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HMO INVESTMENT OPPORTUNITY IN PRIME CENTRAL LONDON9 CHENISTON GARDENS, W8 6TG
29 CHENISTON GARDENS, W8 6TG
INVESTMENT SUMMARY
• Attractive, freehold building located in Kensington, Prime Central London.
• House in Multiple Occupation (HMO), currently configured to provide 18 non self-contained units arranged over five floors.
• Extending to an overall Gross Internal Area (including common parts) 363 sq m (3,905 sq ft).
• Significant scope to enhance the asset by upgrading and reconfiguring the existing accommodation (subject to necessary consents).
• 10 tenants occupy the building and have been served Section 21 notices to vacate by 1 December 2017.
• Prime location in Kensington and within walking distance of High Street Kensington Underground Station (Travel Zone 1 - Circle & District Line), as well as a range of high street retailers and restaurants.
•
LOCATION DESCRIPTION PLANNING & HMO LICENSE
The Property is located in Kensington, within the Royal Borough of Kensington and Chelsea. It is categorised as a Prime Central London location. Cheniston Gardens is a quiet residential road that links to Wrights Lane providing direct access on to High Street Kensington which is characterised by a wide range of high street retailers, boutique shops, bars and restaurants. Hyde Park is situated approximately 700 m to the north.
Transport connections are excellent with High Street Kensington Underground Station (Travel Zone 1 - District & Circle Lines) within easy walking distance. In addition there are various accessible bus route that connect the Property to wider London.
The Property is currently configured to provide 18 non self-contained units over five floors. It benefits from four common shower and bathrooms, five WCs and a small patio to the rear of the Property.
Internally, the Property would benefit from refurbishment. The building offers the opportunity to reconfigure into studios subject to the necessary consents.
The Property is classified as a House of Multiple Occupation (HMO) (sui generis).
There is an HMO license that was granted on the 16th September 2016. A copy of this can be found on the dataroom.
39 CHENISTON GARDENS, W8 6TG
HMO MARKET ACCOMMODATION
The HMO investment market has evolved rapidly over recent years. with potential to optimise rent ‘per square foot,’ enabling an enhanced yield above mainstream residential. This allows pricing to be underpinned to income rather than capital value per square foot.
The strongest rental market in Prime Central London has been for smaller units in Central London. Prime one bedroom and studio units have delivered above average, annual rental growth of 3.1%. This has been predominantly due to reduction of corporate budgets for employees. However, Central London locations remain popular, and so demand has risen in the micro-studio market. Due to the transient nature of the London workforce, bespoke rental accommodation, which is fully furnished, operational and ready to move in to, is in highest demand. HMOs offer the opportunity to create an efficient lettings platform by maximising density on site.
OCCUPANCY
The units have been let on ASTs. Section 21 notices have been served and the tenants are required to vacate by 1 December 2017.
UnitsGIA Units Floor GIA Floors Start of Ten-
ancy Current Rent PA
Current Rent PCM
Tenancy Sq Ft Sq M Sq M Sq Ft
1 223 20.7Lower
Ground Floor
893 83.0
21/08/2010 £7,920 £660 AST
2 141 13.1 Vacant
3 128 11.9 Vacant
4 173 16.1Raised Ground
Floor836 77.7
Vacant
5 137 12.7 Vacant
6 269 25.0 Vacant
7 168 15.6
1 803 74.6
31/10/1998 £4,320 £360 AST
8 125 11.6 06/12/2003 £3,384 £282 AST
9 217 20.2 Vacant
10 109 10.1 Vacant
11 103 9.6
2 791 73.5
01/06/2016 £4,524 £377 AST
12 164 15.2 01/12/2012 £5,724 £477 AST
13 203 18.9 07/04/2007 £5,196 £433 AST
14 65 6.0 05/07/2008 £2,604 £217 AST
15 100 9.3
3 582 54.1
Vacant
16 137 12.7 24/01/2015 £5,724 £477 AST
17 154 14.3 21/11/2014 £6,240 £520 AST
18 89 8.3 19/07/2003 £2,964 £247 AST
Total 2,705 251.3 3,905 362.8 £48,600
49 CHENISTON GARDENS, W8 6TG
Lower Ground Floor Raised Ground Floor First Floor Second Floor Third Floor
F18
F17
F16
F15
Studio3.28 x 2.5110'9'' x 8'3''
Studio4.57 x 3.1215' x 10'3''
Studio4.57 x 2.8215' x 9'3''
Studio3.20 x 2.9010'6'' x 9'6''
F14
F13
F12
F11
Studio3.35 x 1.9011' x 6'3''
Studio4.95 x 3.8916'3'' x 12'9''
Studio4.19 x 3.5813'9'' x 11'9''
Studio3.81 x 3.2812'6'' x 10'9''
F10
F9
F8
F7
Studio4.42 x 2.2914'6'' x 7'6''
Studio5.94 x 3.4319'6'' x 11'3''
Studio3.58 x 3.2011'9'' x 10'6''
Studio4.88 x 3.2816' x 10'9''
Studio6.32 x 4.2720'9'' x 14'
F6
F5
F4
2.97 x 1.759'9'' x 5'9''
Studio3.96 x 3.1213' x 10'3''
Studio3.81 x 3.4312'6'' x 11'3''
F1
F2
F3
Studio6.17 x 3.5820'3'' x 11'9''
Studio3.96 x 3.4313' x 11'3''
Studio3.81 x 3.0512'6'' x 10'
VaultVaultVault
9 Cheniston Gardens, W8Gross internal area (approx) :
For identification purposes only. Not to scale
BKR FloorplansC
362.8 Sq m (3,905 Sq ft)
* As Defined by RICS - Code of Measuring PracticeAll Calculations include Any/All Areas Under 1.5m Head Height.
Lower Ground Floor Raised Ground Floor First Floor Second Floor Third Floor
F18
F17
F16
F15
Studio3.28 x 2.5110'9'' x 8'3''
Studio4.57 x 3.1215' x 10'3''
Studio4.57 x 2.8215' x 9'3''
Studio3.20 x 2.9010'6'' x 9'6''
F14
F13
F12
F11
Studio3.35 x 1.9011' x 6'3''
Studio4.95 x 3.8916'3'' x 12'9''
Studio4.19 x 3.5813'9'' x 11'9''
Studio3.81 x 3.2812'6'' x 10'9''
F10
F9
F8
F7
Studio4.42 x 2.2914'6'' x 7'6''
Studio5.94 x 3.4319'6'' x 11'3''
Studio3.58 x 3.2011'9'' x 10'6''
Studio4.88 x 3.2816' x 10'9''
Studio6.32 x 4.2720'9'' x 14'
F6
F5
F4
2.97 x 1.759'9'' x 5'9''
Studio3.96 x 3.1213' x 10'3''
Studio3.81 x 3.4312'6'' x 11'3''
F1
F2
F3
Studio6.17 x 3.5820'3'' x 11'9''
Studio3.96 x 3.4313' x 11'3''
Studio3.81 x 3.0512'6'' x 10'
VaultVaultVault
9 Cheniston Gardens, W8Gross internal area (approx) :
For identification purposes only. Not to scale
BKR FloorplansC
362.8 Sq m (3,905 Sq ft)
* As Defined by RICS - Code of Measuring PracticeAll Calculations include Any/All Areas Under 1.5m Head Height.
Lower Ground Floor Raised Ground Floor First Floor Second Floor Third Floor
F18
F17
F16
F15
Studio3.28 x 2.5110'9'' x 8'3''
Studio4.57 x 3.1215' x 10'3''
Studio4.57 x 2.8215' x 9'3''
Studio3.20 x 2.9010'6'' x 9'6''
F14
F13
F12
F11
Studio3.35 x 1.9011' x 6'3''
Studio4.95 x 3.8916'3'' x 12'9''
Studio4.19 x 3.5813'9'' x 11'9''
Studio3.81 x 3.2812'6'' x 10'9''
F10
F9
F8
F7
Studio4.42 x 2.2914'6'' x 7'6''
Studio5.94 x 3.4319'6'' x 11'3''
Studio3.58 x 3.2011'9'' x 10'6''
Studio4.88 x 3.2816' x 10'9''
Studio6.32 x 4.2720'9'' x 14'
F6
F5
F4
2.97 x 1.759'9'' x 5'9''
Studio3.96 x 3.1213' x 10'3''
Studio3.81 x 3.4312'6'' x 11'3''
F1
F2
F3
Studio6.17 x 3.5820'3'' x 11'9''
Studio3.96 x 3.4313' x 11'3''
Studio3.81 x 3.0512'6'' x 10'
VaultVaultVault
9 Cheniston Gardens, W8Gross internal area (approx) :
For identification purposes only. Not to scale
BKR FloorplansC
362.8 Sq m (3,905 Sq ft)
* As Defined by RICS - Code of Measuring PracticeAll Calculations include Any/All Areas Under 1.5m Head Height.
Lower Ground Floor Raised Ground Floor First Floor Second Floor Third Floor
F18
F17
F16
F15
Studio3.28 x 2.5110'9'' x 8'3''
Studio4.57 x 3.1215' x 10'3''
Studio4.57 x 2.8215' x 9'3''
Studio3.20 x 2.9010'6'' x 9'6''
F14
F13
F12
F11
Studio3.35 x 1.9011' x 6'3''
Studio4.95 x 3.8916'3'' x 12'9''
Studio4.19 x 3.5813'9'' x 11'9''
Studio3.81 x 3.2812'6'' x 10'9''
F10
F9
F8
F7
Studio4.42 x 2.2914'6'' x 7'6''
Studio5.94 x 3.4319'6'' x 11'3''
Studio3.58 x 3.2011'9'' x 10'6''
Studio4.88 x 3.2816' x 10'9''
Studio6.32 x 4.2720'9'' x 14'
F6
F5
F4
2.97 x 1.759'9'' x 5'9''
Studio3.96 x 3.1213' x 10'3''
Studio3.81 x 3.4312'6'' x 11'3''
F1
F2
F3
Studio6.17 x 3.5820'3'' x 11'9''
Studio3.96 x 3.4313' x 11'3''
Studio3.81 x 3.0512'6'' x 10'
VaultVaultVault
9 Cheniston Gardens, W8Gross internal area (approx) :
For identification purposes only. Not to scale
BKR FloorplansC
362.8 Sq m (3,905 Sq ft)
* As Defined by RICS - Code of Measuring PracticeAll Calculations include Any/All Areas Under 1.5m Head Height.
Lower Ground Floor Raised Ground Floor First Floor Second Floor Third Floor
F18
F17
F16
F15
Studio3.28 x 2.5110'9'' x 8'3''
Studio4.57 x 3.1215' x 10'3''
Studio4.57 x 2.8215' x 9'3''
Studio3.20 x 2.9010'6'' x 9'6''
F14
F13
F12
F11
Studio3.35 x 1.9011' x 6'3''
Studio4.95 x 3.8916'3'' x 12'9''
Studio4.19 x 3.5813'9'' x 11'9''
Studio3.81 x 3.2812'6'' x 10'9''
F10
F9
F8
F7
Studio4.42 x 2.2914'6'' x 7'6''
Studio5.94 x 3.4319'6'' x 11'3''
Studio3.58 x 3.2011'9'' x 10'6''
Studio4.88 x 3.2816' x 10'9''
Studio6.32 x 4.2720'9'' x 14'
F6
F5
F4
2.97 x 1.759'9'' x 5'9''
Studio3.96 x 3.1213' x 10'3''
Studio3.81 x 3.4312'6'' x 11'3''
F1
F2
F3
Studio6.17 x 3.5820'3'' x 11'9''
Studio3.96 x 3.4313' x 11'3''
Studio3.81 x 3.0512'6'' x 10'
VaultVaultVault
9 Cheniston Gardens, W8Gross internal area (approx) :
For identification purposes only. Not to scale
BKR FloorplansC
362.8 Sq m (3,905 Sq ft)
* As Defined by RICS - Code of Measuring PracticeAll Calculations include Any/All Areas Under 1.5m Head Height.
Lower Ground Floor Raised Ground Floor First Floor Second Floor Third Floor
FLOOR PLANS
59 CHENISTON GARDENS, W8 6TG
Important NoticeSavills, and their clients give notice that:1. They are not authorised to make or give any representations or warranties in relation to the Property either here or
elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact.
2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the Property has all necessary planning, building regulation or other consents and that Savills and Knight Frank have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise.
Designed and Produced by Savills Marketing: 020 7499 8644 | October 2017
TENURE
The Property is held Freehold.
METHOD OF SALE
The property is for sale by private treaty.
Offers are sought for the freehold interest subject to contract and subject to the existing tenancies and the notices served.
Should a closing date be set for the submission of offers, all parties who have expressed an interest will be advised accordingly.
VAT
The property is not elected for VAT.
FURTHER INFORMATION
A full suite of background information, including EPCs can be found on the online dataroom at:
https://sites.savills.com/9chenistongardens
VIEWINGS
Viewings are strictly by appointment via the vendor’s sole selling agents, Savills. Please contact one of the agents below to make an appointment.
CONTACTS
Davina Clowes Associate Director +44 (0) 207 016 [email protected]
5
Thibaut PietersFinancial Analyst+44 (0) 207 016 [email protected]
