857/859 Fulham road, London sw6

Transcription

1 857/859 Fulham road, London sw6

2 Investment Summary Freehold mixed use retail & residential opportunity situated in a prominent trading pitch at the junction of Fulham Road and Munster Road. Retail element let to The Carphone Warehouse on a lease expiring 9 th January 2017 at a passing rent of 70,000 pa reflecting ITZA. The subtenant of 857 Fulham Road, Roundhouse Design has agreed a new 5 year lease direct from the Landlord commencing on expiry of the current sub-lease. Residential apartment comprising 1,124 sq ft arranged over 1 st and 2 nd floors available with vacant possession. Additional apartment has been sold off on a LLH expiring 2120 at a ground rent of 50 pa increasing to 100 pa in Potential for redevelopment and additional space gain to the rear of the property on the upper floors subject to the necessary consents. Offers are invited in excess of 2,110,000, subject to contract and exclusive of VAT, reflecting a net initial yield of 5.25% on the retail element and 800 per sq ft on the residential assuming acquisition costs of 5.8%.

3 Location Situated in Fulham, South West London, the subject property lies on the south side of Fulham Road towards its western end at the junction with Munster Road, a short walk from Parsons Green and New Kings Road. The area is typified by a mixture of retail and residential accommodation with the majority of properties along the road comprising ground floor retail and residential/ancillary on the upper floors. The western section of Fulham Road is characterised by independent retailers serving the affluent local population. To the north east of the property is Fulham Broadway Shopping Centre which attracts 12 million visitors a year and is surrounded by a number of upmarket restaurants and bars. Communications The property is served by good public transport connecting the area with Central London. It is situated on a major bus route and is located approximately 0.3 miles to the west of Parsons Green Underground Station and approximately 0.7 miles to the south of Fulham Broadway Underground Station. Both stations are on the Wimbledon branch of the District Line. In addition West Brompton Station is approximately 1.2 miles to the north west which provides an overground service.

4 Property Description The property occupies a prominent corner site and is arranged over basement, ground and two/three upper floors. The basement and ground floors comprise two retail units at numbers 857 and 859 Fulham Road with the basement of number 857 extending beneath the adjacent unit of number 859. The upper floors comprise 2 / 3 bedroom 2 bathroom maisonettes. 857a will be offered with vacant possession and 857b has been sold on a LLH interest expiring in Tenure Freehold. Redevelopment Potential The rear of the property comprises an underutilised yard area and subject to the necessary consents there would be the ability to reconfigure the existing property to create additional accommodation arranged over a number of levels. Accommodation Schedule We understand the property provides the following approximate net internal floor areas. 857 Fulham Road Roundhouse Design Floor Use Area (sq ft) ITZA 1 Ground Floor Retail Sales Basement Retail Ancillary 1,041 Total 1, Fulham Road Carphone Warehouse Floor Use Area (sq ft) ITZA 1 Ground Floor Retail Sales Total Retail 2,377 1 The ground floor area has been expressed in terms of 20ft zones. 857a Fulham Road Residential Floor Use Area (sq ft) 1 st Floor Residential nd Floor Residential 572 Sub Total 1, a Fulham Road Residential Floor Use Area (sq ft) 1 st Floor Residential Not measured 2 nd Floor Residential Not measured 3 rd Floor Residential Not measured Sub Total Total c.1,300 c.4,801

5 Tenancy Schedule Tenant Floor Use Area (sq ft) Lease Start Lease End (Break) Rent (ITZA) Passing Rent pa The Carphone Warehouse Limited Ground and Basement Fulham Road Retail 2,377 (occupy 708) 11/01/ /01/ ,000 Roundhouse Design 1 Ground of 857 and Basement of Fulham Road Retail 1,669 01/06/ /01/ ,500 (payable to the Carphone Warehouse) Vacant Possession Robert Smith 857a 1 st & 2 nd Floor 859a 1 st, 2 nd & 3 rd Floor Residential 1,124 Residential c. 1,300 29/09/ /09/ (increasing to 100 pa in 2020) Total 3,501 70,050 1 Roundhouse Design is a sub-tenant of The Carphone Warehouse and occupy the ground floor of number 857 and the basement of Fulham Road. A counterpart lease dated 16 June 2013 has been agreed between the Landlord and Roundhouse Design for a term of 5 years commencing 7 January 2017 and expiring 6 January The initial rent agreed of 30,000 per annum is to be reviewed on 7 January 2017.

6 Covenants The Carphone Warehouse 100% of the income is currently secured to The Carphone Warehouse. The company is an independent mobile phone retailer with over 1,700 stores across Europe. In August 2014 the company merged with Dixons Retail to form Dixons Carphone. The Carphone Warehouse has a D&B rating of 5A1 which represents a minimum risk of business failure. Roundhouse Design Limited None of the current income to the Landlord is secured to Roundhouse Design however as of 7 th January 2017 the tenant will pay rent direct to the Landlord. Roundhouse Design specialise in the design and manufacturing of bespoke kitchens and other furniture. In addition to the Fulham showroom they are located in the West End, Notting Hill, Islington, Richmond, Guildford and Cheltenham with a factory in Malvern, Worcestershire. Roundhouse Design Limited has a D&B rating of A1 which represents a minimal risk of business failure. Planning The property is located within the London Borough of Hammersmith and Fulham. The building is neither listed nor within a Conservation Area. The retail units are used for the sale of products under class A1 of the use classes order VAT The property has been elected for VAT purposes and VAT will therefore be payable on the purchase price unless the transaction is completed as a transfer of a going concern (TOGC). *For illustrative purposes only.

7 Proposal We are instructed to request offers in excess of 2,110,000, reflecting a net initial yield of 5.25% on the retail element, and 800 per sq ft on the residential, assuming acquisition costs of 5.8%. Further Information For further information or to arrange an inspection, please contact the following: James McCluskey Tel: James.Mccluskey@knightfrank.com Niall Scott-Underdown Tel: Niall.Scott-Underdown@knightfrank.com Lara Samworth Tel: Lara.Samworth@knightfrank.com Subject to Contract and Exclusive of VAT Important notice Knight Frank LLP is not authorised to and cannot advise in relation to any sale of shares and will act as agents in respect of the sale of the property interest only. We would recommend that you seek your own independent advice in relation to any sale of shares or other corporate structure and we are not responsible for any information or opinions provided in respect of any such sale. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing ( information ) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members names. November 2014