Capital Recycling | Planning Uplift | Income Engineering
Deal Snapshot
The Opportunity
A large, under-utilised legacy asset held within a probate estate.
No income strategy
No redevelopment plan
No appetite for complexity
The value was not in what the building was — but in how it could be re-engineered and capitalised.
Acquisition
Introduced off-market via a trusted builder contact
Probate circumstances removed competitive pressure
Acquired significantly below intrinsic potential value
Purchase Price: £186,000
Strategy Overview
Split · Stack · Recycle
This deal was designed to de-risk early, recycle capital fast, and retain long-term optionality.
Value Creation – Ground Floor (Horizontal Split)
Ground floor split into two retail units
- Simple dividing wall
- Minimal capex (~£5,000)
Retail Unit 1
Let agreed with Martin McColl's Convenience Stores
Rent: £25,000 pa
Tenant requested purchase
Sold at 10% yield
Sale Price: £250,000
Retail Unit 2
Sold to another developer
Sale Price: £100,000
Value Creation – Upper Floors (Vertical Stack)
Planning secured for:
13 self-contained flats (first floor)
+7 flats in roof space (approved but not built)
Roof-space consent retained as strategic optionality.
Residential Outcome
13 flats delivered
Leased to the local council
7-year emergency accommodation lease
Income Profile:
Year 7 Income
per annum
Average annual cashflow
over hold period
Strong covenant. Predictable income. Low management intensity.
Capital Stack Summary
Retail disposals materially de-risked the project early.
Exit
Freehold sold in Year 7
Sale Price: £715,000
Total GDV (Including Retail Sales):
£1,065,000+
Why This Is a Unicorn Deal
Probate sourcing = no bidding war
Simple interventions unlocked disproportionate value
Early capital recycling reduced downside risk
Strong counterparty income via council lease
Planning optionality retained (unused roof consent)
This wasn't about timing the market. It was about engineering one.
Phoenix Club
From Probate Asset to Seven-Figure Exit