Commercial property in London continues to be in high demand and residential property prices are hitting record levels. It should come as no surprise, therefore, to learn of the sale of a former underground station to an overseas buyer with plans to convert it into luxury flats.
The station in question is Brompton Road which has been sold for a sum totalling £53 million. The buyer has not been named but is believed to be a wealthy Ukranian businessman. It is also understood that he outbid a member of the Qatari royal family to win the property.
The former Piccadilly Line station, situated only minutes from Harrods, was first opened in 1906 but only remained operational until 1934 when the public transportation service decided that it no longer made financial sense to keep it running. Instead, ownership was transferred to the Ministry of Defence for use as a command centre when World War II broke out only a few years later.
Brompton Road Station remained in the care of the MoD until this week’s sale. In fact, until recently it was home to the University of London Air Squadron, Royal Naval Unit and air cadets.
Defence minister Andrew Murrison revealed that the proceeds from the sale will be put back into the defence budget, and that the building’s legacy will be carefully preserved despite the change of use it is expected to undergo.
He said; “The Ministry of Defence is committed to selling off its surplus land and property in order to provide the best possible value for money to the taxpayer.
“At the same time we take our role as a custodian of the nation’s history very seriously and have been working to record the historic significance of the building.”
The purchase of Brampton Road Station marks yet another example of property undergoing residential conversions to capitalise on the housing boom. Several recent reports have indicated that developers are now keen to focus on residential rather than commercial projects in order to benefit from higher profit margins in the sector – leading to a number of commercial ventures in the capital being stalled.
While it is undoubtedly important to provide an adequate level of housing, the point at which London’s lack of affordable office space becomes a real issue for small businesses is approaching. And it may be time to question whether the transformation of well-located commercial property into residential accommodation will have a negative impact upon the city’s future growth prospects.
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