Ground Rent Investment Opportunity

Sycamore Road | Amersham | HP6 5EQ

£325,000

offers in excess of

SOLD

Summary

  • Highly affluent town within the London commuter belt

  • Prominently located property

  • New commercial and residential development

  • Main shoppers’ car park immediately to the rear

  • Highly Secure Investment Opportunity

  • 36 new apartments, 3 ground floor retail units and basement parking

  • Freehold

  • Offers in excess of £325,000, representing a gross return on the ground rent income of 4.38%

Location

Amersham is an affluent town which forms part of the London commuter belt. It is situated approximately 45 km (28 miles) north-west of Central London, 18 km (11 miles) east of Watford and 13 km (8 miles) north-east of High Wycombe.

The town benefits from good road communications being served by the A413 which provides direct access to the M25 Motorway approximately 13 km (8 miles) to the south-east. The M40 Motorway is approximately 9.6 km (6 miles) to the south. The town is also connected to the national railway network with direct services into London Marylebone with a fastest journey time of 30 minutes. London Underground Metropolitan Line trains run direct from Aldgate to Amersham, via Baker Street, with a journey time of approximately 50 minutes.

Heathrow Airport is approximately 29 km (18 miles) to the south and Luton Airport is 35 km (22 miles) to the north-east.

Situation

The property the new Regent Place development, occupying a prominent, corner position on Sycamore Road in the heart of Amersham town centre. Amersham railway station is 0.3 km (0.2 miles) to the south. Nearby occupiers include Superdrug, Waterstones, little Waitrose, Marks & Spencer, Holland & Barrett, Greggs, WH Smith and Caffe Nero.

The Sycamore Road car park, a large 265 space public car park, is situated immediately to the rear of the subject property. Access to Sycamore Road from the car park runs immediately adjacent to Regent Place.

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Description

The Regent Place development is a recently completed scheme of three retail units on ground floor plus 36 highly specified studio (2 no), one (10 no.) and two (24 no) bedroom apartments on the upper floors, along with a basement car park. The first new build in Amersham for over 15 years, Regent Place is a new landmark in the town. Please see the sales brochure in the Downloads Section and the following website www.regentplaceamersham.com.

The retail units are occupied by FatFace, Boots Opticians and Gatsby & Miller hairdressers.

Accommodation

Plans are provided within the sales brochure. In summary, the property provides the following:

Accommodation Description Sq Ft / Sq Ms
Basement Car Parking 39 spaces
Retail Unit 1 FatFace 2,209 / 205 (net internal)
Retail Unit 2 Boots Opticians 2,010 / 187 (net internal)
Retail Unit 3 Gatsby & Miller 3,307 / 307 (net internal)
Studio Apartments 2 number 917 / 85.2 (gross internal)
One Bed Apartments 10 number 5,684 / 528.1 (gross internal)
Two Bed Apartments 24 number 17,813 / 1,654.9 (gross internal)
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Schedule of Residential Accommodation

Floor Plot No Flat No Beds Baths Sq Ft Sq M Balcony Headrent pa
First 101 1 2 2 908 84.4 Yes £450
First 102 2 2 2 855 79.4 Yes £450
First 103 3 2 2 830 77.1 Yes £450
First 104 4 Studio 1 459 42.6 No £242
First 105 5 2 2 894 83.1 Yes £450
First 106 6 1 1 568 52.8 Yes £350
First 107 7 2 2 741 68.8 Yes £400
First 108 8 1 1 581 54.0 Terrace £350
First 109 9 1 1 570 53.0 Terrace £350
First 110 10 2 1 753 70.0 Terrace £450
First 111 11 1 1 577 53.6 Yes £350
First 112 12 2 2 908 84.4 Terrace £400
First 113 13 2 2 962 89.4 Terrace £450
                 
Second 201 14 2 2 908  84.4 Yes £450
Second 202 15 2 2 855  79.4 Yes £450
Second 203 16 2 2 830  77.1 Yes £450
Second 204 17 Studio 1 459  42.6 No £270
Second 205 18 2 2 894  83.1 Yes £400
Second 206 19 1 1 565  52.5 No £325
Second 207 20 2 2 741  68.8 Yes £450
Second 208 21 1 1 581  54.0 No £335
Second 209 22 1 1 570  53.0 No £350
Second 210 23 2 1 781  70.7 No £420
Second 211 24 1 1 577  53.6 Yes £350
Second 212 25 2 2 908  84.4 Yes £450
Second 213 26 2 2 963  89.5 Yes £450
                 
Third 301 27 2 2 801 74.4 No £435
Third 302 28 2 2 819 76.1 No £447
Third 303 29 2 2 791 73.5 No £450
Third 304 30 2 2 870 80.8 Yes £400
Third 305 31 2 1 783 72.7 Yes £400
Third 306 32 2 2 862 80.1 No £450
Third 307 33 1 1 577 53.6 Yes £345
Third 308 34 2 2 898 83.4 Yes £450
Third 309 35 2 2 870 80.8 No £450
Third 310 36 1 1 517 48.0 No £330
        TOTAL 27008 2509.1   £14,449
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Tenure

The vendor is offering the freehold of the property. The freeholder manages the property and insures.

Tenancies & Service Charge

The freehold is subject to three 999-year leaseholds in respect of the retail accommodation.

In addition the anticipated residential ground rent income is £14,449 per annum, increasing every 25 years by RPI with the exception of one unit where the increase is £450 every 25 years. The residential occupational leases are for terms of 250 years.

Hence, the investor will benefit from the following:

• Ground Rent Income £14,449
• Management Fees (Year to Dec 2020) - £4,480 Building, £670 Commercial, £4,850 Estate – Total £10,000

Details of the service charge are available to download.

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VAT

The property has been elected for VAT. It is anticipated that the freehold sale will be treated as a Transfer of a Going Concern (TOGC).

Proposal

Our client is seeking offers in excess of £325,000 (Three Hundred and Twenty Five Thousand Pounds), subject to contract, for the freehold interest.

A purchase at the asking price reflects a gross yield of 4.38% based upon the ground rent income alone.

Please note a purchaser will be charged a Transaction Fee of 1% of the Sale Price plus VAT.

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Investment Considerations

  1. An opportunity to acquire a ground rent investment in a highly affluent town within the London commuter belt;

  2. The property occupies a prominent retailing pitch in front of the main shoppers’ car park;

  3. The property forms a prestigious new commercial and residential development;

  4. A purchase at the asking price reflects an attractive net initial yield based upon the ground income, plus the opportunity to derive management income;

  5. Attractive lot size for an investor.

Contact Us

Singer Vielle   +44 (0) 207 935 7200
Neil Singer neil@singervielle.co.uk +44 (0) 203 478 9120
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356

Vendors Solicitor

Bryan Cave Leighton Paisner +44 (0) 203 400 3148
Jasmine Chaytor Jasmine.Chaytor@bclplaw.com