London Retail and Residential Development Opportunity

53 Church Street | Enfield | London | EN2 6AN

£660,000

subject to contract

EXCHANGED

Summary

  • To be sold by clicktopurchase® online auction – 14th December, 11.00am

  • Located in a London borough

  • Prominent position on Church Street, Enfield

  • Available with vacant possession

  • Upper parts offer development opportunity with planning consent obtained for 2 x 2-bed flats

  • Freehold

  • Guide price £660,000 (£233 per sq ft gross external), subject to contract

53 Church Street | Enfield | |  |  | London | | EN2 6AN

Location

The London Borough of Enfield is situated approximately 18 km (11 miles) north of Central London, 8 km (5 miles) south east of Potters Bar and 10 km (6 miles) east of Barnet.

Enfield benefits from good road communications being located 3 km (2 miles) south of Junction 25 of the M25 Motorway. The intersection of the M25 Motorway and the M11 Motorway is approximately 13 km (8 miles) to the north east and the M1/M25 intersection is some 22 km (14 miles) to the north-west. The town is also served by the Great Cambridge Road (A10) which provides direct access to the North Circular Road (A406) and Central London to the south.

In addition, the town is connected to the national railway network with a fastest journey time from London Liverpool Street to Enfield Town station of 34 minutes. Enfield Lock and Ponders End railway stations also provide regular services to London Liverpool Street with a fastest journey time of 29 minutes and 23 minutes respectively.

Stansted airport is located approximately 29 km (18 miles) to the north east, Luton airport some 26 km (16 miles) to the north-west and London City airport some 19 km (12 miles) to the south.

Enfield’s population is predicted to exceed 400,000 by 2032, an increase of 29% from 2011 (Source: Enfield Council).

Situation

The subject property is situated in the heart of Enfield occupying a prominent position on Church Street, the main road in Enfield Town. Enfield Chase Railway Station is 0.5 km (0.3 miles) to the north-west and Enfield Town Railway Station is 0.5 km (0.3 miles) to the east.

The property benefits from being in close proximity to the Palace Gardens Shopping Centre and the adjoining Palace Exchange. Palace Gardens totals approximately 19,974 sq m (215,000 sq ft) and is anchored by Marks & Spencer, Waitrose with other tenants including WH Smith, Boots and H&M. Palace exchange totals approximately 14,864 sq m (160,000 sq ft) with 25 retail units and 530 car parking spaces. Anchored by Next and TK Maxx, retailers in the scheme include Superdrug, River Island, JD Sports and TopShop.

Other nearby retailers on Church Street include McDonalds, Vodafone, EE, Starbucks and Nationwide.

53 Church Street | Enfield | |  |  | London | | EN2 6AN
53 Church Street | Enfield | |  |  | London | | EN2 6AN

Description

The property comprises a 3-storey mid-terraced mixed-use building currently arranged over ground, first and second floor levels.

The ground floor retail unit is currently vacant.

The first and second floors currently comprise vacant self-contained office accommodation. The office accommodation is basic in nature as can be seen from the internal photographs.

Planning

The property is located within the Enfield Town Conservation Area. The local plan provides the planning framework and development plan for the borough and can be viewed here.

Planning consent was obtained on 18th October 2018 for “Conversion of upper floors into 2 x 2-bed self-contained flats with cycle and bin store, involving replacement shop front and alterations to front fenestrations”. A copy of the planning consent can be found here. The floor plans for the consent are available to download from our website.

Access to the residential units will be via the existing entrance pathway and existing stairs to the rear of the property.

53 Church Street | Enfield | |  |  | London | | EN2 6AN
53 Church Street | Enfield | |  |  | London | | EN2 6AN

Accommodation

The property provides the following approximate areas:

Existing:

Ground Floor (NIA)

  Sq M Sq Ft
Zone A 30.15 325
Zone B 29.46 317
Zone C 10.40 112
ITZA   511
Storage & Ancillary 14.10 152
Total Net Internal Area 84.11 905
     
Ground Floor (GIA) 101.4 1,091
First Floor (GIA) 92.7 998
Second Floor (GIA) 69.5 748
Total (GIA) 263.6 2,837

Note: the areas has been estimated and obtained from scaled architect’s plans of the existing accommodation which are available to download.

Proposed    
Ground Floor (GIA) 101.4 1,091
First Floor (GIA) 60 645 – 2 bed flat
Second Floor (GIA) 62 667 – 2 bed flat
Total (GIA) 223.4 2,403

Tenure

Freehold.

53 Church Street | Enfield | |  |  | London | | EN2 6AN
53 Church Street | Enfield | |  |  | London | | EN2 6AN

Tenancy

The property is offered for sale with vacant possession.

Market Commentary

Residential Capital Values

Our enquiries indicate that residential accommodation above commercial in the area has been selling at up to £700 per sq ft (£7,545 per sq m):

Address No. of Beds Area Sq Ft Price Price Per Sq Ft
41 Silver Street, Enfield Studio 284 £200k £704
Queen Annes Place Bush Hill Park, Enfield 1 656 £300k £457
Pinnacle House, Enfield 2 506 £300k £592

Assuming conservative values, we suggest that the redevelopment residential accommodation has an exit value of approximately £525,000 based upon £400 per sq ft and £260/265,000 per flat.

Retail Rental Values

We are aware of the following recent lettings in Enfield in close proximity to the subject property:

48b Church Street, totalling 614 sq ft, let in March 2018 to Shaketastic for a term of 10 years (break in year 5) at a rent of £24,600 per annum equating to £40.00 per sq ft overall and £56 Zone A.

38 Church Street, totalling 1,220 sq ft, let in October 2018 for a term of 10 years (break in year 5) at a rent of £38,000 per annum equating to £31.15 per sq ft overall and £56 Zone A.

23 Church Street, totalling 974 sq ft, let in January 2017 to Rush for a term of 10 years (break in year 5) at a rent of £40,000 per annum equating to £41 per sq ft overall and £69 Zone A.

Having regard to the above, we suggest that the retail unit has a rental value of £29,000 per annum, equating to £55 Zone and £32 per sq ft overall.

53 Church Street | Enfield | |  |  | London | | EN2 6AN
53 Church Street | Enfield | |  |  | London | | EN2 6AN

VAT

The property has been elected for VAT

Proposal

Guide price £660,000 (Six Hundred and Sixty Thousand Pounds), subject to contract, for the freehold interest.

The guide price represents only £233 per sq ft on the existing gross internal area.

Allocating an investment yield of 7% to the retail accommodation equates to a value of only £250,000 in relation to the upper parts. This equates to £190 per sq ft in respect of the upper floors proposed area compared to sale values conservatively in the area in the region of £400 per sq ft / £525,000.


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

Please note a purchaser will be charged a transaction fee of £3,000 + VAT.

53 Church Street | Enfield | |  |  | London | | EN2 6AN
53 Church Street | Enfield | |  |  | London | | EN2 6AN

Investment Considerations

  1. An opportunity to acquire a freehold retail and residential development opportunity in a London borough.

  2. The property occupies a highly prominent position in Enfield town centre;

  3. The property is offered with vacant possession;

  4. Upper parts offer development opportunity with planning consent obtained for 2 x 2-bed flats;

  5. Attractive lot size to an investor;

  6. A purchase at the asking price reflects a capital value at a significant discount to residential exit values, by applying a fair investment yield to the retail accommodation.

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
Faye Langoulant faye@singervielle.co.uk +44 (0) 203 478 9122
Louanne Malan louanne@singervielle.co.uk +44 (0) 203 701 1386

Vendors Solicitor

Addleshaw Goddard +44 (0) 161 934 6557
Paul Barnard paul.barnard@addleshawgoddard.com
customer service