost.         £400,000 (as rent will be used to repair property)

 

1st year repair ground floor rental income £80,000 goes into repairing 

 

2nd year repair 1st floor £100,000 rental income from 1st floor and £80,000 from ground floor will go into repairing

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3rd year repair 2nd floor another £100,000 rent so total rent £280,000 now to be split by investor and developer as long as we keep property 

 

On sale of property 1 million (initial investment) goes back to investor 

 

And profits above 1 million shared between investor and developer

 

Anticipated sale price of property  £2.8 million as that will be £10% rental value and all investors are ready to purchase at 10% yearly rental return