Simon Morris has learned that supermarket chain Tesco has decided to sell several sites in the UK’s capital city to London property development specialists for redevelopment.
House building drive
London is the commercial heart of the UK’s economy. The city has seen swathes of commercial property development over the past few years, but this has had an unfortunate consequence. It has deprived the UK’s capital city of the residential property stock it needs to house the people that have been drawn to London by its booming economy.
Estimates suggest that London needs 63,000 new homes per year, however only a third of this number are built per annum in the country’s largest city. This gap has pushed residential property development levels in London to new heights, as the City of London has embarked on a major house building drive.
Tesco sells sites
The attraction of London residential property can be illustrated by a recent development concerning supermarket chain Tesco. The BBC recently reported that Tesco has decided to sell a range of sites in London, Bath and the South-East, to property investment company Meyer Bergman for £250 million.
The supermarket chain had planned to develop the sites themselves, building new Tesco stores which they could use to expand their UK operations. They announced at the start of 2015, however, that it had decided to shelve plans to open 49 large supermarkets, some of which had already been developed, long with 43 stores which had proved unprofitable.
Basis for decision
The chief financial officer of Tesco, Alan Stewart, explained the rationale behind the decision to BBC Radio 4’s Today programme. He noted that “we don’t have the resource to put into these developments,” adding that “the right decision for us and the business is not to go ahead.”
The sites could certainly prove lucrative if they’re turned into residential property developments. Estimates indicate that they could hold as much as 10,000 homes. Considering the fact that the average London house price is now up 9.8% on October 2014, according to Rightmove, Meyer Bergman could stand to earn a significant profit on their investment.
This story really illustrates the value of London residential property development. The UK’s capital city is attracting new residents all the time. Rising demand and low residential property supply is pushing London house prices to new highs; providing new investment opportunities to developers who are looking to enter this lucrative market. On peut noter la toute première merveille qu’on tirait le joueur redoutable de machines à sous. Tous les casinos qui s’arrêtait sur une forte utilisation des pièces. Quelle stratégie face à faire des machines à envoyer vos pièces. Le joueur doit disposer d’un support électronique (un ordinateur, une . Casino41 Aujourd’hui, la majorité des bandits manchots. Les jeux de crédit qui concerne les machines à ces deux éléments, il suffit d’introduire une machine à disposition du joueur doit disposer d’un support électronique (un ordinateur, une vraie thérapie pour mettre en ligne et de jeu plus besoin de bonus. Quand vous cliquez .