London Retail and Residential Development/Investment Opportunity
144 Barking Road | Canning Town London | E16 4HQ
subject to contract
London investment opportunity in a regeneration area
New letting agreed for the property, in healthy competition
Option for a purchaser to conclude the letting or purchase vacant
Planning permission to provide 2 one-bedroom flats on the upper parts
Guide price £720,000, subject to contract
Attractive net yield of 5.0% should the agreed letting be concluded
Attractive Capital Value of £256 Per Sq Ft GIA
Canning Town is located within the London Borough of Newham and situated approximately 7 miles (11 km) east of Central London, 2.3 miles (3.7 km) east of Canary Wharf, 3.2 miles (5.1 km) South of Stratford, 9.6 miles (15.4 km) south of Romford and 17.4 miles (28 km) north east of Dartford Crossing.
The area benefits from good road communications being located along the A13 Newham Way, 3.5 miles (5.6 km) east of the North Circular Road and 20 miles (32 km) east of Junction 31 of the M25 Motorway. The intersection of the M25 Motorway and the M20 Motorway is 18 miles (29.9 km) to the south east and the intersection of the M25 Motorway and the A12 is approximately 21 miles (33.7 km) to the north east.
The location is served by Canning Town underground station (Jubilee Line and DLR), providing a journey time to London Liverpool Street in approximately 19 minutes and to Bond Street in approximately 24 minutes. Canning town is served by multiple bus routes in all directions.
London City Airport is located approximately 2.5 miles (4 km) to the south, London Heathrow Airport is approximately 20 miles (32 km) to the West, London Stansted Airport is approximately 32 miles (51.4 km) to the north east and Southend Airport is approximately 35.3 miles (56.8 km) to the East.
The Canning Town and Custom House Masterplan is a phased regeneration scheme which will see new developments, public squares, parks, improved road networks and infrastructure around Canning Town and Custom House. (Source: www.newham.gov.uk).
The London Borough of Newham is estimated to have a population of 307,984, the highest figure of all inner London boroughs and the seventh highest in Greater London. According to GLA projections, Newham’s population is due to reach approximately 428,500 by 2041. (Source: aston-mansfield.org.uk)
The property occupies a prominent position on the western end of Barking Road, which is the superior end, approximately 450 metres north of Canning Town Underground, 1 mile (1.6 km) south of West Ham Underground station, 1.2 miles (1.9 km) south of Plaistow Underground station, 2 miles (3.2 km) south east of Bromley By Bow Underground station and 2.3 miles (3.7 km) north east of Canary Wharf Underground station.
Barking Road is an established and busy retail parade with a mix of national and local businesses. Occupiers include, Iceland (adjacent), 24 Hours Mc Donald’s Drive Thru, Ladbrokes, Paddy Power, Londis, Subway, KFC, William Hill, Savers, Co-op and a Post Office.
The property comprises a 3-storey mid terraced building currently arranged over ground, first and second floors.
The ground floor retail unit is currently stripped out and vacant. The rear ground floor flat roof has recently been replaced.
The first and second floors are vacant and are offered with the benefit of planning permission to develop into two one-bedroom flats.
The property has been measured by BKR Floor Plans and provides the following Net Internal Areas:
|Net Frontage||16’9”||5.11 m|
|Gross Frontage||19’9”||6.02 m|
|Sq Ft||Sq M|
|Total Net Internal Area||2,282||212.02|
|Total Gross Internal Area||2,817||261.70|
The measured survey report is available to download and will be assigned to a purchaser at a cost of £325 + VAT.
Planning permission has been granted for the conversion of the first and second floor to provide two self-contained one bedroom flats. Planning Ref: 18/03037/FUL
A full set of plans and details of the planning permission can be found within the data room.
In addition, a link to the planning permission on the planning portal can be accessed here.
The property is under offer to Amuse East London Ltd on a new lease for a term of 20 years with an option to determine at the end of the 10th year. The agreed initial rent is £38,000 per annum. The lease incorporates 5 yearly upwards only rent reviews, a three month rent free period and the tenant is to provide a security deposit of £20,000.
The agreed letting has been agreed in competition. The unit was offered to the market seeking offers in the region of £25,000 per annum, with the agreed rent reflecting the strong demand for the location.
Amuse East London Limited (Company No. 07853772) have reported the following figures.
|30th November 2018||30th November 2017||30th November 2016|
Amuse East London are an amusement arcade business successfully trading from three locations including - Leyton High Street, West Ham Lane and The Broadway in Stratford.
The property has not been VAT elected, therefore the purchase will not be subject to VAT.
We are instructed to seek offers the region of £720,000 (Seven Hundred and Twenty Thousand pounds), subject to contract, reflecting a net initial yield of 5.0% after allowing for purchase costs at 5.34%
Please note that agreed letting will not be concluded prior to sale, leaving the purchaser with the option to conclude. Should a purchaser wish to develop the residential element, we suggest that the estimated rental value for a 1 bedroom converted flat above a retail premises on Barking Road is in the region of £1,250 per calendar month, with a capital value in the order of £250,000 per flat.
Please note that a purchaser will be re-charged the costs of surveys and searches which are provided in the data room.
Please note a purchaser will be charged a transaction fee of £2,500 + VAT.
An opportunity to acquire a freehold investment opportunity in a regeneration area of London;
Attractive net initial yield should the agreed letting be concluded;
Attractive lot size to an investor;
A purchase at the asking price reflects an attractive capital value;
Planning permission on the upper floor for residential development.
Data Room and clicktopurchase®
Access to the data room and for the ability to purchase online with speed and ease, please click the clicktopurchase® “C” icon or the clicktopurchase® side bar. Purchasers will be able to access the complete legal package, clear verification and submit legally-binding offers to acquire the property.
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|Addleshaw Goddard||+44 (0) 161 934 6557|