We’re being regularly approached by developers who have identified that they may not achieve the GDV for their proposed residential schemes. In a flat residential sales market, it is inevitable that developers will need to adapt their forecasts, with some firms building in plans to retain and rent their assets.
Fortunately, the rising popularity of serviced apartments among business travellers has created a spike in operator demand for whole blocks to lease.
This type of company letting agreement provides residential developers with a very attractive alternative to individual AST letting; in addition to a guaranteed rental income for five years and a fully let building from day one, landlords also benefit from zero voids and, in most cases, yields are superior to standard lettings.
Saxbury has been at the heart of the serviced apartment sector since it first emerged in the UK, enabling our team to provide a deep understanding of the sector, operator demand and their leasing requirements.