11-33 bonchurch road · the portfolio consists of twenty-two, 2 bedroom flats (92%) and two 1...

11-33 BONCHURCH ROAD BRIGHTON, BN2 3PJUNBROKEN RESIDENTIAL INVESTMENT OPPORTUNITY

2 11-33 BONCHURCH ROAD, BRIGHTON

UNBROKEN FREEHOLD RESIDENTIAL INVESTMENT OPPORTUNITY


• Freehold interest of an unbroken block of 24 residential flats

• A stabilised residential investment opportunity which is fully let, except for Flat 17, which has recently been fully refurbished

• Potential to add significant capital and rental value by continuation of the rolling refurbishment programme

• Gross passing rent of £260,008 per annum

• Net saleable area (NSA) of 1,071 sq. m. / 11,526 sq. ft.

• 21 flats are let subject to Assured Shorthold Tenancies (ASTs) and 2 flats are let subject to Regulated Rent Act 1977 Tenancies

• Low tenant turnover with a current average tenancy duration of approximately three years, providing a stable income stream

• Situated in a desirable residential area within Brighton approximately 1.1 miles east of Brighton train station and approximately 1.1 miles north of the seafront

UNBROKEN FREEHOLD RESIDENTIAL INVESTMENT OPPORTUNITY

Front of property facing onto Bonchurch Road

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With a population in excess of 290,000, Brighton and Hove is a very popular seaside town in the UK, and one of the main economic drivers of East Sussex.

LOCATIONBrighton is a popular seaside town on the south coast of England and is part of the city of Brighton and Hove. The town is situated at the eastern end of the South Downs National Park.

The property is situated north east of Brighton city centre, approximately 1.1 miles east of Brighton train station, 1.2 miles north west of Royal Sussex County Hospital and approximately 1.1 miles north of the seafront. Key retail provisions are found approximately 0.4 miles to the north west.

With a population in excess of 290,000, Brighton and Hove is a very popular seaside town in the UK, and one of the

main economic drivers of East Sussex. The town is known for its vibrant cultural scene and growing reputation as a TMT (technology – digital media – telecommunications) employment cluster.

Brighton and Hove has exceptional connectivity to the wider South East and is approximately 35 minutes’ drive or train from Gatwick Airport. Direct, regular trains run to London in as little as 55 minutes (source: Trainline).

The University of Brighton is located within walking distance, less than 1 mile from the property, to the north. Approximately 33,500 students study at this university.

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11-33 BONCHURCH ROAD, BRIGHTON


About 15min walk

PrestonPark

TheLevel

HovePark

St. Ann’s Well Gardens

Sheepcote ValleyCamping and Caravanning Site

HoveCemetery

BlakersPark

Rottingdean and Newhaven

Shor

eham

Ports

lade

YellowaveBeach Sports

Volk’s Electric RailwayAquarium Station

Volk’s Electric RailwayBlack Rock Station

HoveStationAldrington

Station

BrightonStation

King AlfredLeisure Centre

BrightonRacecourse

Brighton GeneralHospital

Preston Manor

Booth Museum

Royal SussexCounty Hospital

West Pier

CoralGreyhoundStadium

University of BrightonMoulsecoomb Campus

Hove Museumand Ar t Gallery

Hove Town Hall

Hove Lagoon

HoveLibrary

Brighton Pier

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11-33 BONCHURCH

ROAD

NOT TO SCALE - FOR INDICATIVE PURPOSES ONLY

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INVESTMENT SUMMARY

The investment opportunity comprises the freehold interest of a portfolio of 24 purpose built residential flats, situated along Bonchurch Road.

The portfolio consists of twenty-two, 2 bedroom flats (92%) and two 1 bedroom flats (8%). Every flat benefits from private outside space provided by either a garden or balcony.

The portfolio is 100% let with the exception of Flat 17, which has recently been fully refurbished

Twenty-one of the flats are let subject to ASTs and two flats are let subject to Regulated Tenancies.

The current owner has undertaken a refurbishment programme since acquisition, having partly or fully refurbished units as and when they have become vacant. Approximately 30% of the portfolio is considered to be very well presented internally having benefitted from full and recent refurbishment, with the balance considered to be in average to good internal standard.


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61.6m65.4m

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93

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The Hartington

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Elm Grove Primary School

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Wellington House

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Education Junior

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Sugarloaf ApartmentsShelter

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Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250

TENANT PROFILE

REFURBISHMENT

The tenant profile primarily consists of local working professionals including couples and sharers.

The property has an impressive average tenancy duration, which currently stands at three years.

Since acquisition the current owner has undertaken a refurbishment programme, internally refurbishing the flats as and when they have fallen vacant. Ten flats have received a “full” refurbishment (including Flat 17) and five flats have received an “intermediate” refurbishment.

A full refurbishment comprises the entire flat, whereas an intermediate refurbishment comprises replacement of either the kitchen or bathroom, flooring, blinds and minor repairs and decorations.

MANAGEMENT

The property is currently managed by Allsop Letting and Management, based locally in Brighton. The lettings are undertaken jointly by Hanover Homes and Whitlock and Heaps.

An incoming purchaser has the opportunity to retain Allsop Letting and Management as property managers, with their extensive knowledge of the property, but is not contracted to do so.

INCOME UNIT PRICING

The gross passing rent is £260,008 per annum.

An incoming purchaser has the opportunity to continue the current refurbishment programme and substantially increase value and rental income.

With minimal void periods between tenancies, coupled with an average tenancy duration of three years, the property provides a steady and secure income stream.

Our opinion of the aggregated Estimated Realisation Price (ERP) of the portfolio is £5,510,000.

This reflects individual unit prices of £190,000 for the one bedroom flats and £230,000 - £245,000 for the various two bedroom flats.


NOTE:- Reproduced from the Ordnance Survey Map with the permission of the Controller of H.M. Stationery Office. © Crown copyright licence number 100024244 Savills (UK) Ltd.NOTE:- Published for the purposes of identification only and although believed to be correct accuracy is not guaranteed.

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RESIDENTIAL TENANCY SCHEDULE

Flat No.No. of

BedroomsFloor

Net Sales Area (Sq Ft)

Outside Space

Tenancy Type

Passing Rent (£ pcm)

Passing Rent (£ pa)

Tenancy Start date

Tenancy End date

11 1Lower

Ground538 Garden REG £672 £8,060 08-Apr-05 -

11a 2Lower

Ground484 Garden AST £971 £11,652 16-Mar-18 15-Mar-20

13 2 Ground 441 Balcony AST £988 £11,856 29-May-18 28-May-20

13a 2 Ground 487 Balcony REG £802 £9,620 08-Apr-05 -

15 2 First 483 Balcony AST £962 £11,544 21-Dec-17 20-Dec-19

15a 2 First 487 Balcony AST £977 £11,724 31-Mar-17 30-Mar-20

17 2Lower

Ground484 Garden AST - -

Recently Refurbished

-

17a 2Lower

Ground489 Garden AST £995 £11,940 13-Dec-18 12-Dec-19

19 1 Ground 472 Balcony AST £922 £11,064 22-Jun-18 21-Jun-20

19a 2 Ground 487 Balcony AST £993 £11,916 09-May-15 08-May-20

21 2 First 488 Balcony AST £950 £11,400 28-Jun-17 27-Jun-20

21A 2 First 489 Balcony AST £954 £11,448 05-Mar-10 04-Mar-20

23 2Lower

Ground486 Garden AST £966 £11,592 28-Nov-14 27-Nov-19

23a 2Lower

Ground482 Garden AST £1,025 £12,300 21-May-18 20-May-20

25 2 Ground 487 Balcony AST £988 £11,856 25-May-18 24-May-20

25a 2 Ground 485 Balcony AST £820 £9,840 26-Feb-08 25-Feb-20

27 2 First 495 Balcony AST £982 £11,784 31-Jul-17 30-Jul-20

27a 2 First 486 Balcony AST £925 £11,100 01-Sep-18 31-Aug-19

29 2Lower

Ground472 Garden AST £931 £11,172 21-Dec-17 20-Dec-19

29a 2Lower

Ground462 Garden AST £950 £11,400 29-Jul-19 28-Jul-20

31 2 Ground 484 Balcony AST £979 £11,748 13-Nov-17 12-Nov-19

31a 2 Ground 409 Balcony AST £982 £11,784 16-Jun-17 15-Jul-20

33 2 First 482 Balcony AST £959 £11,508 09-May-17 08-May-20

33a 2 First 466 Balcony AST £975 £11,700 14-Jun-19 13-Jun-20

24 11,525 £21,667 £260,008

*Measurements have been provided by the Vendor and are not verified by the agents.



INDICATIVE FLOORPLANS

The following images are illustrative of the typical apartment layouts across the portfolio.

Full floor plans can be found in the Dataroom.

31 Bonchurch Road - Ground floor11 Bonchurch Road - Lower Ground floor 13 Bonchurch Road - Ground floor

ELM PARK MANSIONS, EASTBOURNE 10

RESIDENTIAL RESEARCH

CAPITAL VALUE GROWTH

SAVILLS HOUSE PRICE FORECAST

2019 2020 2021 2022 20235-year compound

growth

South East 0.0% 2.0% 2.5% 2.0% 2.5% 9.3%


Source: Savills Residential Research

Since previous peak values in 2008, average capital values in Brighton and Hove have increased by 47%, compared to the rest of England and Wales which have grown by 23%.

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Brighton and Hove East Sussex South East England & Wales

ELM PARK MANSIONS, EASTBOURNE11

AVERAGE RENTS & RENTAL GROWTH

SAVILLS RENTAL PRICE FORECAST

2018 2019 2020 2021 2022 20235-year compound

growth

UK 0.5% 1.0% 2.0% 3.0% 3.5% 3.5% 13.7%

UK exc. London 1.5% 1.5% 2.0% 2.5% 2.5% 2.5% 11.5%


Source: Savills Residential Research

Average one bedroom rents in postal code location BN2 grew by 3.67% from Q4 2016 to Q1 2019, and two bedroom rents grew by 2.49%. Across Brighton and Hove, over the same time period, one bedroom rents grew by 4.71% and two bedroom rents by 3.13%.

In Q1 2019 the median and upper quartile rents in BN2 were as follows:

• 1 bedroom – average: £903 pcm / upper quartile: £998 pcm

• 2 bedroom – average: £911 pcm / upper quartile: £1,053 pcm

The average rent for a one bedroom apartment in the Bonchurch Road portfolio is currently £762 pcm and the average rent for a two bedroom apartment is £932 pcm. This demonstrates the potential for significant rental growth.

In Q1 2019 the average and upper quartile rents across Brighton and Hove were as follows:

• 1 bedroom – average: £911 pcm / upper quartile: £1,007 pcm 2 bedroom – average: £1,252 pcm / upper quartile: £1,405 pcm

£700

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Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019

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1 Bed - BN2 2 Bed - BN2 1 Bed - Brighton & Hove 2 Bed - Brighton & Hove

Contacts

Andrew Wood MRICS Associate Director Residential Capital Markets [email protected] 020 3107 5474

James Nicholls MRICS Surveyor Residential Capital Markets [email protected] 020 7409 8070

Piers de Winton MRICS Director Residential Capital Markets [email protected] 020 7016 3816

FURTHER INFORMATION

LegalThe property is owned freehold and held under H.M Land Registry Title Number (ESX48431).

ViewingsInternal viewings are to be arranged through Savills. Please make contact via the details below if you wish to inspect the property.

Data Room

Further information can be found on the data room using the following link

www.savills.com/bonchurchroad

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 | August 2019

11-33 bonchurch road · the portfolio consists of twenty-two, 2 bedroom flats (92%) and two 1...

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