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Central London Retail Investment – VAT Free
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sold
private treaty
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£
465,000
Asking price
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Location
London is Europe’s financial and technology capital with a population of approximately 9 million people and it is set to rise by 1% per annum, more than double the European city average.
Wandsworth is a densely populated affluent town in south west London and occupies a desirable location immediately south of the River Thames, approximately 4 miles from central London.
The London Borough of Wandsworth is predominantly a residential district. The area benefits from numerous modes of transport including Wandsworth Town mainline station which serves Clapham Junction, London Victoria and London Waterloo with trains operating at least eight times and hour.
There are excellent road links from the Wandsworth into the City and West End as well as the main feeder routes out of London including the A205 South Circular Route, A3, A217 and A24 which link to the UK motorway network across the south west and south east.
Wandsworth has seen significant regeneration through mainly residential led schemes which has elevated the location as an ideal place to live. This too makes the area attractive to estate agent businesses.
Data from London Datastore shows that Wandsworth has registered strong levels of housing delivery since the turn of the century, in comparison to other London Boroughs. Wandsworth has seen net additions to dwelling stock of 28,646 ranking it third behind Tower Hamlets and Southwark. Much of this housing delivery has been completed along the River Thames stretching west from Nine Elms towards Putney. Prominent schemes include Nine Elms Point by Barratt, The Residence by Bellway Homes, Battersea Power Station and Embassy Gardens by Ballymore.
Wandsworth makes up an increasingly popular part of southwest London, particularly with young professionals and families. The borough is renowned for its state and private schools while the area’s focal point is the beautiful open space of Wandsworth Common, which is surrounded by plenty of shops, eateries and cafes.
The majority of properties are Victorian family homes, many with large gardens, while there is also a choice of modern houses, which have become increasingly sought-after in recent years. You can also find new-build flats and developments, especially along the river.
Summary
- Located in one of London’s most affluent boroughs
- Prominent return frontage
- Recently renewed 10-year lease (tenant break option at the end of year 5)
- Let to Savills (UK) Ltd, Revenue £719 million
- Upwards only rent review in August 2027
- Savills have been in Wandsworth since 1996
- VAT Free
- Total passing rent £29,000 per annum
- £465,000, subject to contract
- 6% NIY
Situation
The property occupies a prominent return frontage along Huguenot Place and Melody Road.
Huguenot Place is and established residential location, also occupied by a mix of national and independent businesses including Chestertons (next door), the Co-op, Glitz and Glam and Computers Inc.
The property benefits from excellent communication links being approximately 500 metres from Wandsworth Town Station. Numerous bus routes also serve the area providing easy access to other parts of Wandsworth and London. Clapham Junction Station is nearby.
Description
The property comprises a ground floor and basement estate agency with a return frontage and has been fitted out by Savills in the usual corporate style.
The ground floor consists of an open plan estate agency with a separate meeting room and kitchen/staff area and WC. The basement consists of ancillary accommodation and WC.
The property benefits from a rear yard.
Accommodation
The property has been measured by BKR Floor Plans and provides the following net initial floor areas:
| Net Frontage | 20’7” | 6.27m |
| Gross Frontage | 22’4” | 6.81m |
| Zone A | 403 sq ft | 37.44 sq m |
| Zone B | 194 sq ft | 18.02 sq m |
| Zone C | 140 sq ft | 13.01 sq m |
| Ground Floor ITZA | 535 UNITS | |
| Total Ground Floor | 737 sq ft | 68.47 sq m |
| Lower Ground | 278 sq ft | 25.83 sq m |
| Total Net Internal Area | 1,015 sq ft | 94.29 sq m |
| Total Gross Internal Area | 1,168 sq ft | 108.51 sq m |
A set of floor plans is available to download and the measured survey report will be re-addressed to a purchaser at a cost of £490 + VAT.
Tenure
999-year long leasehold, from completion of this transaction and at a peppercorn rent.
Tenancy
The property is let to Savills (UK) Limited on a full repairing and insuring lease for a term of 10 years from 15th August 2022, expiring 14th August 2032. There is a tenant only break clause on 14th August 2027, subject to 6 months written notice.
The passing rent is £29,000 per annum which, based on our analysis, equates a Zone A rate of £54 per square foot.
Therefore, there are 9.5 years unexpired and 4.5 years to the break.
Covenant
Savills (UK) Limited is part of Savills Plc, a real estate advisor established in 1855 and employing over 39,000 people in over 70 countries.
Savills provides real estate service in all asset classes and is recognised as one of the largest and well-known real estate advisors globally.
The Wandsworth branch has been trading since 1996 with it’s focus being on the local residential market.
Savills (UK) Limited (Co. No.02605138) has reported the following figures:
| 31 December 2021 | 31 December 2020 | 31 December 2019 | |
|---|---|---|---|
| Revenue | £719,006,000 | £564,476,000 | £589,470,000 |
| Pre-Tax Profits | £107,416,000 | £64,716,000 | £61,517,000 |
| Net Assets | £152,681,000 | £107,333,000 | £88,650,000 |
VAT
The property has not been registered for VAT and therefore VAT is not applicable on the purchase price.
Proposal
We are instructed to seek a figure of £465,000 (Four Hundred and Sixty Five Thousand Pounds), subject to contract, reflecting a net initial yield of 6%, assuming standard purchaser’s costs of 4.54%.
Please note that a purchaser will be re-charged the costs of the measured survey (£490 + VAT) and search validation insurance (£86), which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of 1.0% of the Purchase Price plus VAT.
Investment Considerations
An opportunity to acquire a property in one of London’s most affluent boroughs;
Highly prominent return frontage within ideal location for an estate agency;
Savills recently renewed their lease for a further 10 years (subject to a 5 year break);
Savills first opened their doors in Wandsworth in 1996 and the Wandsworth team have over 100 years of combined experience;
There is an upwards only rent review in August 2027;
VAT Free Investment
Highly Secure income to Savills (UK) Ltd who reported net assets of £152 million
Opportunity to acquire a property in an appreciating area;
Attractive lot size to an investor;
Attractive yield for a London asset.
Contacts
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Singer Vielle
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Vendor's Solicitor Firm
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