Offers Over £650,000
Residential block generating attractive guaranteed rental yields
Tyronash Real Estate is proud to bring to market this buy-to-let opportunity in The Old Smokehouse in Canning Town
The Old Smoke House is an architecturally striking new build development set in the heart of the £3.7bn Canning Town and Custom House regeneration master plan. This iconic new building is built to the highest standards and encompasses the very latest technological advances
These exceptional apartments are located within a sought after residential area and comprise of a high specification finish throughout with private balconies and generous room proportions.
The properties are finished to an excellent specification including oak doors solid wood flooring, underfloor heating throughout and, bespoke kitchens Smeg appliances, triple glazing throughout. All of the properties offer private balconies and secure parking is available on request.
The specification includes a lift to all floors, triple glazing throughout, Oak doors, bespoke kitchens by Urban Myth and Hansgrophe sanitary ware to the bathrooms.
THE INVESTMENT CASE
- 7 recently built apartments with outdoor space and underground parking in Canning Town
- The building completed in 2020 and is now fully let to serviced apartment provider, Flying Butler
- The investment comes with the benefit of guaranteed rent.
- Flying Butler is on a brand new 5 year lease with 3% fixed increase in rents every year.
- This means there are no lettings fees, no property management fees and no empty void periods.
- Flying Butler will pay a £236,250 NET rent increasing to £265,901 by year 5.
- This translates to 4.5% NET yield on the purchase price increasing to 5.1% NET yield by year 5.
- On a private rental model with voids and fees the equivalent GROSS yield on the purchase price would be 5.6% increasing to 6.5% by year-5.
- SPV Purchase available to minimise SDLT
Occupancy has been 100% since the building was completed. Originally the units were let on ASTs to private tenants. More recently we have put in place the lease with flying butler on the terms specified. Flying butler is a serviced apartment operator and rents the rooms to their clients and pays us the rent specified in our lease with them. Flying butler keeps the spread. Noted
This is extremely attractive on a new build central London residential block.
There is no management required. The whole point of this opportunity is that there is a high yielding attractive lease in place from the outset.
The vacant site on Shirley Street, a secondary street in Canning Town, east London, was previously used as a fish smokehouse. We obtained planning permission for a mixed use development incorporating a basement car-park, ground floor office space, and nine apartments of various sizes on the upper three floors. The top floor, with private lift access and terraces, is a three-bedroom penthouse apartment.
Fun fact: this used to be a vacant sign on Shelley street and used to be a
The Old Smoke House is superbly located being within 0.2 miles of Canning Town Station (Jubilee Line and DLR) allowing easy access to Stratford, Canary Wharf and Central London
In the heart of the £3.7b Canning Town and custom house regeneration master plan
The development is ideally located just minutes from Canning Town Tube, DLR and Bus station. Canning Town provides easy access into some of London’s key destinations including Canary Wharf, The O2, The City, London City Airport and the London Olympic Park. Canning Town and the surrounding area is fast becoming one of London’s most desirable addresses.
This re-emerging area of East London is experiencing a gentrification second to none. The regeneration is to encompass the rebuilding of the historic Rathbone Market, new town centre, the creation of a state of the art business district in Royal Docks and the arrival of Cross Rail. It is hard to imagine a better location for sustainable house price growth over the coming years.
Price:Offers Over £650,000
Address:Shirley Street, London, E16
Property Size:6145.00 sqft