Earls Court Road, London SW5:
The long leasehold interest of 180/184 Earls Court Road, London SW5 was purchased in the summer of 2006 for a price of £2.6 million. The property was purchased with vacant possession in part.
The property previously comprised a nightclub arranged over ground floor and basement with two occupied shops at ground floor level. Terms were re-negotiated with the retail occupier and a new lease agreed on the two shops.
It was decided that a greater rental value would be achieved if the nightclub premises were broken up to form two self-contained units, one at ground floor level and one at basement. Terms were then agreed with Wagamama for the ground floor premises and an independent nightclub operator for the basement.
A total rental income of £272,500 per annum was created.
The property was subsequently sold for a figure in excess of £4 million to reflect a yield of around 6%.