Under Offer
London SW11 – Pizzeria and Residential Ground Rent
42 Lavender Hill, Battersea, London SW11 5RLFreehold Restaurant & Residential Ground Rent Investment
Price
£375,000
Rent P.A.
£20,700
Yield
5.52%
Tenure
Freehold
Lease Term
15 Years
Years Left on Lease
12y 7m
Area
2,997 SQ FT
VAT Applicable
No
Sector
Investment Consideration
- Comprises ground floor restaurant, along with 2 self-contained flats, which have been sold off on long leaseholds.
- Restaurant let until 2033 (No Breaks). Upward only rent reviews.
- Full refurbishment and kit-out in 2018. Premium paid of £50,000 upon commencement of the lease.
- Rear flat benefits from large basement, which extends below the whole property.
- Development potential to build a mansard above first/second floor flat, where tenant previously received planning permission, which has since expired.
- Potential to build extra floor above rear flat, subject to obtaining the necessary consents.
- Potential to increase rental income by using corner wall for advertising purpose.
- Nearby occupiers include Co-op Supermarket, Sainsburys, Pizza Hut and Café Nero, amongst many more.
Key Features
Tenure
Freehold
VAT
VAT is not applicable.
Property Description
The property comprises end-of-terrace building arranged as a ground floor restaurant along with two self-contained flats over ground, first and second floor. The restaurant has undergone a full refurbishment and kit-out upon commencement of tenancy in 2018. The residential flats have been sold off on long leaseholds.
The property provides the following accommodation and dimensions.
Ground Floor: Restaurant 55 sq m (596 sq ft)
Rear Ground Floor: Two bedroom flat 136 sq m (1,464 sq ft)
First & Second Floor: Three bedroom flat 87 sq m (937 sq ft)
The property provides the following accommodation and dimensions.
Ground Floor: Restaurant 55 sq m (596 sq ft)
Rear Ground Floor: Two bedroom flat 136 sq m (1,464 sq ft)
First & Second Floor: Three bedroom flat 87 sq m (937 sq ft)
Tenancy Description
The ground floor restaurant is at present let to Albarella Limited t/a Pizzeria Pellone for a term of 15 years from 30th October 2018 at a current rent of £20,000 per annum and the lease contains full repairing and insuring covenants. Upward only rent reviews in 2023 and 2028. No break clause. Rent deposit held of £10,000. Tenant paid £50,000 premium for the lease. Personal guarantee.
The rear ground floor flat has been sold off on a 125 Year lease from 3rd June 2014, at a ground rent of £300 per annum. Rent increasing by £250 every 25 years.
The first and second floor flat has been sold off on a 125 Year lease from 16th May 2014, at a ground rent of £400 per annum. Rent doubling every 25 years.
The rear ground floor flat has been sold off on a 125 Year lease from 3rd June 2014, at a ground rent of £300 per annum. Rent increasing by £250 every 25 years.
The first and second floor flat has been sold off on a 125 Year lease from 16th May 2014, at a ground rent of £400 per annum. Rent doubling every 25 years.
Tenancies & Accommodation
Location Description
Battersea is a district of South West London, England, within the London Borough of Wandsworth. It is located on the south bank of the River Thames, 2.9 miles (4.7 km) southwest of Charing Cross. Transport links are provided by Clapham Junction rail station and Clapham Common underground station (Northern Line). Nearby occupiers include Co-op Supermarket, Sainsburys, Pizza Hut and Café Nero, amongst many more.
