FOR SALE

Hatcham Road, London SE15 1TW

Offers in excess of £10,000,000

Description

The subject site, which is broadly rectangular, extends to circa 0.45 acres (0.18 hectares) in total and is comprised of 3 parcels of land.

62 Hatcham Road is a single-storey brick building consisting of 3 separate light industrial units which extend to approximately 6,860ft² in total. 60A Hatcham Road is a yard space in the centre of the site which was most recently used for light industrial purposes.

The third element is 134-140 Ilderton Road which is a 2-storey industrial building of circa 10,000ft² with associated yard space. Entrances and servicing to the site are taken from both Record Street and Hatcham Road.

The property is bounded by Record Street to the north and east, Hatcham Road to the west and light industrial buildings to the south. Ilderton Road is located parallel to Record Street to the west.

Tenancies

The property is currently subject to 2 occupational leases which together produce £37,000 per annum.

One of the light industrial units within 62 Hatcham Road is let to Sava Films Ltd on a 1 year lease from 20th April 2018 (expires 19th April 2019) at a passing rent of £17,000 per annum. The lease is outside the provisions of the L&T Act and can be terminated by either party with 1 month’s notice.

134-140 Ilderton Road is let to Paramount Haulage Ltd on a 2 year lease from 5th March 2018 (expires 4th March 2020) at a passing rent of £20,000 per annum. The lease is outside the provisions of the L&T Act and can be terminated by either party with 1 month’s notice.

The other 2 units within 62 Hatcham Road and 60A Hatcham Road are both vacant.

Location & Accessibility

The site occupies approximately half of a wider rectangular block which is currently made up of various commercial uses, and forms part of a predominantly commercial area stretching from the north of Old Kent Road to South Bermondsey.

The property is located within the eastern part of the London Borough of Southwark, close to its boundary with the London Borough of Lewisham. Surrounding areas include Walworth, New Cross, Peckham and Deptford.

The site lies approximately 0.4 miles to the north of Old Kent Road (A2) which is a main arterial road into Central London. There are numerous shops, restaurants, supermarkets, trade counters and various other commercial amenities available on and around Old Kent Road.

The nearest train station is South Bermondsey which is located approximately 0.3 miles to the north of the site along Ilderton Road, providing National Rail services with direct links to London Bridge Station in 5 minutes.

Transport for London are currently in consultation for a potential extension of the Bakerloo Line from Elephant & Castle to New Cross and Lewisham via Old Kent Road. Further information can be seen here.

Old Kent Road Opportunity Area

The property lies within the Old Kent Road Opportunity Area, circa 282 hectares of predominantly commercial land uses which have been designated for regeneration within the London Plan and the London Borough of Southwark’s Local Plan.  Some of the objectives of this scheme are listed below:

  • Revitalise Old Kent Road as a high street with shops, cafes, restaurants, leisure and other facilities with residential homes above.
  • Recognise the Old Kent Road’s central location by including it within an extension of London’s central activities zone.
  • 20,000 new homes, including council homes and private rented homes in mixed use neighbourhoods.
  • Employment clusters providing a mix of managed workspace, hybrid, light industrial and low-cost space, contributing to 5,000 additional jobs.
  • Social infrastructure including up to 2 new primary schools and potentially one new secondary school by 2025 and additional schools later in the plan period.
  • Two new tube stations on the Bakerloo Line extension and a new overground station at New Bermondsey.
  • New parks at Mandela Way and the gasworks and green route on the alignment of the former Surrey Canal.

Further information can be found here.

Planning

The property was given a resolution to grant planning permission on 6th November 2018 for the following proposal (application reference 17/AP/3757):

Mixed use redevelopment comprising: demolition of existing buildings and construction of a building ranging in height from 4 to 9 storeys to provide 1,113 sqm (GIA) of commercial space (use class B1) at ground floor, 86 residential dwellings above (30 x 1 bed, 39 x 2 bed & 17 x 3 bed), with associated amenity areas, cycle and disabled car parking and refuse/recycling stores.

The proposed scheme consists of 2 commercial units (Use Class B1(c)) across the ground floor which will extend to 6,103ft² NIA and 1,506ft² NIA respectively, with access taken from Hatcham Road and Record Street. The ground floor will also incorporate bike and refuse storage, plant areas and a service yard with 3 disabled parking spaces for residential use.

The 8 upper floors of the proposed building will incorporate 86 residential apartments totalling 61,605ft² NIA which will be serviced by 2 stair / lift cores. All apartments will benefit from private
amenity space and there are communal amenity spaces proposed at 1st and 6th floor levels.

Section 106 Obligations & CIL

The planning consent is subject to a Section 106 Agreement which obligates for the following:

  • Provision of 26 residential units as affordable housing; 19 for social rent (6 x 1 bed, 3 x 2 bed & 10 x 3 bed) and 7 for shared ownership (2 x 2 bed & 5 x 3 bed).
  • Fixed financial contributions totalling £287,848.
  • Car club membership for a 3 year period and parking permit exclusion zone for future occupants.
  • Provision of 10% of the proposed commercial space as affordable workspace, whereby the rent must not exceed £12 per ft² for a 15 year period.

In addition, the planning permission is liable for both GLA and Borough CIL. We understand that residential charging rates are £35 per m² for the GLA and £218 per m² for the London Borough of Southwark. Please note that affordable housing relief can be applied to the residential element. Interested parties are advised to rely on their own enquiries.

Nearby Developments

The area surrounding the property is experiencing wide-scale regeneration with numerous residential-led redevelopment schemes either under construction or proposed. Please refer to the aerial image in the brochure which shows the location of these.

Tenure

The property will be sold freehold and is held under 3 separate Titles.

Terms

Offers are invited in excess of £10,000,000, subject to contract and exclusive of VAT. A purchase at this level reflects a low capital value of £144 per ft² based on the consented NIA of 69,214ft².

VAT

The property is elected for VAT.

Additional Information

Further information including planning documents, technical information and indicative resale advice is available within the dataroom using the access code ‘Hatcham’.


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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  • Existing property comprises a broadly rectangular site of circa 0.45 acres which is occupied by various light industrial buildings and yard space
  • Resolution to grant planning permission for a fully new build scheme over 9-storeys comprising 86 residential units totalling 61,605ft² NIA and commercial space extending to 7,609ft² NIA
  • Total 86 residential units, with 60 designated for private sale, 19 as social rent and 7 as shared ownership
  • Sought-after location within the ‘Old Kent Road Opportunity Area’ and circa 0.3 miles from South Bermondsey Station (direct trains to London Bridge Station in 5 minutes)
  • Offers are invited in excess of £10,000,000 for the freehold interest, reflecting a low capital value of £144 per ft² based on the consented NIA

To discuss this opportunity further, please contact Keir Goldstein or Ross Kemp on 020 7183 2529.

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