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Optimising Financial Return Through Commercial Conversion

Planning consultant David Kemp BSc (Hons) MRICS Barrister* (*non-practising) and Director at DRK Planning Ltd, comments

This month we are reviewing a recent case to look at the practical and logistical challenges around optimising the number of apartments, and therefore the development return from a large commercial conversion opportunity in Thame, Oxfordshire, using Class MA prior approval as a development strategy.

The Development Opportunity
St. Andrew’s Court is being developed by XP Property. It comprises a large and modern building ideally positioned just on the edge of the town centre and just outside the conservation area to this attractive Oxfordshire market town.

The site is adjoined by commercial premises to the east and residential properties to the south and west. A two-storey snooker club building also lies immediately to the west. The site lies adjacent to the Thame Conservation Area and Grade II listed buildings at 26 Upper High Street and 46 Wellington Road.

There are two existing office tenants to the building but otherwise the building is vacant, leaving significant opportunity for conversion to apartments. The layout below shows a possibility of up to 23 new apartments through conversion, comprising 4 x studios, 7 x 1-bedroom apartments and 12 x 2-bedroom apartments.

Some of these apartments are in the existing roof void (this currently includes second floor office accommodation) and would require a full application for planning permission first in order to obtain permission for new terraces and dormers and roof lights. These would have to be thoughtfully designed and positioned in order to take account of nearby residential gardens, neighbouring commercial uses and the design and proportions of the existing building. 

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