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Prime virtual freehold, mixed medical and residential property located on Harley Street
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Prime virtual freehold, mixed medical and residential property located on Harley Street
PLEASE CLICK LOCATION DOTS
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THE OPPORTUNITY | SITUATION | LOCATION | THE PROPERTY | RESIDENTIAL APARTMENTS | MEDICAL ACCOMMODATION | MARKET COMMENTARY | TENURE | FLOOR PLANS | FURTHER INFORMATION | CONTACT
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THE OPPORTUNITY | SITUATION | LOCATION | THE PROPERTY | RESIDENTIAL APARTMENTS | MEDICAL ACCOMMODATION | MARKET COMMENTARY | TENURE | FLOOR PLANS | FURTHER INFORMATION | CONTACT
> The accommodation extends to 11, 804 ft² gross internal area over basement, ground and four upper floors to also include a garage to the rear. There is a lift to all floors.
> The basement and top floor apartments are let on assured shorthold tenancies and the first, second and third floors are let to medical occupiers, both of which are outside of the Landlord & Tenant Act 1954.
> The ground floor rear apartment is vacant. We understand the basement occupier’s AST has been terminated and they are due to vacate imminently. The top floor’s AST expires on 16 May 2016.
> Details of the leases are summarised later in this brochure and copies are contained in the data room.
> Offers in excess of £10,000,000 are invited subject to contract. A purchase at this level reflects £848 per sq ft (GIA).
THE OPPORTUNITY
> A stunning mixed use property situated in the heart of the prestigious Harley Street Conservation Area and West End.
> An opportunity to acquire the virtual freehold of the whole property which consists of three residential units and medical accommodation, a garage and the reversionary long leasehold interest over 9 Wigmore Place to the rear.
> 999 year long leasehold interest from 6 April 1929 (912 years expired) at a peppercorn ground rent.
> 9 Wigmore Place has been sub-let on a long leasehold of 199 years from 12 December 1990 (173 years unexpired) at a peppercorn rent.
> The user clause states that the property is to be used and occupied as a private dwelling house only. Two Licenses have been granted by the superior Landlord over the first, second and third floors for medical use.
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THE OPPORTUNITY | SITUATION | LOCATION | THE PROPERTY | RESIDENTIAL APARTMENTS | MEDICAL ACCOMMODATION | MARKET COMMENTARY | TENURE | FLOOR PLANS | FURTHER INFORMATION | CONTACT
SITUATION
Located within the City of Westminster and surrounded by the adjoining neighbourhoods of Mayfair, Fitzrovia & Regents Park; Marylebone is one of London’s most sought-after boroughs. This area of London is characterised for its world renowned shopping, exclusive neighbourhoods, academic institutions and private healthcare specialists.
There are several Underground stations nearby including Great Portland Street (District, Circle, Metropolitan, Hammersmith and City Lines) and Regents Park (Bakerloo
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Line) located 0.5 miles to the north east. Oxford Circus (Central, Victoria and Piccadilly Lines) and Bond Street (Jubilee and Central Lines), both of which are approximately 0.3 miles to the South and Southwest. There are also Mainline railway stations at Marylebone, Baker Street, Euston and Kings Cross/ St Pancras International. London’s new Crossrail service will open in 2017 and Heathrow will be within 30 minutes with direct access at Bond Street Station.
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THE OPPORTUNITY | SITUATION | LOCATION | THE PROPERTY | RESIDENTIAL APARTMENTS | MEDICAL ACCOMMODATION | MARKET COMMENTARY | TENURE | FLOOR PLANS | FURTHER INFORMATION | CONTACT
LOCATION
The property is located to the southern end of Harley Street towards the commercial district, just north of Cavendish Square and Wigmore Street and south of Queen Anne Street and Oxford Street. It is situated in the heart of the Harley Street Conservation Area, which is internationally recognised for medical excellence and high value residential properties.
It’s longstanding reputation for exceptional private health treatment dates back to the 18th century and in recent years, has attracted many of the world’s leading private healthcare clinics and hospitals. Today, there are as many as 1,500 medical practitioners around Harley Street providing medical services from cancer treatment to cosmetic surgery; notable occupiers include The London Clinic, The Heart Hospital, The Harley Street Clinic and London Medical.
The surrounding area has been subject to dramatic improvements in recent years, including Marylebone Village & St. Christopher’s Place, both of which have been revitalised into charming high streets filled with boutique shops and restaurants. There are plenty of shopping choices within short walking distance, whether it be in Marylebone, or the bustle of Oxford
Street, Regent Street or Bond Street. World renowned department stores such as Selfridges and Liberty’s are a short walk away to the south of the property. Hyde Park and Regents Park also lie within a short distance from the property and provide an escape from busy central London.
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THE OPPORTUNITY | SITUATION | LOCATION | THE PROPERTY | RESIDENTIAL APARTMENTS | MEDICAL ACCOMMODATION | MARKET COMMENTARY | TENURE | FLOOR PLANS | FURTHER INFORMATION | CONTACT
THE PROPERTY
Built in the early 1890’s, this terraced town house is rich in detail and extends significantly to the rear of the site. It is a five storey property with substantial basement and rear garage, of Point Street Dutch style with exposed red brick elevations under a slate covered mansard roof. The property incorporates a grand entrance which leads into a central shared hall off which there are a large waiting area, central staircase and a lift serving all floors.
Lower Ground Floor 3,281 Sq ft
Ground Floor 2,941 Sq ft
First Floor 1,994 Sq ft
Second Floor 1,387 Sq ft
Third Floor 1,203 Sq ft
Fourth Floor 998 Sq ft
Total 11,804 sq ft
Gross Internal Area
*Not including 9 Wigmore Place
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RESIDENTIAL APARTMENTS
To the ground floor is a five bedroom residential apartment which extends to the rear of the site and has a small first floor section. It provides a reception room, lobby, WC, kitchen, laundry room, shower room and study in addition to the 5 bedrooms. There is also private access to the central courtyard. The accommodation is fitted to a reasonable standard although requires modernisation and reconfiguration.
The lower ground floor is accessed from a private entrance stairwell to the front but also has internal access to the ground floor. It is a one bedroom residential apartment, with kitchen/breakfast room, which has been fitted to a reasonable standard although requires modernisation. The current tenant has mobility issues and therefore nonslip flooring has been fitted throughout.
To the rear of the lower ground floor there is a substantial undeveloped area which is finished to a shell and provides internal access to the garage.
The forth floor consists of a one bedroom residential apartment finished to a good standard with reception room, kitchen and bathroom. It also has the benefit of a private balcony.
It should be noted that 9 Wigmore Place has been let on a long leasehold of 199 years from 12 December 1990 and has not been shown on the attached floor plans.
THE OPPORTUNITY | SITUATION | LOCATION | THE PROPERTY | RESIDENTIAL APARTMENTS | MEDICAL ACCOMMODATION | MARKET COMMENTARY | TENURE | FLOOR PLANS | FURTHER INFORMATION | CONTACT
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MEDICAL ACCOMMODATION
The medical accommodation is arranged across first, second and third floors and is let to two tenants. There is a shared waiting room to the ground floor with this accomodation accessed via the central stairwell and lift.
The first floor is let to Keith Cohen who operates a dental surgery with its own reception and a waiting room, three dental suites and records room. The accommodation is fitted to a high standard typical of dental surgery suites.
The second and third floor are let to the London Eye Diagnostic Centre. They have their own reception and waiting room to the second floor with laser suite, two consulting rooms, admin offices, patient’s WC and staff kitchen. To the third floor are three further consulting rooms, eye testing room, photograph suite, cleaner’s store, staff tea point and staff WC.
The property has 11 icences for medical practitioners. Nine are being presently utilised by the current medical tenants.
THE OPPORTUNITY | SITUATION | LOCATION | THE PROPERTY | RESIDENTIAL APARTMENTS | MEDICAL ACCOMMODATION | MARKET COMMENTARY | TENURE | FLOOR PLANS | FURTHER INFORMATION | CONTACT
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THE OPPORTUNITY | SITUATION | LOCATION | THE PROPERTY | RESIDENTIAL APARTMENTS | MEDICAL ACCOMMODATION | MARKET COMMENTARY | TENURE | FLOOR PLANS | FURTHER INFORMATION | CONTACT
RESIDENTIAL MARKET COMMENTARY
Prime London markets are still adjusting to tax changes. Prices of prime London residential properties fell marginally in the first quarter of 2016. The only submarket to show positive annual price growth in Q1 2016 is Marylebone at 1.7%, reflecting a longer term change in perception among prime buyers, demonstrated by the 25.1% five year price growth and 118.9% over the last ten years in the area.
Marylebone is a sought after residential address and appealing to both UK and international purchasers due to its locational convenience and proximity to extensive and high quality amenities in London’s West End.
We have set out below a broad overview of recent transactions located in the area of residential properties:
MEDICAL MARKET COMMENTARY
We have seen market attraction for D1 and office space in central London improve within the last 24 months from private medical operators and occupiers looking to relocate or obtain a platform into the market. Oversees private medical companies are seeking to enter London to set up subsidiary offices whilst maintaining their existing client base.
There has also been increased activity in the market from private high net worth individuals and other investors seeking long term income, whilst maintaining high underlying value. There has also been high liquidity in the market due to oversees investors entering and low interest rates, which has in turn increased competition. The lack of stock of quality investments in the marketplace has been driving yields downwards over the past 18 months.
The following gives a broad overview of recent transactions located in a similar area to the Property:
Address Area (ft²) Tenure Price Cap Value
(£/ft²) Date
16 Devonshire Place 9,383 Freehold £9.250m £989 Jan-16
5 Spanish Place 3,464 Freehold £6.150m £1,775 Mar-16
33 Wimpole Street 3,971 Freehold £9.0m £2,266 Mar-16
Address Area (ft²) Tenure Price Cap Value
(£/ft²) Date
17 Harley Street 8,440 Freehold £13.0m £1,540 Jan-15
10 Upper Wimpole Street 1,713 LH-999 years £1.90m £1,109 Aug-15
42 Wimpole Street 3,360 LH-95 years £3.650m £1,086 Mar-16
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THE OPPORTUNITY | SITUATION | LOCATION | THE PROPERTY | RESIDENTIAL APARTMENTS | MEDICAL ACCOMMODATION | MARKET COMMENTARY | TENURE | FLOOR PLANS | FURTHER INFORMATION | CONTACT
TENURE
The head lease is from Howard de Walden Estates Limited commencing on 6 April 1929 for 999 years (c.912 years unexpired) at a fixed rent of £100 per annum. The user clause under the Lease states the property shall be used and occupied as and for a private dwelling house only. Two licences have been granted by the superior Landlord over the first, second and third floors for medical use.
9 Wigmore Place has been sub-let on a long leasehold of 199 years from 12 December 1990.
The ground floor rear apartment is vacant. We understand the basement occupier’s AST has been terminated and they are due to vacate imminently. The top floor’s AST expires on 16 May 2016 but notice has yet to be served.
Copies of the long leasehold title, two commercial leases and assured shorthold tenancy are available in the data room. Further, there is a copy of the long leasehold sub lease granted over 9 Wigmore Place.
Commercial lease 1- First Floor Commercial lease 2- Second & Third Floor
Tenant Keith Cohen
Demise First floor
Term 6 yrs from 12 January 2014 (3.75 unexpired)
Rent
From 12 January 2014 until 10 January 2016 - £100,000 per annum. From 12 January 2016 to 11 January 2017 - £105,000 per annum. Remainder of term will be determined by rent review provision.
Rent Review Rent shall be reviewed on the 12 January 2017 to open market rent.
Repairs
Tenant to keep the internal parts of the demised premises in good and substantial repair and condition. Landlord to keep the external parts, common parts and structure in good substantial repair and condition.
Insurance Payable by the landlord.
User
To use the demised premises only for the purpose of carrying on the profession of a medical and/or dental practitioner within the terms of the licence granted by the superior landlord.
Alienation
Not to assign the whole premises without prior written consent from the landlord which may not be unreasonably withheld or delayed, subject to conditions including an AGA.
Outside the Act Outside of the Act
Other Covenants The Landlord is responsible for providing a receptionist.
Drs Heath, Viswanathan and Poinoosawmy
Second and third floor
6 years from 24 June 2012 (2 years unexpired)
From 24 June 2012 until 23 June 2015 - £150,000 per annum. The 2015 rent review is currently outstanding.
Rent review shall be reviewed on the 24 June 2015 to open market rent.
Tenant to keep the internal parts of the demised premises in good and substantial repair and condition. Landlord to keep the external parts, common parts and structure in good substantial repair and condition.
Payable by the landlord.
To use the demised premises only for the purpose of carrying on the profession of a medical and/or dental practitioner within the terms of the licence granted by the superior landlord.
Not to assign the whole premises without prior written consent from the landlord which may not be unreasonably withheld or delayed, subject to conditions including an AGA.
Outside of the Act
The Landlord is responsible for providing a receptionist.
LOWER GROUND FLOOR
GROUND FLOOR FIRST FLOOR SECOND FLOOR THIRD FLOOR
FOURTH FLOOR
APPROX. GROSS INTERNAL AREA
11,804 SQ FT
* full detailed measured floor plans are available on the data room.* 9 Wigmore Place is not included on these floor plans
THE OPPORTUNITY | SITUATION | LOCATION | THE PROPERTY | RESIDENTIAL APARTMENTS | MEDICAL ACCOMMODATION | MARKET COMMENTARY | TENURE | FLOOR PLANS | FURTHER INFORMATION | CONTACT
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FURTHER INFORMATION
Please visit our website data room for more information and copies of all of the documentation relating to the sale:
https://sites.savills.com/23harleystreet
PlanningIndividual applicants are to make their own planning enquiries. The property lies within the Harley Street Conversation Area but is not listed.
TaxationThe collective rateable value of the medical accommodation across first, second and third floors equates to £140,000. The Council tax bands for the residential element are G and F.
ServicesMains water, electricity, gas and drainage are connected. There is gas fired central heating and a lift serving all floors.
Energy Performance CertificateEPC rating D.
InspectionAll viewing appointments must be arranged via the Vendor’s sole selling agents, Savills.
Method of saleThe head lease interest is to be sold as a whole by private treaty.
We are seeking offers in excess of £10.0 million.
The vendor reserves the right to not accept the highest, or any, offer submitted.
Bidding processThe bid should be submitted by noon on the 5th of July 2016, to Alex Crawley at Savills, 33 Margaret Street, London, W1G 0JD. Short listed parties will be asked to confirm their offer after a final round of bids and an additional viewing if necessary.
THE OPPORTUNITY | SITUATION | LOCATION | THE PROPERTY | RESIDENTIAL APARTMENTS | MEDICAL ACCOMMODATION | MARKET COMMENTARY | TENURE | FLOOR PLANS | FURTHER INFORMATION | CONTACT
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Important Notice
Savills, their clients and any joint agents give notice that:
1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact.
2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise.
Designed and Produced by Savills Marketing: 020 7499 8644
May 2016
33 Margaret StreetLondon W1G 0JD
CONTACT DETAILS
Alex Crawley BSc (Hons) MRICS
+44 (0) 20 7409 8878+44 (0) 7807 999 [email protected]
Colin Rees Smith BSc (Hons) MRICS
+44 (0) 20 7409 5996+44 (0) 7870 999 [email protected]
THE OPPORTUNITY | SITUATION | LOCATION | THE PROPERTY | RESIDENTIAL APARTMENTS | MEDICAL ACCOMMODATION | MARKET COMMENTARY | TENURE | FLOOR PLANS | FURTHER INFORMATION | CONTACT
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