Metro Apartments Central Square | London | Ha9 7Fa
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METRO APARTMENTS CENTRAL SQUARE | LONDON | HA9 7FA RESIDENTIAL INVESTMENT OPPORTUNITY 1 Wembley Wembley Wembley Central Station Stadium Station Stadium INVESTMENT HIGHLIGHTS Stabilised leasehold portfolio comprising 38 units situated adjacent to Wembley Central Station (Travel Zone 4) > 38 residential apartments and 9 surface car parking spaces - 2 spaces are reserved for Car Club use only > Term of 116 years unexpired > Residential net saleable area (NSA) of 2,178 sq m / 23,444 sq ft > Rent passing - £662,220 per annum, (97% occupancy) > Estimated rental value (ERV) - £715,600 per annum (incl. 7 car parking spaces) > NHBC Warranties > Adjacent to Wembley Central (Travel Zone 4 – Bakerloo Underground, Overground, Southern and West Midlands National Rail) providing access in to Oxford Circus and Liverpool Street in c. 30 and c. 45 minutes respectively > Opportunity to enhance the income stream with ongoing asset management opportunities KEY ASSET HIGHLIGHTS Prime Location Rental Uplift Potential Affordable Price Point Scheme 1 Bed £pcm 2 bed £pcm £ per sq ft The Portfolio is ideally situated directly adjacent to The existing rental position is reversionary as the Compared to new build schemes in the Metro Apartments £1,265 – £1,500 - £29 Wembley Central Station, providing direct access current Landlord has not pursued an active lettings immediate area, Metro Apartments provides (Subject) £1,380 £1,650 into Central London. The station provides National and asset management strategy. There is potential one of the best located schemes at a Rail services on the following lines: Southern, West to increase rents either due to (i) a lack of recent comparatively more affordable price point, The Assembly – Starting at Starting at £32 Midlands and Overground lines, and Bakerloo London rent reviews, (ii) the condition of the property, (iii) providing an opportunity to increase rents Liv London / M&G £1,495 £1,665 Underground services (Travel Zone 4). The journey by utilising the car parking spaces. There is also an without increasing voids. Alto* £1,300 - £1,768 - £37 time to Oxford Circus is approximately 30 minutes. opportunity to negotiate renting further spaces in £1,950 £2,600 Park Jockey underground car park and raising rents as a result. Park Jockey charge £100 pcm per space, Montana* £1,668 - £1,833 - £38 however if multiple spaces were rented there is £1,842 £2,674 potential for a negotiation of price. Dakota* £1,573 - £1,733 - £37 £1,950 £2,301 *These schemes are let and managed by Quintain, and are an all-inclusive rent. 2 3 TO LUTON AIRPORT WATFORD A1 A10 A41 DESCRIPTION A406 M1 TO STANSTEAD AIRPORT Metro Apartments is situated in Building 2, which was The units have been let since practical completion. PLAYGOLF LONDON developed in March 2015 by St Modwen Properties plc Each of the apartments and common parts are within SOUTH KENTON HARROW FRYENT A1 COUNTRY PARK as part of the £90m redevelopment of the town centre, rentable condition, however along with reviewing the NORTH A406 WEMBLEY A503 WEMBLEY HAMPSTEAD which included a new public square, shops, cafes and current lettings and management strategy there is WEMBLEY PARK HEATH A12 WEMBLEY A41 leisure facilities, a fully refurbished car park and 273 opportunity to enhance the current income stream CENTRAL A40 new homes. A10 through refurbishment and active asset management. SUDBURY WEMBLEY WILLESDEN JUNCTION STRATFORD FINCHLEY ROAD KING’S CROSS ST PANCRAS EALING LIVERPOOL STREET Metro Apartments comprises the third and fourth Energy system REGENT’S PARK EALING LONDON A11 floor of a purpose-built building which also comprises A12 A40 BAKER STREET PERIVALE PARK OXFORD CIRCUS The leaseholder currently pays for the gas and A312 a hotel, currently occupied by Travelodge, to the first A13 SHEPHERD’S ST PAUL’S A406 EMBANKMENT maintains a central boiler system that serves all the HYDE PARK and second floor and a range of shops comprising BUSH THE SHARD CANARY WHARF WESTMINSTER TATE MODERN the Wembley Central Shopping Centre. There are apartments. The tenants pay for the heat used based LONDON BRIDGE LONDON LONDON EYEWATERLOO CHISWICK CITY AIRPORT on heat meter readings in each apartment. Evinox M4 nineteen apartments on each floor, all of which are let HAMMERSMITH A3220 administer those charges. A2 A102 on ASTs aside from one which is currently vacant. The A4 apartment mix comprises 12 x one bedroom and 26 A2 HEATHROW A3 The current contract is available in the Dataroom. AIRPORT x two bedroom apartments, ranging in size from 452 RICHMOND A306 A20 sq ft (43 sq m) to 869 sq ft (80.7 sq m). Access to the TO READING apartments is provided through two private entrances; RICHMOND A24 TWICKENHAM PARK one at ground floor level to the south of the building A316 A23 on the shopping parade; and the second at -3 level A3 the car park. Both doors are accessed with use of a TO GATWICK M3 A306 AIRPORT security tag, which also provides lift access to the third and fourth floors. 14/15 Not to Scale - For indicative purposes only. LOCATION Metro Apartments are located in Wembley Central, Transport links are excellent with Wembley Central within the London Borough of Brent. Wembley is Underground Station (Zone 4 – Bakerloo line) situated bordered by Ealing to the south, Northolt to the west, adjacent to the property. Wembley Central also offers Harrow to the north and Brent Park to the east. The Overground, West Midlands and Southern services property is situated to the south side of the High Road, both into Central London and out of London. The adjacent to Wembley Central station and Wembley A40 road is situated 1.6 miles (2.6km) to the south of Central Shopping Centre. The immediate locality is the Property, which is one of the main arterial routes predominately commercial and retail uses, with the through London. It provides access through London surrounding area characterised by residential uses. to the east and merges into the M40 motorway to the west by Uxbridge, which provides direct access to The Property is situated within the Wembley Central Birmingham. Shopping Centre, adjacent to Wembley Central Station and benefitting from access to a range of shops and restaurants including Tesco Metro, Sport Direct, The Gym and TK Maxx, helping to drive occupational demand. Wembley Central Into London Out from London Bakerloo Underground Oxford Circus - c. 30 mins Harrow & Wealdstone – c. 8 mins Liverpool Street – c. 45 mins Southern Clapham Junction – c. 30 mins n/a West Midlands London Euston – c. 28 mins Birmingham New Street – c. 2h10 mins Overground London Euston – c. 25 mins Watford Junction – c. 10 mins 4 5 TENURE SERVICE CHARGE The Property is owned leasehold, There are two tiers of charge. Firstly a contribution towards the landlord’s under title number AGL353896. The costs of maintaining the structural and external parts and facilities of the premises comprises: shopping centre which benefit the building. The estimates below have been calculated in line with the deed of rectification agreed with the Level Accommodation current owner of the Shopping Centre, this rises only by reference to RPI: -3 Refuse room, plant Year Service Charge £PSF room, 9 parking spaces, stairs and lift March 2018 – March 2019 £7,469.47 £0.31 -3, -2, -1 Staircases March 2017 – March 2018 £7,206.73 £0.30 Ground Entrance / Foyer, March 2016 – March 2017 £6,962.75 £0.29 staircase and lift INCOME March 2015 – March 2016 £6,868.91 £0.29 +1, +2 Staircases Secondly, a fair and reasonable proportion of the landlord’s costs of +3 19 Apartments maintaining the structural and external parts of the building. Confirmation The apartments are let on ASTs and currently produce There is scope to use car parking within the multi- +4 19 Apartments of current charges for this tier are awaited from Fidum, the managing a total rent passing rent of £662,220 per annum. storey car park, Park Jockey, which offers parking at agents, and will be provided in due course. The lease demises only the internal £100 pcm. The parking outside the scheme is more The tenant deals with the operation and maintenance of the internal parts There is scope to increase the rents through re-letting convenient and as a result we are of the opinion that parts of the apartments, which all vacant units, improving the internal condition, represents the extent of the and facilities (including plant, lifts, corridors and stairs) within its own the spaces will rent for a similar amount. We consider demise at its own cost. utilising rent reviews and maximising the rent of the the ERV to be in the order of £715,600 per annum, this tenant’s repairing obligation. All the car parking spaces. There is currently one parking structural and external parts of the includes 7 car parking spaces and excludes the 2 Car The tenant’s ground rent to the landlord is a peppercorn. nk licence generating income, but we do note that Club spaces. building are the responsibility of Ba 6 D Enterprise Car use two spaces as part of the original the Landlord, subject to the tenant 50 A SL IGH RO construction agreement to provide a car club. paying the service charge. 4 H 43 44.7m 2 508 LB 2 0 51 45 3 45 Bank 5 Unit Type Count Min Average Max Passing ERV 39 Area Sq Ft Area Sq Ft Area Sq Ft Rent p.a. p.a. FB 45 2 9 52 6 1 Bed 12 452 460 494 £174,240 £197,400 52 Central Apartments 2 Bed 26 679 713 869 £487,380 £509,100 Works Parking 9 - - - £600 £9,100 536 44.9m Total 38 452 633 869 £662,220 £715,600 6 1 54 7 to 2 4 LB 93 1 1 4 99 to 1 to 40 Central 10 Square Manor Court ASSET MANAGEMENT OPPORTUNITIES 1 Hotel Metro Apartments 9 3 0 1 to 31 9 41 o o t 1 0 > Offering furnished packages, including for example a TV, bedding and kitchen utensils.