Kensington mixed-use investment opportunity handed £26.7m price tag
A mixed-use building in Kensington, London has been placed on the market with a price tag of £26,650,000, reflecting a net initial yield of 5.5%.
The property at 129-137 Kensington High Street extends to 24,334 sq ft across five floors and comprises five retail units, a dental practice, and 20 residential flats.
The asset generates a gross income of £1,348,337 per annum, with 65% of this coming from its retail tenants, which include Vodafone, Philip Morris International, Rituals, Läderach, and Paris Baguette.
It has a commercial weighted average unexpired lease term of 7.0 years to expiry and 4.7 years to tenant break options.
Two of the five units trade over both ground and basement levels, while the remaining three trade from ground floor level only.
The residential element and dentist suite are arranged over the first to fourth floors, with the residential accommodation including a combination of studios and one and two bed self-contained flats which are let on a mix of assured shorthold tenancies and regulated tenancies.
The landlord undertook a comprehensive refurbishment of the external facade in 2022, investing over £800,000.
The property is located within the West London borough of Kensington & Chelsea, one of the capital’s most affluent residential and commercial districts.
It is situated opposite Kensington Arcade and the recently-developed Wrights Arcade, as well as a secondary entrance to High Street Kensington Underground Station. The station and arcades benefit from annual footfall of over 15 million passengers per year.
Nearby retailers include M&S, Boots, Zara Home, Massimo Dutti, Whole Foods, and Waitrose.
Green & Partners has been appointed to find a suitable buyer.