This was one of Korine’s flagship projects located at 527 – 533 Oxford Street and comprising 16,000 sq ft of dilapidated and badly configured retail space with poor quality tenants. The property was fully re-developed to form 14,500 sq. ft. of double-height retail space with an impressive Portland stone and glazed façade to meet modern retail requirements. The rent roll has been increased from £750,000 to over £1.6 million p.a. for total project costs of circa £4.5 million. On sale, a yield of 4.1% and investment proceeds of circa £38 million were achieved on the basis of leases to quality tenants on 15 year terms.
In achieving this transformation; we had to overcome a number of issues:
- Maintain and maximise income from existing tenants right up to start on site.
- Appoint a professional team and produce a detailed design.
- Rent review and lease re-negotiations.
- Negotiations to obtain vacant possession at the appropriate time.
- Planning and Conservation Area consents.
- A significant number of Party Wall Agreements and dealing with legal issues.
- Negotiations for consent with the freeholder (Grosvenor Estates).
- Negotiations to appoint a Contractor and manage the construction phase in a difficult, existing building in a busy city centre environment.
- Marketing the retail units and lease negotiations.
- Sale of the resultant investment.