September 2019 - Thames Tap
Campbell Gordon director Duncan Campbell says it is too early to write off Permitted Development (PD) schemes.
Campbell Gordon acted for Marson Properties in the developer’s acquisition of Abbey House in Stoke Road, Slough, a 16,000 sq ft office building which has prior approval for 40 flats. The vendor was XLB Property.
Mr Campbell said there has been a price adjustment but he believes the strong demand for apartments to rent has maintained momentum in the PD market.
He said: “There has also been criticism recently of some PD conversions, with some negative national press coverage. It is true that there have been a range of quality of developments.
“However, in many locations in the Thames Valley, in particular in Bracknell, there has been significant and important new residential stock delivered to the market, reusing otherwise unloved and failing office buildings.
“There has also been a concern that there would be a glut of these conversions in these locations, but the evidence so far is that there is demand, in particular from the rental market.
“It is certainly premature in our view to write off the value and contribution these developments can make to the need for residential stock.”
He believes quality of a buyer and its funding position is a key factor to vendors.
CBRE acted for XLB Property in the Abbey House deal.