Acquired
London SW11 – Pizzeria and Residential Ground Rent Investment
42 Lavender Hill, Battersea, London SW11 5RLFreehold Restaurant & Residential Ground Rent
Tenure
Freehold
Lease Term
20 Years
Years Left on Lease
13y 10m
Area
2,997 SQ FT
VAT Applicable
No
Sector
Investment Consideration
- Comprises ground floor restaurant and 2 self-contained flats, which have been sold off on long leaseholds.
- Restaurant let until 2038 (No Breaks). Pizzeria Pellone is in the “Top 10 Pizzerias in London” lists by CNN Traveller, Conde Nasté and others
- Full refurbishment and kit-out in 2018. Additional premium of £50,000 paid upon commencement of the lease.
- Nearby occupiers include Co-op Supermarket, Sainsburys, Pizza Hut and Café Nero, amongst many more.
- Prominent corner location, with outdoor terrace, in one of Battersea’s busiest streets.
- Future development optionality – with potential to develop in the rear and build a basement, subject to planning.
Key Features
Tenure
Freehold
VAT
VAT is not applicable.
Property Description
The property comprises end-of-terrace building arranged as a ground floor restaurant along with two self-contained flats over ground, first and second floor. The restaurant has undergone a full refurbishment and kit-out upon commencement of tenancy in 2018. The residential flats have been sold off on long leaseholds. The neighbouring building has a full basement, which leads to potential development opportunity for building out basement subject to obtaining planning consent.
The property provides the following accommodation and dimensions.
Ground Floor: Restaurant 55 sq m (596 sq ft)
Rear Ground Floor: Two bedroom flat 136 sq m (1,464 sq ft)
First & Second Floor: Three bedroom flat 87 sq m (937 sq ft)
The property provides the following accommodation and dimensions.
Ground Floor: Restaurant 55 sq m (596 sq ft)
Rear Ground Floor: Two bedroom flat 136 sq m (1,464 sq ft)
First & Second Floor: Three bedroom flat 87 sq m (937 sq ft)
Tenancy Description
The ground floor restaurant is at present let to Albarella Limited t/a Pizzeria Pellone for a term of 20 years from 30th October 2018 at a current rent of £24,000 per annum and the lease contains full repairing and insuring covenants. The 2023 rent review has been settled in advance at £24,000 per annum (an increase from £20,000 per annum). Vendor will top-up rent upon completion equivalent to £24,000 per annum until October 2023. Upward only rent review in 2028. No break clause. Rent deposit held of £10,000. Tenant paid £50,000 premium for the lease. Personal guarantee.
The rear ground floor flat has been sold off on a 125 Year lease from 3rd June 2014, at a ground rent of £300 per annum. Rent increasing by £250 every 25 years.
The first and second floor flat has been sold off on a 125 Year lease from 16th May 2014, at a ground rent of £800 per annum. Rent doubling every 25 years.
The rear ground floor flat has been sold off on a 125 Year lease from 3rd June 2014, at a ground rent of £300 per annum. Rent increasing by £250 every 25 years.
The first and second floor flat has been sold off on a 125 Year lease from 16th May 2014, at a ground rent of £800 per annum. Rent doubling every 25 years.
Tenancies & Accommodation
Location Description
Battersea is a district of South West London, England, within the London Borough of Wandsworth. It is located on the south bank of the River Thames, 2.9 miles (4.7 km) southwest of Charing Cross. Transport links are provided by Clapham Junction rail station and Clapham Common underground station (Northern Line). Nearby occupiers include Co-op Supermarket, Sainsburys, Pizza Hut and Café Nero, amongst many more.
