Kilburn High Road, NW6 &HY;
A highly attractive mixed use property situated in a prominent corner position on Kilburn High Road (A5) at the junction with Willesden Lane.
Part let to the secure covenant of Ladbrokes Betting & Gaming Ltd on a 15 year FR&I;lease from June 2009 at a current passing rent of £55,000 pax (£20.51 psf) with 5 yearly upwards only rent reviews. There is a tenants option to break at the end of year 10. Recent rental evidence suggests that the unit is highly reversionary with an ERV of £73,755 pax (£27.50 psf).
Additional vacant retail unit fronting Willesden Lane with an ERV of £25,000 pax. 12 month vendors rental guarantee top-up available.
13 private apartments above sold off on long leases producing a total ground rent income of £3,250 pax. #
Total current passing rent of £58,250 pax, with a potential total reversionary income of £102,005 pax based on our justifiable assumptions on ERV and with a 12 month rental guarantee on the vacant retail unit.
Our client would consider breaking the investment up as follows:-
Proposal
We have been instructed to seek proposals on the following basis:
1. Ladbrokes - a new 999 year leasehold interest at a peppercorn ground rent: Offers sought in excess of £866,000 which would reflect a net initial yield of 6.0% after usual purchasers costs of 5.75%, and a reversionary yield of 8.05% based on our justifiable assumptions on the ERV.
2. Freehold / Residential Ground Rents: Offers sought in excess of £55,550 which would reflect a net initial yield of 5.75% after purchasers costs of 1.75%.
3. Freehold inc. Ladbrokes retail unit: Offers sought in excess of £921,550 which would reflect a net initial yield of 5.98% after full purchasers costs of 5.75%, and a reversionary yield of 7.90% based on our justifiable assumptions on the ERV.
4. Freehold of the entire inc. Ladbrokes and vacant retail unit:
Offers sought in excess of £1,266,500 which would reflect a net initial yield of 6.22% after full purchasers costs of 5.75% on the basis of a 12 month rental guarantee on the vacant retail unit at £25,000 pax. This would reflect a reversionary yield of 7.62% based on our justifiable assumptions on the ERV.
For further information:
Daniel Reuben on 020 76251266.
