Veer Properties

23/02/2024

We've just put the following property on the market: https://www.rightmove.co.uk/properties/144697559 #/ - Anyone interested can please get in touch with our marketing agents.

No other agents are required, please.

Plot for sale in Western Road, Southall, UB2 5HD, UB2 for £250,000. Marketed by Christopher St James, Colliers Wood

26/09/2022

► UK Commercial Property Market Update - Sep 22 ◄

A lot is happening in the market currently, , , new government, energy prices and whatnot. These times are certainly uncertain, so how's this uncertainty affecting the UK market? Let's take a bit closer look.

Allsop's Commercial Property Auction is widely treated as the pulse of the UK since this is the single largest platform for commercial properties in the country. This auction took place last week on the 21st Sep with a total of 227 lots being offered. This is a very good turnover since the number of lots has generally been around 120-140 ish since Covid so this auction indeed brings the number of lots being offered back to prepandemic levels. Or is this because the vendors are anxious and want to get out before the storm - ?

Now, Allsop states 132 lots were sold but looking at this number closely, out of this, eight were sold after the auction, 30 sold prior and 18 were withdrawn. So essentially, 'under the hammer' (to use a term), only 97 were sold, which isn't a significant number at all. Additionally, the unusually large number of sold prior and withdrawn lots also might signal some pre-auction anxiousness in the vendors/auctioneers heads. Worth adding here is that with the nowadays, the auctioneers have got much better visibility of what's happening. Which lots are generating what interest (registrations etc.), and if not ample, might be worth a try selling them in advance or even withdrawing them?

So, here we are, it appears to have not gone so well and probably unsurprisingly. Apart from the other things, the interest rate hikes alone do not leave much margin for the investors to bet upon. Why would they take the risk of what is around the corner with a compromised net yield (after servicing interest etc.)? Therefore, I think this evidences that the commercial market is already facing some heat from the macros.

Now, this could indeed be good news if you are an investor (i.e. not just vanilla) and 200% know what you are doing because you can now start to get some bargains. Such are the times that fortunes are made or even destroyed.

Which side will you come out of at the end of these turbulent times? Personally, I am getting ready for some very exciting times ahead.

You?

Thanks for reading.

27/08/2022

Happy to be featured in the Expat Property Story podcast recently describing what I do with an example of our latest Tonbridge acquisition and how can invest in the significant add value UK property investment projects from abroad without bothering to develop them and taking from far distances: https://www.expatpropertystory.com/how-to-make-most-money-from-property/. I appear at 12:42 minutes until 19:45.

This could also very much suit the ( / ) or any other type of more handsfree and low risk investors without compromising on the significant gains since the downside is protected with income producing assets and no development risk.

It is a great podcast for any to remain in touch with what is going on with the UK property market and investment trends.

Please let me know what you think. Also, happy to help if someone wants to know more.



Capital at Risk. Not FCA approved. No investment advice.

08/09/2021

LESSONS LEARNT - The Old Bank, Kenilworth

This is to update our network that Veer Properties has now exited its first ever UK project - a bank conversion - converting a former bank into three smart apartments and a much loved local coffee shop in an affluent Warwickshire town.

This was despite us not having any previous residential, BTL, HMO refurbishment or even any commercial investment experience. The learning here, especially if you are a beginner, is that it is not really rocket science. Just have confidence in yourself.

We made some really good learnings out of our very first project, the primary most is that that the real value of any retail-led commercial conversion is in the planning value uplift and of course, the retail element itself. We did remarkably with both elements with this project.

We were the first in the local county to achieve fitting three small apartments in a 1,000 sq. ft. space under permitted development rights. Another lesson learned is that, if needed, do not feel afraid of pushing to get what you want. We really had to push the point with our architects, who lacked PDR knowledge, to get these three apartments.

This project also paved the way for our future strategy and projects which is to simply add value by using our planning and retail expertise, taking no development risk with no need to even lift a brick. Another key learning here is to buy it well - this is where the money is made, and the pressure comes off!

Overall, this project has been a great learning curve, a great experience, and a great investment!

To give you an insight into the numbers here, we produced 25% profit to GDV, which is not bad for our first-ever conversion project, even if we did make some expensive mistakes.

Check out the pictures and let us know what you think!

06/08/2020

*** High Street and the new radical planning reforms consultation" ***

So today govt announced a consultation for another radical change "Planning for the Future" to support the economy and "automatic planning" for housebuilding. And as anticipated the "automatic" part was more of a faff and only forms a tiny part of the overall scheme. However, there are some other significant changes proposed in this paper which I can see annoying the local authorities so it will be interesting to see how, when and what shape they take on the ground.

However, as you know my focus is High Streets/Retail which is the area that needs more TLC in the coming months to years, so, here is a very brief summary of what parts I believe would help High Streets:

Automatic Outline planning approval:- Local authorities will have to earmark sites and areas of regeneration categorised into three different categories:

Growth areas: marked for major development that qualify for automatic planning (subject to qualification criteria).
Renewal areas: less development allowed.
Protected: No development allows.

Binding Housebuilding targets for local authorities to deliver.

I believe these two proposals are going to massively benefit town centers and they are the easiest for authorities to get more housing into and regenerate instead of trying to demolish a local community pub for instance to build flats.

Therefore, I again stress that the time to strike the High Street is now while it's still cheap. Great time ahead.

[There are other significant changes in there too like automation or digitisation of planning processes and proposal/planning maps, single infrastructure levy instead of CIL + S106 (which was never supposed to be like that at the first place) etc. etc. that I am sure the planning consultants would soon be posting about and do a better job than me. My post is more High Street focused as usual.]

Consultation on proposals for reform of the planning system in England

03/08/2020

The trend is right here, right now, knocking at your door. The trend to repurpose the High Street/Retail into alternate uses including residential. JL have just realised it and are adapting to the changing times exactly how they must. This is what the other larger stores, or their landlords are unwilling to adapt hence having to close their stores and struggle.

Are you as an SME Investor ready for this new trend too? You do not have to be a JL to do this. In fact, there are going to be more opportunities at SME levels because there are many more smaller shops than these larger stores out there that the larger house builder/investors won't be interested, in that "change". That is where you as an SME investor/developer can come in, help regenerate the High Streets, and get significantly rewarded in the process.

Can you see this too?

This is what we at Veer Properties specialise in - repurposing High Street, adding value to retail real estate. If you want to know more about our past projects or our commercial property portfolio building service, please let us know.
https://www.bbc.com/news/business-53595803 #

The retailer plans to turn shop space it no longer needs into affordable housing as part of a review.

31/07/2020

Let me start with a bold claim here - if Warran Buffet was to invest 1m in the UK property for the next 1-2 years, what would he pick? I bet High Streets.

Agree/Disagree?

My rationale: High Streets are at the lowest but not for long. Town "Centres" are usually the best located and most connected areas of any town/city, getting increasingly desired by the younger and older generation alike. The "transforming" retail industry is only presenting more and more add value opportunities for the SME Investors and Developers to transform/repurpose them for the sake of local community and get significantly rewarded in the process too. And top of all, being pure commercials, they are usually SSAS complaint or can be more easily structured for SSAS investments.

Right now, due to Covid19 and online shopping trends (again more so due to Covid), retail is at the lowest hence planning authorities and govt are rushing to save them, revive them hence the reason behind the recent, most radical planning system overhaul (England), led primarily by High Streets.

Agreed, it needs some specialist skills like Retail Market, Investment knowledge, High Street specific design, planning knowledge, specialist appraisal skills, and above all the right connections to find just the juiciest deals out there. Without these, you will hear these common words, 'Oh, they don't stack up!', 'Oh, they are too much risk', 'Oh, retailers closing down','Oh, Corona', 'Oh, this...','Oh, that ...','Oh, let me think of a new excuse'.

Well, if you cant find deals on High Street today then you probably don't even know what and where to look for (with due respect) and how to appraise it to start with because the bog-standard investment and development appraisal skills fall flat on their face with High Street properties.

To be honest, its a niche and we specialise in exactly this niche. But happy to help anyone who's willing to explore beyond the usuals.

This is why we have started offering Commercial Property Portfolio service to property investors where we do all the above for you and all you've to do is close your wide-open jaw, when you see the profit made in our deals AND what you can make for the deals we source for you.

Let us know if you want a chat.

Commercial property firms say there could be a high street revival as businesses exit city centres.

30/07/2020

Just submitted a new Permitted Development application for one of our existing sites, for belt and braces, right in time for the new and potentially nasty (depending on the council/officer) change that's coming to GPDO (aka Change of Use Permitted Development Rights) on 1st Aug 2020: "provision of adequate natural light".

The problem here is the word 'adequate' and the fact that there are no established standards for this 'adequacy' for urban areas like town centers. The widely used and adopted "BRE" standards are for suburban areas primarily and are not really suitable for urban developments like ours. The BRE guidance provides absolute targets but no discussion on what deviations if any would be appropriate in an urban location. As such the determination of what should be considered adequate natural light requires judgment and is a matter of what planning officers and planning committees are willing to accept. So, it's not that we have a natural light problem on our site but as I said, belt and braces.

Therefore, we did not want to take any chances so even though we did not really need it right now, we are in the process of signing a new lease on this site and it's not done until it is exchanged! So no chances taken.

PD applications are fairly easy and straight forward anyway. Just took me some time to outline a PD specific Design and Access statement for my architect so that we do not miss ANYTHING to give an opportunity for the authority to reject and make us file it again - under the new laws!

Just for clarity, I am not suggesting this a BAD news for the Permitted Development rights as such because obviously there are applications approved in urban locations every day but it could ammunition in the hands of the officers if they do not like your proposal that's all. I can see a few appeals coming on this material consideration, in the next few months but we did not want one of ours to be one of them!

Thanks for reading.

28/07/2020

Great news for Housebuilders and investors, and not surprising either considering what's going around! Go Build, Build, Build!

Ministers asked to stretch December deadline after housing market hit by virus lockdown

27/07/2020

Anyone up for a bargain? 😄

Jokes apart this is a big one for the retail industry but does not come as a surprise. Events like this are dragging down the retail real estate values whist the high street led UCO overhaul and other PD rights are making them more and more appealing for repurposing. This is a massive opportunity for the SME investors and developers to come forward and help communities by regenerating high streets and getting significantly rewarded in the process too. Don't miss it.

Let us know if anyone wants to find out about our Commercial Property Portfolio Building Service where we source some significant add value retail property opportunities for you - to buy it on your name.

Debenhams is reportedly pushing forward with a plan that could see a change of hands after retailer fell into administration during lockdown.

25/07/2020

UCO overhaul and a completely new Property Investment Strategy - Mixed-Use HMOs!

The recent overhaul to Use Class Order (England) brings this quote from Benjamin Franklin. What he is also saying indirectly is that the more agile you are to adapt, the more successful you are. And by the way, "success" here is not just the money, it is life overall.

I wonder how many of our followers would still be fixated on their previous strategies or ideas and how many would be looking at this one of the most significant changes in the history of England Planning system and say: Ah ... Opportunities!

We specialise in High Street so I know exactly that this is a gold mine for "adaptive" property investors and developers. It creates a completely new category of opportunities that only really the SME Investors/Developers can take advantage of since this is too much of a hassle for the larger players.

The recent UCO overhaul introduces a new use class called "E" wherein you can mix and match the offering of your shop space, subdividing them as you like within this very broad use class. It is now all down to your creativity and fancy. 😊

For instance, you could pick up a wide fronted 2500 sqft shop building in a busy retail parade and create a little local community market, either specialised let's say just the food offering or wider mixed-use offerings like 2 retail shops of 500 sq ft, 1 coffee shop (500 sqft), 1 bakery (300 sqft), 1 estate agents office (500 sqft), 1 taxi office (200 sqft).

With this new "local market" or "specialist market" space offering, you let your space on short to medium lets on an all-inclusive basis so that the businesses have nothing else to bother about. And then it is upto you how you market your "local market" - you may resort to local newspaper adverts or local events to promote your space which will benefit both of you and your local occupiers. This will create yourself a proper "Commercial HMO". Trust me, post Corona there will be a lot of demand of such spaces and markets from local businesses who are afraid of longer leases.

Obviously, if you do not want to be that creative or want a bit less pain, just subdivide that 2500 sqft shop in the example into 3 shops in the front (500 sq ft each) and the rear into one or 2 office spaces (500 sqft each) and let them out on the standard leases. You could also do mixed and match where the leases are standard but you still supply them on an "all-in" basis where you include the services in rentals or recover them via service charges. The beauty of commercials is creativity - as the rules are what you and your tenants lay down in a lease - no (or very little) govt/regulations interference in these, unlike the residential stuff.

In addition, you may utilise the upper or deep rear parts of your property into residential or even a HMO, making it a complete "Mixed Used HMO". Don't forget there are several lesser-known permitted development rights to convert them into residential too so its all good news.

So, here you go - who's up for them? 😀 I can foresee this becoming part of a few property training programs and then these shops probably will gain more popularity and value too, just like the offices so that is what I mean by "Early Adapters" :-)

Let me know if I can be of any help whatsoever.

23/07/2020

Here are much anticipated and much welcomes changes to High Street/Shops. I will leave the technical details to your planning consultants and advisors to advise you on and just focus on the business relevance. Being a High Street specialist, my comments primarily target the "shops" which mostly fell under Class A as it stands until 31st Aug 2020. �

Certainly, the previous use class order was PITA especially left in the hands of our wonderful local authorities - ask any retail property investor or surveyor. This was a gamble no one liked while making retail real estate investments - you buy a shop with A1 use class with struggling (or rather "transforming") retail industry and you could really get stuck with it as your friendly local planning authority may have a f* policy that 75% of the High Street must retain retail! [at the same time charging exorbitant parking charges to penalise shoppers to visit town centers!].�

Therefore, blending former class A1-A3 with B1a-B1c (offices, light industries etc.) and medical facilities, creches, nurseries etc. significantly takes the investment risk away. For the avoidance of doubt, no planning permission needed to change use between these uses anymore! �

I specialise in adding value to High Street/Retail properties and must say, this was the painful part of the puzzle - the one which either made or broke a deal at times! Well, for me it is certainly a very welcome change! And am sure opens more options for business to be more creative and open to their offerings in this current market - good news for them and to me too, as their landlord!

An important side note also is: the GPDO Part 3 Change of Use classes remain as it is would still be applied on the same basis as it is today, at least until 31st Aug 2021 with one important change coming into effect regarding ‘provision of adequate natural light’ coming from 1st Aug that I will write separately about someday.