Temporary accommodation Investment

Long-dated, CP|-linked reversionary investment secured against a Council covenant within Zone 3 in London. 149 residential units let in their entirety to the Mayor and Burgesses of the London Borough of Croydon operated as Temporary Accommodation under the Council's statutory housing duty with 12.2 years unexpired and annual uncapped CPI linked rent reviews. Freehold. The ground floor petrol station has been sold on a 999-year lease at a peppercorn. CPI (All Items) upwards-only rent reviews received annually each 1 August, providing structural downside protection against deflation, with no upper cap. Current passing rent of £1,569,999 per annum. The vendor will top up to the 1 August 2026 rent review, assuming 3.0% CPI, resulting in a passing rent of £1,617,098 per annum. Total rental income receivable of £1,632,098 per annum, including ancillary income. Projected cumulative rent over the remaining lease term of approximately £22,500,000, assuming 2.5% annual CPI. The lease is contracted outside of the Landlord and Tenant Act 1954. Optionality at expiry includes a tenant call option for a further 21-year lease or an option to purchase at 95% of vacant possession value (Red Book valuation), exercisable within a 12-month window during 2036–2037, providing certainty for the landlord at lease expiry.