Cordea Savills has completed the purchase of 20 serviced apartments in London's Notting Hill from Galliard for approx. €9.1 milliion (£6.4 million) on behalf of its Diversified Residential Opportunities Fund ('Diverse').
The apartments, located at 74-76 Princes Square, are within 500 metres of both the famous Portobello Road market and Whiteley's Shopping Centre. Unusually for central London, the property benefits from planning permission for both residential use and nightly rental, enabling its use as long-let, short-let or apartment hotel. An initial five-year fixed return of 6% per annum is being guaranteed by the vendor, Galliard.
The Diverse Fund seeks to achieve income growth and security through investing in properties let to tenants on medium and long-term leases and backed by strong covenants. The fund targets total returns of 8% per annum and provides an opportunity to invest in a diversified portfolio of residential properties with secure income streams.
Patrick Carr, Director of Residential at Cordea Savills, commented: "This is an excellent purchase, which clearly reflects Diverse's investment criteria. Not only is the Central London property market performing exceedingly well, but this property also benefits from the flexibility offered by planning permission for nightly rental. Furthermore, we will benefit from a 15 year management arrangement with Bridge Street Accommodation London, one of the best serviced apartment managers in the UK."
Source: Cordea Savills