Case Studies

Rosshill Properties Limited - Master Plan for the £100m Redevelopment of Hayle Harbour, Cornwall

SDP have advised Rosshill Properties Limited, an off shore SPV, on this site acquisition from Administration and were the lead consultant on the waterfront development of Hayle Harbour.   SDP directed the professional team that were responsible for master planning and European Regional Development funding applications.  This was a multi-agency master plan prepared on behalf of Rosshill Properties Limited, a JV company with diverse shareholders and stakeholders interests to meet.  This complex redevelopment project involved obtaining Planning for new, infrastructure, residential, commercial, leisure, retail, yacht marina and industrial elements.  SDP negotiated multiple pre-lettings for commercial and retail space.  ING Real Estate subsequently acquired whole ownership and carried this project forward.  In 2017 ING Real Estate are actively developing this site in programmed phases over nine years.   

SDP were responsible to arrange:

  • Engage a professional team for pre-development master planning
  • Negotiations with Penwith District Council and Regional Office South West
  • European Regional Development Fund - funded harbour regeneration project 
  • Equity and debt structuring with shareholders, a consortium of banks and private equity
  • Disposal to ING Properties.

Located on Cornwall's north coast near the pictureseque towns of Penzance and St Ives, Hayle Harbour will soon begin to transform from a former industrial centre with a rich maritime history into a thriving new coastal destination. Incorporating retail, office, leisure and some industrial space alongside a large number of new residential units, the Hayle Harbour scheme involves redeveloping the waterfront, railway station and former industrial sights as well as developing cultural agricultural land, taking advantage of the beautiful natural setting of the harbour, estuary and Atlantic coastline. Combining South Quay, a lively waterfront development with boat docks, residences and retail, with the more residential areas of North Quay, Clifftop, Hilltop and Riviere Fields, Hayle Harbour will overtime emerge as a thriving cohesive coastal community in which environmental and space-use issues get top billing. Hayle Harbour will also act as a gateway to Cornwall's Atlantic beaches whilst providing high-quality employment opportunities and services to people who live there.

The disposal of Rosshill's interest in Hayle Harbour involved a collaborative partnership between ING Real Estate and the Regional Development Agency for the South West of England, Hayle Harbour will be realised in stages over a period of nine years after construction starts. ING Real Estate, with its three businesses, development, financing and investment - is highly qualified to carry out such a large scale area development project.

The Hayle Harbour development represents a major transformation of a former industrial area and neighbouring farmland into a thriving community, integrated into the social and economic fabric of the surrounding region that welcomes new residents while opening up new opportunities to the existing population.

Acquisition of "Riverside" a 21 acre industrial site in Hull with - £8m of debt arranged with RBS International

SDP have advised in identifying the acquisition of a 21 acre industrial site in Hull with long leasehold for JV CI investors. Yielding in excess of 8%.

Valuation support and advise provided by SDP and advice in relation to environmental reports.  Complex environmental issues concerning remediation of land formerly used as a Rio Tinto smelting works.

£8m of debt funding of this site was negotiated by SDP and provided by RBS International.

The 21 acre site located on the north bank of the Humber estuary has multiple long-term tenants with main tenant Bayram Timber.    Potential exists for wind turbine and solar power to be added a possibility of further enhanced income streams.

Identification and Acquisition for Investment purposes - Light Industrial Business Park Sites in the North West of England

SDP sourced and advised in the acquisition of the Hammond Trade Centre located at Whitehill Industrial Estate in Stockport and Land at Windmill Lane in Denton.

Whitehill comprised of a multi-tenanted site in an established industrial estate and Windmill Lane had a single tenant on a mixture of tenure terms. SDP has established a local agent to manage these investments with a Management Services Agreement in place.

These investments carry yields in excess of 8% and were part of a diversification policy for an off-shore investor client.

These acquisitions were funded by RBS International where SDP negotiated and arranged funding and advised in relation to leases, valuation and environmental reports.

Purpose built UK Student Accommodation - investing in property without the sting of Stamp Duty

SDP have advised a number of offshore residents wanting to invest in purpose built student accommodation, to date acquiring for investors some 14 units in various UK university cities.  

Purpose built student accommodation has a number of advantages for offshore investors since George Osborne changed the SDLT requirements in 2016.

Stamp Duty. Decimating investor returns since 2016.

In April 2016, the world of property investment changed forever, when the stamp duty land tax (SDLT) surcharge came into effect. This means, any secondary property purchase you make above £125,000 will now incur a minimum SDLT charge of £3,750, a sum which will drastically eat into your first year returns. What’s more, had you been able to complete on the same property just one month prior to the introduction of the surcharge, the amount of stamp duty owed would have been £0.

But what if there was a way to invest in property without encountering the new SDLT rate?

The secret lies in a piece of valuable information that many investors are unaware of, but we are going to share it with you.

Student property is exempt from the stamp duty surcharge

Unlike BTL assets, purpose-built student accommodation (PBSA) is exempt from the SDLT surcharge and subject only to the original rate. This means for properties under £125K the SDLT is 0%, saving you thousands and helping your investments gather momentum from the very start.

Student property’s appeal is furthered by the UK’s severe undersupply of PBSA, 50% of students are without access to purpose-built accommodation. As a result, student property consistently outperforms the traditional BTL sector in terms of total returns and rental growth. With more students studying in the UK each year, property consultancy Knight Frank anticipates this strong performance will only continue.

One St. Julian’s Avenue - Residential development of 32 luxury apartments

Negotiating £14m of debt funding with HSBC Bank Plc, managing the construction project and organising marketing and sales of the One St. Julian's Avenue development.

Built on the site of the old Randell's brewery, One St. Julian’s Avenue contains 29 luxury local market and 3 open market penthouse apartments.

Working alongside the developer, SDP initially acquired the site and obtained planning approval. 

SDP then negotiated £14 million debt funding with HSBC and managed the construction and marketing of the 32 properties.

Project shareholders retained 12 of the properties as a Buy-to-Let investment. SDP secured the £6.7 million BTL mortgage through Investec.

Coupee Lane Limited – Residential Planning Permission 16 Apartments

Development of 16 apartments with underground parking.

SDP assisted it's client acquiring the brownfield site and successfully obtained Planning Permission for the project. SDP represented Coupee Lane Limited at the Public Planning Inquiry and carried out negotiations with the Planning Authority.

SDP negotiated site acquisition funding for the site with RBS International.

Public Private Partnership with Housing & Care 21 for 86 apartments of specialist older peoples' extra care housing - £12m of debt funded by RBS International

Partnering with not-for-profit organisation Housing & Care 21 to create 86 units of specialist extra care housing in St Peter Port.

SDP created a Public Private Partnership between Housing 21, the States of Guernsey and Rosaire Sheltered Housing Limited (RSHL) an SPV formed to buy the former Girl’s Grammar School in Rosaire Avenue, St Peter Port. The former school was demolished and 86 new extra care apartments, specialist housing for older people, were constructed. The States of Guernsey provided a £5.6m grant and SDP arranged for RSHL to borrow £12 million from RBS International.  

Rosaire Court and Rosaire Gardens was completed and a management agreement with H21 was entered into where H21 provided a full extra care service to residents. RSHL created two buildings with 36 homes for sale to private buyers and 50 homes for nominated States of Guernsey social rental.

This PPP with Housing & Care 21, a leading, not-for-profit, national provider of retirement housing and care services for people aged over 55 and above has been the template for the States of Guernsey to build two further schemes on the Island.

Rosaire was Housing 21’s only project outside of the UK mainland. The scheme has proved to be very popular and is widely acclaimed as an exemplar of older peoples care.

RSHL, assisted by SDP, were the project leaders and able to enjoy the surpluses generated by the sales of the 36 private apartments.

Refinancing of commercial property investment portfolio - £18m property loan by ABN Amro

Refinancing of corporate property investment portfolio - £18m property loan by ABN Amro.

SDP on behalf of its client Polygon Properties Limited arranged to re-bank its portfolio of four commercial office buildings with ABN Amro. This refinancing package involved repayment of £13m of existing mortgage debt held with RBS International secured on the four commercial office premises and the acquisition of a fifth commercial office building in Jersey.

Polygon Properties is expanding its portfolio of commercial property investments in the Channel Islands. 

SDP have provided Polygon with advice upon valuations and structuring or its debts and acted as an intermediary to negotiate a new £18m mortgage funding package to allow it to acquire further capacity to supply additional space to satisfy the growth of requirements from existing tenants.

Disposal of Bridgewater House, 58 – 60 Whitworth Street Manchester

Bridgwater House was acquired on behalf of a family office based in the Channel Islands by SPV Bridgewater (Jersey) Limited the ten floor office building was partially let and SDP advised upon refurbishment and letting of further floors.

SDP were instructed to increase the occupancy and were given a disposal mandate on behalf of its client.  The office floors had to be re-thought, reconfigured and re-presented to offer large, clear floorplates that businesses need to thrive.

In a three year programme occupancy was doubled by creating serviced office space and improvements.  SDP property management services organised these changes to the building facilities and negotiation of rent reviews that resulted in a 50% increase in rental income over the three year period.  Leases of anchor tenant, Paterson Zochonis Cussons' rental was reviewed and lease extended.   Bridgewater House was subsequently deposed of for £11 million at a  higher than expected level of capital return based upon the increased rental and lettings achieved.

Reinstatement of Lapsed Planning and Disposal Mandate for a Country House Hotel - Colshaw Hall (Jersey) Limited

SDP acted for a client who acquired Colshaw Hall out of receivership as a creditor. The Property had lapsed Planning Permissions for conversion into a Country House Hotel and two 18 hole golf courses. SDP advised upon the successful reapplication and reinstatement of the Planning Permissions.

The Properties known as, Colshaw Hall and Merrydale Farm represented a unique opportunity to develop a Five Star Luxury Hotel and Golf Resort in Over Peover village, four miles south of Knutsford, Cheshire. Colshaw Hall is a Grade II Listed building constructed circa 1901 with a wealth of character and 36 acres of gardens. Merrydale Farm adjoined Colshaw Hall’s grounds, extends to 144 acres and was acquired for the purpose of developing a golf course. The reinstated Planning Permissions included:

  • Developing a 50 room luxury hotel which included a 100 cover gourmet restaurant and conference facilities for 45 delegates
  • A health spa with 12 treatment rooms
  • Two championship golf courses, designed to the highest standards and be capable of holding professional and invitational events
  • A new clubhouse build, with extensive facilities, in excess of 16,000 sq ft

Prior to reinstatement of the lapsed hotel and golf planning permissions, Knight Frank valued the residential property and land at £2.75m. Upon reinstatement of the Hotel and golf course permissions the business plan for the business opportunity including the property was valued at £7.25m by DTZ (Debenham Tie Leung).  SDP added value by negotiating the reinstated Planning and negotiating the subsequent sale of these properties with the benefit of the valuable Planning Permissions.

SDP developed a business plan for Colshaw Hall and organised the revaluation of the reinstated business negotiated a JV sale to the CCA International who were a leading developer and operator of five star private clubs in the Asia Pacific region with an expanding portfolio in Europe.

CCA’s European interests included:

  • Brocket Hall, Hertfordshire
  • London Capital Club
  • Sporting Club Berlin, Bad Sarrow
  • Berlin Golf & Country Club
  • City Club of Moscow
  • Sammezzano Castle, Florence

Under the proposed JV CCA were to be responsible for the development and operation of Colshaw Hall under a 25 year management contract.

The proposed JV sale to CCA, involved a residual shareholding and delayed 25 year payment to the Vendors of £7.25m, the JV was never concluded after a further cash offer to buy the freehold of the property was directly negotiated by SDP with David Irlam, of the haulage firm, James Irlam and Company, who wished to retain the property as a residence for him and his family. The property was sold to David Irlam for £7.25m in cash, being a positive turnaround result of a £4.5m capital gain over the original value attributed to the property by Knight Frank when, it was acquired by SDP’s client out of Administration.

Development of Former Brewery Sites – New View, 18 Apartments and Roost, 12 x 3 & 4 Bedded Homes

SDP have advised, as client’s representative, to R W Randalls Limited in relation to two JCT building contracts.  

  • New View - a development consisting of 18 First Time Buyer apartments 

  • Roost - 12 x 3 & 4 bedded homes for young families and first time buyers.

The building contracts for these two projects were valued in excess of £7m.

SDP advised on business Planning, Bank credit applications and acted as Client's Representative throughout pre-development and the Building works.   Both projects were delivered on time and within budget costs.

SDP have advised in relation to the marketing and sales of both of these residential developments employing Estate Agents and administering both sales and lettings.