Freehold commercial/residential investment
We were asked to offer for sale this attractive freehold commercial/residential investment opportunity in South Woodford.
The property attracted a large amount of interest with the commercial element let to Barclays Bank PLC on a 20 year lease from April 2006 at a passing rent of £31,400 p.a. The lease is contracted within the 1954 Act and on full repairing and insuring terms.
There was scope to improve the income as the December 2012 rent review was outstanding with further reviews due in December 2017 and December 2022. The upper floors contained a small office (within the lease to Barclays) and a three bedroom residential flat let on an AST producing £16,200 per annum bringing the current total income to £47,600 p.a. It is believed there was scope to further develop the upper parts.
After receiving a number of strong offers from investors the property eventually sold for £1,490,000 representing an initial net yield of 3.1%.