A HMO INVESTMENT OPPORTUNITY 18 WEST CROMWELL ROAD, , SW5 9QJ A HMO INVESTMENT OPPORTUNITY | 18 WEST CROMWELL ROAD, KENSINGTON, LONDON SW5 9QJ 2

INVESTMENT SUMMARY

• Freehold building situated in Kensington • House in Multiple Occupation (HMO) currently configured to provide 11 studio units, six of which are fully self-contained • Planning permission (ref: PP/17/06824) granted to convert the existing configuration into 10 fully self-contained studios • Existing gross internal area (GIA) of 329 sq m (3,541 sq ft) and a proposed GIA of 331 sq m (3,563 sq ft) • Opportunity to significantly increase the market rental value through self- containing the studios in line with the recently granted planning permission • A popular Central London rental location

DESCRIPTION Street View: West Cromwell Road The property comprises a period, terraced townhouse arranged over five storeys, including LOCATION the lower ground and ground floor. It is currently operated as a HMO (Use Class HMO Sui Generis) The property is situated in the Prime Central the south of the property and Kensington Olympia at Earl’s Court, Kensington High Street and the of 11 studio units, six of which are fully self- London location of Kensington, within the Royal (Zone 2 – District Lines, Overground and National King’s Road in Chelsea. Green space is provided by contained. Shared facilities for the other five units Borough of Kensington and Chelsea. Rail) 0.8 miles (1.3 km) to the north. There are also and Hyde Park, which are located to are situated on the first and second floors. various accessible bus routes within the vicinity that the north and north east of the property, 0.4 miles West Cromwell Road connects West London with The building is in good internal and external connect the property to wider London. From Earls (0.6 km) and 0.9 miles (1.4 km) respectively. Central London, passing through Hammersmith, condition, however, planning permission is in place Court Underground station, The West End (Oxford , and Hyde Park Due to the amenity offering and excellent transport to upgrade and fully self-contain all of the units. Circus) is accessible within 18 minutes, The City Corner. links, the property is within a popular rental (Monument) in 22 minutes and Canary Wharf in 28 Due to the recently granted planning permission, location, especially with young professionals, due Transport connections are excellent, with Earl’s minutes. there is now the opportunity to significantly to its acceptability to major employment hubs Court Underground Station (Zones 1 & 2 – District increase the market rental value through self- An extensive mix of amenities are easily accessible, across London. and Piccadilly Lines) situated 0.2 miles (0.3 km)to containing the studios. A HMO INVESTMENT OPPORTUNITY | 18 WEST CROMWELL ROAD, KENSINGTON, LONDON SW5 9QJ 3

PLANNING & HMO LICENCE

The property received planning permission (ref: PP/17/06842) in December 2017 to convert the existing 11 units and communal facilities into 10 fully self-contained studios, including replacement of all windows (subject to materials) and new steps to the rear in order to make the rear garden a communal area. The planning permission is subject to a Section 106 agreement, which restricts the number of studios that are eligible for car parking permits to six and enforces the building to be retained as 10 self-contained studios. The property currently has a HMO Licence, which was granted in August 2014. A copy of this can be found in the dataroom.

HMO MARKET

The HMO investment market has evolved rapidly over recent years. with potential to optimise rent ‘per square foot,’ enabling an enhanced yield above mainstream residential. This allows pricing to be underpinned to income rather than capital value per square foot. The strongest rental market in Prime Central London has been for smaller units in Central London. Prime one bedroom and studio units have delivered above average, annual rental growth of 3.1%. This has been predominantly due to reduction of corporate budgets for employees. However, Central London locations remain popular, and so demand has risen in the micro-studio market. Due to the transient nature of the London workforce, bespoke OCCUPANCY rental accommodation, which is fully furnished, operational and ready to move in to, is in highest The occupied studios are currently producing a Five of the six tenancies in place are periodic the other tenancy’s end date is the demand. HMOs offer the opportunity to create gross rental income of £79,000 per annum. assured shortholds tenancies (ASTs), 27th March 2018. an efficient lettings platform by maximising density on site. A HMO INVESTMENT OPPORTUNITY | 18 WEST CROMWELL ROAD, KENSINGTON, LONDON SW5 9QJ 4

FLOOR PLANS - EXISTING

The GIA of the existing building is 329 sq m (3,541 sq ft). The NIA of the existing 11 units is 249 sq m (2,673 sq ft).

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FLOOR PLANS - PROPOSED

The GIA of the proposed building is 331 sq m (3,563 sq ft). The NIA of the proposed 10 units is 274 sq m (2,949 sq ft).

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TENURE

The property is held freehold.

METHOD OF SALE

The property is for sale by private treaty. Offers are sought for the freehold interest subject to contract and subject to the existing tenancies. Should a closing date be set for the submission of offers, all parties who have expressed an interest will be advised accordingly.

VAT

The property is not elected for VAT

FURTHER INFORMATION

A full suite of background information, including EPCs can be found on the online dataroom at: https://sites.savills.com/18westcromwell

VIEWINGS

Viewings are strictly by appointment via the vendor’s sole selling agents, Savills. Please contact one of the agents below to make an appointment.

CONTACTS

Davina Clowes James Watkins + 44 (0) 20 7016 3838 + 44 (0) 20 7409 8056 [email protected] [email protected]

Important Notice Savills, and their clients give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and that Savills and Knight Frank have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. Designed and Produced by Savills Marketing: 020 7499 8644 | March 2018