Parsons Green, London

Parsons Green comprised a 1.77 acre mixed use site with three retail units, 22,649 sq ft of light industrial space and a former dairy. All buildings were at the end of their economic life. The site was actively managed in the short term to let voids, renew with landlords redevelopment break clauses and buy-out protected tenants. Strategically, the site was zoned for employment use but there was an exceptions policy for 100% affordable housing. A framework proposal was marketed to several RSL’s from which we contracted with Threshold Housing.

Under the agreement, Threshold acquired a 125 year peppercorn lease of the site for £8.0m and were contracted to progress planning for and build out an affordable housing scheme for a minimum 337 habitable rooms and 8,650 sq ft of retail space. Overage was payable for each additional habitable room above the minimum 337 which netted a further £4.4m and the retail space was to be handed back to the Co-op as freeholder on completion. The retail space was then let to Co-op Food and Le Pain Quotidien Ltd at a combined rent of £255,000 pax, generating a further £5.1m of value.

At the start of the process the site was valued at £4.6m. At the end of the process the Co-op had received over £17.5m of capital, £1.8m of revenue whilst they held the investment, plus trading profits from operating the Co-op Food convenience store. Taylor Brooks founder Geoff Player personally asset managed this project from start to finish when at the Co-operative Group.