FINAL Wolf House 5-6 Gliddon Road West Kensington.Pdf

WOLF HOUSE 5-6 Gliddon Road, West Kensington, W14 9BH

Freehold HMO Investment Opportunity Stanford-le-He

Wolf House 5-6 Gliddon Road, West Kensington, W14 9BH 2

INVESTMENT HIGHLIGHTS • Freehold, red brick, mansion block situated in West Kensington • House in Multiple Occupation (HMO) Sui Generis • Gross Internal Area (GIA) of 604.5 sq m (6,507 sq ft) including communal areas* • Configured to provide 22 self-contained studio units Wolf House • Recently refurbished to a high specification • Subject to a 10 year internal repairing lease providing a net rental income of £300,000 per annum, reflecting a 4.6% net yield based on the guide price of £6.5m (subject to contract) • Estimated rental value (ERV) in the region of £400,000 per annum, subject to assured shorthold tenancies (ASTs) • Excellent transport links with Barons Court (Zone 2 – District and Piccadilly Lines) Underground Station being within 0.1 miles and Hammersmith (Zone 2 – District, Piccadilly, Circle and Hammersmith & City Lines) Underground Station being within 0.6 miles

*Measurements have been provided by Rodić Davidson Architects’ drawings. We understand that these have been done in line with RICS: Code of Measuring Practice Wolf House 5-6 Gliddon Road, West Kensington, W14 9BH 3

LOCATION & SITUATION PROPERTY DESCRIPTION The property is located in West Kensington, within the London Borough of Hammersmith & The property comprises a period, red brick, mansion block arranged over five floors (including Fulham. Kensington High Street is situated 0.6 miles to the east, Earl’s Court is 0.9 miles to the the lower ground and ground floors), extending to a GIA of 586.6 sq m (6,314 sq ft). It south east and Barons Court is 0.1 miles to the south, all of which provide an extensive mix of benefits from dual aspects onto Gliddon Road and Gunterstone Road to the west and north amenities, including the prestigious Queen’s Club tennis grounds which are within 0.2 miles of respectively, and a rear communal garden to the east. the property. The building has just recently been refurbished to a high standard and reconfigured to provide The property holds a prominent position on a large corner plot where Gliddon Road meets 22 self-contained studio units, each benefitting from an en-suite bathroom and a fully serviced Gunterstone Road, between Hammersmith Road and West Cromwell Road. kitchenette. Units 2, 5, 7 and 10 all benefit from direct access to communal garden. Transport connections are excellent with Barons Court Underground Station (Zone 2 – District and Piccadilly Lines) located within 0.1 miles, Hammersmith Underground Station (Zone 2 – District, Piccadilly, Circle and Hammersmith & City Lines) located within 0.6 miles and Kensington Olympia Stations (Zone 2 – Overground and National Rail) located within 0.5 miles. The property is situated within the Gunter Estate Conservation Area.

Transport Journey Times

Oxford Circus 20 minutes Clapham Junction 21 minutes Heathrow 30 minutes London Waterloo 32 minutes Wolf House 5-6 Gliddon Road, West Kensington, W14 9BH 4

PLANNING The property received planning in November 2016 (ref: 2016/04186/FUL) to convert the existing building from a 17 room HMO (Sui Generis) to a HMO block containing 22 self-contained studio units (Sui Generis). Wolf House 5-6 Gliddon Road, West Kensington, W14 9BH 5

than capital value per square foot. The strongest rental market in Prime Central London has been for INCOME & INTERNAL REPAIRING smaller units in Central London. Prime one bedroom and studio units have delivered above average, annual LEASE 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. The property benefits from an internal repairing lease (IRL) to Housing Action Due to the transient nature of the London workforce, bespoke rental accommodation, which is fully Management Limited. Housing Action Management Limited were established furnished, operational and ready to move in to, is in highest demand. HMOs offer the opportunity to create in 2011 and provide housing solutions and management services to 29 London an efficient lettings platform by maximising density on site. local authorities. They manage approximately 1,200 apartments and are the largest provider of temporary accommodation properties across London. They let properties on a range of tenancy lengths, responding to a variety of housing ACCOMMODATION SCHEDULE needs across the capital. The terms of the lease state that they are able sublet the property to the Royal Borough of Kensington and Chelsea and the London NIA* NIA* FLOOR AREA* FLOOR AREA* FLOOR UNIT NUMBER (SQ M) (SQ FT) (SQ M) (SQ FT) Borough of Hammersmith and Fulham. Lower Ground Floor 1 24.5 264 136.6 1,470 The rent passing is £300,000 per annum, which is a payable on a monthly basis. 2 16.7 180 The lease commenced on the 15th October 2018 and is for a term of 10 years, with a landlord and tenant break clause on the 15th October 2023, and an open 3 23.6 254 market rent review on the same date. The tenant is responsible for repairs of 4 27.8 299 the building, unless the extent of the repair is an insured risk. The landlord is 5 19.8 213 responsible for the insurance of the property. Ground Floor 6 18.7 201 151.6 1,632 Should the property be let on ASTs, we are of the opinion that the ERV is in the 7 22.2 239 region of £400,000 per annum (£350 average per week, per unit). 8 20.5 221 HMO MARKET OVERVIEW 9 24.5 264 10 21.5 231 The HMO investment market has evolved rapidly over recent years with the First Floor 11 28.8 310 114.1 1,228 potential to optimise rent per square foot, enabling an enhanced yield above mainstream residential. This allows pricing to be underpinned by income rather 12 21.6 233 13 20.5 221 14 25.6 276 Second Floor 15 26.4 284 106.4 1,145 16 21.5 231 17 18.6 200 18 22.5 242 Third Floor 19 24.2 260 95.9 1,032 20 18.0 194 21 17.2 185 22 19.6 211 Total Net Internal Area 484.3 5,213 Total Gross Internal Area 604.5 6,507

GROSS INTERNAL AREA (GIA) OF 604.5 SQ M SQ FT (6,507 SQ FT)*

LOWER GROUND FLOOR PLAN GROUND FLOOR PLAN

1 5 9 6 10

8 3

2 7

FIRST FLOOR PLAN SECOND FLOOR PLAN THIRD FLOOR PLAN

14 18 22 19 11 15

21 13 12 17 16 20

TENURE FURTHER Freehold. INFORMATION A full suite of background information, METHOD OF SALE including EPCs can be found on the online dataroom at: The property is for sale by private treaty, if a bid deadline is set all interested parties will be https://sites.savills.com/wolfhouse/ informed. Offers are sought for the freehold interest subject to contract and the existing lease. CONTACTS VAT For further information please contact: The property is not elected for VAT. Davina Clowes Associate Director [email protected] VIEWINGS +44 (0) 207 016 3838 Viewing are strictly by appointment via the James Nicholls Surveyor vendor’s sole selling agents, Savills. Please [email protected] contact one of the agents below to make an +44 (0) 20 7409 8070 appointment. Offers are invited in excess of £6,500,000 for the freehold interest. Subject to contract and the existing internal repairing lease.

IMPORTANT NOTICE Maps are reproduced from the Ordnance Survey Map with the permission of the Controller of H.M. Stationery Office. © Crown copyright licence number 100022432 Savills (UK) Ltd, and published for the purposes of identification only and although believed to be correct accuracy is not guaranteed. Savills, their clients and any joint agents 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 Savills 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 | November 2018