Rare development opportunity in extremely sought after ... · Clapham Junction railway station is...
Transcript of Rare development opportunity in extremely sought after ... · Clapham Junction railway station is...
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Rare development opportunity in extremely sought after London location
LONDON - 71 NORTHCOTE ROAD
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2INVESTMENT CONSIDERATIONS
• Northcote Road lies within the affluent neighbourhood of Battersea, in the London Borough of Wandsworth and is arguably south west London’s most affluent retailing destination
• The property is situated on the eastern side of Northcote Road, with
nearby retailers including:
• The property comprises an attractive corner unit with prominent frontages onto Northcote Road and Mallinson Road
• In May 2018 planning permission was granted for a part demolition
and construction of four apartments over newly configured commercial accommodation on the ground floor
• There is evidence that one and two bedroom apartments on
Northcote Road have recently sold in excess of £975 psf. Further information available upon request
• We have assumed an estimated rental value of £125,750 per annum on the ground floor commercial unit based off a conservative Zone A of £145 psf. Further information upon request.
• Freehold
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3LOCATION
Clapham Junction lies within the affluent neighbourhood of Battersea, in the London Borough of Wandsworth. Located just 3.6 miles (5.8 km) south west of Central London, the area sits within London’s Zone 2 transport belt, making it a hugely popular residential hub for Central London commuters. Clapham Junction has a core catchment population of 423,343 and a total catchment population of 1,774,671 (Source: Promis).
Northcote Road is arguably south west London’s most popular and affluent family retailing destination. The core retail accommodation is focused within the northern section of the street, which is characterised by several boutique fashion retailers, high-end eateries, artisan café’s and popular national occupiers.
Clapham Junction railway station is the busiest station in the UK with over 30 million passengers a year. Clapham Junction Train Station is situated approximately 500 metres north of the subject property.
There are numerous bus stops on Northcote Road, with very regular services to Clapham Junction, Waterloo, Richmond and to Central London.
The area benefits from immediate access to the A3, A3205 and South Circular providing access to the wider London road network with ease.
HydePark
GreenPark
BatterseaPark
BurgessPark
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St. James’sPark
Kensington Gardens
Clapham Common
Ruskin Park
Brockwell Park
Peckham RyePark
ShillingtonGardens
LadywellFields
Hilly FieldsPark
GreenwichPark
BlackheathPark
MudchuteFarm
Wands-worth
Common
MountsfieldPark
Garden Of Rememberance
Farringdon
Marble Arch Oxford
Circus LeicesterSquare
KensingtonVictoria
Pimlico
Vauxhall
Elephant& Castle
Heron Quays
East India
NorthGreenwich
Rotherhithe
Wapping
Waterloo
Southwark
Blackfriars
St. James’sPark
PiccadillyCircus
TottenhamCourt Road
Whitechapel
ShadwellTower Hill
Monument Westferry
GreenPark
WaterlooBridge
LondonBridge
Canada Water
ClaphamCommon
Baker Street
LiverpoolStreet
Brixton
Paddington
Clapham High Street
Stockwell
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LoughboroughJunction Nunhead
New Cross Gate
Brockley
Hither Green
Vauxhall
WestminsterBridge
Limehouse
Forest Hill
Honor OakPark
WestDulwichTulse
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Balham
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BlackfriarsBridge
TowerBridge
LondonBridge
ChelseaBridge
BatterseaBridge
ChelseaHarbour
AlbertBridge
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Madame Tussauds
London Eye
Trafalgar Square
Imperial War Museum
Buckingham Palace
Victoria andAlbert Museum
Tower of London
The GherkinThe Gherkin
Tate Modern
London School of EconomicsKing’s College London
Canary Wharf
The 02 Arena
Houses ofParliament
BatterseaPower Station
University of the ArtsChelsea Collage
Chelsea Football ClubThe Oval Cricket Ground
Bell Lane Creek
Lewisham & Southwark
College
St. Paul’s Cathedral
WimbledonPark Lake
St DunstansCollege
Surrey QuaysShopping
Centre
D U L W I C HV I L L A G E
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71 NORTHCOTE ROAD
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4DEMOGRAPHICS
London is the largest city in Europe with a population of approximately nine million and one of the world’s leading financial centres, ranked number one on the Global Financial Centre Index. It has the largest GDP of any European city.
London is a global shopping city, with an estimated retail sales volume of £122 billion. It boasts a higher concentration of international retailers than any other global city and was ranked number 1 of 33 European shopping cities for its shopping environment. London is the most visited city in the world by international tourists, with 19.1 million foreign visitors in 2016.
Clapham Junction has a core catchment population of 423,343 and a total catchment population of 1,774,671 (CACI 2017). Over the next five years, the population is anticipated to grow by up to 4%, well above the UK average. The most common CACI Acorn group is City Sophisticates, forming 67% of the catchment. 48% of households have a mean gross family income above £60,000 per annum, above both the national and London average.
Northcote Road arguably provides the foremost shopping and leisure destination in the south-west of the capital. The location benefits from an influx of young families with extremely high levels of spending power. This trend has led to the nickname ‘Nappy Valley’ to denote the belief that the area is considered ideal to raise families.
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SITUATION
The property is situated on the eastern side of Northcote Road, with nearby retailers including:
This section of Northcote Road is predominantly occupied by high-end fashion retailers and artisan cafés and bakeries.
The property comprises an attractive corner unit with prominent frontages onto Northcote Street and Mallinson Road. The subject property was famously occupied by Dove & Son Butchers for 128 years from 1889 – 2017.
DESCRIPTION
71 Northcote Road comprises an attractive Victorian property of traditional brick construction beneath a pitched roof. The existing property is three storeys in height on the Northcote Road and Mallinson Road return, stepping down to part two, part single-storey.
The ground floor currently provides an A1 retail unit with attractive glazed frontages on to Northcote Road and Mallinson Road.
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6DEVELOPMENT OPPORTUNITY
In May 2018 planning permission was granted for a part demolition and construction of 4 apartments over newly well-configured commercial accommodation on the ground floor.
The scheme provides an excellent opportunity to develop four self-contained flats over the upper floors in one of the most desirable and affluent London locations. The entrance to the flats is from Mallinson Road, a quiet residential side street.
The approved plans will form modern and attractive A3 (A1/A2 permitted) accommodation over ground floor, with the added benefit of a substantial seating area outside. The unit has been in its current configuration for approximately 128 years. We are of the opinion that the proposed scheme will appeal to a high number of popular national occupiers who have active requirements for this section of Northcote Road.
Plans and further information available upon request.
CGI - front view
CGI - rear view
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Original Building
As per the plans submitted to Wandsworth London Borough Council, we understand the property will comprise the following approximate areas:
Ground Use sq ft sq m
Commercial (NIA)
Ground Floor Sales 1,400 130.1
ITZA 826 units
Residential (GIA)
Unit 1 Flat (2 bedroom, 2 bathroom) 657 61
Unit 2 Flat (1 bedroom, 1 bathroom) 538 49.9
Unit 3 Flat (2 bedroom, 2 bathroom) 657 61
Unit 4 Flat (studio) 398 36.9
3,650 339.1
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RENTAL VALUE
Commercial For the reconfigured ground floor commercial unit we have assumed an estimated rental value of £125,750 per annum, reflecting a conservative Zone A of £145 psf.
There are ongoing lettings on this section of Northcote Road that have reached in excess of £155 Zone A psf as well as a number of recently settled deals that support this ERV. Further information available upon request.
Rents closer to Clapham Junction (St. John’s Hill & St. John’s Road) are in the region of £250 psf Zone A, making Northcote Road a more affordable location for aspirational retailers when set in context of nearby retail locations.
Residential The average rental figures for Northcote Road are shown below:
Studio £1,450 pcmOne Bedroom Flat £1,750 pcmTwo Bedroom Flat £2,650 pcm
(Source: Zoopla)
Attractive corner unit with prominent frontages onto Northcote Road and Mallinson Road
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8INVESTMENT EVIDENCE
COMMERCIAL
Whilst very few investments trade on Northcote Road, below we have summarised the most recent comparable investment evidence:
64 Northcote Road – September 2017 – this property is located immediately opposite the subject property on the eastern side of Northcote Road. Let to Breads Limited (t/a Gail’s), on a 15 year lease from January 2016, the property sold for £2,050,000, reflecting a net initial yield of 3.27%.
133 Northcote Road – September 2017 – this property is located in a weaker pitch to the subject property and only provided two years unexpired income at the time of sale. The freehold interest sold for £1,200,000, reflecting a net initial yield of 3.78%.
RESIDENTIAL
Demand from residential buyers on Northcote Road is extremely high. In the last five years the average sale price for a flat is approximately £667,000 (Source: Zoopla).
Residential experts have placed a conservative estimate of £975 psf for the subject property’s proposed residential scheme. This provides a potential total value of £2,193,000 for the uppers alone.
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9
50 metres
For more information on our products and services:www.experian.co.uk/goad | [email protected] | 0845 601 6011
Clapham Junction
Experian Goad Plan Created: 16/10/2018Created By: Fawcettmead
Copyright and confidentiality Experian, 2017. © Crowncopyright and database rights 2017. OS 100019885
For indicative purposes only. Title plan available upon request.
TENUREFreehold
TENANCYIn anticipation of the development, the vendor has granted a short term licence on the ground floor to Ash Footwear paying a monthly rent of £4,000 pcm. The licence is subject to landlord only rolling monthly breaks.
Similarly, the first floor flat, in its current configuration is let on an AST with landlord only rolling month breaks. The current rent is £500 pcm.
VATThe property has been elected for VAT purposes. It is anticipated that the investment sale will be treated as a Transfer of a Going Concern (TOGC).
EPCEPCs are available upon request.
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Misrepresentation Act: The particulars in this brochure are believed to be correct, but accuracy cannot be guaranteed and they are expressly excluded from any contract. SUBJECT TO CONTRACT Designed by Graphic Outlines Ltd 2018
James [email protected] 7182 748107919 622 542
FURTHER INFORMATIONPROPOSAL
We are instructed to seek offers in the region of £2,800,000 (Two Million Eight Hundred Thousand Pounds) for our client’s freehold interest, subject to contract and exclusive of VAT.
Joe [email protected] 7182 748907515 889 649