1 The Arcade, Newbury, Berkshire, RG14 5HB

Description

The property comprises a high yielding retail investment occupying a pitch on a pedestrianised thoroughfare connecting two principal streets. Arranged across ground floor only, the property is let to private individuals on a recently signed five year lease expiring 01.04.2031 and paying £6,500 per annum. The lease is on internal repairing and insuring terms and includes annual rent reviews linked to CPI. The property benefits from a frontage to The Arcade, a pedestrian thoroughfare connecting Bartholomew Street and Market Square. Nearby occupiers include boutique occupiers and national retailers including Zizzi, Lloyds Bank and Gails. The former Kennet Shopping Centre is to the south and is currently undergoing redevelopment to provide 317 new homes.

Accommodation

Ground floor retail unit measuring 211 sq ft (19.6 sq m)

Location

The Arcade, a pedestrianised thoroughfare connecting Bartholomew Street and Market Square, Newbury. Nearby occupiers include Zizzi, Lloyds Bank and Gails. The former Kennet Shopping Centre is to the south and is undergoing redevelopment to provide 317 new homes.

Tenure / Property Information

Investment Analysis

The £20,000 guide is the only directly relevant pricing evidence supplied. The sold comparables are residential flats/maisonettes and are not suitable for valuing this 211 sq ft leasehold retail unit. No commercial sold comparables, formal valuation, buyer premium, administration charge or other acquisition costs are supplied. The current contractual rent is £6,500 per annum, producing a 32.5% gross yield on the guide price before costs, but this should not be treated as a market valuation or guaranteed return.

Investment Snapshot

Strategy Recommendation

Consider only as a small income-focused commercial leasehold investment, subject to confirming the lease, tenant covenant, title, repairing obligations and all auction costs. Do not rely on a flip or refinance strategy without independent commercial valuation evidence.

Works Required

No physical refurbishment works are identified in the supplied evidence. The unit is described as let on internal repairing and insuring terms. Allow separately for legal, lease-review and acquisition costs, but no amounts are provided.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR analysis cannot be completed because no supported commercial GDV, refurbishment budget, valuation evidence or refinance terms are supplied. The 999-year lease with peppercorn rent may assist long-term ownership, but refinance proceeds cannot be estimated from the available evidence.

Buy-to-Let Analysis

At the £20,000 guide, the evidenced contractual rent of £6,500 per annum equates to a 32.5% gross yield before acquisition costs, finance, tax, insurance, maintenance and voids. The five-year lease expires on 01.04.2031 and includes annual CPI-linked rent reviews, providing contractual income evidence. However, the tenant covenant, lease terms, service-charge position, repairing obligations and all acquisition costs require verification before bidding.

Flip Analysis

A flip analysis is not supported. No commercial resale comparables or GDV are supplied, and no refurbishment requirement or selling-cost allowance is evidenced. The property is currently let, so resale would also need to reflect the existing lease and contracted rent.

Investor Risks & Due Diligence

• The supplied sold comparables are residential and do not establish the retail unit's market value.

• The five-year lease expires on 01.04.2031, creating lease-renewal or vacancy risk thereafter.

• The tenant covenant and financial strength are not supplied.

• No EPC, building-services, title, service-charge or detailed lease information is supplied.

• Buyer premium, administration charge and other acquisition costs are not supplied, so total cost and net yield cannot be calculated.

• The 32.5% yield is based on the guide price and contractual rent only; it excludes all ownership and transaction costs.

• The unit is very small at 211 sq ft, which may limit occupier demand and resale liquidity.

Recommendation

Consider only as a small income-focused commercial leasehold investment, subject to confirming the lease, tenant covenant, title, repairing obligations and all auction costs. Do not rely on a flip or refinance strategy without independent commercial valuation evidence.

Strategy Rating

Analysis Confidence

The passing rent, guide price, lease length, tenure and unit size are supplied, but there are no suitable commercial sold comparables, formal GDV, condition assessment, refurbishment budget or buyer/admin fee data.