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FREEHOLD RETAIL INVESTMENT OPPORTUNITY WITH DEVELOPMENT POTENTIAL
12-14 HILL STREETRICHMOND, TW9 1TN
RICHMOND
INVESTMENT SUMMARY
Richmond upon Thames is a highly affluent London Borough with strong residential values.
The town has excellent connectivity with a London Underground service to Victoria (30 mins), a mainline service to Waterloo (19 mins) and a London Overground service to Stratford (60 mins).
The property consists of two highly prominent units on Hill Street with vacant upper floors.
Nearby retailers and restaurants include The Ivy, Whistles, Maxmara, L.K Bennett, Waterstones and Cote.
The ground and basement floors are let to Aromi & Piaceri Ltd & Kymata Hair Spa Ltd with an AWULT of 9.3 years to expiry and 7.0 years to break.
Total rental income of £65,000 per annum.
Asset management potential to convert the upper floors to residential subject to planning.
Freehold.
Offers are sought in excess of £2,000,000 (Two Million Pounds), subject to contract and exclusive of VAT.
A purchase at this price would reflect an attractive net initial yield of 5.00% based on the retail income (including rental top up) and £625 per sq ft on the vacant upper floors creating a blended yield of 3.06% after allowing for purchaser’s costs of 6.27%.
RICHMOND 12-14 HILL STREET, RICHMOND, TW9 1TN
12-14 HILL STREET
Corporation Island
Richmond Bridge
Twickenham Bridge (A316)
River Thames
Richmond Green
George Street
The Quadrant
Hill Rise
Old Deer Park
Royal Mid Surrey Golf Club
RichmondUnderground
& Train Station
ebay UK HQ
Hill Street
House of Fraser
Kew Gardens
Whole Foods
Petersham Rd
Ivy Café
Richmond Riverside
KINGSTON
PUTNEYMORTLAKE
NORTHSHEEN
HAMPTONWICK
TEDDINGTONHAMPTON FULWELL
RICHMOND CLAPHAMJUNCTION
WIMBLEDON
WATERLOO
HOLBORN
KING’S CROSSST PANCRAS
WESTMINSTER
OXFORDCIRCUS
WARRENSTREET
LONDONBRIDGE
EUSTONBAKER STREETMARYLEBONE
PADDINGTON
TOTTENHAMCOURT
ROAD
LEICESTERSQUARE
EMBANKMENT
CHARINGCROSS
BONDSTREET
GREEN PARK
KNIGHTSBRIDGE
SLOANESQUARE
EALINGBROADWAY
VICTORIASOUTHKENSINGTON
HAMMERSMITH
WOODLANE
WHITECITY
PICCADILLYCIRCUS
NOTTING HILL GATE
SHEPHERD’SBUSH
HIGH STREET KENSINGTON
EARL’SCOURT
KENSINGTON(OLYMPIA)
EDGWAREROAD
TWICKENHAM
ST. MARGARETS
STRAWBERRYHILL
TOWARDSSHEPPERTON
FELTHAM
TOWARDS HAMPTON COURT,
WOKING AND GUILDFORD
TOWARDSCHESSINGTON SOUTH, EPSOM AND DORKING
TOWARDSDORKING AND
BRIGHTON
TOWARDSWINDSOR AND ASCOT
TOWARDSHEATHROWAIRPORT
TOWARDSHEATHROWAIRPORT AND READING
KEW GARDENS
EALING COMMON
VAUXHALLELEPHANT & CASTLE
STOCKWELL
BRIXTON
GUNNERSBURY
WESTKENSINGTON
REGENT’SPARK
STAMFORDBROOK
MARBLEARCH
CHISWICKPARK
Bakerloo
Elizabeth Line (opening 2018)
Central
Circle
District
Hammersmith & City
Jubilee
Metropolitan
Northern
Piccadilly
Victoria
Waterloo & City
Southern
London Overground
Gatwick Express
South West Trains
HOLBORN
KING’S CROSSST PANCRAS
WESTMINSTER
OXFORDCIRCUS
WARRENSTREET
EUSTONBAKER STREETMARYLEBONE
PADDINGTON
TOTTENHAMCOURT
ROAD
LEICESTERSQUARE
CHARINGCROSS
BONDSTREET
GREEN PARK
KNIGHTSBRIDGE
SLOANESQUARE
EALINGBROADWAY
HAMMERSMITH
WOODLANE
WHITECITY
PICCADILLYCIRCUS
NOTTING HILL GATE
SHEPHERD’SBUSH
HIGH STREET KENSINGTON
EARL’SCOURT
KENSINGTON(OLYMPIA)
EDGWAREROAD
TOWARDSHEATHROWAIRPORT AND READING
EALING COMMON
REGENT’SPARK
MARBLEARCH
CHISWICK
M25
M25
M3
M4
M4
13
14
15 43 2 1
12
1
M25
ISLINGTON
LAMBETH
WANDSWORTH
WIMBLEDON
FULHAMPUTNEY
CHELSEA
CENTRALLONDON
BATTERSEA
CHISWICK
EALINGACTON
MAIDA VALE
HYDE PARK
REGENTSPARK
BLOOMSBURY
KEWGARDENS
OSTERLEYPARK
HAYES
FELTHAM
HOUNSLOW
WEST DRAYTON SOTHALL
GREENFORD
TWICKENHAM
TEDDINGTON
STAINES
CLERKENWELL
RICHMONDPARK
GUNNERSBURYPARK
COVENT GARDENMOORGATE
ELEPHANT& CASTLE
WATERLOO
STOCKWELL
VAUXHALL
SHOREDITCHKING’S CROSSST PANCRASINTERNATIONALEUSTON
STATION
ST PAULS
HAMMERSMITH
THE CITY
HEATHROW
A4
A30
A30A30
A316
A315
A316A315 A205
A219
A315 A302
A501
A308
A306
A4
A4A4
A3
A3
A3
A5 A1
A10UXBRIDGE
A40
A40
A40
Zone 6Zone 5
Zone 4
Zone 3
Zone 2
Zone 1
RICHMOND
KINGSTONUPON THAMES
LOCATIONRichmond Upon Thames is a highly affluent suburban town located in an attractive area of south west London adjacent the River Thames. Central London is easily accessible being located 8 miles (12.9 km) to the east and Kingston 4 miles (6.4 km) to the south.
The town benefits from a mainline railway service providing direct services to London Waterloo (20 mins) via Clapham Junction (10 mins).
Richmond also has a London Underground service (District Line) providing a direct link to London Victoria (30 mins) and a London Overground service to Stratford via Willesden (60 mins).
By road Richmond has excellent communications benefitting from direct access to the M3 and on to the M25 (junction 12) via the A316. The M4 can also be easily accessed via Kew Bridge at junction 2.
Heathrow airport (the busiest airport in Europe) is located approximately 12 miles (19.3 km) west and City airport is located approximately 10 miles (16.1 km) east.
DEMOGRAPHICSThe London Borough of Richmond Upon Thames has a prosperous population of approximately 187,000 (Census 2011) of which 80% are regarded as being within the most affluent AB and C1 demographic groupings in comparison to the UK average of 53%.
Average house prices in Richmond upon Thames in Oct 2016 were recorded at £647,029 almost triple the UK national average of £216,545. Upwards pressure on house prices is driven by factors including the town’s proximity to Central London, its picturesque setting, array of open space and good schools.
The Borough is also a thriving tourist and retail destination with key London attractions including Richmond Park, Kew Gardens, Twickenham Stadium, The Riverside, Hampton Court Palace and Richmond town centre itself.
FREEHOLD RETAIL INVESTMENT OPPORTUNITY WITH DEVELOPMENT POTENTIAL
12-14 HILL STREET
Corporation Island
Richmond Bridge
Twickenham Bridge (A316)
River Thames
Richmond Green
George Street
The Quadrant
Hill Rise
Old Deer Park
Royal Mid Surrey Golf Club
RichmondUnderground
& Train Station
ebay UK HQ
Hill Street
House of Fraser
Kew Gardens
Whole Foods
Petersham Rd
Ivy Café
Richmond Riverside
SITUATIONThe subject property is located in a prime retail position with frontage to Hill Street. The property is located within walking distance of Richmond Station.
The building is located on the east side of Hill Street, opposite the Richmond Riverside development and within close proximity to the Odeon cinema.
Major retailers and restaurants within the area include Whistles, Maxmara, L.K Bennett, Waterstones, The Ivy, Jackson & Rye and Cote.
RICHMOND 12-14 HILL STREET, RICHMOND, TW9 1TN
DESCRIPTIONThe subject property is a Grade II listed three storey building in a prime retailing position providing 2,216 sq ft (206.0 sq m) of accommodation, which forms part of a terrace of retail units.
12 and 14 Hill street comprises two separate ground floor retail units totalling 979 sq ft (90.95 sq m). The units benefit from storage/staff accommodation to the rear and ancillary basement space. Both units have attractive glazed frontages to Hill Street.
Above the retail units are two floors of vacant accommodation with separate access from Hill Street totalling 1,237 sq ft (115.0 sq m). The consented use for these floors is D1 (non-residential).
EPCEPCs for the retail units are available upon request.
FREEHOLD RETAIL INVESTMENT OPPORTUNITY WITH DEVELOPMENT POTENTIAL
TENUREFreehold.
TENANCY SCHEDULEThe property is fully let as set out in the below tenancy schedule providing a total income of £65,000 per annum and an AWULT of 9.3 years to expiry 7.0 years to break.
COVENANT INFORMATIONAromi & Piaceri LtdAromi & Piaceri is a gourmet Italian delicatessen supplying luxury fine foods and authentic Italian specialities including gourmet chocolate, coffee, pasta and olive oil.
Kymata Hair Spa LtdKymata Hair Spa is a local up market hair dressing salon. There is a personal guarantee in place to Dorian Pina.
RICHMOND 12-14 HILL STREET, RICHMOND, TW9 1TN
Demise Floor Area Tenant Passing Rent
Lease Start Lease Expiry Rent Review Break Clause Comments
Sq M Sq Ft
12 Hill Street (Ground Floor & Basement)
42.0 452 Aromi & Piaceri Ltd £35,000 30/09/2016 29/09/2026 30/09/2021 - Effective FRI lease terms. Upwards only rent review to OMRV. Guarantor of Paul Carnero. A rent deposit of £8,750 + VAT is held.
14 Hill Street (Ground Floor & Basement)
49.0 527 Kymata Hair Spa Ltd £30,000 16/05/2017 15/05/2027 16/05/2022 16/05/2022 Effective FRI lease terms. Half rent (£15,000) until 15/01/2018 to be topped up by vendor. Upwards only rent review to OMRV. Tenant break option with 6 months notice. Guarantor of D.Pina. A rent deposit of £7,500 + VAT is held.
12/14 Hill Street (1st Floor)
60.0 645 Vacant - - - - -
12/14 Hill Street (2nd Floor)
55.0 592 Vacant - - - - -
Total 206.0 2,216 £65,000
The retail units have been measured on a NIA basis and the residential on a GIA basis, in accordance with the RICS Code of Measuring Practice (6th Edition).
FREEHOLD RETAIL INVESTMENT OPPORTUNITY WITH DEVELOPMENT POTENTIAL
DEVELOPMENT POTENTIALPlanning permission/listed building consent will be required for any potential change of use of the property due to it being Grade II listed and located within the Central Richmond conservation area (an Article 4 area), which prevents change of use through permitted development rights.
We have been advised that planning permission is achievable in the short term if various tests are satisfied as set out below.
Policy DM EM2 of the adopted Development Management Plan protects existing employment uses, however if the below criteria are satisfied, change of use is possible:
Criteria 1 – demonstrate 2 years’ worth of unsuccessful marketing for employment uses.
Criteria 2 - demonstrate that a sequential approach has been applied, which reviews the suitability of the site for solely employment-based redevelopment over a mixed-use or alternative use where employment floor space is retained.
Criteria 3 - demonstrate that the location has such exceptionally severe site restrictions due to poor access and servicing arrangements that its continued employment use would be inappropriate.
We have been advised that due to the inability to let the upper floors for commercial uses for over 10 years, Criteria 1 should be easily satisfied. Criteria 2 and 3 can also be satisfied due to access arrangements to the upper floors being prohibitive for employment uses suggesting this as an inappropriate use going forward.
If the policy ‘tests’ associated with Policy DM EM2 can be addressed, residential uses are permitted in town centre under Development Management Plan policy DM TC1 and are supported in the NPPF.
We are aware that the Council have permitted 1 or 2 bed units in similar town centre locations and that the Mayoral Housing SPG states that listed buildings may require sensitivity/flexibility and in same circumstances it may be justified to not apply certain standards’ when considering their redevelopment.
A planning note from GVA is available on request setting out the above.
STRUCTURAL ENGINEERS REPORTOur clients have commissioned an engineers report (available on request), which concludes that the property is fundamentally sound but approximately £30,000 needs to be spent on the structure over and above standard refurbishment costs.
SECOND FLOOR
FIRST FLOOR
SECOND FLOOR
FIRST FLOOR
RICHMOND 12-14 HILL STREET, RICHMOND, TW9 1TN
Lewis Ellis LLP for themselves or nominees or lessors of this property whose agents they give notice that: (1) the particulars are set out as a general outline only for the guidance of the intending purchasers or lessees, and do not constitute part of an offer or contract; (2) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct, but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (3) no person in the employment of Lewis Ellis LLP has any authority to make or give any representation or warranty whatever in relation to the property.Designed and Produced by Creativeworld. Tel: 01282 858200. October 2017.
VAT The property is elected for VAT and it is anticipated the sale will be treated as a TOGC.
DATA ROOMThere is a Lewis Ellis data room for the property containing key tenancy information, title documents, planning reports, structural engineers report and EPC certificates; access available upon request.
PROPOSALOffers are sought in excess of £2,000,000 (Two Million Pounds), subject to contract and exclusive of VAT. A purchase at this price would reflect an attractive net initial yield of 5.00% based on the retail income (including rental top up) and £625 per sq ft on the vacant upper floors creating a blended yield of 3.06% after allowing for purchaser’s costs of 6.27%.
FURTHER INFORMATION Should you require further information or wish to view the property, please contact either:
Tony BurlingTel: 020 7493 3330Mob: 07860 555 769Email: [email protected]
Fred Daeche-MarshallTel: 020 7493 3330Mob: 07785 741 700Email: [email protected]
James ElkingtonTel: 020 7493 3330Mob: 07810 722 459Email: [email protected]
