MIXED USE INVESTMENT OPPORTUNITY 306 EARLS COURT...
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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
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302
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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.
3MIXED USE INVESTMENT OPPORTUNITY | 306 EARLS COURT ROAD, LONDON SW5 9BA
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.
4MIXED USE INVESTMENT OPPORTUNITY | 306 EARLS COURT ROAD, LONDON SW5 9BA
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%
5MIXED USE INVESTMENT OPPORTUNITY | 306 EARLS COURT ROAD, LONDON SW5 9BA
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
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
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
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
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
Floorplans provided by Fulham Performance
6MIXED USE INVESTMENT OPPORTUNITY | 306 EARLS COURT ROAD, LONDON SW5 9BA
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