An anonymous Middle-Eastern royal family member has spent a whopping £20 million on a central London car park to house his collection of supercars.
The mega-deal works out at approximately £150,000 per space, making it UK’s largest ever parking-related transaction.
Sacha Moussaieff, Senior Director at Milton Stone said, “We had been discreetly offering the spaces either individually or as one lot and completed the sale in January.”
Gushing over the deal, the Milton Stone exec went on to describe it as utterly unique, “in the 20 years I have been in the industry I’ve not seen an opportunity to buy ten spaces, let alone 130. This marks a fantastic start to 2017 for Milton Stone.”
A Director from Nicolas van Patrick said, “’When it comes to the sales market in prime central London, we predict trading conditions to remain challenging for 2017 although quarter one has seen us get off to a very good start.”
The sale comes in the run up to the ‘Supercar Season’ in central London, which typically occurs during August when numerous Middle-Eastern billionaires escape from the sweltering 40-50 degree Celsius temperatures to a relatively clement London.
However, Kensington and Chelsea council are attempting to stifle the onslaught of flash cars in the borough and recently announced the first ever prosecutions of ‘nuisance’ supercar owners.
The council have been dishing out £1,000 fines to drivers who race around the area revving their engines and playing loud music. DMZ are yet to be convinced whether a measly £1,000 fine is that big a deterrent for the average billionaire.
Mr. Moussaieff kept all details of the buyer and his intentions confidential, but a solemn spokesman for selling agents Waterbridge Estates said to The Times that the buyer should be happy with the £20 million price tag and drew a stark comparison to the national market.
“The value of his collection is significantly higher than the price he has paid for parking…a car park in central London is being sold for more than entire streets and villages outside the capital’s centre and yet even upper middle class generations are finding it impossible to rent in London, let alone purchase in their lifetime.”
DMZ can see how spending £20 million for a car park may appear extortionate and even absurd. However, as with all deals it’s important to recognise the fundamentals – this is a prime central London asset bought at a favourable discount.
The space was marketed for 2 years before being purchased, which gave the buyer leverage to negotiate an estimated £15-20 million off the market value (at approximately £300,000 per space). Moreover, if the mystery Gulf Billionaire chose to rent out the spaces they would go for around £7,000 per year, that provides an annual return of £910,000 for the 130 spaces – a gross yield of 4.6%, better than a number of London buy-to-let returns!
The buyer has the option to sell at a profit or receive a healthy annual yield from his prized parking asset. DealMakerz are sure that the buyer is aware of these options…but will still go ahead and line up his gold, silver and purple supercars nonetheless.
Want to know the story behind Britain's latest property mogul? Why a company is going bust? Our coverage goes beyond run-of-the-mill news on key real estate issues.
Our subscribers are made up of the most influential Founders and CEO's in UK property. Gain a competitive edge and get informed - read what they read.
Understand exactly what the most senior figures in UK property are thinking. Exclusive opinion articles from powerful real estate influencers that move markets.