In less than one year, BuyerSide has assisted a client with the successive acquisition of three buildings suitable for letting in the Châtelain district, standing less than 750 m apart, between the Châtelain and place Brugmann.
Rue de la Réforme
This is a building suitable for letting made up of five apartments, four with one bedroom and one triplex with two bedrooms and an office.
The building was in need of a total renovation and could no longer be rented in its condition at the time. So the owner, a family-based property management company, preferred to sell it rather than embark on major renovation work.
Rue Alphonse Renard
This building is also made up of five apartments, four with two bedrooms and one three-bedroom duplex. It belonged to a family whose various members lived in several units in the building, while the others were rented out. The sale took place as the family wished to move. One of the factors affecting the negotiation of the price and conditions was the fact that the sellers can continue to occupy the premises for a few months after the sale, until they take possession of their new property. The buyer will also have to renovate the building entirely so as to be able to let the property at market rents.
This is a mixed building that includes commercial premises on the ground floor (hospitality sector), three one-bedroom apartments and a house at the rear. In terms of town planning this was a commercial and residential building. This town-planning risk no doubt enabled our client to make this purchase under good financial conditions, the aim being to put the situation in order after the purchase.
Numerous difficulties overcome
For these three acquisitions, we identified each potential risk and had to hold many discussions between the parties. As all the buildings needed renovating, drawing up a precise budget for the work to be carried out was crucial in order to value the properties correctly. In fact, the important thing for us, as a property adviser for the buyer, is to analyse whether or not the financial parameters of the transaction are worth the risk taken. If there are any risks linked to the proposed transaction (town planning, budget for work, etc.), this necessarily implies a higher margin or profitability for our client in return.