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Accommodation
The property has been measured by BKR Floor Plans and provides the following net internal floor areas for the commercial element and gross internal areas for the residential element:
| Net Frontage | 5.31 m | 17'5" |
| Gross Frontage | 5.64 m | 18'6" |
| ITZA | 443 | |
| Total Ground Floor NIA | 47.75 sq m | 514 sq ft |
| First Floor Residential GIA | 65.03 sq m | 700 sq ft |
The property has a total gross internal area of 1,233 sq ft / 114.55 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 £540 + VAT.
Tenure
Freehold.
Tenancy
The ground floor retail unit is let to GFEA Limited (t/a Goodfellows), guaranteed by E.Surv Limited, on a full repairing and insuring lease for a term of 10 years from 29th June 2012, expiring 28th June 2022. The tenant is currently holding over and is paying a rent of £15,000 per annum.
Terms have been agreed for a new lease on a without prejudice and subject to contract basis to Reed Rains Limited, guaranteed by E.Surv Limited, for a term of 5 years, subject to a tenant break option at year 3, at a rent of £16,000 per annum. A draft lease has been prepared for approval by the parties. Further details can be made available upon request.
The residential element is currently vacant.
The estimated rental value for the residential element is proposed at £18,000 per annum (£1,500 per calendar month), providing an opportunity to increase the rental income.
Therefore, the current income is £15,000 per annum and the estimated rental value is £34,000 per annum.
Residential Values
Our research suggests that similar two-bedroom flats within the immediate vicinity are currently worth in excess of £300,000.
At the time of marketing, a 2-bedroom flat is available in Ann Boleyn House, a contemporary collection of apartments at 9-13 Ewell Road, at a price reflecting £747 per sq ft / £8,038 per sq m.
At 9a The Broadway, some 200 feet from the subject property, a 2-bedroom flat sold in February 2021 for £280,000.
We have applied a conservative value of £280,000 (£400 per sq ft / £4,305 per sq m) for the residential element of the property.
Covenant
The tenant, GFEA Limited (Co. No. 07223255) has reported the following figures:
| Year Ending | 31st December 2020 | 31st December 2019 |
|---|---|---|
| Revenue | £4,999,000 | £5,744,000 |
| Pre-Tax Profits | £290,000 | £1,110,000 |
| Net Assets | £4,767,000 | £4,547,000 |
Goodfellows is an estate agency business established over 30 years ago with 10 branches throughout London and the South East. For further information visit www.goodfellows.co.uk.
VAT
The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
Proposal
We are instructed to seek a figure in excess of £450,000 (Four Hundred and Fifty Thousand Pounds), subject to contract, reflecting a net initial yield of 8.65% on the commercial element and a value of £280,000 / £400 per sq ft on the residential element.
Please note that a purchaser will be re-charged the costs of the measured survey (£540 + VAT) and searches (£827.01) which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of £5,000 plus VAT.
Investment Considerations
Located in an affluent London borough;
Ground floor unit secured against “Goodfellows” Estate Agents (Net Assets £15 million);
Parent company is LSL, listed on the London Stock Exchange (Net Assets £218m);
The tenant has been in occupation since 2012 and terms have been agreed for a new lease (on a without prejudice and subject to contract basis);
Vacant 2-bed flat on upper parts, presenting an opportunity to refurbish, re-let and improve the income;
Freehold;
Attractive lot size to an investor;
