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In April of 2012 our clients successfully exited from their investment in a portfolio of residential ground rents for £17.75m, achieving an uplift in value of c33% in two years.
The sale price, paid by a large institutional investor, represented a multiple of 21.5x the annual rental income. Although many of our clients had originally been attracted to the opportunity by the solid income stream generated by the portfolio, the unsolicited bid was such that, after careful consideration, it was concluded that the premium price being offered represented a good opportunity to crystallise an attractive capital gain.