How we achieved a 43% total return for investors

7th April 2019

In December 2018 we hit an exciting milestone: our property team sold one of our investment properties on the open market for the very first time, achieving an impressive 43% total return for investors. Here, we explain how we did it.

The opportunity

In June 2018, we identified a number of properties on our platform that represented a great opportunity to sell and realise a significant capital return for our investors in advance of their respective five year anniversaries.

We alerted shareholders in each of the properties, providing them with a detailed case outlining why we believed it was the right time to sell. They overwhelmingly agreed by way of a vote to proceed with the sales.

The first sale

Flat 6, Oldham House, Ilford was the first property we sold on the open market. It was purchased in March 2015 for £165,000 owing to its compelling investment case, underpinned by its central location, proximity to local transport links and the fact that a Crossrail station was due to open in Ilford in 2018. Crossrail was predicted to be a game changer for the local property markets, placing upwards pressure on capital values and rent.

An assessment of the property’s open market value in March 2018 indicated that Crossrail had indeed delivered the anticipated boost to the local market, as the property’s value had increased by 42% relative to the initial purchase price in 2015. In June 2018, 88.7% of investors in Oldham House who participated in the shareholder vote, voted to sell, and our property team began the sales process.

In December 2018, Flat 6, Oldham House, Ilford was sold for £235,000 – £10,000 more than the anticipated sale price as valued by an independent RICS surveyor. Prior to sale, Oldham House was trading on the Resale Market at a 13% discount to the latest valuation.

The returns

Investments made in the property when it was brought to the platform in early 2015 achieved a 43% total return (capital gain, plus dividend income) after fees and costs.

We are very pleased to have achieved these returns for our investors as a result of the sale of Flat 6, Oldham House on the open market – the first time an asset has progressed through acquisition, management and sale on the Property Partner platform.

There are similar properties to Oldham House, Ilford that are currently trading at a discount to valuation on our unique Resale Market. Is now the right time to buy them?

Past performance is not a reliable indicator of future performance.

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Further sales

We have since sold a further two properties on the open market, returning 27% and 31% total return respectively.

You can read more about all three properties on their ‘property detail’ page linked below.

Capital at risk. The value of your investment can go down as well as up. The Financial Services Compensation Scheme (FSCS) protects the cash held in your Property Partner account, however, the investments that you make through Property Partner are not protected by the FSCS in the event that you do not receive back the amount that you have invested. Past performance is not a reliable indicator of future performance. Forecasts, if stated, are not a reliable indicator of future performance. Interest and capital returned may be lower than expected. Gross rent, dividends, and capital growth may be lower than estimated. 5 yearly exit protection, exit on platform, exit in line with a specific investment case or fund strategy, subject to price and demand. Property Partner does not provide tax or investment advice and any general information is provided to help you make your own informed decisions. Customers are advised to obtain appropriate tax or investment advice where necessary. Financial promotion by London House Exchange Limited (No. 8820870); authorised and regulated by the Financial Conduct Authority (No. 613499). See Key Risks for further information.