September 29th, 2016. Luke Egan
The Apprentice Returns, But Lord Sugar Continues to Invest in Property
The line-up for the latest series of The Apprentice has just been announced, but, instead of reading the egotistical one-liners from the candidates, we decided to take a closer look at the real star of the show, Sir Alan Sugar, and his property investment portfolio.
Amsprop London Limited in Numbers
In the year ending 30th June 2015, Sir Alan Sugar’s property investment company made an annual turnover of just under £3 million, up 34% on the year before. His post-tax profit was just over £4 million and the company’s total assets were valued at £82 million. That results in a return on capital employed of 3.34%.
So, how did the Essex-based business make its millions during this 12-month period? Well, back in September 2015 the company went on a rather pricey spending spree, purchasing £200 million worth of property.
At the time, Daniel Sugar, Lord Sugar’s son and Managing Director of Amsprop Estates, told the Evening Standard that the business was “sitting on a major cash pile” that it was looking to invest in prime spot London commercial property like offices and shops.
“We have recently experienced evidence of international buyers becoming seriously attracted to prime commercial real estate that has perhaps been revamped and commercially worked through, to provide an end product that is both very high quality and safe in terms of being well located within the capital.”
Around the same time, the company made a £50million profit when it sold the Sugar Building next to St Paul’s which it owned for three years. And in June 2015, Amsprop sold part of its freehold interest in the former Burberry HQ in Haymarket. Retaining part ownership, a profit of around £30million was made.
The Amsprop Current Portfolio
The Amsprop property portfolio is vast, containing dozens of properties worth millions of pounds and tenanted by world-famous brand names such as Krispy Kreme, Hard Rock Café, Starbucks and Barclays. Here’s a quick look at just a few:
420 South Maya Palm Drive, Royal Palm, Boca Raton, Florida
Available from March 2017, this huger 10,984 sq. ft. property is located in an exclusive waterside location.
The George, 159 High Street, Wanstead, London, E11 2RL
This is an end of terrace period building overlooking George Green in Wanstead which was acquired in the summer of 2012.
Spread over 4 stories, this public house has a rear courtyard and parking for 30 cars, plus 3 flats above it.
Gloucester House, Old Park Lane, Mayfair, W1K 1QX
This beautiful building can be found on the corner of Piccadilly and Old Park Lane and has been home to the very first Hard Rock Café since it opened in 1971.
On the seven floors above, residential property can be found. Hyde Park is just seconds away.
Bennet House, 54 St James’s Street, SW1A 1JT
A sleek period building found in the St James’ Conservation Area, this property has a self-contained retail unit and 6 floors of new residential accommodation.
4 St Paul’s Churchyard, London, EC4M 8AY
Newly refurbished, this office building offers an architecturally-delightful period frontage with a modern, flexible interior.
This offers a prime location just opposite the entrance to St Paul’s Cathedral.
Do You Dream of Building a Property Portfolio Like Sir Sugar?
If you’re interested in starting or expanding your commercial property portfolio, our team of experienced financial brokers could help. Get in touch today to discuss your options.
Article By Luke Egan
September 29th, 2016
Luke heads up our specialist property finance team where his focus is to drive our transactions valued between £100k and £5m.
Luke and his team manage enquiries from initial enquiry through to redemption. Luke also sits on the internal credit committee with Ben and Tom.
Luke joined Pure back in 2014 following a successful role in the Barclays property finance team that lasted over 8 years.See more articles by Luke