5, 7 & 14 Holland Street, Kensington, London W8 October 2017
Investment Summary A unique portfolio of three boutique retail investments in Kensington Kensington is one of London s most affluent and popular residential districts Three separate ground floor retail units let to three successful local businesses producing a total of 92,500 pa Highly affordable rents with an average of 108 Zone A Outstanding rent review on 14 Holland Street due May 2017 Weighted average unexpired lease term (WAULT) of 3.57 years to expiry Not elected for VAT purposes Offers invited in excess of 2,000,000 (Two Million Pounds) equivalent to a net initial yield of 4.35% rising to an anticipated 4.62% upon settlement of the outstanding review on 14 Holland Street having allowed for purchase costs of 6.4%. Alternatively our client will consider offers for the individual properties. Location Kensington is an internationally recognised location and is one of Central London s premier retail destinations. It is situated approximately 1 mile west of Knightsbridge and 2 miles west of Mayfair. The Royal Borough of Kensington and Chelsea is the most densely populated Borough in London. Its affluence is demonstrated by having the UK s largest number of household owner occupiers. Local attractions include the Royal Albert Hall, the Natural History Museum and the Victoria & Albert Museum. Holland Street runs west from Kensington Church Street, just to the north of Kensington High Street. It forms an upmarket retail enclave with a number of niche retailers. The properties are situated to the eastern end of Holland Street near the junction with Kensington Church Street.
Transport Transport communications are excellent provided by High Street Kensington Underground Station (District & Circle Lines) which is only 325m away forming part of the Kensington Arcade shopping facility. In addition numerous bus routes are available in the High Street and Church Street providing easy access to Knightsbridge, Hammersmith and the West End. Two nearby car parks provide over 400 car parking spaces. Description The properties occupy prominent positions on Holland Street and are of brick built construction. Each property comprises a ground floor self-contained retail unit with frontage to Holland Street. 7 Holland Street also has a basement trading area. Each tenant has fitted out their property to their own branded specification. 14 Holland Street is Grade II listed. The upper parts of each property are not included within the demise.
Tenure All three properties are held long leasehold on separate titles. 5 & 7 Holland Street are held on a 999 year lease from 8th February 2002 at a peppercorn. 14 Holland Street is held on a 999 year lease from 1st January 2008 at a peppercorn. Copies of the registered titles are available on request. The property is fully let in accordance with the tenancy schedule below and produces a current rental of 92,500 pa which will rise to an anticipated 98,220 pa on settlement of the outstanding rent review (May 2017) on 14 Holland Street. All leases are effective FRI with the exception of 5 Holland Street which is internal repairing. Property Accommodation Sq Ft (ITZA) Tenant Lease Start Next Rent Review Lease Expiry Rent pa (Zone A psf) Comments 5 Holland Street Ground Floor 7 Holland Street Ground Floor & Basement 14 Holland Street Ground Floor 301 (238) 574 (324) 354 (281) Mr & Mrs Saville- Edells (t/a Cool Cuts) Marcella Rodriguez (t.a Marcellas) RM + RL Willer (t/a Willer) 03/07/2010 02/07/2020 28,500 ( 119.75) 20/07/2000 19/07/2020 36,000 ( 111.22) 18/05/2012 18/05/2017 17/05/2022 28,000 ( 99.64) Internal repairing only. Tenant reimburses landlords costs for insurance + internal repairs but repair of external structure nonrecoverable. Full repairing and insuring. Schedule of Condition. Full repairing and insuring. Property is Grade II Listed. May 2017 rent review outstanding. ERV 33,720 pa based on a conservative 120 Zone A TOTALS 1,229 92,500 Based on a Zone A rate of 120 the property has a potential estimated rental value of 101,160 pa.
Covenants 5 Holland Street Cool Cuts was founded in 1995 and also trades from a unit in Kings Walk Mall Chelsea. Cool Cuts offer quality hair dressing services at affordable prices. Their successful formula soon led to a second Cool Cuts opening in Holland Street, Kensington. Over the years, they have assembled an international team of experienced professionals creating a unique salon experience combining person service, luxury products, talented and creative stylists in comfortable state of the art salons. Further information is available at www.coolcreative.london 7 Holland Street Marcela s is a beauty salon that was founded in 1993 and has traded on this site for over 15 years. Rated one of the best manicures in the business, Marcela s also produce their own branded products. Further information is available at www.marcelas.co.uk 14 Holland Street Willer is an International acclaimed interior design and art gallery founded by Rebecca Willer and represents a select group of international artists and makers. Further information is available at www.willer.co.uk VAT The property has not been elected for VAT purposes. EPC Ratings The properties have the following energy ratings:- 5 Holland Street D81 7 Holland Street D76 14 Holland Street D84 Proposal Offers invited in the region of 2,000,000 (Two Million Pounds) equivalent to a net initial yield of 4.35% having allowed for purchase costs of 6.4% which will rise to an anticipated 4.62% upon settlement of the outstanding rent review on 14 Holland Street and an ultimate reversionary yield of 4.76% based on 120 Zone A. Investment Considerations A unique cluster of properties available separately or as a portfolio
Let to three successful and renowned local businesses Highly affordable rents from as low as 28,000 pa ( 99.64 Zone A) Rent passing 92,500 pa rising to 98,220 pa on settlement of the outstanding rent review on 14 Holland Street Ultimate ERV of 101,160 pa ( 120 Zone A) 999 year leasehold at a peppercorn.
Viewings and Enquiries For further information or to arrange an inspection of this property, please contact: Jonathan Gilbert T: 020 7788 3817 F: 020 7491 3032 E: joanthan.gilbert@htc.uk.com Hartnell Taylor Cook LLP for themselves and for the vendor or lessor of this property, whose agent they are, give notice that: These particulars are set out as a general outline only for the guidance of intending purchasers or lessees and do not constitute part or whole of an offer or contract; All descriptions, dimensions, photographs, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but intending purchasers or lessees should not rely on them as statements or representations of fact and must satisfy themselves as to their correctness; No person in the employment of Hartnell Taylor Cook LLP has any authority to make or give any representation or warranty whatsoever in relation to this property or these particulars nor enter into any contract on behalf of the vendor or lessor; Unless otherwise stated, all prices, rents and other charges are quoted exclusive of VAT. Any intending purchasers or lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction; All plant, machinery, equipment, services and fixtures and fittings referred to in these particulars were present at the date of publication. They have not been tested and we give no warranty as to their condition or operation; No responsibility can be accepted for any expenses incurred by intending purchasers or lessees in inspecting properties that have been sold or withdrawn.