London, W2 1NR
|Size||8,631 sq ft|
|Freehold Price||Offers in excess of £7,000,000 Subject to Contract & exclusive of VAT reflecting a NIY of 5.02%|
|Energy Performance Rating||This property has been graded as 78 D|
Paddington is a popular commercial and residential area situated ½ mile north of Hyde Park. The area has been significantly developed in recent years with a number of high profile developments in the area that include West End Quay, Paddington Basin a major waterside office, residential and leisure destination and most recently Merchant Square an 11 acre mixed use development. St Mary’s Hospital Trust are currently looking into partners for the hospital being redesigned and re-built which will be fully funded from the sale of parts of its Paddington Campus. The building is located on the south side of Praed Street at the junction with Sale Place. On the opposite corner of Sale Place is the newly re-developed Summit House sales office for JC Decaux, the world’s leading outdoor advertising company. Directly opposite is the residential and commercial development known as West End Quay with the St Mary’s Hospital complex approx. 100 metres to the West. Both Paddington and Edgware Road Underground stations are approx. 300 metres away from the property. Occupiers close by include Ryman, Tesco, William Hill, Hamptons International Estate Agents, Post Office & Superdrug, amongst a variety of other retailers.
The property is part of a block developed in the 1980’s comprising of five adjoining buildings of concrete frame construction with brick cladding. The majority of the block is occupied by Point A Hotels.
This property was used as a Doctors Surgery for some 20 years and has recently been converted and refurbished for educational purposes and is now occupied as a school.
The tenants have carried out a comprehensive refurbishment of the property, having spent in the region of £1.4 million.
The premises is arranged over basement, ground and three upper floors. Natural light is excellent as the building is on a prominent corner site. The property benefits from an 8 person lift.
The property is being offered for sale as a Freehold.
The property is let to REAch2 Academy Trust for 10 years from 28th February 2017 on a full repairing insuring lease subject to a schedule of condition at a rental of £375,000 per annum, with 5 yearly rent reviews based on the RPI with a collar and cap of 2% and 5%. There is a tenant’s break option on 27th February 2022. The tenant has recently refurbished the building at a cost of around £1.4 million.
Founded in 2012, REAch2 Academy Trust is the largest primary-only academy trust in the country. It is a growing charitable organisation currently supporting some 55 primary academies across England. The Cornerstone of REAch2 is a solid, unshakeable foundation, defined by exceptional teaching experiences and shared Touchstone values of learning, leadership, enjoyment, inclusion, inspiration, responsibility and integrity. The REAch2 Academy Trust originated from the successful school improvement and partnership work led by Hillyfield Primary Academy in Waltham Forest in East London.
For the year ending 31st August 2016 reported a turnover of approx. £315 million, a pre-tax profit of £198 million and shareholder’s funds of circa £226 million.
The property is used for educational purposes within Class D1.
The property is elected for VAT which will be chargeable on the purchase price. It is anticipated the transaction is to be treated as a transfer of going concern (TOGC).
We are guiding offers in excess of £7,000,000 Subject to Contract and exclusive of VAT reflecting a net initial yield of 5.02% assuming purchasers costs of 6.65%.
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Savoy Stewart is a commercial property agent and commercial property surveyor located on Oxford Street, in the heart of London. We provide comprehensive services that meet specific commercial property needs all around London and the surrounding areas.