RESIDENTIAL INVESTMENT SALE

Daffodil Gardens &Lavender Place

ILFORD IG12BQ

LONDON

HEATHROW AIRPORT

Slough

Windsor

Maidenhead

Bray

Croydon

Epsom

Bromley

ILFORD

Dartford

Enfield

Kingston Upon Thames

Woking

Esher

Guildford

Watford

M11

M40

M4

M3

M25

M20

M26

M23

M25

M1

A1(M)

GATWICKAIRPORT

N CIRCU

LAR RO

AD

A406

A118 ROMFORD ROAD

ILFORD HILL

A118 WINSTON WAY

A1083

A118

A123 ILFORD

LANE FANS

HAWE AVE

A124

A1

2 3 A BBEY RD

RIPPLE RD

A117 H

IGH

ST N A

117

A117

A124

BARKIN

G RD LONDON RD

A116 ALDERSBROOK ROAD

NORT

HERN RELIEF RD A124

Mayville RdJersey Rd

Hickling Rd

St Luke’s Ave

Khartouom Rd

Hunter Rd

Lavender PlHarvey Rd

Saxon Rd

Roman RdBluebell Way

Uphall Rd

Victoria Rd

Baxter Rd

Paget Rd

Pretoria Rd

Ilford

Ilford Rail

BarkingEast Ham

N CIRCU

LAR RO

AD

A406

A118 ROMFORD ROAD

ILFORD HILL

A118 WINSTON WAY

A1083

A118

A123 ILFORD

LANE FANS

HAWE AVE

A124

A1

2 3 A BBEY RD

RIPPLE RD

A117 H

IGH

ST N A

117

A117

A124

BARKIN

G RD LONDON RD

A116 ALDERSBROOK ROAD

NORT

HERN RELIEF RD A124

Mayville RdJersey Rd

Hickling Rd

St Luke’s Ave

Khartouom Rd

Hunter Rd

Lavender PlHarvey Rd

Saxon Rd

Roman RdBluebell Way

Uphall Rd

Victoria Rd

Baxter Rd

Paget Rd

Pretoria Rd

Ilford

Ilford Rail

BarkingEast Ham

LOCATION

These properties are situated to the south of Ilford in an established and extensive residential area adjacent to the River Roding, within the London Borough of Redbridge.

Local shopping facilities are situated a short walk to the east on Ilford Lane (A123) and the nearest station is Barking which lies approximately 1 mile to the south.

The North Circular (A406) Barking Relief Road passes a short distance to the west of the property providing access to Greater London principle arterial routes.

The properties are situated on the west side of Daffodil Gardens and Lavender Place and are flanked on their western side by the River Roding. The immediate vicinity comprises modern estate type housing and low rise (4 storey) flats.

DAFFODIL GARDENS

LAVENDER PLACE

SAT NAV: IG12BQ

TENANCY

The entire property has been let to East Homes Ltd. There are two co-terminus internal repairing leases for a term of 10 years from 2 February 2005. The total current rent passing is £1,335,220 pa with a fixed uplift to £1,381,952 pa in February 2014.

In exceptional circumstances the leases allow for the tenant to call for a rent review. The review can only be triggered in the event that central government introduce a legislative change that reduces the level of housing benefit payable to the occupiers of the premises. Notwithstanding any rent review the minimum annual rent shall never be less than £1,204,292 pa.

We understand that the tenant is unlikely to renew their lease in 2015 and is in the process of relocating the under tenants to alternative premises, some of which are within the Olympic Village.

Copies of the leases are available in the dataroom.

TENURE

Freehold.

DESCRIPTION

The investment comprises a total of 160 modern purpose built flats.

The properties were constructed between 2000 and 2002 in a series of low rise blocks, surrounded by landscaped grounds consisting of planted trees and grass with a number of car parking areas. They have brick elevations, double glazed windows and slate roofs. Internally there are communal staircases and hallways. Security for the external doors is provided by a keypad entry system.

All of the properties have bathrooms fitted with white suites with a plastic bath, side panel, pedestal wash basin and a low level WC. All of the kitchens are fitted with single drain stainless steel sinks and are plumbed for free standing cookers, fridges and washing machines. We understand that the landlord has installed an electric cooker, free standing fridge and a washing machine in each flat, these will be treated as fixtures and are included in the sale. Each flat has plastered walls, double glazed UPVC windows and electric dimplex type wall mounted radiators.

We have been verbally informed by the tenant that all of the flats conform to the good homes standard.

Lavender Place comprises: 2 x Studio, 30 x one bed and 48 x two bed units.The one bedroom flats have a kitchen which opens onto the reception room, a double bedroom and a gross internal area of 43 sq m (465 sq ft). The two bedroom flats all have separate kitchens and two double bedrooms. There are two different layouts for the two bed flats; one is 53 sq m (568 sq ft), the other is 54.2 sq m (584 sq ft). We were not able to measure either of the studio flats.

Daffodil Gardens comprises: 28 x one bed and 52 x two bed units.The one bedroom flats have a kitchen which opens onto the reception room and a gross internal area of 39 sq m (420 sq ft). The two bedroom flats also have an open kitchen onto the reception room, with a double and a single bedroom and a gross internal area of 47.4 m (510 sq ft). Many of these properties also benefit from double external full height glass doors opening off the reception area.

DEVELOPMENT POTENTIAL

The total existing site area is approximately 3.021 acres.

These are three areas of land where we believe there may be potential for further development. These are marked by hatched areas on the ‘Development Plan’ in our dataroom.

The land to the north of Daffodil Gardens (Area 1) has recently benefited from enhanced flood defence work undertaken by The Environment Agency. The vendor has entered into an overage agreement that is binding upon successors in title in relation to any future development of this area.

We are aware that in 2003/2004 planning applications were submitted for the development of both areas 1 and 2. The proposed schemes were for a combined total of 24 x two bed flats, both applications were withdrawn.

DA

FFO

DIL

GA

RDEN

S

BADEN ROAD

PRETORIA

ROA

D BAXTER RD

LAV

END

ER P

LACE

LAVENDER PLAC E

WISTERIA CLO

SE

RIVER RO

DIN

G

AREA 1

AREA 2

TENANTS COVENANT

East Homes Ltd is part of East Thames Group who are one of the largest providers of affordable housing in East London and Essex. East Homes Ltd own or manage in excess of 14,500 affordable homes and property assets. In March 2013 they reported operating surplus of £2.8m, a turnover of £82.5 million and total assets of £1,028,295,000.

Copies of the latest accounts are available in the dataroom.

UNDERLETTINGS

East Homes Ltd have underlet the flats on individual leases to private individuals as affordable homes.

12 of the flats are let by way of historic Assured Shorthold Tenancies (AST), where the landlord has an obligation to contribute up to a maximum of £8,000 to the tenant for refurbishment of the flat upon the termination of the AST.

The historic average cost of refurbishment works has been £6,500.

DAFFODIL GARDENS

LAVENDER PLACE

www.vailwilliams.com

FOR ALL ENQUIRES PLEASE CONTACT

Mark Sherwood: Tel: 0203 589 0057 Email: msherwood@vailwilliams.com

ADDITIONAL INFORMATION

We understand that all the premises are served by mains water, drainage and electricity.

The site was originally the Laporte Chemical Works. We understand that an extensive clean up was undertaken when the site was redeveloped and a certificate was issued by Her Majesty’s Inspectorate of Pollution.

EPC

Copies of EPCs are available via our dataroom. Units have a B, C or D EPC rating.

PRICE

We are instructed to seek offers in excess of £17,500,000, subject to contract for our client’s freehold interest. A purchase at this level reflects a net initial yield of 7.21% rising to 7.46% in February 2014.

This breaks back to an average price of only £109,375 per property.

DATAROOM

For all access to the dataroom please email Lara Port: lport@vailwilliams.com.

Vail Williams LLP declare an interest in this property as one of the Receivers is a member of Vail Williams LLP.

Toby Yates: Tel: 0203 589 0089 Email: tyates@vailwilliams.com

MISREPRESENTATION ACT 1967

Vail Williams for themselves and for the vendors or lessors of this property, whose agents they are, give notice that: 1. The particulars are set out as a general outline only for the guidance of intended purchasers or lessees and do not constitute nor constitute part of an offer or contract. 2. All descriptions, dimensions, reference to condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them. 3. No person in the employment of Vail Williams has any authority to make any representation or warranty whatsoever in relation to this property. Finance Act 1989 – Unless otherwise stated, all prices and rents are quoted exclusive of Value Added Tax (V.A.T.). Any intending purchasers or lessees must satisfy themselves independently as to the incidence of V.A.T. in respect of any transaction. All areas quoted are approximate.

November 2013 Brochure design by Pip Weller Design Limited 07971 552005