Hampstead police station. The Mayor’s Office for Police and Community is eyeing an investor from abroad
Published: 27 June, 2013
by ALICE HUTTON
INTERNATIONAL millionaires are being targeted as potential buyers of Hampstead police station – but property experts have warned the Met they might not attract a foreign investor because there are “too many hoops to jump through”.
The Rosslyn Hill property was listed for sale online on Monday, the day it closed its doors.
Billed as “price on application”, the Grade II-listed, four-storey, 100-year-old building in one of London’s most expensive neighbourhoods could sell with a residential redevelopment value of £20-25million, independent estate agents have estimated.
Online listings from agency Knight Frank have appeared in Greek, Turkish and Danish as well as English, giving rise to speculation that the Mayor’s Office for Police and Community is eyeing an investor from abroad.
At an open day yesterday (Wednesday) “hordes” of developers and interested buyers packed out the 22,482sq ft building, including representatives of the prospective Abacus Belsize Primary, a free school currently on the look-out for a permanent home.
The station is part of a London-wide sell-off in a bid to plug a £500million gap in the Met’s budget. The Hampstead building has long been due for the chop due to its high value.
But property experts have advised the Met that selling the building, which is in a dilapidated state, without planning permission already in place for development could rule out some international customers.
In addition, a “forward sale clawback” clause, which awards the Met 50 per cent of the increase in value if it is resold in under five years without planning permission, could restrict the number of buyers further.
Stefano Andrean, senior negotiator at estate agent Hadleigh’s Residential, told the New Journal he thought a foreign buyer was unlikely.
“If money was the only thing needed then yes, the station, given its great location, would be a prime opportunity,” he said.
“But I doubt they would want to get involved in the planning process. It is costly, it takes a long time and involves a lot of bureaucracy before any work can take place. Foreign investors are not against doing a place up but this looks like too many hoops to jump through.”
He added: “If I were the police I would probably act and get permission in place to sell it at a higher price to attract a foreign buyer a lot quicker. With developers of this size, they normally look for 35 per cent profit. With the building’s location, you could get about £1,200 per square foot.”
He estimated this could translate to a £17.5million purchase price and a £20-25million redevelopment based on the creation of 15 residential units. “But without planning permission, and with the clawback clause, it makes it a less attractive prospect to a foreign buyer,” he said.
Linda Grove, of Abacus Belsize Primary School, said the property would be too costly to buy independently but the school was interested in collaborating with a developer.
“Hordes of people were there,” she said. “It was packed, mostly developers but also a Buddhist centre, would you believe it. It needs buckets of money and a lot of work.”
The sale will take place through blind bidding until July 19.