residential investment & development opportunity chesterfield ... - Savills
RESIDENTIAL INVESTMENT & DEVELOPMENT OPPORTUNITY CHESTERFIELD LODGE, 78 BEULAH HILL, LONDON SE19 3EX
2
RESIDENTIAL INVESTMENT & DEVELOPMENT OPPORTUNITY | CHESTERFIELD LODGE, 78 BEULAH HILL, LONDON SE19 3EX
INVESTMENT SUMMARY • A freehold investment building located in Beulah Hill, London • Overall Gross Internal Area extending to 5,880 sq ft (546 sq m) • Configured to provide 11 self contained rental apartments arranged as: - 2 studios - 3 one-bedroom apartments - 6 two-bedroom apartments
a 17
DE
NS
15
LOCATION AND SITUATION
88.3m
OA D ER ITA G HE RM
11
80 TCB
6
1 to 9 70
ST ON EB RID GE
There are also numerous accessible bus routes in the immediate vicinity that connect the Property to wider London.
ME WS
76
68 a
80 to
102
96.3m
T EN SC
67 to 73
E CR
2 to
24
Y PRIOR
26 to
78
63 FB
65
30m 51
20m
37
10m
27
0m
Ordnance Survey © Crown Copyright 2017. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250
1 to
c. 23 mins c. 21 mins c. 12 mins
88
71
Beulah Hill runs north to south connecting Knight’s Hill with South Norwood Hill. The road itself is a residential street that is characterised by a mix of Victorian detached houses and more modern purpose built accommodation. The Property occupies a prominent position on the north side of the road.
London Bridge London Victoria Clapham Junction
4c
The central triangle of Crystal Palace, formed by Church Road, Westow Hill and Westow Street provides a variety of restaurants and high street shops. A large expanse of green space is provided at the nearby recreation ground and Crystal Palace Park.
Transport connections are excellent. There is a bus stop in front of the Property providing quick access to West Norwood Railway Station, Central Croydon and the London underground network. West Norwood Railway Station is located c. 1.4 miles (2.2 km) to the north of the property and provides access into mainline London stations.
77
Chesterfield Lodge, 78 Beulah Hill, is located in Crystal Palace within the London Borough of Croydon.
Path (um)
• Scope to improve condition for the existing subject to necessary consents
GA R
2m
• Extensive garden to the rear and ample off street parking to the front
ITA GE
2j
• Implemented planning permission to erect 5 additional flats in the rear garden extending to 3,041 sq ft (283 sq m) comprising: - 4 one-bedroom apartments - 1 two-bedroom apartment
HE RM
2
• Located approximately 1.4 mile (2.2 km) from West Norwood Railway Station providing direct access into London Bridge (23 minutes) and London Victoria (21 minutes)
Chesterfield Lodge
10
• An overall gross rental income of £97,560 per annum (82% occupancy) with an estimated rental value across the existing building of approximately £136,000 per annum
68
66 a
66
RESIDENTIAL INVESTMENT & DEVELOPMENT OPPORTUNITY | CHESTERFIELD LODGE, 78 BEULAH HILL, LONDON SE19 3EX
DESCRIPTION The Property is a large detached Victorian villa arranged over lower ground floor, raised ground floor and two upper floors, providing 11 self contained flats. The property extends to an overall gross internal area of 5,880 sq ft (546 sq m), including the common parts of 538 sq ft (50 sq m). The Property has been well maintained and is in good decorative order throughout. Several apartments (A, D, G, H and I) were refurbished between 2012 and 2017. Currently, Flat F is being updated and the communal areas are being repainted. There is an substantial private garden to the rear that is enjoyed by all tenants. In addition there is ample off street parking to the front.
INCOME The Property is managed by the current owner and is 82% let on Assured Shorthold Tenancies (ASTs) producing a gross annual income of £97,560. The emphasis has been on tenant retention with units vacated for refurbishment. We consider there to be scope to significantly increase the rent roll with an estimated rental value in the region of £136,000 across the existing Property.
3
4
RESIDENTIAL INVESTMENT & DEVELOPMENT OPPORTUNITY | CHESTERFIELD LODGE, 78 BEULAH HILL, LONDON SE19 3EX
MARKET OVERVIEW The fundamentals for the Private Rented Sector (PRS) in London are the strongest in the UK. With high levels of demand and limited supply, rental growth has averaged 3.0% per annum over the past 20 years. The Greater London housing shortage remains, with a projected annual shortfall between new household formation and
RENTAL GROWTH OVERVIEW construction of new units of over 23,000 units. Crystal Palace is a location that enjoys rapid access into Central London. Neighbouring areas such as Brixton have seen accelerated capital growth over the past 3 years leaving Crystal Palace looking comparatively better value to both tenants and owner occupiers.
2017 UK 3.3% Greater London 5.0% Chesterfield Lodge £136,800 ERV PA
2018
2019
2020
2021
5 year
4.2% 6.4%
5.5% 8.4%
3.7% 5.7%
3.3% 5.0%
21.5% 34.3%
£144,700
£156,900
£165,800
£174,100
5
RESIDENTIAL INVESTMENT & DEVELOPMENT OPPORTUNITY | CHESTERFIELD LODGE, 78 BEULAH HILL, LONDON SE19 3EX
PLANNING Planning permission (11/00079/P) was granted in September 2011 to erect 5 additional flats in the rear garden. The planning permission has been implemented with the the foundations partially having been dug. This has been verified by Lewis Berkeley, corporate approved inspector. These reports can be found on the dataroom.
Unit
Unit Type
Floor
GIA (sq ft)
GIA (sq m)
1
1 Bed
First Floor
578
54
2
1 Bed
Ground Floor
540
50
3
2 Bed
Ground and First Floor
813
76
4
1 Bed
Ground and First Floor
543
50
5
1 Bed
Ground and First Floor
567
53
3,041
283
Total
ACCOMMODATION SCHEDULE Unit
Unit Type
Floor
GIA (sq ft)
GIA (sq m)
Gross Rent Passing PCM
Gross Rent Passing PA
A
1 Bed
Lower Ground Floor
430
40
£830
£9,960
B
2 Bed
Lower Ground Floor
653
61
£900
£10,800
C
2 Bed
Raised Ground Floor
560
52
£850
£10,200
D
1 Bed
Raised Ground Floor
432
40
£850
£10,200
E
2 Bed
First Floor
606
56
£945
£11,340
F
2 Bed
First Floor
581
54
G
2 Bed
Second Floor
592
55
£1,185
£14,220
H
2 Bed
Second Floor
687
64
£1,125
£13,500
I
Studio
Raised Ground Floor
332
31
£780
£9,360
J
Studio
First Floor
137
13
K
Studio
Lower Ground Floor
332
31
£665
£7,980
5,342
496
£8,130
£97,560
Total
Vacant for refurbishment
Vacant
6
RESIDENTIAL INVESTMENT & DEVELOPMENT OPPORTUNITY | CHESTERFIELD LODGE, 78 BEULAH HILL, LONDON SE19 3EX
FLOORPLANS
Lower Ground Floor
Ground Floor
Kitchen 7' x 6'9'' 2.13 x 2.06m
K
Kitchen/ Reception Room 15'9'' x 14' 4.80 x 4.27m
Kitchen/ Reception Room 13'9'' x 13'6'' 4.19 x 4.11m
Bedroom 13' x 6'9'' 3.96 x 2.06m
Bedroom 8'9'' x 8'6'' 2.67 x 2.59m
A
Reception Room 13'9'' x 13'9'' 4.19 x 4.19m
Kitchen/ Reception Room 22'9'' x 16' 6.93 x 4.88m
Bedroom 13'9'' x 6'9'' 4.19 x 2.06m
Bedroom 12'6'' x 6'9'' 3.81 x 2.06m
D
C B Bedroom 12'6'' x 7' 3.81 x 2.13m Bedroom 11'9'' x 10'9'' 3.58 x 3.28m
Bedroom 13'9'' x 8' 4.19 x 2.44m
Kitchen 7'3'' x 7'3'' 2.21 x 2.21m Reception Room 16' x 11' 4.88 x 3.35m
Bedroom
I
Kitchen/ Reception Room 22'9'' x 16' 6.93 x 4.88m
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RESIDENTIAL INVESTMENT & DEVELOPMENT OPPORTUNITY | CHESTERFIELD LODGE, 78 BEULAH HILL, LONDON SE19 3EX
FLOORPLANS
First Floor
Bedroom 10'3'' x 10' 3.12 x 3.05m
Second Floor
Bedroom 10'6'' x 10'3'' 3.20 x 3.12m
Kitchen/ Reception Room 18'6'' x 16' 5.64 x 4.88m
Bedroom 10'3'' x 9' 3.12 x 2.74m
Bedroom 11'6'' x 10'3'' 3.51 x 3.12m
Kitchen/ Reception Room 18'6'' x 16' 5.64 x 4.88m
G
E J Studio 20'6'' x 6'9'' 6.25 x 2.06m
H F Bedroom 11' x 10'6'' 3.35 x 3.20m
Bedroom 10' x 7'6'' 3.05 x 2.29m
Bedroom 13' x 11' 3.96 x 3.35m Kitchen/ Reception Room 22'9'' x 16' 6.93 x 4.88m
Bedroom 9'3'' x 8'9'' 2.82 x 2.67m
Kitchen/ Reception Room 22'9'' x 16' 6.93 x 4.88m
RESIDENTIAL INVESTMENT & DEVELOPMENT OPPORTUNITY | CHESTERFIELD LODGE, 78 BEULAH HILL, LONDON SE19 3EX
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 by private treaty. Offers are sought for the freehold interest subject to contract and existing tenancies.
VAT The Property is not elected for VAT.
CONTACTS Davina Clowes [email protected] + 44 (0) 20 7016 3838 Thibaut Pieters [email protected] + 44 (0) 20 7016 3761
FURTHER INFORMATION A full suite of background information, including EPCs, can be found on the online data room at www.savills.com/chesterfieldlodge Important Notice Savills, their clients and any joint agents give notice that: 1. They have no authority to make or give any representations or warranties in relation to the property. 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.
8
2
RESIDENTIAL INVESTMENT & DEVELOPMENT OPPORTUNITY | CHESTERFIELD LODGE, 78 BEULAH HILL, LONDON SE19 3EX
INVESTMENT SUMMARY • A freehold investment building located in Beulah Hill, London • Overall Gross Internal Area extending to 5,880 sq ft (546 sq m) • Configured to provide 11 self contained rental apartments arranged as: - 2 studios - 3 one-bedroom apartments - 6 two-bedroom apartments
a 17
DE
NS
15
LOCATION AND SITUATION
88.3m
OA D ER ITA G HE RM
11
80 TCB
6
1 to 9 70
ST ON EB RID GE
There are also numerous accessible bus routes in the immediate vicinity that connect the Property to wider London.
ME WS
76
68 a
80 to
102
96.3m
T EN SC
67 to 73
E CR
2 to
24
Y PRIOR
26 to
78
63 FB
65
30m 51
20m
37
10m
27
0m
Ordnance Survey © Crown Copyright 2017. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250
1 to
c. 23 mins c. 21 mins c. 12 mins
88
71
Beulah Hill runs north to south connecting Knight’s Hill with South Norwood Hill. The road itself is a residential street that is characterised by a mix of Victorian detached houses and more modern purpose built accommodation. The Property occupies a prominent position on the north side of the road.
London Bridge London Victoria Clapham Junction
4c
The central triangle of Crystal Palace, formed by Church Road, Westow Hill and Westow Street provides a variety of restaurants and high street shops. A large expanse of green space is provided at the nearby recreation ground and Crystal Palace Park.
Transport connections are excellent. There is a bus stop in front of the Property providing quick access to West Norwood Railway Station, Central Croydon and the London underground network. West Norwood Railway Station is located c. 1.4 miles (2.2 km) to the north of the property and provides access into mainline London stations.
77
Chesterfield Lodge, 78 Beulah Hill, is located in Crystal Palace within the London Borough of Croydon.
Path (um)
• Scope to improve condition for the existing subject to necessary consents
GA R
2m
• Extensive garden to the rear and ample off street parking to the front
ITA GE
2j
• Implemented planning permission to erect 5 additional flats in the rear garden extending to 3,041 sq ft (283 sq m) comprising: - 4 one-bedroom apartments - 1 two-bedroom apartment
HE RM
2
• Located approximately 1.4 mile (2.2 km) from West Norwood Railway Station providing direct access into London Bridge (23 minutes) and London Victoria (21 minutes)
Chesterfield Lodge
10
• An overall gross rental income of £97,560 per annum (82% occupancy) with an estimated rental value across the existing building of approximately £136,000 per annum
68
66 a
66
RESIDENTIAL INVESTMENT & DEVELOPMENT OPPORTUNITY | CHESTERFIELD LODGE, 78 BEULAH HILL, LONDON SE19 3EX
DESCRIPTION The Property is a large detached Victorian villa arranged over lower ground floor, raised ground floor and two upper floors, providing 11 self contained flats. The property extends to an overall gross internal area of 5,880 sq ft (546 sq m), including the common parts of 538 sq ft (50 sq m). The Property has been well maintained and is in good decorative order throughout. Several apartments (A, D, G, H and I) were refurbished between 2012 and 2017. Currently, Flat F is being updated and the communal areas are being repainted. There is an substantial private garden to the rear that is enjoyed by all tenants. In addition there is ample off street parking to the front.
INCOME The Property is managed by the current owner and is 82% let on Assured Shorthold Tenancies (ASTs) producing a gross annual income of £97,560. The emphasis has been on tenant retention with units vacated for refurbishment. We consider there to be scope to significantly increase the rent roll with an estimated rental value in the region of £136,000 across the existing Property.
3
4
RESIDENTIAL INVESTMENT & DEVELOPMENT OPPORTUNITY | CHESTERFIELD LODGE, 78 BEULAH HILL, LONDON SE19 3EX
MARKET OVERVIEW The fundamentals for the Private Rented Sector (PRS) in London are the strongest in the UK. With high levels of demand and limited supply, rental growth has averaged 3.0% per annum over the past 20 years. The Greater London housing shortage remains, with a projected annual shortfall between new household formation and
RENTAL GROWTH OVERVIEW construction of new units of over 23,000 units. Crystal Palace is a location that enjoys rapid access into Central London. Neighbouring areas such as Brixton have seen accelerated capital growth over the past 3 years leaving Crystal Palace looking comparatively better value to both tenants and owner occupiers.
2017 UK 3.3% Greater London 5.0% Chesterfield Lodge £136,800 ERV PA
2018
2019
2020
2021
5 year
4.2% 6.4%
5.5% 8.4%
3.7% 5.7%
3.3% 5.0%
21.5% 34.3%
£144,700
£156,900
£165,800
£174,100
5
RESIDENTIAL INVESTMENT & DEVELOPMENT OPPORTUNITY | CHESTERFIELD LODGE, 78 BEULAH HILL, LONDON SE19 3EX
PLANNING Planning permission (11/00079/P) was granted in September 2011 to erect 5 additional flats in the rear garden. The planning permission has been implemented with the the foundations partially having been dug. This has been verified by Lewis Berkeley, corporate approved inspector. These reports can be found on the dataroom.
Unit
Unit Type
Floor
GIA (sq ft)
GIA (sq m)
1
1 Bed
First Floor
578
54
2
1 Bed
Ground Floor
540
50
3
2 Bed
Ground and First Floor
813
76
4
1 Bed
Ground and First Floor
543
50
5
1 Bed
Ground and First Floor
567
53
3,041
283
Total
ACCOMMODATION SCHEDULE Unit
Unit Type
Floor
GIA (sq ft)
GIA (sq m)
Gross Rent Passing PCM
Gross Rent Passing PA
A
1 Bed
Lower Ground Floor
430
40
£830
£9,960
B
2 Bed
Lower Ground Floor
653
61
£900
£10,800
C
2 Bed
Raised Ground Floor
560
52
£850
£10,200
D
1 Bed
Raised Ground Floor
432
40
£850
£10,200
E
2 Bed
First Floor
606
56
£945
£11,340
F
2 Bed
First Floor
581
54
G
2 Bed
Second Floor
592
55
£1,185
£14,220
H
2 Bed
Second Floor
687
64
£1,125
£13,500
I
Studio
Raised Ground Floor
332
31
£780
£9,360
J
Studio
First Floor
137
13
K
Studio
Lower Ground Floor
332
31
£665
£7,980
5,342
496
£8,130
£97,560
Total
Vacant for refurbishment
Vacant
6
RESIDENTIAL INVESTMENT & DEVELOPMENT OPPORTUNITY | CHESTERFIELD LODGE, 78 BEULAH HILL, LONDON SE19 3EX
FLOORPLANS
Lower Ground Floor
Ground Floor
Kitchen 7' x 6'9'' 2.13 x 2.06m
K
Kitchen/ Reception Room 15'9'' x 14' 4.80 x 4.27m
Kitchen/ Reception Room 13'9'' x 13'6'' 4.19 x 4.11m
Bedroom 13' x 6'9'' 3.96 x 2.06m
Bedroom 8'9'' x 8'6'' 2.67 x 2.59m
A
Reception Room 13'9'' x 13'9'' 4.19 x 4.19m
Kitchen/ Reception Room 22'9'' x 16' 6.93 x 4.88m
Bedroom 13'9'' x 6'9'' 4.19 x 2.06m
Bedroom 12'6'' x 6'9'' 3.81 x 2.06m
D
C B Bedroom 12'6'' x 7' 3.81 x 2.13m Bedroom 11'9'' x 10'9'' 3.58 x 3.28m
Bedroom 13'9'' x 8' 4.19 x 2.44m
Kitchen 7'3'' x 7'3'' 2.21 x 2.21m Reception Room 16' x 11' 4.88 x 3.35m
Bedroom
I
Kitchen/ Reception Room 22'9'' x 16' 6.93 x 4.88m
7
RESIDENTIAL INVESTMENT & DEVELOPMENT OPPORTUNITY | CHESTERFIELD LODGE, 78 BEULAH HILL, LONDON SE19 3EX
FLOORPLANS
First Floor
Bedroom 10'3'' x 10' 3.12 x 3.05m
Second Floor
Bedroom 10'6'' x 10'3'' 3.20 x 3.12m
Kitchen/ Reception Room 18'6'' x 16' 5.64 x 4.88m
Bedroom 10'3'' x 9' 3.12 x 2.74m
Bedroom 11'6'' x 10'3'' 3.51 x 3.12m
Kitchen/ Reception Room 18'6'' x 16' 5.64 x 4.88m
G
E J Studio 20'6'' x 6'9'' 6.25 x 2.06m
H F Bedroom 11' x 10'6'' 3.35 x 3.20m
Bedroom 10' x 7'6'' 3.05 x 2.29m
Bedroom 13' x 11' 3.96 x 3.35m Kitchen/ Reception Room 22'9'' x 16' 6.93 x 4.88m
Bedroom 9'3'' x 8'9'' 2.82 x 2.67m
Kitchen/ Reception Room 22'9'' x 16' 6.93 x 4.88m
RESIDENTIAL INVESTMENT & DEVELOPMENT OPPORTUNITY | CHESTERFIELD LODGE, 78 BEULAH HILL, LONDON SE19 3EX
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 by private treaty. Offers are sought for the freehold interest subject to contract and existing tenancies.
VAT The Property is not elected for VAT.
CONTACTS Davina Clowes [email protected] + 44 (0) 20 7016 3838 Thibaut Pieters [email protected] + 44 (0) 20 7016 3761
FURTHER INFORMATION A full suite of background information, including EPCs, can be found on the online data room at www.savills.com/chesterfieldlodge Important Notice Savills, their clients and any joint agents give notice that: 1. They have no authority to make or give any representations or warranties in relation to the property. 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.
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