Freshwater Road, Chadwell Heath RM8 1RY
Offers in excess of £3,500,000
The property comprises a 7-storey (plus basement), mixed-use building which contains 2 commercial units across the ground floor and basement with 60 residential apartments within the 6 upper floors.
The building occupies an L-shaped site of approximately 0.78 acres which incorporates 55 parking spaces and communal amenity space. Vehicular access is taken via a gated entrance from Freshwater Road. 15 parking spaces are retained for the freeholder’s use.
The commercial space consists of a gym (D2 Use Class) unit extending to circa 6,771 sq.ft. NIA across part of the ground floor and entire basement, with a nursery (D1 Use Class) of approximately 3,057 sq.ft. NIA at ground floor.
The residential element consists of 30 x 1 bedroom and 30 x 2 bedroom apartments, arranged as 10 units across each floor from 1st – 6th floors. 50 apartments have been sold off on 150 year leases, with 10 retained and let on ASTs. Known as Spectrum Building, the development was completed to a high standard in 2015.
The property is located on the southern side of Freshwater Road within the East London suburb of Chadwell Heath. The Local Authority is the London Borough of Barking & Dagenham.
The property is situated in close proximity to the numerous shops and amenities of Chadwell Heath town centre, which includes a Sainsbury’s superstore and Lidl. St Chad’s Park (a large public park) is located a short walking distance to the north of the property.
Chadwell Heath Station is located approximately 0.3 miles (circa 5 minutes walk) from the property, offering TfL Rail services into Central London. Currently journey times to Liverpool Street are circa 27 minutes, although this will be reduced to circa 23 minutes (with Bond Street accessible in 31 minutes) once the full Crossrail / Elizabeth Line route opens.
The property is subject to various tenancies and currently produces a total rental income of £224,000 per annum exclusive.
The D2 commercial unit is let to AJT Fitness Ltd (a franchise of Anytime Fitness) on a 15 year FRI lease from 17th May 2016, expiring on 16th May 2031. The current rent is £43,000 per annum (£6.35 per sq.ft.) with a open market, upward only reviews due in 2021 and 2026. There is a tenant-only break option in 2026, subject to 6 months notice. 6 parking spaces are allocated.
The D1 commercial unit is let to Little Angels Childcare Ltd (a franchise of Monkey Puzzle Day Nurseries) on a 20 year FRI lease from 6th May 2016, expiring on 5th May 2036. The current rent is £35,000 per annum (£11.45 per sq.ft.) with a open market, upward only reviews due in 2021, 2026 and 2031. The tenant has the option to break the lease in 2021, 2026 and 2031, subject to 6 months notice. 6 parking spaces are allocated.
50 apartments have been sold off on 150 year leases from between 2015 – 2017, each producing a ground rent of £250 per annum (£12,500 per annum in total). The ground rent increases by £250 every 25 years. 27 parking spaces have been sold off along with the apartments. 10 apartments (5 x 1 bedroom & 5 x 2 bedroom units) have been retained and are fully let on ASTs, producing a comnined rental income of £133,500 per annum.
Planning & Development Potential
Outline planning permission was granted via appeal on 12th December 2018 (reference: APP/Z5060/W/18/3202456) for construction of an 8-storey residential building to provide 16 apartments. The proposed block would be located above the car park entrance, adjoining the existing building.
The proposed scheme comprises 12 x 1 bedroom and 4 x 2 bedroom units totalling 9,957 sq.ft. NSA, which which would be constructed across 2nd – 7th floors (the ground and 1st floors are to be an undercroft allowing vehicular access to the car park).
The planning consent is subject to a Unilateral Undertaking which obligates for 6 apartments to be provided as affordable housing, as well as a carbon-offset contribution of £21,503.02. A CIL liability of circa £23,000 is applicable. The Local Planning Authority is the London Borough of Barking & Dagenham.
The property will be sold freehold and subject to the existing tenancies.
The property is elected for VAT.
Offers are invited in excess of £3,500,000 STC for the entire freehold interest, or as follows for the individual elements of the property:
• Commercial space: £800,000 STC
• Ground rent income: £250,000 STC
• 10 apartments: £2,000,000 STC
• Development site: £450,000 STC
Further information including lease documents, planning documents and floor plans are available within our dataroom.
Disclaimer - Kingsbury on its own behalf and on behalf of the Owner / Landlord of this property whose agent Kingsbury is, gives notice that this document does not constitute any form of contract for sale or lease. Statements should not be relied upon, and interested parties are advised to satisfy themselves as to the correctness of each statement. Kingsbury is the trading name of Kingsbury Investment & Development Consultants Ltd registered in England No: 06869268.
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- Recently developed building comprising 2 commercial units and 60 residential apartments (50 sold off and 10 retained) producing £224,000 per annum
- Commercial space (9,828sq.ft. NIA) let to a gym and nursery on separate leases, producing £78,000 per annum. Guide Price: offers in excess of £800,000 STC
- 50 sold off apartments producing a ground rent income of £12,500 per annum. Guide Price: offers in excess of £250,000 STC
- 10 retained apartments (5,565sq.ft. NIA) let on ASTs producing £133,500 per annum. Guide Price: offers in excess of £2,000,000 STC
- Development site in the car park area with outline planning permission for 16 apartments. Guide Price: offers in excess of £450,000 STC
- Offers invited in excess of £3,500,000 STC for the entire freehold interest, or as individual elements as per the Guide Prices above
To discuss this opportunity further, please contact Keir Goldstein or Jordan Oldfield at Kingsbury on 020 7183 2529 or Daniel Minsky or Matthew Sheldon at Estate Office on 020 7266 8500