Businessmen cannot find tenants for £1m buildings in for Granby Street, Leicester
Businessmen who paid £1 million for a section of a street in Leicester city centre say they cannot find anyone who wants to rent space there.
The three partners bought four buildings in Granby Street for £1,010,000 at an auction in London last October.
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Businessmen who paid £1 million for 113-133 Granby Street, Leicester, say they cannot find any tenants
But Mehil Somani, one of the partners who bought the buildings – which spread from numbers 113 to 133 and incorporate office space and seven retail units – said the investment had not lived up to the businessmen's expectations as nobody wanted to rent any of the space.
"To say we are disappointed is an understatement," he said.
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"Myself and my partners thought we would be investing in a prime section of Leicester city centre which would provide us with an exciting opportunity.
"Granby Street is a major gateway into the city because of the railway station and we want people to shop on it not just pass along it on their way to Highcross.
"Some people are renaming it cheap street and that is not helping us at all. We just can't get the businesses we need to rent the space."
Mr Somani said the partners had hoped to discuss "a way forward" with city mayor Sir Peter Soulsby but had "not been able to get past his personal assistant".
Sir Peter said he had checked and did not have a record of an approach by any of the three businessmen.
"However, if they would like to get in touch with me then I would be delighted to talk to them about the building and the city," he said.
"I have met with many developers over the past year and I am always happy to do so. In fact, I tend to meet them as a matter of routine."
Mr Somani, who lives in Bushby, said his two partners were Hitesh Ghelani, 51, a director of Ghelani cash and carry, in Catherine Street, Leicester, and Ajay Singh, 28, who owns the Blues pub, in Oadby.
He said the buildings were given a guide price at the auction of £450,00 and were described as "potential redevelopment opportunity for residential and student accommodation or hotel (subject to consent)".
A Leicester City Council spokesman said the authority had done much to improve the Granby Street area.
"We have invested heavily in improvements to Granby Street to support retail and will continue to do so," he said.
"The area has already seen over £3 million of investment in improved pavements, new trees and landscaping.
"It is also one of six priority areas in the city set to benefit from a £600,000 scheme to improve shop fronts.
"Recent improvements to the railway station, and work to strengthen office development in the area, will also help retail in this part of the city."
The buildings include the 157-year-old former Thomas Cook Temperance Hotel.
A property group which was given consent to demolish the building – despite a spirited campaign to save it – as part of a development of a seven-storey office block, shops and a restaurant went into administration in September 2010.
Comments
by MakeADiff
Thursday, November 01 2012, 2:17PM
“This article is very misleading and NOT true. This should never have been published in the Mercury, it is very irresponsible to allow the paper to be so blatantly used in this way ... it is purely an advert for the landlords businesses and a blatant means to get to the Mayor!!!
It is NOT that people do not want to rent their retail units, I know this for a fact! The landlords obviously thought they could make a 'quick buck' without spending any serious money on making the property properly tenantable (even to a basic level for a retail unit).
The leases the landlords try and dupe you into signing are 'gold standard' leases and include service charges, which is fine when the building is modern and in good condition, but when it is in a really dilapidated state, well what do they expect, nobody is going to fall for that.
They spent over double the guide price in purchasing the property and have done very little work on the building to encourage businesses to rent units, so what do they expect? They do however, have 2 units occupied by a charity and a community project who have taken the units on as is (image is obviously not an issue for them).
It was obviously a bad investment and they want a quick return on their investment with having to do very little other than a few cosmetic changes. The whole building is a wreck and in need of some serious investment to bring it up to even the basic standard so that it can be occupied.
I certainly wouldn't want my hard earned tax money spent helping them and they shouldn't get any special treatment either, it is a private investment and as such they are responsible for their bad investment / bad business calls!”
by unbiased
Wednesday, October 24 2012, 11:54PM
“I think judging by the comments I speak for us all when I say that this is an outrages article and the editor should never allowed this non news quasi-advert to have been published! And if you agree with what I say then give it a thumbs up!!!”
by Rajjan
Wednesday, October 24 2012, 7:06PM
“Not only cheap advertisment for Granby Street empty building , it is also for Ghelani cash and carry and Blues pub. Sorry for three landlords. Appeal for the donation .”
by daveb0360
Wednesday, October 24 2012, 6:07PM
“Nobody wants city centre properties any more. Councils have murdered parking, slap huge business rates on business etc. City centres are only fodder for boozers and the rich in society.
I wouldn't want my business in a city centre, having to clean the frontage of urine, vomit, condoms and takeaway food remains etc.
What level of greedy, capitalist stupidity led these so called 'businessmen' to such a ludicrous purchase at over twice the guide price.
Sorry guys but you need to remove the gold plated shades from your eyes.”
by h0m3rj4y
Wednesday, October 24 2012, 12:57PM
“Rich businessmen loose money on property investment....oh dear....as they say a fool and his money are quickly parted.”
by Jagomeister
Tuesday, October 23 2012, 9:12PM
“Should have gone to specsavers.”
by unbiased
Tuesday, October 23 2012, 9:08PM
“Talk about free advertising, who cares about his bad business judgements, it happens all the time, and they dont get a free plug and puff piece!”
by georgeisafish
Tuesday, October 23 2012, 7:47PM
“why would anyone pay over a million, for property worth a fraction of that amount? no research or homework done!”
by oldhenry
Tuesday, October 23 2012, 7:10PM
“Who paid the Mercury to advertise this chap's business? I bet there are many landlords unable to rent out premises but do not get free advertising.
I cannot , ever, be sorry for capitaists when they are caught making stupid decisons. They are typical greedy capitalists that thought it was a bargain to buy and would make a mint. Well, it does not turn out like that , otherwise someone else would have bought it!
Go bust like many others and start agian.”
by vanip
Tuesday, October 23 2012, 6:36PM
“Sob sob sob so buy property and and get council to rescue you paid over a million surely they must have done their home work it was a site ready for redevelopement so redevelope dont cry”