409-413 Mile End Road,, London, E3 5AJ

Property specification

• Part two and part three storey office building with a total floor area of 16,008 sq ft, on a site of 0.26 acres (0.105 hectares)
• Let to Gateway Housing Association Ltd (D&B Rating of 5A1) on a full repairing and insuring lease with 2.08 years to lease expiry. The lease is outside of the security of tenure provisions of the Landlord and Tenant 1954 Act
• Income of £200,000 per annum from the occupational lease to Gateway, plus £700 per annum less £0.25 for an intermediate long lease from Obscura One GR Limited. Thereby giving a total net income of £200,699.75
• The property has recently been refurbished by the tenant at a cost of circa £1m
• Low base rent at £12 per sq ft
• Asset management opportunities include re-gear the existing occupational lease, re-let the property, extend the existing property or redevelopment for a variety of alternative uses (subject to obtaining the necessary statutory and intermediate landlord consents)
• Future potential to increase the massing on site (subject to obtaining the necessary and statutory intermediate landlord consents)
• Our client is seeking unconditional offers in excess of £3,000,000 for its freehold and long leasehold interests, reflecting a net initial yield of 6.28% and purchaser's costs of 6.46%, subject to contract. A purchase at this level would reflect a capital value of £187 per sq ft.
• £3,000,000 / NIY 6.28%