mixed use investment opportunity 306 earls court...

MIXED USE INVESTMENT OPPORTUNITY

306 EARLS COURT ROAD, LONDON SW5 9BA

2MIXED USE INVESTMENT OPPORTUNITY | 306 EARLS COURT ROAD, LONDON SW5 9BA

INVESTMENT SUMMARY

A freehold, mixed use investment opportunity situated in Earls Court, Central London comprising:

• Commercial unit (extending to 209.5 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 174.6 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 406.5 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

LOCATION AND SITUATION

The property is located in Earls Court, within the Royal Borough of Kensington 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 9 minsOxford Circus 15 minsPaddington Mainline Railway 9 minsHeathrow International Airport 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.

DESCRIPTIONCR

Boro Const & Ward Bdy

CR

8.0m

8.1m

8.2m

8.1m

LB

TCBs

TCB

Cycle Hire Station

LB

FARNELL MEWS

EARL'S

OLD BROMPTON ROAD

BRAMHAM GDNS

CO

URT RO

AD

WETHERBY MEWS

COURT SQUARE

BRAMHAM

GARDENS

Trees27

1 to 1

0

17

1

3

244

1 to 12

102

The Mansions

Herbert Court M

ansions

45

4

2 to 24

304

231

136 t

o 15

3

252

249

1

39

312

12

9

Wetherby Mansions

238

30

37 to 59

a to l

Wetherby Mansions

Sub Sta

278

2

18

Richmond Mansions

310

4

240

6

El

3a

237

227

28

40

288

43

1

246

19242

13 to 24

26 to 37

248

11

1 to 11

322

239

292

233

302

2

13 to 35

326

23915

4 to

173

8

23

16

15

14

4

1

215

219The

1 to 6

10

225

8

Mansions

26 to 48

229

The Mansions

0m 10m 20m 30m

Ordnance Survey © Crown Copyright 2016. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250

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 1954. 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.

Crown Copyright - licence no. 100018190. Based on Ordnance Survey 2016. Not to Scale - For Identification Purposes Only.


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:

• Developer: Capco

• Units: 608 private units• Developer: Mount Anvil

• Units: 107 total, 89 private units

• IPE Developments

• Units: 20 private units

Lillie Square The Landau Ariana Apartments• Capital Value Ranges:

- Studio–£515K–£535K

- 1 Bed–£595K – £900K

- 2 Bed–£940K–£1.4M

- 3 Bed–£1.03M–£1.86M

• Capital Value Ranges:

- 1 Bed–£915K–£1.365M

- 2 Bed–£1.19M–£1.565M

- 3 Bed–£2.35M–£2.45M

• Capital Value Ranges:

- 1 Bed–£600K–£700K

- 2 Bed – £765K – £960K

- 3 Bed – £985K–£1.125M

Ordnance Survey © Crown Copyright 2016. All rights reserved. Licence number 100022432. Plotted Scale - 1:4237

Crown Copyright - licence no. 100018190. Based on Ordnance Survey 2016. Not to Scale - For Identification Purposes Only.


MARKET OVERVIEW

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.

ESTIMATED RENTAL VALUE AND RUNNING YIELD

Rental Forecasts 2016 2017 2018 2019 2020 5 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 £57,222Residential ERV £77,400 £80,496 £83,716 £87,483 £91,420 £95,047

Total ERV £132,400 £135,496 £140,938 £144,705 £148,642 £152,269Gross Yield 4.4% 4.5% 4.7% 4.8% 5.0% 5.1%


Lower Ground Third FloorGround Floor First Floor Second Floor

FLOORPLANS - APPROXIMATE GROSS INTERNAL AREA: 406.5 SQ M / 4,376 SQ FT

Lift

Earls Court Road, SW5Approximate Gross Internal Area

406.50 sq m / 4,376 sq ft

ILLUSTRATION FOR IDENTIFICATION PURPOSES ONLYALL MEASUREMENTS ARE MAXIMUM, AND INCLUDE WINDOW BAYS AND WARDROBES WHERE APPLICABLE

THIS PLAN MUST NOT BE REPRODUCED BY ANY OTHER PERSON WITHOUT PERMISSION

9.42 x 5.28m30'11 x 17'4

5.33 x 3.20m17'6 x 10'6

4.42 x 4.30m14'6 x 14'1

Lift

Vent

14.09 x 4.32m46'3 x 14'2

Studio5.40 x 4.17m17'9 x 13'8

Studio4.74 x 3.38m15'7 x 11'1

Kitchen Bedroom3.22 x 3.03m10'7 x 9'11

Reception Room5.39 x 4.23m17'8 x 13'11

Kitchen/Reception Room

4.66 x 3.38m15'3 x 11'1

Kitchen4.84 x 3.14m15'11 x 10'4

Bedroom4.23 x 2.11m13'11 x 6'11

Bedroom4.24 x 3.41m13'11 x 11'2

Bedroom3.38 x 3.19m11'1 x 10'6

Flat 3

Flat 4

Flat 2

Flat 1

Lift


406.50 sq m / 4,376 sq ft



9.42 x 5.28m30'11 x 17'4

5.33 x 3.20m17'6 x 10'6

4.42 x 4.30m14'6 x 14'1

Lift

Vent

14.09 x 4.32m46'3 x 14'2

Studio5.40 x 4.17m17'9 x 13'8

Studio4.74 x 3.38m15'7 x 11'1




4.66 x 3.38m15'3 x 11'1

Kitchen4.84 x 3.14m15'11 x 10'4

Bedroom4.23 x 2.11m13'11 x 6'11

Bedroom4.24 x 3.41m13'11 x 11'2

Bedroom3.38 x 3.19m11'1 x 10'6

Flat 3

Flat 4

Flat 2

Flat 1

Lift


406.50 sq m / 4,376 sq ft



9.42 x 5.28m30'11 x 17'4

5.33 x 3.20m17'6 x 10'6

4.42 x 4.30m14'6 x 14'1

Lift

Vent

14.09 x 4.32m46'3 x 14'2

Studio5.40 x 4.17m17'9 x 13'8

Studio4.74 x 3.38m15'7 x 11'1




4.66 x 3.38m15'3 x 11'1

Kitchen4.84 x 3.14m15'11 x 10'4

Bedroom4.23 x 2.11m13'11 x 6'11

Bedroom4.24 x 3.41m13'11 x 11'2

Bedroom3.38 x 3.19m11'1 x 10'6

Flat 3

Flat 4

Flat 2

Flat 1

Lift


406.50 sq m / 4,376 sq ft



9.42 x 5.28m30'11 x 17'4

5.33 x 3.20m17'6 x 10'6

4.42 x 4.30m14'6 x 14'1

Lift

Vent

14.09 x 4.32m46'3 x 14'2

Studio5.40 x 4.17m17'9 x 13'8

Studio4.74 x 3.38m15'7 x 11'1




4.66 x 3.38m15'3 x 11'1

Kitchen4.84 x 3.14m15'11 x 10'4

Bedroom4.23 x 2.11m13'11 x 6'11

Bedroom4.24 x 3.41m13'11 x 11'2

Bedroom3.38 x 3.19m11'1 x 10'6

Flat 3

Flat 4

Flat 2

Flat 1

Lift


406.50 sq m / 4,376 sq ft



9.42 x 5.28m30'11 x 17'4

5.33 x 3.20m17'6 x 10'6

4.42 x 4.30m14'6 x 14'1

Lift

Vent

14.09 x 4.32m46'3 x 14'2

Studio5.40 x 4.17m17'9 x 13'8

Studio4.74 x 3.38m15'7 x 11'1




4.66 x 3.38m15'3 x 11'1

Kitchen4.84 x 3.14m15'11 x 10'4

Bedroom4.23 x 2.11m13'11 x 6'11

Bedroom4.24 x 3.41m13'11 x 11'2

Bedroom3.38 x 3.19m11'1 x 10'6

Flat 3

Flat 4

Flat 2

Flat 1

Floorplans provided by Fulham Performance


ACCOMMODATION SCHEDULE

Unit Floor Type Sq m Sq ft Passing Rent PCM

Passing Rent PA

Lease Start Date

Lease End Date

Retail Ground and lower ground

Restaurant 209.5 2,255 £4,583 £55,000 24/10/13 23/10/33

Flat 4 First Studio 25.0 269 £1,083 £13,000 21/10/15 20/10/16

Flat 3 First Studio 28.1 302 £1,150 £13,800 N/A N/A

Flat 2 Second 1 28.8 310 £1,192 £14,300 05/10/15 04/10/16

Flat 1Second & third

3 92.7 998 £2,925 £35,100 29/09/15 24/09/16

TOTAL (including common parts) 406.5 4,376 £10,933 £131,200

* 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.

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:

www.savills.com/306Earlscourtroad

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) 20 7016 3838 + 44 (0) 20 7409 8056 [email protected] [email protected]

Important NoticeSavills, 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: 020 7499 8644 | April 2016

mixed use investment opportunity 306 earls court...

Documents