ACE’S PROPERTY TRADING RECORD
One of the principal considerations for Ace’s management in buying a property is to foresee the potential for onward sale.
In the course of ten year’s trading, Ace has sold nine properties making an aggregate sales value of £33,240,750 against a total cost of £23,114,000 showing a profit of 44.44%.
These properties generated a total income (rent plus profit on sale) of £17,572,000 against a purchase price of £20,418,000.
The IRR on the completed property sales (after adjusting for secured borrowing costs) was 182%.
The detailed history is as follows:
- The purchase and sale of New Bank House and Sovereign House was the first transaction carried out by Ace. On acquisition in October 2010, both properties were partially occupied with a number of individual leases to Sheffield City Council.
- Ace successfully consolidated all the leases into one lease in New Bank House, which was subsequently sold fully occupied to an investor. This then released Sovereign House as vacant which was sold with vacant possession for conversion to student accommodation. The transaction was completed in January 2011 and the building was converted to student accommodation soon after.
- In October 2011 the BT Tower in Sheffield, together with the adjoining car park, was bought for £6,500,000. In March 2014 the Tower was sold for conversion into student accommodation and we obtained rights for the first scheme under the new permitted development rights planning laws from offices to residential accommodation in Sheffield. In November 2015 the carpark was sold to Sheffield City Council for inclusion in its development programme. The total sale proceeds were £8,140,750.
- Princegate House, Doncaster was purchased for £694,000 in December 2013. We obtained planning permission for two alternative residential conversions, both including an additional floor on the roof. The building was sold for £850,000, after enjoying rent of £283,000; the carpark was subsequently sold separately for £50,000.
- Hillcrest House, Leeds was purchased in October 2013 for £1,450,000. This was held until October 2021 when it was sold for £2,300,000.
- King House, Luton was identified as a good prospect for residential conversion when purchased in November 2014 at a price of £2,750,000. It was sold for re-development in February 2017 for £4,550,000.
- Hume House Leeds was bought at auction in March 2014 for £1,675,000. Ace successfully obtained permission prior to lease expiry for its demolition and replacement with a detailed planning brief outlining consent for a 24-storey tower and the property was then sold with the planning brief in October 2018 for £3,900,000.
- Bridge House, Dudley was purchased for £3,925,000 in April 2015. Ace enjoyed a rental income of £544,000 p.a. until the end of the lease in April 2021. It was sold in October 2021 for £5,100,000.
- Willow and Holly Court, Plymouth was bought for £3,500,000 in December 2015 and was sold in December 2021 for £4,450,000.