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Arsenal slashes price on 'job lot' sale of 150 flats
Jonathan Prynn and Nick Goodway28.09.09
Arsenal has slashed the price on a "job lot" sale of almost 150 flats in its former Highbury stadium.
The club agreed to sell almost all the apartments in what was the North Bank for just £41.4million to Guernsey-based property firm London & Stamford.
Details of the Highbury Square sale emerged as Arsenal announced record profits of £35.2million.
Today's deal values the portfolio of 72 one-bed, 70 two-bed apartments and four three-bed penthouses plus 98 car parking spaces at an average of £284,000 each. This compares with asking prices ranging from £345,000 to £450,000 for a one-bed and £465,000 to £610,000 for two beds - not including parking spaces.
Property industry sources said London & Stamford was able to haggle down the price after a buyer pulled out. "It is a steal at this price," one said.
Martin McGann, director of London & Stamford, said the £390/sq ft valuation compared with a market rate for the flats of about £550/sq ft.
The company plans to let out the flats for about £1,500 per month before selling them for a profit. "We could easily sit on them for two to three years," Mr McGann said. Despite the record profits, Arsenal said the property slump has set back sales in the development and it has been forced to renegotiate the terms of a loan.
Chief executive Ivan Gazidis said: "Completions were much slower than predicted."
Of the 655 apartments, sales have completed on 445, bringing in £172.4million. Of the remaining 210, about 80 are still for sale and the rest awaiting completion or having to be resold when buyers pulled out.
The money has allowed Arsenal to pay off £90million of the bank loan, although this leaves £47million outstanding. The deadline for repayment has been extended to December at a higher rate of interest.
