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Southampton – Residential investment opportunity

35 Rowan Court & 37 Chesterfields, Cobden Avenue, Bitterne Park, Southampton, SO18 1FU

Offers in excess of £2,800,000

Property Type:
Residential
Tenure:
Freehold

Description

A very secure investment opportunity comprising a pair of Freehold purpose built residential blocks let to a Housing Association with an unexpired lease term of two years

  • A total of 29 flats (4 x studios, 21 x one bed and 4 x two bed) and 37 car parking spaces
  • Currently let to Vivid Housing Limited (Housing Association) subject to a 25 year lease from 1997 – 2 years unexpired
  • Total potential 2020 Rack Rent: £136,629 – Base Rent of £129,243 pa with additional top up of c.£7,386 forecasted
  • Base Rent subject to annual RPI linked rent reviews
  • Housing Association (HA) sublets each flat to occupational Private Market Rent AST tenants
  • HA responsible for voids, managing and insuring the premises
  • AST Estimated Rental Value if fully let at Market Rent: £215,000 pa
  • HA responsible for reactive repairs and makes an annual RPI linked Sinking Fund Contribution towards Major Repairs
  • Significant asset management opportunities upon lease expiry including direct AST lettings, refurbishment and potential break-up

Unconditional offers in excess of £2,800,000 are invited for the Freehold interest, subject to existing lease and occupation tenancies, subject to contract.

A sale at this price would reflect a net yield of c.4.87% (not including purchaser’s costs) based on the forecasted current lease rent and a gross yield of c. 7.67% based on ERV of occupational ASTs at full Market Rents.

Subject to contract