• Situated in Chelsea, an internationally renowned location

• In excess of 12.75 years unexpired lease term

• In excess of 7.75 years term certain

• Established tenant, part of the substantial, Monaco-based, Pastor-group of companies

• The Landlord benefits from a £41,250 rent deposit

• VAT free investment

• £1,040,000, subject to contract

• 5.0% net initial yield

The subject property is situated within the Chelsea Green area and occupies a prominent position on the east side of Elystan Street, at its junction with Whiteheads Grove.
Chelsea Green is a popular and high value residential area. According to Zoopla, the average house price in Elystan Street is £2.33 million. There is an eclectic range of fashion boutiques, independent retailers, restaurants, pubs, bars and cafes on Chelsea Green and in the surrounding streets.

Kings Road, famous for its high-end shopping offer, and Sloane Street are both within a few minutes’ walk. A number of London’s famous landmarks are also within close proximity, such as the Natural History Museum approximately 0.8 km (0.5 miles) to the north-west and Hyde Park 1.6 km (1 mile) to the north. The Royal Hospital Chelsea, which hosts the Chelsea Flower Show, is 1.6 km (0.5 miles) to the south-east. Stamford Bridge, the home of Chelsea Football Club is approximately 2.4 km (1.5 miles) to the south-west.

The subject property comprises the ground floor of a three storey end of terrace building, constructed in the early 1900’s. The building is of traditional brick construction with glazed shop fronts to both Elystan Street and Whiteheads Grove.

The ground floor unit has been fitted out to a high standard and is predominantly open plan.

The upper floors, which do not form part of the sale, comprise residential apartments.

According to the Valuation Office website the rateable value is as follows:

The Uniform Business Rate is 49.1 pence per pound.

We understand that the property is not listed but is situated within the Chelsea Conservation Area.

The ground floor unit is let to Pastor Real Estate Limited on a full repairing and insuring lease for a term of 15 years from 4th August 2017, expiring on 3rd August 2032 (in excess of 12.75 years unexpired). There is a tenant break option on 4th August 2027, subject to 6 months prior written notice. The lease is outside 1954 Act security of tenure protection.

The current passing rent is £55,000 per annum. The lease benefits from five yearly upwards only rent reviews, the next being on 4th August 2022. The Landlord holds a rent deposit of £41,250 (9 months’ rent).

The tenant may use the property for any use within Use Class A1 or A2 of the Town and Country Planning (Use Classes) Order 1987.

Pastor Real Estate is a premier independent estate agency with offices in Mayfair and Chelsea. For further information visit www.pastor-realestate.com.

The company is part of the substantial Monaco-based Pastor-group of companies, established by Jean-Baptiste Pastor in 1920. The company won the contracts to build Monaco’s water supply system and in 1936 was commissioned to build the country’s first football stadium. In 2014 it was reported in the press that the Pastors were Monaco’s “second dynasty”, behind the ruling Grimaldi family, with an estimated holding of 15 percent of Monaco’s housing stock, valued at approximately €20 billion (Source: Wikipedia).

Furthermore, the Landlord benefits from a rent deposit of £41,250 (equivalent to 9 months’ rent).

We are instructed to seek offers in the region of £1,040,000 (One Million and Forty Thousand Pounds), subject to contract, reflecting a net initial yield of 5.0%, assuming a standard purchaser’s costs of 5.79%.

Please note that a purchaser will be re-charged the cost of the searches which are provided in the data room.

1. An opportunity to acquire a Central London investment within Chelsea;

2. Attractive unexpired lease term, in excess of 12.75 years;

3. VAT free investment;

4. Let to an established tenant, part of the Monaco-based Pastor-group of companies;

5. The Landlord benefits from a rent deposit;

6. Attractive lot size to an investor.

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