London & Stamford Property Plc has announced that it has exchanged contacts with Seward Street Developments LLP to acquire the long leasehold interest in 107 private residential units and 31 car parking spaces in a development on Seward Street, Islington for £49.1 million (approx. 55.6 million).
London & Stamford has paid a deposit of £2.3 million and the remaining acquisition payments for the apartments will be in line with the practical completion program anticipated to be in four phases of between 24 and 30 flats each from November 2012 through to the end of February 2013.The acquisition will be financed out of existing cash resources. Ground works have already begun on the scheme.
The long leasehold is for a period of 150 years and the 107 units have a net saleable area of 72,758 ft² (approx. 6,750 m²). The residential units comprise a mix of one-, two- and three-bedroom apartments and each has a balcony or outside space.
Seward Street is located approximately 0.5 miles north of the City, within a 15-minute walk of Paternoster Square and St Paul's Cathedral, with excellent and improving transport links.
Seward Street Developments LLP is a Joint Venture between Mount Anvil Ltd and Notting Hill Housing Association.
Raymond Mould, Chairman of London & Stamford Property, said: "We are delighted to have made this acquisition which represents excellent value. We continue to see strong rental growth in the Central London residential market not only due to the constrained development of new build but also because first time buyers continue to be kept out of the investment market by the need for higher mortgage deposits than was historically the case.
"We look forward to building on our successful residential investments at Highbury and Battersea which continue to perform strongly and are both 100% let."
Source: London & Stamford Property Plc