PROMINENT RETAIL PARADE IN AFFLUENT LONDON LOCATION
LONDON, 8/26 HOLBEIN PLACE & 76/92 PIMLICO ROAD, BELGRAVIA, SW1W 8PL INVESTMENT CONSIDERATIONS
• Belgravia is one of London’s most affluent locations • The property lies within the Pimlico Road Design District which is world renowned for its art, design, homewares and antiques shops • Prominent location on the corner of Pimlico Road and Holbein Place opposite the new Chelsea Barracks development • 19 units let to 6 occupiers, most with a long trading history at the property • Reversionary rents
• Offers in excess of £13,845,000 • Attractive net initial yield of approximately 4.0% and a reversionary yield of approximately 4.65% based upon our ERV and assuming normal purchaser’s costs BELGRAVIA Chelsea Barracks Development Hyde Park St James Park Buckingham Palace
Belgravia is located in the heart of London and straddles the Boroughs of WEST END Westminster and the Royal Borough of MAYFAIR Kensington and Chelsea. KENSINGTON
It is bordered by Kensington to the north, Chelsea to the west, Pimlico to the south and Buckingham Palace to the east. It is home to some of SLOANE STREET CHELSEA London’s most exclusive residential addresses, boutiques, cafes and WESTMINSTER SLOANE restaurants, as well as number of prominent embassies and hotels. SQUARE The area has experienced large scale development in recent years KINGS ROAD BELGRAVIA Victoria Station including the ongoing £700m redevelopment of Victoria Station which SUBJECT is set to increase capacity by 50%. Schemes such as Cardinal Place PROPERTY and Nova have enhanced the areas reputation for quality retail and leisure offers and added 600,000 sq ft of grade A office stock in the Nova development alone. PIMLICO The redevelopment of the Battersea Power Station is also well underway across Chelsea Bridge. The 42 acre site is being redeveloped at a CHELSEA BRIDGE ROAD cost of £10bn to provide new retail and leisure facilities as well as flats and offices, 500,000 sq ft of which is due to be the new headquarters for Apple when the development fully opens in 2021. The area is located approximately 2 miles (3.25 km) south west of Central London.
Duke of York Square COMMUNICATIONS & Saatchi Gallery
Transport communications in the area are excellent. Victoria Station is 0.7 miles (1.1 km) to the east and provides rail links throughout the south east of England. Victoria underground station is served by the Victoria and District and Circle lines whilst Sloane Square station (Circle and District line) is 0.2 miles (300m) to the north. All stations are located within Zone 1. The A3216 (Chelsea Bride Road/Sloane Street) provides road access into central London and south, over the River Thames to Battersea. There are numerous bus routes which pass along Chelsea Bridge Road. DEMOGRAPHICS
The Royal Borough of Kensington and Chelsea enjoys an affluent and loyal catchment population. The Boroughs population was approximately 156,000 at the Census in 2011.
RETAIL & LEISURE IN BELGRAVIA
The surrounding area is known as the Pimlico Road Design District and is world renowned for its array of high quality interior design showrooms, art galleries and niche retailers including Linley, Soane, Luke Irwin, Sybil Colefax and John Fowler. In addition, there are a number of popular restaurants nearby, namely The Orange, La Poule Au Pot, Enoteca Turi, and Daylesford.
LOCATION
Pimlico Road is well positioned on the borders of Chelsea and Belgravia benefitting from close proximity to Sloane Square and Victoria stations. The subject property is situated at the junction of Pimlico Road and Holbein Place which fall just inside the Royal Borough of Kensington & Chelsea. The Chelsea Barracks development is located directly opposite the subject block with the initial phases opening in 2019. This 13 acre scheme is being developed at a cost of approximately £3.5 billion and is due to provide 448 residential units with the private residences starting at £5.25m for a 2 bedroom apartment, rising to £37m for a 6 storey townhouse. DESCRIPTION
The property forms the ground and basement commercial element of a large mansion block. It comprises 19 units which are currently occupied by 6 tenants. All properties have the benefit of servicing from the rear.
ACCOMMODATION
The property has the benefit of the following approximate floor areas:
Ground Basement Address Tenant ITZA sq ft sq ft
8 Holbein Place Nicholas Haslam Limited 302 274 580 10 Holbein Place Nicholas Haslam Limited 326 285
12/14 Holbein Place Nicholas Haslam Limited 579 503 598
16 Holbein Place Bennison Fabrics Limited 322 293 295
18/22 Holbein Place Liv Restaurant Group Limited 884 739 958
24 Holbein Place Rose Caroline Heyman t/a Rose Uniacke 299 248 295
26 Holbein Place Rose Caroline Heyman t/a Rose Uniacke 350 290
76 Pimlico Road Rose Caroline Heyman t/a Rose Uniacke 248 248 837
78 Pimlico Road Rose Caroline Heyman t/a Rose Uniacke 264 244
80/82 Pimlico Road Rose Caroline Heyman t/a Rose Uniacke 519 456 571
84 Pimlico Road Rose Caroline Heyman t/a Rose Uniacke 287 249 242
86/88 Pimlico Road 88 Gallery Limited 582 517 639
90/92 Pimlico Road Portuondo Limited 502 441 527
Total 5,464 5,542 TENURE SERVICE CHARGE
The property is held on a 999 year leasehold There is no service charge regime in place. The long interest from the 25th March 1975 at a rent of one leaseholder charges back insurance premiums to the peppercorn per annum. tenants. Further information is available upon request.
TENANCIES
The schedule below details the tenancies:
Address Tenant Term RR Pattern Start Expiry Rent Review Rent p.a.
8 Holbein Place Nicholas Haslam Limited 10 years 5 years 25/03/2019 24/03/2029 25/03/2024 £29,000
10 Holbein Place Nicholas Haslam Limited 10 years 5 years 25/12/2017 24/12/2027 25/12/2022 £23,750
12/14 Holbein Place Nicholas Haslam Limited 10 years 5 years 25/12/2018 24/12/2028 25/12/2023 £50,600
16 Holbein Place Bennison Fabrics Limited† 10 years 5 years 25/12/2018 24/12/2028 25/12/2023 £29,000
18/22 Holbein Place Liv Restaurant Group Limited** 10 years 5 years 0 8/07/2 019 07/07/2 0 2 9 0 8/07/2 0 2 4 £85,000∆
24 Holbein Place Rose Caroline Heyman t/a Rose Uniacke 14.25 years 4 years 25/03/2015 23/06/2029 24/06/2023 £28,000 26 Holbein Place Rose Caroline Heyman t/a Rose Uniacke 10 years 5 years 24/06/2019 23/06/2029 24/06/2024 £92,000 & 76/78 Pimlico Road 80/82 Pimlico Road Rose Caroline Heyman t/a Rose Uniacke 13.25 years 5 years 24/03/2016 23/06/2029 24/03/2021 £68,000
84 Pimlico Road Rose Caroline Heyman t/a Rose Uniacke 11.5 years 5 years 25/12/2017 23/06/2029 24/06/2024* £38,000
86/88 Pimlico Road 88 Gallery Limited**** 16 years 4 years 25/12/2014 24/12/2030 25/12/2022 £80,000
90/92 Pimlico Road Portuondo Limited*** 15 years 5 years 25/12/2017 24/12/2032 25/12/2022 £68,000
Total £591,350
† This information denotes the new lease which is in solicitors hands. The current lease expired 24/12/2018 at £25,000 pa. *** Rent deposit of £17,000 held. * Tenant only break operable on this date also. **** Rent deposit of £14,000 held. ** Rent deposit of £42,500 held. ∆ Rent commencement date is 10/01/2020. COVENANT INFORMATION PLANNING EPC
Tenant Creditsafe Rating From our research we do not believe that the property EPC’S can be made available on request. is located within a conservation area nor is it a Listed Nicholas Haslam Limited 87/100 - Very Low Risk Building however we recommend that parties make their Bennison Fabrics Limited 90/100 - Very Low Risk own enquiries. DATA ROOM Liv Restaurant Group Limited 49/100 - Moderate Risk Rose Caroline Heyman t/a Rose Uniacke 50/100 - Moderate Risk VAT If you would like access to the dataroom please contact 88 Gallery Limited 69/100 - Low Risk one of the joint agents. Portuondo Limited 71/100 - Very Low Risk The property has not been elected for VAT. RENTAL VALUE
Recent transactional evidence is highlighted below:
Net Rent Address Tenant Event Date £ZA psf
40/42 Pimlico Road Chelsea Textiles Letting £174 Dec 2018
68 Pimlico Road Collier Webb Re-gear £170 Jan 2018
48a Pimlico Road Carl Hansen & Son Letting £158 Jan 2018
The passing rents of the subject property show approximately £133 - £139 Zone A on Pimlico Road and £90 - £102 Zone A on Holbein Place. The above evidence highlights the continued rental growth experienced in this unique retailing location and we therefore believe that the block is reversionary to approximately £687,000, if one assumes £100 Zone A on Holbein Place and £170 Zone A on Pimlico Road. CHISWICK COMMON ROAD
PROMINENT RETAIL PARADE IN AFFLUENT LONDON LOCATION
CHELSEA TEXTILES
DE LA LONDON, 8/26 CUONA
HOLBEIN PLACE & LUKE IRWIN
76/92 PIMLICO ROAD, CARL HANSEN BELGRAVIA, SW1W 8PL & SON
PROPOSAL
COLLIER
WEBB
We are instructed by our client to seek offers in excess of £13,845,000 (thirteen million eight hundred and forty five thousand pounds) subject to contract and exclusive of VAT for the leasehold interest in the property. A purchase at this level would reflect an attractive net initial yield of approximately 4.0% and a reversionary yield of approximately 4.65% based upon our ERV and assuming normal purchaser’s costs.
CONTACTS
CHELSEA BARRACKS To register an interest, request further information DEVELOPMENT or to carry out an internal inspection please contact: Colin Baxter Blanchflower Lloyd Baxter Tel: 020 7491 7880 Mobile: 07775 871897 Email: [email protected] Richard Ward www.blb.uk.com www.wardproperty.uk.com Ward Property Consultants Tel: 020 7079 1202 DISCLAIMER NOTICE: Whilst every care is taken in the preparation of these particulars, Blanchflower Lloyd Baxter, Ward Property Consultants Limited and the vendor take no responsibility for any error, Mobile: 07919 118529 mis-statement or omission in these details. Measurements are approximate and for guidance only. These particulars do not constitute an offer or contract and members of the Agent’s firm have no authority to make Email: [email protected] any representation or warranty in relation to the property. October 2019