Empty pubs a goldmine for developers, says Sam - Business - Luton Today

WITH pubs closing at a rate of 25 per week in the UK, most are sad to see time called permanently at so many drinking holes.

But while the number of closures is bad news for lovers of all things booze, one shrewd Luton businesswoman is making a tidy fortune from snapping up and developing old pubs.

Sam Bains, director of property consultant Ultimate Connexions, has made several million pound profit by snapping up empty pubs around Luton and selling them on to developers.

And Sam says that the trend is spreading across the UK.

“Right now, old pubs are probably the best property investments you can make,” said Sam.

“In Bedfordshire, councils are very wary about leaving pubs empty for a long time because they become derelict and then squatters move in. Usually, it takes only two months to get planning consent for complete change of use.”

Sam typically pays £250,000 to £275,000 for a closed pub, converting it into flats to take advantage of the booming rental market. In her most lucrative deal, Sam consulted the purchase and development of the old Venue 27 nightclub in Upper George Street for £850,000. It is currently undergoing conversion into a luxury residential oasis with an estimated value of £4.3m thanks to its slick planning for 27 one, two and three bedroom flats and three commercial shop units, landing a profit of more than £900,000.

Sam added: “People always need somewhere to live and pubs are historically substantial buildings with huge scope for conversion potential. They tend to sit on a nice piece of land, usually a few acres and they have the added benefit of car parks - great for either the tenants’ use if it’s converted into flats or if planning permission is granted, for further housing. I might have started a trend in Luton but the same idea should apply across the UK. All you really need is a good architect to create an aesthetically pleasing development which utitlises the purchased space. Chuck in a local train station and a few shops and it makes the residence sought after.”

Among Sam’s success stories in and around Luton is the old Britannia pub in Biscot Road which she snapped up for £175,000. It was then converted into four one bedroom flats and four shops and is now worth £700,000.

The Stag’s Head in Russell Street has doubled in value since it was acquired by Sam for £225,000 and converted into five one bedroom appartments with room for a budding property developer to convert the entire ground floor into further flats.

Sam said: “Far from sitting on a white elephant, owners are sitting on gold mines when it comes to pubs. It just takes a bit of inspiration and expertise

via lutontoday.co.uk

Posted via email from UK Pubs For Sale And Development