Faringdon Lodge, 1 Faringdon Avenue, Harold Hill, Romford, Essex, RM3

• The property is situated within the heart of Romford and following the opening of Crossrail’s new Elizabeth Line, it is now possible to reach Tottenham Court Road in approximately 40 minutes.

• Faringdon Lodge is a supported housing complex scheme providing 25 self contained units.

• Freehold.

• The entire property is let to Penrose Options for a term of 20 years from 1st February 2022 (expiring 31st January 2042), on Internal Repairing only terms subject to 5 yearly upward only rent reviews.

• The lease includes a tenant break option on the 15th anniversary of the term exercisable upon 6 months’ written notice.

• Penrose Options are a wholly owned subsidiary of Social Interest Group who were first established in 1969.

• The rent reviews are linked to CPI every 5 years, collared at 0% and capped at 3%. The next rent review is in Feb 2027.

• The gross rent is 258,485 per annum, but subject to an annual deduction of 39,000 per annum for general management and maintenance costs. Therefore, the net income is  219,485 per annum.

• Assuming CPI remains above 3%, the net rent will rise to 226,070 pa in Feb 2027.

• The investment value is a significant discount to the full vacant possession value.

The Vendors are seeking offers of £2,750,000 (Two Million Seven Hundred and Fifty Thousand Pounds), subject to contract and excluding VAT.

After allowing for purchaser’s costs of 6.40%, the following is would reflect a net initial yield of 7.50% and a capital value of 240 per sq ft.

Assuming CPI remains at 3%, a reversionary yield of 7.73% is projected in Feb 2027.