46 Harley Street

London W1G 9PT

Overview

  • Prime West End investment situated within the world renowned Harley Street Medical Area
  • Striking Grade II listed mid terraced Georgian townhouse arranged over lower ground, ground and four upper floors
  • 99 year long leasehold interest from 6 January 1961 (approximately 40 years unexpired) with reversionary lease to upper floor residential apartment that expires 6 January 2150
  • 4,091 sq ft GIA of medical space on lower ground to second floor with residential accommodation above
  • Lower ground to second floor multi let medical accommodation with three bed recently refurbished residential maisonette above
  • Potential to create value by extending the leasehold interest, settling the outstanding rent review and extending lease terms subject to negotiations
Offers invited in excess of £3,950,000, reflecting a NIY of 3.98%, subject to contract and exclusive of VAT reflecting a low capital value of £965 per sq ft GIA

Location

The iconic Harley Street, known as the international centre for private medical practice

46 Harley Street is situated within Marylebone, being neighboured by many of London's most exclusive commercial and residential locations including Mayfair, Fitzrovia and Regent's Park. The timeless, yet stylish area is well known for its strong community, quality of retail and amenity and academic institutions.

The surrounding area of Marylebone has seen an influx of new occupiers and retailers in recent times, with the area becoming one of the most popular retail destinations of central London, whilst retaining its village like atmosphere.

The area benefits from excellent amenities and is a short walk away from Oxford Street, Bond Street and Regent Street. Whilst Marylebone is in a prime location, able to take advantage of some of London's finest parks with Regent's Park and Hyde Park nearby.

Situation

The property is located in the heart of the internationally renowned Harley Street Medical Area. The area is globally recognised for offering the most exclusive healthcare provision by the medical arena's leading consultants.

The property is located in the centre of Harley Street, with Weymouth Street to the south and Devonshire Street to the north.

Harley Street's medical story dates back to the 1800s when doctors began frequenting the townhouses, living in the uppers and practicing from the lower floors, which offered exceptional accommodation and fantastic proximity to Middlesex Hospital.

Today, the Harley Street Medical Area is home to over 3,600 clinicians, the largest concentration of medical excellence across the globe. Occupiers include The Harley Street Clinic, The Heart Hospital, King Edward VII Hospital and The London Clinic.

46 Harley Street is well connected, being within walking distance to Baker Street (Bakerloo, Circle, Hammersmith & City, Jubilee and Metropolitan), Bond Street (Central and Jubilee) and Oxford Circus (Central, Bakerloo and Victoria).

Site Plan

A site plan can be viewed within the link below.

Description

The property comprises a striking Grade II listed mid terraced Georgian townhouse reconstructed around 1910 with attractive decorated Portland stone elevations.

The accommodation is arranged over lower ground, ground and four upper floors with medical accommodation of the lower floors and a residential maisonette (refurbished in 2017) on the third and fourth floor. The lower ground floor and second floor have recently undergone tenants fit out works to a high specification. The lower ground floor includes some vaulted storage and plant accommodation to the front, beneath Harley Street.

Internally, the property benefits from a single staircase between all floors, multiple treatment rooms, large ground floor waiting area with reception, administrative offices and storage accommodation.

Accommodation

Use

Under the headlease, use of the property is residential; however, by a Deed of Variation dated 15 October 1985 and 17 July 2019, the freeholder has permitted the use of the lower ground for medical use within Class D1(a) and the ground, first and second for a waiting room on ground and the remainder as consulting rooms or suites for no more at any one time than five medical surgical or medical practitioners. Practitioners to be subject to conditions and require pre approval in writing to be "Approved Practitioners".

A schedule of accommodation can be viewed within the link below.

Floor Plans

Further information can be found within the marketing particulars.


Tenure

  • 99 year long leasehold from 6 January 1961 (c.40 years unexpired)
  • Deed of Variation dated 15 October 1985 / 17 May 2016 and 17 July 2019. 17.5.16 - Headlease excludes upper maisonette. 17.7.19 - Variation of existing user clause.
  • Current rent of £12,000 per annum. By lease amendment, the ground rent is reviewable 5 yearly to 10% of the market rent of the commercial demise to 24th June 2020 and then 15% of the market rent on 24th June 2025 and 5 yearly thereafter.
  • There is a reversionary lease to the upper floor residential apartment which expires on 6 January 2150 at a peppercorn ground rent.

Tenancy

Landlord bears prorata cost of receptionist under Ching lease & building insurance of the residential maisonette

Leases are mix of FRI by way of service charge and internal repairing and insuring

Lower Ground Floor (The Mole Clinic Limited)

  • 10 yrs 17.7.19 (Mutual break 16.7.2024)
  • Rent £42,000 per annum (Outside L & T Act)

Ground Floor Rear (Ching)
  • 21 years 24.6.2001 expiring 23.6.2022
  • Rent £16,000 per annum (Outside L & T Act)
  • Rent review 24.6.2021

1st Floor (Dent 1st limited)
  • 9 years from 1.4.2013 expiring 31.3.2022
  • Rent £34,000 per annum
(Inside L & T Act) - Outstanding RR 1.10.19
(Notice Served @£50,000)

2nd Floor
(Gynaecology Solutions Ltd & Medical Health Alliance Ltd)
  • 5 years from 24.6.2019 expiring 23.6.2024
  • Rent £45,000 per annum (outside L&T Act)
  • Mutual option to break 23.6.2022
Majority costs recoverable through service charge

3rd-4th Floors
  • Let on a two year AST from 23.5.2018-22.5.2020 at a rent of £54,600 per annum. Mutual option to break at any time after 23.7.2019 by two months' notice
Total Gross Rent £179,600 per annum
(Net Rent £167,531 per annum)

Covenant Information

Further information on financials is available within the dataroom.

VAT

We understand the Property is not elected for VAT.

Planning

The property is Grade II listed and located within the Harley Street Conservation Area.

Dataroom

Access to the online data room is available upon request.

EPC

Lower Grd-2nd Fl
D 88

3rd - 4th Floor
D 59

FURTHER INFORMATION

The property may be inspected by prior appointment through the vendor's agents.
No approach is to be made directly to the property.

Proposal

Offers are sought in excess of £3,950,000 (Three Million, Nine Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT reflecting a low capital value of £965 per sq ft GIA. A purchase at this level reflects a Net Initial Yield of 3.93%, allowing for purchaser's cost of 6.53%

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NET INITIAL YIELD:
3.98%
PRICE:
£3,950,000
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