13kensington church street€¦ · bond street 6 min tottenham court road 9 min bank 16 min 11 min...

KensingtonChurch StreetLondon W8 4LF13

ATTRACTIVE LONDON FREEHOLD RETAIL AND RESIDENTIAL INVESTMENT OPPORTUNITY

13 Kensington Church Street & 6a Gregory Place 2

Investment Considerations• ProminentpropertysituatedintheheartofKensington,within

oneofLondon’smostaffluentboroughs,theRoyalBoroughofKensingtonandChelsea.

• StrategicpositiononthemainthoroughfareandpopularshoppingdistrictbetweenKensingtonHighStreetandNottingHill.

• 2,708sqft(251.5sqm)mixedusepropertycomprisingretailaccommodationovergroundfloorandbasementwithresidentialaccommodationonthefirst,secondandthirdfloors.

• Totalcurrentincomeof£131,892perannum.

• TheretailunitislettoCavendishClinicLimiteduntil25thJuly2029withtheinitialrentof£80,000perannumincreasingto£85,000perannumon26thJuly2023.

• Theresidentialaccommodationcomprisesfourself-containedflats;twoletonASTsandtwoonregulatedtenancies,generatingacurrentrentalincomeof£51,892perannum.

• Freehold.

ProposalWeareinstructedtoseek offers in excess of £2,800,000(subjecttocontractandexclusiveofVAT)reflectinganet initial yield of 4.50% on the commercial elementandanaveragecapital value of £814 psf on the residential element.

Yieldsarenetofpurchasercostsof6.43%

13 Kensington Church Street & 6a Gregory Place 3

LocationKensingtonChurchStreetisintheheartoftheRoyalBoroughofKensingtonandChelseaandactsasthemainthoroughfarebetweenKensingtonHighStreetandNottingHill–drivingfootfallfromthesurroundingaffluentresidentialneighbourhoods.

ThestreetisjustmomentsawayfrompopulartouristdestinationssuchasKensingtonPalaceandtheRoyalAlbertHall.Thesurroundingareaisavibranthubforrestaurants,barsandiswidelyconsideredakeycentralLondonRetailsub-marketwhichstillremainsaworld-renownedfashiondestination.TheRoyalBoroughofKensingtonandChelseaalsoboastsextensivegreenspaces,withbothHollandParkandHydePark.

“Moments away from Kensington Palace and the Royal Albert Hall”

River Thames

River Thames

River Thames

Earl’s Court

Hammersmith

Shepherd’sBush

Kensington

High StreetKensington

Notting HillGate

Hyde ParkCorner

Victoria

CharingCross

PiccadillyCircus

Oxford Circus

SouthKensington

FulhamBroadway

LondonPaddington

Sloane Square

Regents Park

King’s Cross St Pancras

ChanceryLane

London

Bridge

Monument

Liverpool Street

Waterloo

Elephant and Castle

Clapham Junction

PUTNEY

MAYFAIR

MARYLEBONE

SOUTH KENSINGTON

KNIGHTSBRIDGE

FULHAM

SHEPHERD’SBUSH

CHELSEA

LAMBETH

BELGRAVIA

FITZROVIA

SOHOLEICESTER SQUARE

THE SOUTHBANK

KING’S CROSS

SOUTHWARK

BRIXTON

CAMBERWELL

SOUTHFIELDS

HOLLOWAY

KENSINGTONCHURCH STREET

Kensington High Street

Earls Court2 min

Sloane Square6 min

Victoria8 min

4 min

Notting HillGate

Bond Street6 min

TottenhamCourt Road

9 min

Bank16 min

11 min

CIRCLE & DISTRICT LINES

CENTRAL LINE

13 Kensington Church Street & 6a Gregory Place 4

SituationThepropertyislocatedinaprominentpositiononthewesternsideofpopularKensingtonChurchStreet,just100metresfromitsjunctionwithKensingtonHighStreet.Itiswithina3-minutewalkfromKensingtonHighStreetStation(CircleandDistrictlines)anda10-minutewalkfromNottingHillGateStation(Central,CircleandDistrictlines).

IntheimmediatevicinitythepropertyissettobenefitfromthedevelopmentofLancerSquare,thehigh-endresidentialleddevelopmentdirectlyoppositethesubjectpropertywhichwillprovide36luxuryapartmentsandnewcommercialunits.

OtherretailersincloseproximitytothesubjectpropertyincludeReiss,BenefitCosmetics,SweatyBetty,SpaceNKandthe3-storeyflagshipWholeFoodsMarket.Anumberofupmarketindependentretailersalsoenrichthevibrancyofthisaffluentshoppingdistrict.

KENSINGTON HIGH STREET

KENSINGTON HIGH STREET

KENSIN

GTON CH

URCH

STREET

13 Kensington Church Street & 6a Gregory Place 5

DescriptionThepropertycomprisesa5-storeyterracebuildingwithretailspaceatbasementandgroundlevelandresidentialaccommodationovertheupper3floors.

RetailCavendishClinichasfittedtheunitouttoaveryhighstandardandoccupiesawellconfiguredsalesareawithtreatmentroomsatgroundflooraswellascustomerWC,staffandancillaryspaceinthebasement.Theunitprovides832sqft(77.3sqm)atgroundfloorand488sqft(45.3sqm)atbasementlevel.

Residential Theupperpartsarearrangedasfourself-containedresidentialflats,whichareaccessedfromaseparateentranceattherearofthepropertyviaGregoryPlace,anattractiveresidentialMews.TwooftheflatsbenefitfromasharedcourtyardterracewithimpressiveviewsoftheStMaryAbbottsChurch.TheterraceoffersfuturepotentialforFlat1tobeextended.

Storage/Dressing

Room

Studio

Kitchen

Bathroom

Bathroom

OpenPlanKitchen/Reception

Bathroom

Bat

hroo

m

Kitchen

LoungeRoom

BedroomBedroomKitchen

Studio

13 Kensington Church Street & 6a Gregory Place 6

Tenancy Schedule

Address Unit Tenant DescriptionArea (sq ft)

Area (sq m)

Lease StartLease Expiry (Break Date)

Rent Passing (pa)

Comments

13 Kensington Church Street

RetailCavendishClinicLimited

GroundFloorITZABasement

832 472 488

77.3

45.326/07/2019

25/07/2029(26/07/2024)

£80,000

Theleaseissubjectto6monthsrentfreeand15monthshalfrent.Thevendorwilltopupthecommercialincometo£80,000pa.Fixedupliftto£85,000paon26/07/2023.Openmarketupwardonlyrentreviewon26/07/2024.Thereisarentaldepositof£48,000.Theleaseisexcludedfromsections24-28oftheLandlordandTenantAct1954.

Total Commercial 1,320 122.6 £80,000

6a Gregory Place Flat1(Studio)ProtectedTenancy

FirstFloor 160 14.9 Protected £6,054Protectedtenancy.Unrefurbished.Lastrentalincreasewasin2016.Sharedterrace.

6a Gregory Place Flat2(1bed) AST FirstFloor 456 42.4 14/09/2018 13/09/2019 £20,540 AST.Sharedterrace.

6a Gregory Place Flat3(Studio) AST SecondFloor 386 35.8 07/10/2019 06/10/2020 £18,980 AST.Recentlyrefurbished.

6a Gregory Place Flat4(1Bed)ProtectedTenancy

ThirdFloor 386 35.8 Protected £6,318Protectedtenancy.Unrefurbished.Lastrentalincreasewasin2016.

Total Residential 1,388 128.9 £51,892

Total £131,892

13 Kensington Church Street & 6a Gregory Place 7

Tenure, Rental Evidence & CovenantTenure

Rental EvidenceWehaveanalysedthepassingrentof£80,000perannumtoreflectaheadlinerentof£161persqftZA.

Therenthasbeensetatasustainablelevelandsitscomfortablyinlinewithsurroundingevidenceonthestreet:

Address Date Tenant TransactionRent pa

(Zone A psf)

7KensingtonChurchStreet Apr2019 Benefit OpenMarketLetting£69,000[£206]

7BKensingtonChurchStreet Aug2018 Iremit OpenMarketLetting£70,000(£206)

3KensingtonChurchStreet Jul2018 EmbassyofBeauty OpenMarketLetting£110,000

(£199)

5KensingtonChurchStreet Feb2017 SweatyBetty LeaseRenewal£73,500(£180)

13KensingtonChurchStreetand6aGregoryPlaceisheldfreeholdundertitlenumberBGL30157.

Covenant Information CavendishClinicLimitedisacosmeticclinicspecialisinginnon-surgicalskincareandbodytreatments.Thepracticewasfoundedin2011byconsultantdoctorsandnowoperatesfromclinicsinfourLondonlocations:Fitzrovia,ParsonsGreen,RichmondandKensington.

ThisinnovativebusinesshasbeenfeaturedinTheSundayTimes,FinancialTimes,TheGuardian,Tatler,MarieClaireandontheBBC.

13 Kensington Church Street & 6a Gregory Place 8

ColliersInternational50GeorgeStreet,London,W1U7GA

Becky Hance02073446841Becky.hance@colliers.com

Hannah Greenland02073446559Hannah.greenland@colliers.com

Harry Tivnen02074871776Harry.tivnen@colliers.com

Contact

MISREPRESENTATION ACT DISCLAIMERColliersInternationalgivesnoticethattheseparticularsaresetoutasageneraloutlineonlyfortheguidanceofintendingPurchasersorLesseesanddonotconstituteanypartofanofferorcontract.DetailsaregivenwithoutanyresponsibilityandanyintendingPurchasers,LesseesorThirdPartyshouldnotrelyonthemasstatementsorrepresentationsoffact,butmustsatisfythemselvesbyinspectionorotherwiseastothecorrectnessofeachofthem.NopersonintheemploymentofColliersInternationalhasanyauthoritytomakeanyrepresentationorwarrantywhatsoeverinrelationtothisproperty.October2019.ColliersInternationalisthelicensedtradingnameofColliersInternationalUKPlc.CompanyregisteredinEngland&Walesno.4195561.Registeredoffice:50GeorgeStreet,LondonW1U7GA.DesignedandproducedbyParerCreative.Tel07702123482.

VATThepropertyhasbeenelectedforVATpurposesanditisexpectedthattheinvestmentsalewillbetreatedasaTransferofaGoingConcern,subjecttothepurchaser’sVATstatus.

Identity ChecksInordertocomplywithanti-moneylaunderinglegislation,thesuccessfulpurchaserwillberequiredtoprovidecertainidentificationdocuments.Therequireddocumentswillbeconfirmedtoandrequestedfromthesuccessfulpurchaserattherelevanttime.

EPCsAcopyoftheEPCcertificateisavailableonrequest.

ProposalWeareinstructedtoseek offers in excess of £2,800,000(subjecttocontractandexclusiveofVAT)reflectinganet initial yield of 4.50% on the commercial elementandanaveragecapital value of £814 psf on the residential element.

Yieldsarenetofpurchasercostsof6.43%