Kensington Church Street 13 London W8 4LF
ATTRACTIVE LONDON FREEHOLD RETAIL AND RESIDENTIAL INVESTMENT OPPORTUNITY Investment Considerations
• Prominent property situated in the heart of Kensington, within one of London’s most affluent boroughs, the Royal Borough of Kensington and Chelsea. • Strategic position on the main thoroughfare and popular shopping district between Kensington High Street and Notting Hill. • 2,708 sq ft (251.5 sq m) mixed use property comprising retail accommodation over ground floor and basement with residential accommodation on the first, second and third floors. • Total current income of £131,892 per annum. • The retail unit is let to Cavendish Clinic Limited until 25th July 2029 with the initial rent of £80,000 per annum increasing to £85,000 per annum on 26th July 2023. • The residential accommodation comprises four self-contained flats; two let on ASTs and two on regulated tenancies, generating a current rental income of £51,892 per annum. • Freehold.
Proposal We are instructed to seek offers in excess of £2,800,000 (subject to contract and exclusive of VAT) reflecting a net initial yield of 4.50% on the commercial element and an average capital value of £814 psf on the residential element. Yields are net of purchaser costs of 6.43%
13 Kensington Church Street & 6a Gregory Place 2 HOLLOWAY
KING’S CROSS
King’s Cross St Pancras
Regents Location Park
Kensington Church Street is in the heart of the Royal MARYLEBONE Chancery Lane Borough of Kensington and Chelsea and acts as the FITZROVIA Liverpool Street main thoroughfare between Kensington High Street London Paddington SOHO and Notting Hill – driving footfall from the surrounding Oxford Circus LEICESTER SQUARE affluent residential neighbourhoods. Notting Hill Gate MAYFAIR The street is just moments away from popular tourist River Thames Monument Piccadilly destinations such as Kensington Palace and the Royal Circus Albert Hall. The surrounding area is a vibrant hub for KENSINGTON Charing London CHURCH STREET Cross Bridge restaurants, bars and is widely considered a key central Shepherd’s THE SOUTHBANK Bush London Retail sub-market which still remains a world- SHEPHERD’S Waterloo KNIGHTSBRIDGE Hyde Park Corner renowned fashion destination. The Royal Borough of BUSH High Street SOUTHWARK Kensington Kensington and Chelsea also boasts extensive green Kensington BELGRAVIA spaces, with both Holland Park and Hyde Park.
Victoria Elephant and Castle Hammersmith South Kensington Earl’s Court Sloane Square LAMBETH SOUTH KENSINGTON “Moments away from CHELSEA
R Kensington Palace and iver T iver Thames the Royal Albert Hall” hames R FULHAM Fulham Broadway CAMBERWELL
CIRCLE & DISTRICT LINES
4 min
Clapham Junction Kensington Earls Court Sloane Square Victoria BRIXTON High Street 2 min 6 min 8 min PUTNEY 11 min
Notting Hill Bond Street Tottenham Bank Gate 6 min Court Road 16 min 9 min CENTRAL LINE
SOUTHFIELDS 13 Kensington Church Street & 6a Gregory Place 3 Situation KENSINGTON CHURCH STREET The property is located in a prominent position on the western side of popular Kensington Church Street, just 100 metres from its junction with Kensington High Street. It is within a 3-minute walk from Kensington High Street Station (Circle and District lines) and a 10-minute walk from Notting Hill Gate Station (Central, Circle and District lines).
In the immediate vicinity the property is set to benefit from the development of Lancer Square, the high-end residential led development directly opposite the subject property which will provide 36 luxury apartments and new commercial units. KENSINGTON HIGH STREET Other retailers in close proximity to the subject property include Reiss, Benefit Cosmetics, Sweaty Betty, Space NK and the 3-storey flagship Whole Foods Market. A number of upmarket independent retailers also enrich the vibrancy of this affluent shopping district.
KENSINGTON HIGH STREET
13 Kensington Church Street & 6a Gregory Place 4 Bathroom Description Kitchen The property comprises a 5-storey terrace building with retail space at basement and ground level and Residential residential accommodation over the upper 3 floors. Studio The upper parts are arranged as four self-contained residential flats, which are accessed from a separate entrance at the rear of the property via Gregory Place, an attractive residential Retail Mews. Two of the flats benefit from a shared courtyard terrace Cavendish Clinic has fitted the unit out to a very with impressive views of the St Mary Abbotts Church. The high standard and occupies a well configured sales terrace offers future potential for Flat 1 to be extended. area with treatment rooms at ground floor as well as customer WC, staff and ancillary space in the Storage / basement. The unit provides 832 sq ft (77.3 sq m) Dressing at ground floor and 488 sq ft (45.3 sq m) at Room basement level.
Kitchen Bedroom Bedroom Bathroom
Bathroom Bathroom
Open Plan Lounge Kitchen/Reception Room Studio Kitchen
13 Kensington Church Street & 6a Gregory Place 5 Tenancy Schedule
Area Area Lease Expiry Rent Address Unit Tenant Description Lease Start Comments (sq ft) (sq m) (Break Date) Passing (pa)
The lease is subject to 6 months rent free and 15 months half rent. The vendor will top up the commercial income to Ground Floor 832 77.3 13 Kensington Cavendish 25/07/2029 £80,000 pa. Fixed uplift to £85,000 pa on 26/07/2023. Open Retail ITZA 472 26/07/2019 £80,000 Church Street Clinic Limited (26/07/2024) market upward only rent review on 26/07/2024. There is Basement 488 45.3 a rental deposit of £48,000. The lease is excluded from sections 24-28 of the Landlord and Tenant Act 1954.
Total Commercial 1,320 122.6 £80,000
Protected Protected tenancy. Unrefurbished. 6a Gregory Place Flat 1 (Studio) First Floor 160 14.9 Protected £6,054 Tenancy Last rental increase was in 2016. Shared terrace.
6a Gregory Place Flat 2 (1 bed) AST First Floor 456 42.4 14/09/2018 13/09/2019 £20,540 AST. Shared terrace.
6a Gregory Place Flat 3 (Studio) AST Second Floor 386 35.8 07/10/2019 06/10/2020 £18,980 AST. Recently refurbished.
Protected Protected tenancy. Unrefurbished. 6a Gregory Place Flat 4 (1 Bed) Third Floor 386 35.8 Protected £6,318 Tenancy Last rental increase was in 2016.
Total Residential 1,388 128.9 £51,892
Total £131,892
13 Kensington Church Street & 6a Gregory Place 6 Tenure, Rental Evidence & Covenant Tenure Covenant Information Cavendish Clinic Limited is a cosmetic clinic specialising in non-surgical skincare and body treatments. The practice was founded in 2011 by consultant doctors and now operates from clinics in four London locations: Fitzrovia, Parsons Green, Richmond and Kensington.
This innovative business has been featured in The Sunday Times, Financial Times, The Guardian, Tatler, Marie Claire and on the BBC.
Rental Evidence We have analysed the passing rent of £80,000 per annum to reflect a headline rent of £161 per sq ft ZA.
The rent has been set at a sustainable level and sits comfortably in line with surrounding evidence on the street:
Rent pa Address Date Tenant Transaction (Zone A psf)
£69,000 7 Kensington Church Street Apr 2019 Benefit Open Market Letting 13 Kensington Church Street and 6a Gregory Place is held [£206] freehold under title number BGL30157. £70,000 7B Kensington Church Street Aug 2018 Iremit Open Market Letting (£206)
£110,000 3 Kensington Church Street Jul 2018 Embassy of Beauty Open Market Letting (£199)
£73,500 5 Kensington Church Street Feb 2017 Sweaty Betty Lease Renewal (£180)
13 Kensington Church Street & 6a Gregory Place 7 Contact
Becky Hance VAT 020 7344 6841 The property has been elected for VAT purposes [email protected] and it is expected that the investment sale will be treated as a Transfer of a Going Concern, subject to Hannah Greenland the purchaser’s VAT status. 020 7344 6559 [email protected] Identity Checks In order to comply with anti-money laundering Harry Tivnen legislation, the successful purchaser will be required to provide certain identification 020 7487 1776 documents. The required documents will be [email protected] confirmed to and requested from the successful purchaser at the relevant time.
EPCs A copy of the EPC certificate is available on request.
Proposal We are instructed to seek offers in excess of Colliers International £2,800,000 (subject to contract and exclusive 50 George Street, London, W1U 7GA of VAT) reflecting a net initial yield of 4.50% on the commercial element and an average capital MISREPRESENTATION ACT DISCLAIMER Colliers International gives notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or value of £814 psf on the residential element. Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Colliers International has any authority to make any representation or warranty whatsoever in relation to this property. October 2019. Yields are net of purchaser costs of 6.43% Colliers International is the licensed trading name of Colliers International UK Plc. Company registered in England & Wales no. 4195561. Registered office: 50 George Street, London W1U 7GA. Designed and produced by Parer Creative. Tel 07702 123482.
13 Kensington Church Street & 6a Gregory Place 8