Topland Group, headed by Sol Zakay, has sold a £15million purpose-built apartment building in Putney to a private investor at a net initial yield of 3.3%, equating to £670psf.
The Upper Richmond Road scheme includes 24 apartments spread across six storeys. Four apartments are now owned by long leaseholders but the remaining 20, held on assured shorthold tenancies and achieving an annual income of £465,000, were sold with the freehold title.
Since Topland purchased the asset in 2013, for £500 per sq ft, it has significantly increased the rental income, refurbished some of the flats, and sold off one flat.
Francesca Leverkus, Acquisitions Manager at Topland, said: “This has been Topland’s first residential direct investment. It demonstrates the diversity of Topland’s portfolio, and willingness to enter new sectors. We are continuously looking at new opportunities across commercial, hotels, and residential sectors across the UK- wholly owned or in joint ventures, and are very much opportunity led.”
Sol Zakay, Executive Chairman and CEO of Topland, said: “We bought the asset well and executed our asset management strategy perfectly to produce a 40% profit on cost”.
Mark Clegg, Head of Residential Investment at Cluttons who acted for Topland, said: “We have seen continuous rental appetite for Putney properties. The Zone 2 area ticks a lot of boxes for young professionals looking for good commutability into the West End and City while providing local amenities such as popular bars, restaurants and leisure facilities. This makes the asset quite appealing from an investor’s perspective. Given the AB demographic of the area, it’s needless to say voids are relatively low, too.”
Chestertons are managing agents and letting agents on the block.