MIXED USE INVESTMENT OPPORTUNITY 306 EARLS COURT ROAD, LONDON SW5 9BA

Transcription

1 MIXED USE INVESTMENT OPPORTUNITY 306 EARLS COURT ROAD, LONDON SW5 9BA

2 MIXED USE INVESTMENT OPPORTUNITY 306 EARLS COURT ROAD, LONDON SW5 9BA to CR BRAMHAM GDNS 4 The Mansions LB INVESTMENT SUMMARY m Trees A freehold, mixed use investment opportunity situated in Earls Court, Central London comprising: Commercial unit (extending to sq m / 2,255 sq ft) currently let to Couscous Darma Ltd for a term of 20 years commencing on 24th October 2013 at a rent of 55,000 per annum Four self contained apartments (2 x studios, 1 x one bed & 1 x three bed, extending to sq m/ 1,879 sq ft) let on ASTS producing an income of 62,400 per annum Total gross rental income of 131,200 per annum (including ERV for vacant apartment) with an Estimated Rental Value of 132,400 per annum Overall Gross Internal Area (including common parts) extending to sq m (4,376 sq ft) Located in Earls Court within Travel Zone 1 approximately 500 meters from Earls Court Underground Station (District, Circle and Piccadilly Lines) Opportunity to add value through refurbishment 3a 8 COURT SQUARE FARNELL MEWS to 6 2 Herbert Court Mansions 30 TCBs LOCATION AND SITUATION 0m 10m 20m 30m The property is located in Earls Court, within the Royal Borough Ordnance of Survey Kensington Crown Copyright All rights reserved. and Chelsea. Earls Court Road itself runs north to south connecting Cromwell Road to Brompton Road. The street is characterised by a mix of retail and residential property and includes the major transport interchange of Earls Court Station (Travel Zone 1: Circle & District and Piccadilly). Green Park 4 26 to 48 Oxford Circus 292 Wetherby Mansions 2 to 24 Wetherby Mansions Paddington Mainline Railway 252 Heathrow International Airport EARL'S COURT ROAD a to l 37 to to to CR TCB Boro Const & Ward Bdy 9 mins 15 mins 9 mins 37 mins Transport connections are excellent with Earls Court Underground Station situated 0.2 miles north of the subject property and West Brompton Overground Station situated 0.3 meters to the south west. There are also various accessible bus routes within the vicinity that connect the property to wider London m Richmond Mansions 1 to m OLD BROMPTON ROAD Cycle Hire Station Crown Copyright - licence no Based on Ordnance Survey Not to Scale - For Identification Purposes Only. The Mansions 1 13 to 24 The Mansions Licence number Plotted Scale - 1: to LB 102 El Sub Sta m BRAMHAM GARDENS 23 8 WETHERBY MEWS to DESCRIPTION 154 to The property is a mid terraced, freehold building comprising four residential apartments and one commercial unit. The residential accommodation comprises two x studios, one x one bed and one x three bed arranged over first to third floors. Three of the apartments are let on ASTs and produce a rental income of 62,400 per annum. The remaining apartment, Flat 3 will be provided with vacant possession. Each of the apartments are in lettable condition providing popular rental accommodation. However, the flats would benefit from modernisation in due course. In addition, there is potential to extend into the roof space (subject to necessary consents) The retail unit is arranged over the ground and lower ground floors. The unit is let to Monsieur K Ltd on a 20 year FRI lease, commencing on 24th October 2013, excluded from the security of the Landlord and Tenant Act The passing rent is 55,000 per annum, subject to 5 yearly rent reviews to the open market rent agreed. The lease has since been assigned to Couscous Darma Ltd, who have fitted the unit out to a high specification.

3 3 EARLS COURT REGENERATION The Earls Court Masterplan is arguably one of the most exciting regeneration projects in the capital. A concept devised by Sir Terry Farrell expands across 77 acres of Earls Court and proposes the transformation of the area into four new urban villages and a high street. The site is being developed by property company Capital & Counties Properties PLC, and includes 7,500 new homes, ranging from mansion blocks to family houses, loft-style flats and affordable housing. Construction has already begun on the first phase but the entire Masterplan is a long term project. A regeneration site of this scale is genuinely unique in central London. As development continues and connectivity is improved, particularly from east to west over the railway line, the latent value of the housing stock in locations surrounding the development will be progressively unlocked by rising demand from increasingly affluent buyers and tenants. Current and pipeline development schemes shown below: Crown Copyright - licence no Based on Ordnance Survey Not to Scale - For Identification Purposes Only. Lillie Square The Landau Ariana Apartments Developer: Capco Units: 608 private units Capital Value Ranges: - 515K 535K - 1 Bed 595K 900K - 2 Bed 940K 1.4M - 3 Bed 1.03M 1.86M Developer: Mount Anvil Units: 107 total, 89 private units Capital Value Ranges: - 1 Bed 915K 1.365M - 2 Bed 1.19M 1.565M - 3 Bed 2.35M 2.45M IPE Developments Units: 20 private units Capital Value Ranges: - 1 Bed 600K 700K - 2 Bed 765K 960K - 3 Bed 985K 1.125M

4 4 MARKET OVERVIEW ESTIMATED RENTAL VALUE AND RUNNING YIELD Earl s Court remains one of the most promising markets in close proximity to central London. As buyers in southern Chelsea are out priced, demand filters to central fringe locations. Furthermore, buyers are attracted by the prospect of acquiring more space for their budget whilst enjoying a central location with outstanding transport connections. The area has the housing stock to become a more established prime location and the catalyst for change will come from substantial regeneration and new investment into the area. Many of the hotels are now being restored back to their residential use and the biggest change will come from the redevelopment around the former Earls Court exhibition centre. Investors are particularly attracted to this part of London as there is a mature private rented sector. According to the 2011 Census, 25.1% of households in London are in the private rented sector and in Earl s Court the proportion is significantly higher at 41.6% of all households. Demand for rental properties in the area comes from tenants in both the prime and mainstream markets. The prime rental market benefits from strong employment and the increasing number of international companies in London. Savills figures show that across prime London, 47% of tenants are renting due to employment relocation and 60% of tenants are from overseas. Rental Forecasts year UK Residential 3.0% 3.0% 3.0% 3.0% 3.5% 16.5% London Residential 4.0% 4.0% 4.0% 4.5% 4.5% 22.8% London Retail 2.0% 2.0% 2.0% 2.0% 2.0% 10.4% Commercial ERV 55,000 55,000 57,222 57,222 57,222 57,222 Residential ERV 77,400 80,496 83,716 87,483 91,420 95,047 Total ERV 132, , , , , ,269 Gross Yield 4.4% 4.5% 4.7% 4.8% 5.0% 5.1%

5 5 FLOORPLANS - APPROXIMATE GROSS INTERNAL AREA: SQ M / 4,376 SQ FT Lower Ground Ground Floor First Floor Second Floor Third Floor Earls Court Earls Road, Court SW5Road, Earls SW5 Court Road, SW5 Approximate Gross Approximate Internal Area Gross Approximate Internal AreaGross Internal Area sq m / 4,376 sq m sq / ft4,376 sq sq m ft / 4,376 sq ft x 4.32m x 4.32m Flat x 4.32m 4.74 x 3.38m 15'7 x 11'1 Flat x 4.32m m 15'7 11'1 Flat 3 Flat 2 / 4.74 x 3.38m 15'7 x 11'1 Flat 32 / 4.74 x 3.38m 15'7 x 11'1 Flat 2 / Flat 2 / 5.40 x 4.17m 5.40 x 4.17m 5.39 x 4.23m '8 x 4.17m 13'11 Reception Room 5.39 x 4.23m 5.39 x 4.23m4.24 x 3.41m 5.39 x m x 3.41m 17'8 x '11x 4.17m 4.23 x 17'8 2.11m x 13'11 13' x 2.11m 11'2 17'8 x 13' x x 11'2 2.11m 13'11 x 6'11 13'11 x 6'11 13'11 x 6' x 3.41m 13'11 x '2 x 2.11m 13'11 x 6' x 3.41m 13'11 x 11'2 ILLUSTRATION FOR ILLUSTRATION IDENTIFICATION FOR PURPOSES IDENTIFICATION ILLUSTRATION ONLY PURPOSES FOR IDENTIFICATION ONLY PURPOSES ONLY ALL MEASUREMENTS ALL ARE MEASUREMENTS MAXIMUM, AND ARE ALL INCLUDE MAXIMUM, MEASUREMENTS WINDOW AND INCLUDE BAYS ARE AND MAXIMUM, WINDOW WARDROBES AND BAYS INCLUDE WHERE AND WARDROBES APPLICABLE WINDOW BAYS WHERE AND APPLICABLE WARDROBES WHERE APPLICABLE THIS PLAN MUST NOT THIS BE PLAN REPRODUCED MUST NOT BY BE THIS ANY REPRODUCED PLAN OTHER MUST PERSON BY NOT ANY BE WITHOUT OTHER REPRODUCED PERSON PERMISSION BY WITHOUT ANY OTHER PERMISSION PERSON WITHOUT PERMISSION Floorplans provided by Fulham Performance

6 6 ACCOMMODATION SCHEDULE Unit Floor Type Sq m Sq ft Retail Ground and lower ground Passing Rent PCM Passing Rent PA Lease Start Date Lease End Date Restaurant ,255 4,583 55,000 24/10/13 23/10/33 First ,083 13,000 21/10/15 20/10/16 Flat 3 First ,150 13,800 N/A N/A Flat 2 Second ,192 14,300 05/10/15 04/10/16 Second & third ,925 35,100 29/09/15 24/09/16 TOTAL (including common parts) ,376 10, ,200 * Rents as of April 2016 **Flat 3 is the ERV TENURE The property is held Freehold METHOD OF SALE The property is offered for sale freehold by private treaty. Offers are sought for the freehold interest subject to contract and the existing tenancies. VIEWINGS Viewings are strictly by appointment via the vendor s sole selling agents, Savills. Please contact one of the agents below to make an appointment. CONTACTS Davina Clowes James Watkins + 44 (0) (0) dclowes@savills.com jwatkins@savills.com VAT The property is not elected for VAT. FURTHER INFORMATION A full suite of background information, including EPCs, can be found on the online dataroom at: Important Notice Savills, and their clients give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and that Savills and Knight Frank have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. Designed and Produced by Savills Marketing: April 2016