MIXED USE INVESTMENT OPPORTUNITY
306 EARLS COURT ROAD, LONDON SW5 9BA
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MIXED USE INVESTMENT OPPORTUNITY | 306 EARLS COURT ROAD, LONDON SW5 9BA
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Crown Copyright - licence no. 100018190. Based on Ordnance
Survey 2016.
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Not to Scale - For Identification Purposes Only.
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LOCATION AND SITUATION
DESCRIPTION
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Ordnance Survey © Crown Copyright 2016. All rights reserved.
Licence number 100022432. Plotted Scale - 1:1250
Earls Court Road itself runs north to south
connecting Cromwell Road to Brompton Road.
The street is characterised by a mix of retail
and residential property and includes the major
transport interchange of Earls Court Station
(Travel Zone 1: Circle & District and Piccadilly).
Green Park
Oxford Circus
Paddington Mainline Railway
Heathrow International Airport
9 mins
15 mins
9 mins
37 mins
Transport connections are excellent with Earls
Court Underground Station situated 0.2 miles
north of the subject property and West Brompton
Overground Station situated 0.3 meters to the
south west. There are also various accessible bus
routes within the vicinity that connect the property
to wider London.
The property is a mid terraced, freehold building
comprising four residential apartments and one
commercial unit.
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17
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The
property is located in Earls Court, within the
Royal Borough of Kensington and Chelsea.
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• Opportunity to add value through
refurbishment
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• Located in Earls Court within Travel
Zone 1 approximately 500 meters
from Earls Court Underground
Station (District, Circle and Piccadilly
Lines)
7
• Overall Gross Internal Area
(including common parts) extending
to 406.5 sq m (4,376 sq ft)
22
• Total gross rental income of
£131,200 per annum (including
ERV for vacant apartment) with an
Estimated Rental Value of £132,400
per annum
4
• Four self contained apartments (2 x
studios, 1 x one bed & 1 x three bed,
extending to 174.6 sq m/ 1,879 sq ft)
let on ASTS producing an income of
£62,400 per annum
El
Sub Sta
TCB
12
2
22
• Commercial unit (extending to 209.5
sq m / 2,255 sq ft) currently let to
Couscous Darma Ltd for a term
of 20 years commencing on 24th
October 2013 at a rent of £55,000
per annum
14
A freehold, mixed use investment
opportunity situated in Earls Court,
Central London comprising:
M
A
BR
INVESTMENT SUMMARY
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The residential accommodation comprises two
x studios, one x one bed and one x three bed
arranged over first to third floors. Three of the
apartments are let on ASTs and produce a rental
income of £62,400 per annum. The remaining
apartment, Flat 3 will be provided with vacant
possession.
Each of the apartments are in lettable condition
providing popular rental accommodation. However,
the flats would benefit from modernisation in due
course. In addition, there is potential to extend into
the roof space (subject to necessary consents)
The retail unit is arranged over the ground and
lower ground floors. The unit is let to Monsieur K
Ltd on a 20 year FRI lease, commencing on 24th
October 2013, excluded from the security of the
Landlord and Tenant Act 1954. The passing rent
is £55,000 per annum, subject to 5 yearly rent
reviews to the open market rent agreed. The lease
has since been assigned to Couscous Darma Ltd,
who have fitted the unit out to a high specification.
3
MIXED USE INVESTMENT OPPORTUNITY | 306 EARLS COURT ROAD, LONDON SW5 9BA
EARLS COURT
REGENERATION
The Earls Court Masterplan is arguably one of
the most exciting regeneration projects in the
capital. A concept devised by Sir Terry Farrell
expands across 77 acres of Earls Court and
proposes the transformation of the area into four
new urban villages and a high street. The site is
being developed by property company Capital
& Counties Properties PLC, and includes 7,500
new homes, ranging from mansion blocks to family
houses, loft-style flats and affordable housing.
Construction has already begun on the first phase
but the entire Masterplan is a long term project. A
regeneration site of this scale is genuinely unique
in central London. As development continues and
connectivity is improved, particularly from east
to west over the railway line, the latent value of
the housing stock in locations surrounding the
development will be progressively unlocked by
rising demand from increasingly affluent buyers
and tenants. Current and pipeline development
schemes shown below:
Crown Copyright - licence no. 100018190. Based on Ordnance Survey 2016.
Not to Scale - For Identification Purposes Only.
Lillie Square
• Developer: Capco
• Units: 608 private units
• Capital Value Ranges:
- Studio–£515K–£535K
- 1 Bed–£595K – £900K
- 2 Bed–£940K–£1.4M
- 3 Bed–£1.03M–£1.86M
The Landau
Ariana Apartments
• Developer: Mount Anvil
• Capital Value Ranges:
• IPE Developments
• Capital Value Ranges:
•Units:
107 total, 89 private units
- 1 Bed–£915K–£1.365M
• Units: 20 private units
- 1 Bed–£600K–£700K
- 2 Bed–£1.19M–£1.565M
- 3 Bed–£2.35M–£2.45M
Ordnance Survey © Crown Copyright 2016. All rights reserved.
Licence number 100022432. Plotted Scale - 1:4237
- 2 Bed – £765K – £960K
- 3 Bed – £985K–£1.125M
4
MIXED USE INVESTMENT OPPORTUNITY | 306 EARLS COURT ROAD, LONDON SW5 9BA
MARKET OVERVIEW
Earl’s Court remains one of the most promising
markets in close proximity to central London. As
buyers in southern Chelsea are out priced, demand
filters to central fringe locations. Furthermore,
buyers are attracted by the prospect of acquiring
more space for their budget whilst enjoying
a central location with outstanding transport
connections. The area has the housing stock to
become a more established prime location and
the catalyst for change will come from substantial
regeneration and new investment into the area.
Many of the hotels are now being restored back
to their residential use and the biggest change will
come from the redevelopment around the former
Earls Court exhibition centre.
ESTIMATED RENTAL VALUE AND RUNNING YIELD
Investors are particularly attracted to this part of
London as there is a mature private rented sector.
According to the 2011 Census, 25.1% of households
in London are in the private rented sector and in
Earl’s Court the proportion is significantly higher
at 41.6% of all households. Demand for rental
properties in the area comes from tenants in both
the prime and mainstream markets. The prime
rental market benefits from strong employment
and the increasing number of international
companies in London. Savills figures show that
across prime London, 47% of tenants are renting
due to employment relocation and 60% of tenants
are from overseas.
Rental Forecasts
2016
2017
2018
2019
2020
5 year
UK Residential
London Residential
London Retail
3.0%
4.0%
2.0%
3.0%
4.0%
2.0%
3.0%
4.0%
2.0%
3.0%
4.5%
2.0%
3.5%
4.5%
2.0%
16.5%
22.8%
10.4%
Commercial ERV
Residential ERV
£55,000
£77,400
£55,000 £57,222
£80,496 £83,716
£57,222
£87,483
£57,222
£91,420
£57,222
£95,047
Total ERV
Gross Yield
£132,400 £135,496 £140,938
4.4%
4.5%
4.7%
£144,705
4.8%
£148,642
5.0%
£152,269
5.1%
5
MIXED USE INVESTMENT OPPORTUNITY | 306 EARLS COURT ROAD, LONDON SW5 9BA
FLOORPLANS - APPROXIMATE GROSS INTERNAL AREA: 406.5 SQ M / 4,376 SQ FT
Lower Ground
Ground Floor
Lift
4.42 x 4.30m
14'6 x 14'1
4.42 x 4.30m
14'6 x 14'1
Lift
Lift
4.42 x 4.30m
14'6 x 14'1
Lift
Lift
4.42 x 4.30m
14'6 x 14'1
5.33 x 3.20m
17'6 x 10'6
Lift
LiftLift
5.33 x 3.20m
17'6 x 10'6
Lift
9.42 x 5.28m
30'11 x 17'4
9.42 x 5.28m
30'11 x 17'4
Lift
Approximate
Approximate
Gross Internal
Gross
Approximate
Area
InternalGross
Area
Approximate
Internal Area
GrossApproximate
Internal AreaGross Internal Area
Vent
Kitchen
5.33 x 3.20m
17'6 x 10'6
Vent
Kitchen
Vent
Kitchen
Bedroom
Bedroom
Kitchen
3.22 x 3.03m 3.22 x 3.03m
10'7 x 9'11
10'7 x 9'11
Bedroom
Kitchen
3.22 x 3.03m
10'7 x 9'11
Bedroom
3.22 x 3.03m
10'7 x 9'11
Kitchen
4.84 x 3.14m
15'11 x 10'4
Flat 3
9.42 x 5.28m 9.42 x 5.28m
30'11 x 17'4 30'11 x 17'4
Third Floor
406.50 sq
406.50
m / sq
4,376
406.50
m /sq4,376
ftsq m
406.50
sq/ ft4,376
sq m
sq406.50
/ft4,376sq
sqmft / 4,376 sq ft
Vent
14.09 x 4.32m 14.09 x 4.32m
46'3 x 14'2
46'3 x 14'2
Second Floor
Earls Court
Earls
Road,
Court
Earls
SW5
Road,
Court
SW5
Earls
Road,
Court
SW5Road,
Earls SW5
Court Road, SW5
4.42 x 4.30m
14'6 x 14'1
Vent
5.33 x 3.20m 5.33 x 3.20m
17'6 x 10'6
17'6 x 10'6
First Floor
Flat 3
Flat 3
Flat 1
Flat 4
Studio
5.40 x 4.17m
17'9 x 13'8
Flat 4
Studio
5.40 x 4.17m
17'9 x 13'8
Flat 4
Flat 1
Flat 2
Bedroom
Bedroom
3.38 x 3.19m 3.38 x 3.19m
Kitchen/
Kitchen/
11'1 x 10'6
11'1 x 10'6
Reception Room
Reception Room
Studio
4.66 x 3.38m
4.66 x 3.38m
4.74 x 3.38m
15'3 x 11'1
15'3 x 11'1
15'7 x 11'1
Flat 1
Flat 4
Reception Room
Reception Room
Studio
5.39 x 4.23m 5.39Studio
x 4.23m
5.40 x17'8
4.17m
x 13'11 5.40
17'8 x 4.17m
13'11
17'9 x 13'8
17'9 x 13'8
Kitchen
4.84 x 3.14m
15'11 x 10'4
Flat3 2
Flat
Kitchen/
Kitchen/
Reception Room
Reception Room
Studio
Studio
14.09 x 4.32m
4.66 x 3.38m 4.66 x 3.38m
4.74 x 3.38m
4.74 x 3.38m
46'3 x 14'2
15'3 x 11'1
15'3 x 11'1
15'7 x 11'1
15'7 x 11'1
Studio
14.09 x 4.32m Studio
14.09 x 4.32m
4.74 x 3.38m 4.74 x 3.38m
46'3 x 14'2
46'3 x 14'2
15'7 x 11'1
15'7 x 11'1
9.42 x 5.28m
30'11 x 17'4
Flat 2 Flat 3 Flat 2
Kitchen
4.84 x 3.14m
15'11 x 10'4
Bedroom
3.22 x 3.03m
10'7 x 9'11
Flat 1
Kitchen
4.84 x 3.14m
15'11 x 10'4
Flat 2
Bedroom
3.38 x 3.19m
Kitchen/
11'1 x 10'6
Reception Room
4.66 x 3.38m
15'3 x 11'1
Kitchen
4.84 x 3.14m
15'11 x 10'4
Bedroom
3.38 x 3.19m
11'1 x 10'6
Bedroom
3.38 x 3.19m
11'1 x 10'6
Bedroom
4.24 x 3.41m
Bedroom
13'11 x 4.23
11'2 x 2.11m
Bedroom
4.24 x 3.41m
13'11 x 11'2
Flat 1
Flat 4
Bedroom RoomBedroom ReceptionBedroom
Reception Room
Reception
Room
Studio 4.245.39
5.39
x 4.23m
x 4.23m
4.23m
x 3.41m
4.24Bedroom
x 3.41m 5.39 x4.24
xBedroom
3.41m
Bedroom
Bedroom
5.40
x 4.17m
17'8
x
13'11
17'8
x
13'11
17'8
x
13'11
13'11
x
11'2
13'11
x
11'2
13'11
4.23 x 2.11m 4.23 x 2.11m
4.23 x 2.11m
4.23x x11'2
2.11m
17'9 x 13'8
13'11 x 6'11
13'11 x 6'11
13'11 x 6'11
13'11 x 6'11
13'11 x 6'11
ILLUSTRATIONILLUSTRATION
FOR IDENTIFICATION
FOR
ILLUSTRATION
IDENTIFICATION
PURPOSES
FOR
ONLY
ILLUSTRATION
PURPOSES
IDENTIFICATION
ONLY
FOR
PURPOSES
IDENTIFICATION
ILLUSTRATION
ONLY PURPOSES
FOR IDENTIFICATION
ONLY
PURPOSES ONLY
ALL MEASUREMENTS
ALL MEASUREMENTS
ARE MAXIMUM,
ALL MEASUREMENTS
ARE
AND
MAXIMUM,
INCLUDEALL
AND
WINDOW
ARE
MEASUREMENTS
INCLUDE
MAXIMUM,
BAYSWINDOW
AND
AND
WARDROBES
ARE
ALL
INCLUDE
BAYS
MAXIMUM,
MEASUREMENTS
AND
WINDOW
WHERE
WARDROBES
AND INCLUDE
BAYS
APPLICABLE
ARE
AND
WHERE
MAXIMUM,
WINDOW
WARDROBES
APPLICABLE
AND
BAYSINCLUDE
WHERE
AND WARDROBES
APPLICABLE
WINDOW BAYS
WHERE
ANDAPPLICABLE
WARDROBES WHERE APPLICABLE
THIS PLAN MUST
THIS
NOT
PLAN
BE MUST
REPRODUCED
NOT
THIS BE
PLAN
REPRODUCED
BYMUST
ANY OTHER
NOT
THIS
BE
BY
PLAN
PERSON
REPRODUCED
ANYMUST
OTHER
WITHOUT
NOT
PERSON
BY
BE
THIS
PERMISSION
ANY
REPRODUCED
PLAN
WITHOUT
OTHER
MUST
PERSON
PERMISSION
BY
NOT
ANY
BE
WITHOUT
OTHER
REPRODUCED
PERSON
PERMISSION
BY
WITHOUT
ANY OTHER
PERMISSION
PERSON WITHOUT PERMISSION
Floorplans provided by Fulham Performance
6
MIXED USE INVESTMENT OPPORTUNITY | 306 EARLS COURT ROAD, LONDON SW5 9BA
ACCOMMODATION SCHEDULE
Sq ft
Passing
Rent PCM
Passing
Rent PA
Restaurant 209.5
2,255
£4,583
£55,000 24/10/13
23/10/33
First
Studio
25.0
269
£1,083
£13,000
21/10/15
20/10/16
First
Studio
28.1
302
£1,150
£13,800
N/A
N/A
Flat 2
Second
1
28.8
310
£1,192
£14,300
05/10/15
04/10/16
Flat 1
Second &
third
3
92.7
998
£2,925
£35,100
29/09/15
24/09/16
406.5
4,376
£10,933
£131,200
Unit
Floor
Type
Retail
Ground and
lower ground
Flat 4
Flat 3
TOTAL (including common parts)
Sq m
Lease
Lease End
Start Date Date
* Rents as of April 2016 **Flat 3 is the ERV
TENURE
VIEWINGS
The property is held Freehold
Viewings are strictly by appointment via the vendor’s
sole selling agents, Savills. Please contact one of the
agents below to make an appointment.
METHOD OF SALE
The property is offered for sale freehold by private
treaty.
Offers are sought for the freehold interest subject to
contract and the existing tenancies.
CONTACTS
Davina Clowes
James Watkins
+ 44 (0) 20 7016 3838
+ 44 (0) 20 7409 8056
[email protected]@savills.com
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:
www.savills.com/306Earlscourtroad
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 | April 2016