Topland makes first foray into Private Rented Sector with off market acquisition in Putney

Jan 2014

Topland Group, led by Sol Zakay has increased its direct exposure to the residential market with the acquisition of a block of 24 flats in Putney, SW15. This acquisition bought in an off-market deal from a client of Chesterton Humberts, is Topland’s first foray into the private rented sector which has become an increasingly attractive play for innovative investors and developers. Brittany House is located on the corner of Upper Richmond Road and Balmuir Garden overlooking Putney Lawn Tennis Club. It is a freehold site of 0.36 acres and in total consists of 24 flats. It is made up of 20 two bedroom flats, two three bedroom flats and four two bedroom penthouses commanding stunning views. There are 21 flats on Assured Shorthold Tenancies and three on long leaseholds.

Topland’s managing director Mark Kingston said: “Topland has been seeking to increase its exposure to prime residential through our lending business, but also through joint venture equity stakes and direct investment. This acquisition demonstrates Topland’s ability to move very quickly on off market opportunities. It is a very well located property, so close to Putney High Street, and is an asset class which we predict will show strong capital growth. We look forward to discussing with tenants about how we take forward a programme of rolling refurbishment.” Topland recently provided a £36m senior debt bridging piece to LJ Group to enable planning to be sought for five-acre site on the ultra-exclusive Bishops Avenue, N2 once known as Millionaire’s Row but now more realistically could be called Billionaire’s Row because of its current residents. One of the largest privately owned international investment groups, Topland has completed close to 50 loans in excess of GBP300m. In the third quarter of this year alone, the firm deployed GBP100m by means of a wide variety of funding structures including joint ventures, bridging loans, senior development loans and mezzanine finance with a focus on prime residential development. In April 2013 in a joint venture with Urban Exposure Topland acquired a prime 3.4 acre site by Wentworth Golf Course, Surrey and secured planning permission for a 28,000 sq ft mansion with a GDV in excess of £30m. Mark Holliday head of investment at Chesterton Humbert said: “The local investment market south of the river has improved dramatically over the last 12 months and this acquisition is an excellent way for Topland to gain exposure to the exciting residential Private Rented Sector. Chesterton Humberts’ Block Management team has been appointed to manage the block and our local lettings team in Putney will be managing the flats and individual tenancies so we look forward to our ongoing relationship with Topland.”