Freehold Retail Investment For Sale, Kensington, W8
6 Holland Street, Kensington, London W8
Situation & Location
The property is situated on the northern side of Holland Street , close to the junction with Kensington Church Street and thus lies close to Kensington High Street and Kensington Gardens. This section of Holland St includes several listed Queen Anne buildings creating an attractive environment within which a number of galleries and other businesses have been established to serve the wealthy resident population of one of Europe’s most affluent districts. These include, close to No 6, Richard Young Gallery, Yastik by Rifat Ozbek (soft furnishings), Willer Gallery, Cool Creative hair salon, Anges de Sucre artisan patisserie. View location map.
Description & Accommodation
The property, which is not itself listed, comprises a terraced building providing a self-contained ground floor and basement retail unit, with a single residential maisonette over the three upper floors, which is sold on a long lease. The commercial unit has the benefit of A2 use and operates as an estate agency.
Prior to tenant's alterations it provided the following approximate floor areas:
GF Sales: 312 sq ft 29 sq m Basement Sales/Ancillary: 238 sq ft 22 sq m ITZA 292 units (plus vaults 60 sq ft)
Following tenant’s alterations it now provides the following approximate floor areas:
GF Sales 277 sq ft 26 sq m Basement Sales 322 sq ft 30 sq m ITZA 285 units (plus vaults 60 sq ft)
Tenancy
The retail unit is let to Wilfords London Ltd on a full repairing and insuring lease for a term of 10 years expiring on 15th August 2021, at a rent of £37,000 per annum. There is a rent review on 16th August 2016 and a tenant break, subject to the payment of a penalty of £9,250 plus VAT, at the same time.
Wilfords London Ltd are an upmarket estate agency established at the commencement of the lease: www.wilfords.com A six month rent deposit is held.
The upper maisonette is sold on a 125 year lease at a current ground rent of £125 pa, rising to £250 in 2035; £500 in 2064; £1,000 in 2089 and £2,000 in 2114.
Thus producing a current total net income of £37,125 per annum
Terms
The freehold interest is for sale, subject to the existing tenancies: guide price £620,000 to show a net initial yield of 5.66% after deducting usual purchase costs at 5.8%.
Energy Performance Certificate
On application - Rating 99 (Band D).
VAT
The property is not opted.
Investment Considerations
- Modest lot size in wealthy Central London location
- Sought after A2 use which is difficult to obtain in RBKC. A2 rents have usually grown faster than A1 in similar locations
- Holland Street has shown exceptional rental growth with Zone A rents rising over the past four years from c.£100 to most recent letting (Anges de Sucre, 1 Holland Street) at c.£148
Contact
Jeremy Barnard or Alan Bateman
Tel: 020 7938 3990
Fax: 020 7937 3764
Email: jb@jmwbarnard.com
Email: ab@jmwbarnard.com
Important Notice: Measurements are approximate and no responsibility is taken for any error, omission or mis-statement in these particulars which do not constitute an offer or contract. No representation or warranty is given either during negotiations, in particulars, or elsewhere. Unless otherwise stated all rents and prices are exclusive of VAT, where applicable.
