Investors paid 86.53p per share in the New Listing for this property, and it became available on the Resale market January 27th 2016.
Anchor Point is a rare opportunity in Rotherhithe, London Zone 2. This up-and-coming area includes Canada Water and Surrey Quays, has speedy links to the West End and is just one stop from Canary Wharf. The 3 new-build flats are offered with gearing; amplifying future returns.
- The investment comprises 3 flats in Anchor Point, and is geared at 50% loan-to-value (LTV) of the purchase price. Gearing gives enhanced exposure to property price movements, and the potential for amplified returns; though investors must note amplified negative returns if prices fall.
- The property is exceptionally well located, it is just 6 minutes distance to Rotherhithe Overground Station and only 9 minutes walk to Canada Water Underground Station. The flats are just one stop on the Jubilee Line or 3 minutes ferry ride from the financial centre of Canary Wharf.
- The area is home to Surrey Quays Shopping Centre, a 309,000 square feet retail space, with 40 stores, cinema and other attractions as well as an array of local parks.
- Developer British Land is proposing a £2bn redevelopment of Canada Water with the construction of 3,500 homes, a new high street, a town centre, a cultural and entertainment hub, a new leisure centre and a potential new university campus.
- Our exit strategy is to sell the units individually rather than as a single investment, thereby realising the discount that we have secured from buying in bulk.
You can read more on the investment case, here.
Property Partner does not provide advice and nothing in this Overview should be construed as investment or tax advice. The information which appears in this Overview is for general information purposes only and does not constitute specific advice.
The mortgage is provided by a major high street bank and has a two-year fixed interest rate of 3.85%. After this two-year period, the interest rate will switch to a variable rate based on the bank's base rate. At that point, we will assess the situation and either continue with the variable rate or fix the interest rate for an additional period. We have assumed a constant cost of debt and no rental growth in our annual income forecast. Please refer to our blog post on geared property for further details.
The flats were acquired brand new and vacant. We have set aside a contingency of £600 per flat for any minor issues that are identified after purchase. There is also a provision of £10,800 for furnishings.
The total rent forecast for the 3 flats is £75,000 per annum. The number of vacant flats may vary month to month. For prudence we have factored into our forecasts an annual void rate of 3.8% and have not included any growth in rental values.
At the current level of rent, Gross Rental Yield would be 3.97% and the forecast Dividend Yield 1.78% (fully accounting for and after mortgage interest payments, purchase costs, furnishings, forecast maintenance, annual voids, corporate taxation and all fees). From April 2016 UK taxpayers are entitled to a £5,000 annual dividend allowance. See our FAQs here for more information.
This transaction was approved by our RICS qualified Director of Property.
Flat 4 is a two bedroom flat on the first floor, with an open-plan kitchen and living room. There is also a family bathroom.
Flat 7 is a two bedroom flat on the first floor, with an open-plan kitchen and living room. The master bedroom has an en-suite shower room, in addition to a separate family bathroom.
Flat 9 is a two bedroom flat on the second floor, with a separate kitchen and living room. There is also a family bathroom.
All flats benefits from a balcony and a right to park.
- Share Valuation
- House Price Index
- Rental Income Breakdown
- Latest Valuation
- Latest Share Valuation
- Latest Property Value
- Amortised Purchase Costs
- - £796,840
- Deferred Tax
- - £8,682
- Latest Valuation
Note: The estimates provided do not constitute valuation advice; it remains your responsibility to determine valuation.
The HPI is an official statistic that captures changes in the value of residential properties across England and Wales. It is published by the Land Registry, which is a UK government organisation.
Note: Past performance is not a reliable indicator of future results.
Residential property investment is a total returns product. This information is the income component only. Increasing capital values have historically driven most of the return.
- Gross Rent per year (E)
- Service Charges
- - £7,077
- Gross Rental Revenue
- = £67,923
- Gross Rental Yield
- - £50,314
- Annual Interest Payment
- Letting and Management
- Property Insurance
- Allowance for possible voids
- Maintenance Allowance
- Corporation Tax
- Dividends per year
- = £17,609
- Dividend Yield
Note: UK taxpayers are currently entitled to a £5,000 annual dividend allowance. This means that the total income related tax you pay is no greater than if you were to own the property directly. Gross rent and dividends may be lower than estimated. Tax treatment depends on individual circumstances and may be subject to change in future. See FAQs for more information on taxation. The Dividend Yield assumes an investment at the Latest Valuation.
Flats 4, 7, 9 Anchor Point, London, SE16 5AD,