Description

Tiger House is a mixed-use freehold investment comprising two self-contained, income-producing studio offices together with residential long leases on 12 flats. The property is offered at a purchase price of £2,000,000 and generates £142,550 NOI from the office licences and ground rent received from the residential long leases. The asset provides an attractive combination of immediate income and long-term residential leasehold value.

Location

The property is situated on Burton Street in central London, WC1H, providing a well-connected London location with access to the surrounding commercial, residential and transport infrastructure. The mixed-use nature of the property, together with the residential long leases, provides diversification within a single freehold asset.

Internal Details

The property provides approximately 2,765 sq ft of office accommodation, together with the residential interests within the same freehold:

• Two self-contained studio offices
• Approximately 2,765 sq ft office accommodation
• 12 residential flats subject to approximately 120-year long leases
• 9 flats within Tiger House
• 3 flats at 39 Burton St, connected via the shared car park
• Office accommodation currently income-producing under licence
• Residential long leases generating ground rent of £400 per annum

The two studio offices are held under licences with three-month break notices available to each tenant. The residential flats are held on long leases of approximately 120 years, providing the freehold with an additional layer of long-term value alongside the office income.

Investment / Development Potential

The property is particularly suited to a Tier 2 investor seeking direct ownership of an income-producing central London mixed-use asset. It could also work well as a club investment, with the acquisition split between several Tier 1 investors.

Potential strategies include:

• Direct ownership as a Tier 2 investment
• Club investment alongside several Tier 1 investors
• Maintaining the existing office licences and benefiting from the current income stream
• Managing or re-letting the studio offices as the three-month break provisions arise
• Holding the residential long leases as a long-term freehold investment
• Benefiting from diversified income across commercial licences and residential ground rent

The property generates £142,550 NOI, equating to a net yield of approximately 7.13% against the £2,000,000 purchase price. The combination of immediate commercial income and 12 residential long leases provides both income generation and longer-term asset value within a single freehold investment.