MODERN RESIDENTIAL INVESTMENT OPPORTUNITY RIVIERA COURT WATKIN LANE, LOSTOCK HALL, PRESTON, PR5 5RG EXECUTIVE SUMMARY Modern residential investment opportunity The property is located in a prime position fronting Watkin Lane, the main arterial route in Lostock Hall providing numerous amenities and in close proximity to the local Train Station and Motorway Networks Ten apartments in total comprising eight two-bedroom and two three-bedroom apartments which are all fully let to private occupiers on various AST agreements. Site of approximately 0.201 acres with low site coverage of 32% with 10 car parking spaces. The total gross income is £55,260 pa with an ERV of £62,400 pa. Offers in excess of £850,000 (Eight Hundred & Fifty Thousand Pounds) are invited for our client’s freehold interest in the property reflecting a gross initial yield of 6.16%, and a reversionary yield of 6.95% assuming usual acquisition costs of 5.56%. 14 13 A587 A59 12 A583 M55 32 A671 3 1 4 11 M6 A59 10 A6 M65 9 A583 A666 8 BLACKPOOL 31 7 A584 PRESTON 6 A582 BLACKBURN A646 LOSTOCK HALL 30 5 A646 A59 29 A53 LOCATION 29 2 Halifax 3 4 A56 The Property 1 28 M65 LEYLAND A644 Preston was granted City status in 2002 and is the principal administrative 8 centre for Lancashire representing the North West region’s third city after SOUTHPORT CHORLEY Huddersfield Manchester and Liverpool.The City is situated approximately 33 miles M6 A666 1 A58 M66 M62 (53kms) north west of Manchester, 35 miles (56kms) north of Liverpool A629 WIGAN BOLTON ROCHDALE BURY A58 21 27 2 and 19 miles (31kms) south east of Blackpool. 20 3 Ormskirk 6 A58 19 The City benefits from excellent road communications, with the M6 M58 5 M61 Radcliffe OLDHAM 4 3 4 19 accessed via junctions 29-32 and direct links to the M55, M61 and 5 26 3 17 20 16 1 21 Walkden 15 22 1 M65 motorways providing access to the wider region. Preston railway 14 Wardley 25 A627 station is situated on the West Coast mainline, connecting London and 7 A580 M6 12 SALFORD 24 1 2 3 A6010 23 A628 Glasgow. 6 A580 11 Eccles M57 23 10 Bootle 4 ST HELENS M62 MANCHESTER 24 3 3 Wallasey 22 M67 102 11 A6 25 10 6 A34 A5058 M62 21A 26 1 9 A56 5 27 Moreton 5 6 7 1 4 2 STOCKPORT 2 21 3 1 3 A553 2 Birkenhead M60 4 3 LIVERPOOL A557 5 A562 20 8 A41 Widnes A56 7M56 6 A6 Prestatyn Speke 9 Llandudno 4 Manchester 10 Airport Rhyl Heswall Liverpool A533 Benlech River Mersey John Lennon 11 Airport A523 Hollyhead A540 M53 A557 A34 12 19 5 6 A55 7 M6 Colwyn Bay Rhuddlan 8 Ellesmere Port A623 A547 A533 A55 9 A537 A556 Anglesey Beaumaris A55 M56 10 14 A537 Llangefni A548 St. Asaph A548 Llanfairfechan A49 11 A537 A55 15 NORTHWICH MACCLESFIELD A541 Flint A6 A525 A41 A473 A548 Bangor A5119 A5117 A556 A54 A34 12 A533 18 Denbigh A54 A487 A544 A494 A51 A49 A513 A5 CHESTER A523 A53 A55 Congleton 17 Llanrwst A494 Ruthin A50 A470 A41 A51 A34 A530 A5 A534 M6 A527 A470 A534 A534 A53 A5 A494 16 Nantwich A500 A500 Wrexham A41 A49 A520 A5 A51 A34 Stoke Corwen A5 on-Trent Llangollen A525 15 A50 A51 A34 A520 A53 A519 Stone A5013 A51 A518 A34 A41 A519 14 Stafford A518 B5405 y a B W 5 2 5 n PRESTON B e 4 6 L d 2 l e LOWER PENWORTHAM 5 o y 8 la A G C M6 nd 6 2 h 8 R o ne 5 r n La o l ughto A a e Ho d y SITUATION R ne o La ad ol o Sch A The property is prominently situated along Watkin Lane in the heart 6 B e 5 R s 2 BAMBER BRIDGE lin o n of Lostock Hall adjacent to the junction with Leyland Road and A a a e 5 5 ol d 4 C L 8 n 2 a W d Pe Brownedge Road approximately 4 miles to the south of Preston centre. L at ea s H n k w d B in a k os o 6 The immediate area provides numerous amenities for local residents r L The Property o M61 n M t a R 2 a h ge n ed 5 B g a e 8 m own n B r including a doctor’s surgery, convenience stores, a post office, hair Brin o dle W M6 L R BABMER BRIDGE o a LOSTOCK HALL ad dressers, pubs and restaurants. y ane L te LOSTOCK HALL A6 Chain House Lane Coo Lostock Hall train station is situated within ½ mile to the south of the 29 property along Watkin Road. Junction 1 of the M65 and Junction 24 of A 6 9 e the M6 are located within 2 miles of the property and are also accessed n t d S L a oa let a l via Watkin Lane. Occupiers include Spa, Subway, Bet Fred and KFC. A n R Ke o n A gt 6 in fi arr 2 F e 2 new Co-Op convenience store is under construction within a ¼ mile of 58 l a L d 8 2 A M65 5 A the property. 1 n e d ay a A Cuerden Valley Park 6 o W M61 R g M6 r n o bu A st s 5 d o 0 n 8 o e 3 l Cr a R F 3 n FARRINGTON MOSS 25 CLAYTON GREEN ga i 5 B W DESCRIPTION Riviera Court comprises a purpose built modern development of 10 self-contained residential apartments completed in 2012. The building is arranged over ground and two upper floors under a pitched tiled roof with rendered brick external elevations. Externally there is parking for 10 vehicles with access from Watkin Lane. The property provides in total 10 apartments as follows – 8 - Two Bed Apartments (ground and first floor) 2 - Three Bed Apartments (second floor) Each apartment benefits from – Gas Central heating Combination Boiler Ensuite and main bathroom in each apartment Open plan kitchen / lounge area Double glazing One parking space per apartment ACCOMMODATION & TENANCY The property is fully let on AST agreements and currently produces a gross income of £55,260 pa. An individual breakdown of each apartment is provided in the schedule below. The apartments are let on AST agreements with various expiries. A number of tenants have been in occupation since mid-2014 demonstrating the stable nature of the income. Our view of ERV is £500 pcm for a two bed apartment and £600 pcm for a three bed apartment. This produces a total ERV in the order of £63,400 pa. Ground Floor TENANCY SCHEDULE AST Rent ERV Tenant Name Apartment Start Bedrooms Expiry £ pa £ pa Mr Amadeusz Krygier Apartment 1 12/02/2016 12/08/2017 2 £5,100.00 £6,000.00 Mrs Neelam Gill & Mr Ashley Gill Apartment 2 16/10/2015 15/04/2017 2 £5,400.00 £6,000.00 Mr Graham Kenyon Apartment 3 01/04/2014 31/03/2017 2 £5,400.00 £6,000.00 Mr Gareth Bell Apartment 4 30/06/2015 29/12/2015 2 £5,400.00 £6,000.00 Miss Evenson & Mr Kenny Apartment 5 31/08/2016 01/02/2017 2 £5,400.00 £6,000.00 Miss Harrison & Mr Skellorn Apartment 6 22/07/2016 21/01/2018 2 £5,400.00 £6,000.00 Mr Neil Hankin Apartment 7 12/11/2014 11/05/2017 2 £5,100.00 £6,000.00 First Floor Miss Foster & Mr Wilson Apartment 8 21/11/2014 20/01/2017 2 £5,700.00 £6,000.00 Miss Laura may Apartment 9 23/06/2015 22/06/2017 3 £6,180.00 £7,200.00 Miss Elizabeth Leighton Apartment 10 10/08/2015 09/08/2017 3 £6,180.00 £7,200.00 Total £55,260.00 62,400 TENURE Freehold. Second Floor SITE AREA The property sits on a site of 0.081 hectares (0.201 acres) providing a site density of approximately 32%. THE MARKET Developer confidence in the local market & house prices, for comparable data, can be demonstrated by the Morris Homes development at St James’ Fields Wateringpool Lane, Lostock Hall, Lostock Hall, PR5 5UA. This development can be viewed here www.morrishomes.co.uk/developments/ st-james-fields We understand that all 2 bedroom properties have sold and prices started at £178,000 for theese houses. VAT EPC The prices quoted are exclusive but Energy Performance Certificates (EPC) may be subjective to VAT. are available on request or can be downloaded from our website www.gva.co.uk/11963 Opportunities Rental Growth – rents have not been pushed over a period of time. The block has enjoyed 100% occupancy over my client’s ownership with tenants in continuous occupation for long periods of time. Individual Sales – potential to dispose of the individual appartments to occupiers or investors thereby also creating ground rents and adding additional value. PROPOSAL We are instructed to seek proposals in excess of £850,000 (Eight Hundred & Fifty Thousand Pounds) for my clients’ freehold interest in the property, subject to contract and exclusive of VAT. This devalues the apartments to an average value of only £85,000 each. A purchase at this level reflects a gross initial yield of 6.16 %, assuming purchaser’s costs of 5.56%.