Development of Westgate Road property
The development on Westgate Road was a former backpacker’s hostel located just outside a redevelopment zone in Newcastle City Centre. The property featured 2400 sqft of floor space, spread over two floors.
Our brief
Our brief was to identify an opportunity for redevelopment and recommend methods of adding value, by increasing the property’s capacity or changing its use. After researching and sourcing a suitable property, we conducted a development report, using our in-depth knowledge and experience of the area to determine rental levels and capital values, based on investment yields, ahead of purchase
Our proposal
Following completion, we introduced planning consultants, DPP, to work with the clients and their architect, to produce an initial planning application. Despite initial objections from the local authority, we were able to gain planning consent for the redevelopment of the building. This comprised of a proposal for 14 beds across 3 floors, and 8 units and approximately 3,500sqft of gross internal area
Our achievements
• We successfully negotiated a deal for the purchasing client at 15.3% below asking price.
• Our dedicated team worked together to overcome challenges, to successfully produce an alternative viable scheme.
• Once planning consent was obtained, the works were completed as soon as possible, and the units in the property were successfully let from summer 2021.
Planning: consent and final plans
Timeline of events
March 2018 - Offer accepted on the property.
June 2018 - Completed purchase of the property.
August 2018 - Introduction of DPP for planning consent.
October 2019 - Plans finalised.
January 2020 - Planning consent obtained.
September 2021 - Works completed (post-covid) and units pre-let.
Customer testimonial
“Seekers provided a sourcing service which was a relationship built on over the previous 3 years. My main contact sourced this opportunity and gave some indication of its potential. Having carried out our own due diligence, we decided to purchase it. We carried out the construction works ourselves then handed it over to Seekers’ lettings department to fill the building which they did very quickly. They continue to provide this service.”
Chris Paton, Founder & Director of Aspire Living.
Outcome: redevelopment and returns
Monthly income
| Unit | 2022/23* inc. bills | 2023/24** exc. bills |
|---|---|---|
A | £564.88 | £852.26 |
B | £2057.46 | £2936.43 |
C | £564.88 | £628.43 |
D | £564.88 | £625.00 |
E | £1303.57 | £1430.00 |
F | £564.88 | £625.00 |
G | £564.88 | £625.00 |
H | £760.42 | £780.00 |
Total per month | £6945.85 | £7962.12 |
Total per annum | £83350.20 | £95545.44 |
Get in touch
With our knowledge and experience, we can provide investors and developers with the right support and insight, to buy, build or let the right product, in the right location, with the right market in mind.
Whether you’ve inherited a property or have a second home you want to rent out, or you’re a seasoned professional landlord, Seekers has been matching the right tenant with the right property for over 20 years.
Get in touch today to see how we can help you.