RandomComment wrote:£2 million might not be that expensive, even given the state of repair.
The building is circa 16,000 square feet, so it works out at around £125 per square foot. Cardiff residential property averages about £200 per square foot. So what would be a prime location (waterside Penarth), for commercial space, would probably have a value considerably north of that. Could easily be £400 a square foot I imagine?
According to the EJHales listing each floor is 1558 sq feet and there are three floors, making a total area of 4674 sq feet. About twice the size of your average Penarth Edwardian semi or modern detached. This does seem smaller than I’d imagined; where do you get your 16,000 sq feet figure from?
Premium homes in Penarth heights and the Marina are on sale for £250 to £350 per square foot eg
http://www.rightmove.co.uk/property-for ... 09757.htmlAnd this recent sale
http://www.rightmove.co.uk/house-prices ... ry=englandAssuming your figure is correct, we multiply 16000 by the top-end figure of £350 per square foot and the sale price (if this were flats) of £5.6 million. Given that the quote for redeveloping this as an hotel was quoted as being £7 million, and that any developer would be looking for at least a 10% net profit, then the figures don’t stack up.
However, Looking at it another way, redeveloping this as high-end apartments would cost at most £1500 per square metre. It is 1500 square metres so that gives a cost of £2.25million to redevelop as apartments. Add in the purchase price and once redeveloped there could be some money to be made here - and a building saved.