Regent House, 291 307 Kirkdale Sydenham SE26 Freehold mixed use investment/development opportunity for sale. Kinleigh Folkard & Hayward kfh.co.uk COMMERCIAL PROPERTY
Executive summary 03 Excellent mixed use investment in a rapidly changing area of South East London 48,437 sq ft over four floors, fronting both Kirkdale and Spring Hill Redevelopment opportunities Freehold Multi-let with tenants such as LA Fitness (now Pure Gym) Low capital value of 134.19 per sq ft Asset management opportunities with high yield reversionary potential Offers sought in excess of 6,500,000
Location Sydenham is a suburban district located approximately 8 miles south east of Central London. It benefits from excellent transport links such as direct overland trains to London Victoria in 15 minutes and London Bridge in just 30 minutes, plus overground services provide easy access to other areas within the capital. In addition, Sydenham is well serviced by local bus routes. The subject property is on the corner of two roads, Kirkdale (A2216) and Spring Hill, which sit in the heart of Sydenham. It is less than a minutes walk from the station and Sydenham s main retail thoroughfare, Sydenham Road, which is occupied by local retailers. It is close to the junction of Westwood Hill (A212) which leads towards Crystal Palace and also has links to Forest Hill, by heading North on Kirkdale. Sydenham
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Description The property is a four storey 1950 s building which comprises retail units, a leisure centre, a nightclub, office accommodation and flats. The retail units, including an LA Fitness leisure complex, sit on the ground floor and front onto the busy Kirkdale Road. The ground floor also provides entrance to both the nightclub situated on the lower ground level and the B1 office accommodation at the northern end, which is arranged over the first and second floors. On Spring Hill sits the Regency working man s club located over three floors and it also provides access to three flats on the first and second floors, which are sold off on long leases.
Accommodation 07 The property has the following approximate dimensions and areas: Regent House, Sydenham SE26 Lower Ground sq m Ground sq m First sq m Second sq m TOTAL sq m TOTAL sq ft 291 Kirkdale (Nightclub) 730.03 730.03 7858 291-293 Kirkdale (LA Fitness) 466.96 945.35 1412.31 15202 297 Kirkdale (Nisa Local franchise) 113.5 113.5 1222 299/301 Kirkdale (Lewisham borough/cab) 187.89 187.89 2022 303 Kirkdale (Orange Blossom) 176.7 59.52 236.22 2543 Office Suite 101 16.33 16.33 176 Office Suite 102 27.63 27.63 297 Office Suite 103 14.64 14.64 158 Office Suite 104 24.54 24.54 264 Office Suite 105 49.6 49.6 534 Office Suite 106 49.59 49.59 534 Office Suite 107 49.18 49.18 529 Office Suite 108 48.57 48.57 523 Office Suite 109 68.11 68.11 733 Office Suite 110 26.67 26.67 287 Office Suite 111 21.47 21.47 231 Office Suite 111A 21.5 21.5 231 Office Suite 112 43.91 43.91 473 Office Suite 113 31.4 31.4 338 Office Suite 114 8.37 8.37 90 Office Suite 115 9.75 9.75 105 Office Suite 116 11.93 11.93 128 Office Suite 117 15.69 15.69 169 Office Suite 118 31.3 31.3 337 Office Suite 119 18.4 18.4 198 Office Suite 120 37.69 37.69 406 Office Suite 121 18.46 18.46 199 Office Suite 122 (Vacant) 34.37 34.37 370 Office Suite 123 11.87 11.87 128 Office Suite 123A 11.84 11.84 127 Office Suite 124 (Vacant) 10.01 10.01 108 Office Suite 124A 11.13 11.13 120 Office Suite 124B 16.98 16.98 183 Office Suite 125 16.93 16.93 182 Office Suite 126 14.24 14.24 153 Office Suite 127 14.52 14.52 156 Office Suite 128 24.52 24.52 264 Office Suite 129 15.13 15.13 163 Office Suite 130 15.35 15.35 165 Office Suite 131 (Vacant) 27.94 27.94 301 Office Suite 198 17.82 17.82 192 Office Suite 199 13.99 13.99 151 Office Suite 200 14.02 14.02 151 Office Suite 201 (Vacant) 21.04 21.04 226 Office Suite 202 27.72 27.72 298 Office Suite 203 26.79 26.79 288 Office Suite 204 26.98 26.98 290 Office Suite 205 27.47 27.47 296 Office Suite 206 (Vacant) 26.89 26.89 289 Office Suite 207 (Vacant) 27.47 27.47 296 Office Suite 208 27.47 27.47 296 Office Suite 209 53.83 53.83 579 Office Suite 210 41.72 41.72 449 Office Suite 211 17.74 17.74 191 O2 (UK) Ltd Aerial Site (Roof) n/a n/a n/a n/a n/a n/a T-Mobile Aerial Site (Roof) n/a n/a n/a n/a n/a n/a Spring Hill Flats - Head Lessee n/a n/a n/a n/a n/a n/a Regent House, Roof Space n/a n/a n/a n/a n/a n/a Regency Club, Spring Hill (Vacant) 166.93 197.41 215.17 579.51 6238 Floor Totals 1363.92 1620.85 1144.25 370.95 Business Centre Space 869.56 370.95 1240.51 13353 Total Let Space 1196.99 1423.44 856.76 295.55 3772.74 40609 BUILDING TOTAL 4499.97 48437
Tenancy The property is currently part-let to a number of retail and leisure occupiers on Ground Floor level, as well as short term serviced office occupiers on the upper floors. The tenancy schedule below shows the current tenant mix. All tenancies are currently holding over. Tenure Freehold. Regent House, Sydenham SE26 Tenant Unit Status Tenure Annual Rent Lease Commencement 291 Kirkdale Midas Management Let Leasehold 60,000.00 Friday, 12 December 08 15 years 291 Kirkdale LA Fitness Let Leasehold 9,250.00 Monday, 3 June 91 293 Kirkdale LA Fitness Let Leasehold 12,250.00 Friday, 20 December 96 295 Kirkdale LA Fitness Let Leasehold 75,000.00 297 Kirkdale Mr Sinnathurai (Nisa Local franchise) Let Leasehold 13,000.00 Friday, 6 March 09 25 years 299 Kirkdale London Borough of Lewisham Let Leasehold 12,500.00 Monday, 25 August 08 301 Kirkdale Lewisham Citizens Advice Bureau Services Ltd Let Leasehold 9,250.00 Wednesday, 19 November 03 Term Next Review Lease End Notes 40 years 9 months 24 day 10 years 303 Kirkdale Orange Blossom Let Leasehold 27,500.00 Monday, 19 July 04 10 years Regent House Business Centre 5 years Wednesday, 12 December 18 Wednesday, 25 December 19 Wednesday, 25 December 19 Wednesday, 25 December 19 Wednesday, 6 March 19 Various Part-let Licences 188,525.96 Various Various Various Various O2 (UK) Ltd Aerial Site O2 (UK) Ltd Let Leasehold 6,000.00 T-Mobile Aerial Site T-Mobile Let Leasehold 6,320.24 Wednesday, 12 February 03 Flats 1-3 Spring Hill G.S. Callaghan Let Leasehold 500.00 Wednesday, 1 January 97 Regent House, Roof Space Regency Club, Spring Hill Roof & Air Space, Regent House Let Leasehold 400.00 Wednesday, 3 December 08 Vacant Leasehold - BUILDING TOTAL 420,496.20 less running costs of - 115,000.00 Net Income 305,496.20 10 years 124 years, 11months, 21 days 115 years Tuesday, 1 January 58 11 December 2023 24 March 2032 24 March 2032 24 March 2032 Sunday, 5 March 34 Friday, 24 August 18 Tuesday, 18 November 08 Friday, 18 July 14 Monday, 11 February 13 Sunday, 21 December 21 Thursday, 2 December 23 holding over holding over expired are holding over long lease - holding over holding over
Market commentary 09 The South East London property market is transforming at a rapid pace. With permitted development rights still dominating the office market there is a lot of redevelopment going on. Within the immediate locality there is residential redevelopment of property going on, this includes a new mixed-use development opposite Regent House with A1/A2 retail units to let or for sale on a long leasehold basis, situated on the ground and basement floors. The building also has residential upper parts in the form of 7 apartments. Additionally, 351-355 Sydenham Road is a freehold development site that was recently sold for 1,250,000 with full planning permission for 9 apartments. Asset management/redevelopment We understand that all tenancies that have expired are holding over at the present time. Upon purchase it is to the discretion of the freeholder as to whether to renew all, some or none of these. Excluding the tenancies/licences that are holding over there is an Average Weighted Unexpired Lease Term of 13.5 years with numerous options to re-gear leases through rent reviews from autumn 2015 to the end of 2019. The rental market in the local area is improving and we believe the total ERV for the building to be a gross figure of around 600,000 per annum. Redevelopment in the local area and throughout South East London is indicative of the potential for Regent House. Enquiries to the local council would need to be made but it seems likely that permission to convert to residential may be granted. Planning We understand the property is not listed but is situated within the Jews Walk Conservation area. VAT We understand the property is not elected for VAT. EPC The property has a rating of E, based on a score of 119. A copy of the Energy Performance Certificate is available upon request.
Proposal We have been instructed to seek offers in excess of 6,500,000, subject to contract, for the freehold interest. Further information The following information is available upon request: Leases Title plan Floor plans Further photography Viewing Should you wish to arrange an inspection, please contact: Kinleigh Folkard and Hayward Chartered Surveyors KFH House 5 Compton Road Wimbledon London SW19 7QA www.kfh.co.uk/commercial Ed Jeffs Tel 020 8739 2089
Our services Acquisition Disposal Investment Development Lease consultancy Valuations Visit kfh.co.uk Important: Whilst these particulars are believed to be correct, they are provided merely as a general guide to the property and do not and shall not hereafter become part of any offer or contract. Any person with an interest in the property should satisfy themselves as to any matters concerning the premises by inspection or otherwise as to their correctness. Neither Kinleigh Folkard & Hayward nor any of their employees or agents have authority to make or give any representation or warranty in relation to the property.